Service Pyramid Concept of Knowledge Intensive Business Services in the Small and Medium Sized Enterprises Sector

Abstract

The activity of service companies is more complex today than before the use of Information and Communication Technology (ICT) became widespread in business. Fewer service companies can be found on the market based solely on physical customer interaction; however, they have been replaced with standardized and automated services. This structural change can be observed particularly among Knowledge Intensive Business Services (KIBS) companies where the use of ICT is not simply a market requirement, but a competition tool, as well. Without the application of any ICT instrument, a KIBS company could not meet market expectations, and furthermore, business developments are mainly ICT-based. On the other hand, companies need to develop their businesses more and more, as KIBS companies which are not able to differentiate themselves as trustworthy on the business services market will disappear. ‘Just another business service company’ cannot really sell today. This is applicable to a greater extent to Small and Medium Sized Enterprises (SME), where ICT has opened market opportunities that have never existed for them before. The aim of this paper is to highlight the new features of KIBS business activities in the SME sector and the related research questions.