Strategic-behavior and development sequences in producer service businesses

Though it is widely recognized that the producer services are among the fastest growing industries in advanced economies, there is little research documenting development experiences of establishments within these industries. In this paper we address this topic by illustrating types of strategic behaviors exhibited by producer service firms and the effectiveness of these behaviors, developing a taxonomy of firm segments, and relating types of strategic behavior to this taxonomy. The paper is based on results from 444 in-depth interviews. Key variables addressed in the analysis are drawn From the industrial sociology and business strategy literature and include organizational structure, age, dynamics of client and geographic markets, and changes in services supplied.