How Service Industries Can Transform Themselves into Green Business Industries
International Journal of Management Sciences and Business Research, Vol-5, Issue 4, April 2016, pp.150-168
9 Pages Posted: 16 May 2016
Date Written: April 10, 2016
Green business in service sector is expected to transform industrial economy to service economy and is complied with the trend of world economy development. Environmental benefits and sustainability are two characteristics of Green business. Under the background of the transformation of the world economic structure, what the companies provide to customers should be no longer the pure physical products, but more and more dematerialization services. For example, the companies provide services (or a function, effectiveness) to the customers as the complementation of physical products, which will prolong and strengthen the relationship between providers and customers, make the companies pay more attention to product life cycle cost management, stimulate the companies reducing the consumption of energy and the emission of greenhouse gases, improve the production efficiency and reduce cost. In the green business model, service is expanded to the main components of business model such as, what kinds of product and service will be provided by companies (the process of service creation), how will the product and service be transferred to customers, how will the benefits be captured by providers around service (value realization). In this paper, we have analysed and discussed how Service Industries can transform themselves into Green Business Industries in terms of their opportunities and challenges by considering 21 service sectors. The consequences of going green and sustainability of service sector by technology adoption is also discussed.
Keywords: Green Business, Green business in service sector, Factors affecting green business, Impact of green business
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