Measuring the economic value of special libraries

Purpose - This study aims to present a new approach to measuring the economic value of special libraries, including certain time-saving effects that the contingent valuation method application cannot exclusively prove. Design/methodology/approach - A cost-benefit analysis is used as a tool to determine whether the benefits of special libraries outweigh the cost incurred in providing the services. The benefits of such libraries are based on estimates of how much the user is willing to pay for the service, as well as the cost of time saved as a result of his contact with library services. A case study was conducted to show how special libraries could apply the proposed model to their library setting to measure the value of the library's services. Findings - According to the case study involving the KDI School Library, the economic value of its library services measured in terms of a B/C ratio was 1.97, serving as strong justification for the library's existence. Originality/value - This study is more specific and accurate than previous studies in that it enables an individual analysis for each service special libraries offer and focuses on the types of benefit derived. It is hoped that the model will help analyze the strength of each library service as well as the total economic value of the library.