Exploratory research: consolidations and economies of scope Available to Purchase

The consolidation of numerous highly‐fragmented US service industries has attracted considerable capital inflows during the 1990s. Fundamental questions about this phenomenon include the sources of value in consolidations, and how these firms avoid the diseconomies of scale and scope noted in the service management literature. This paper introduces the consolidation phenomenon, discusses relevant theory, and begins to develop a framework useful in the understanding of scope economies for services.