A conceptualization of the product/service interface: Case of the packaging industry in Japan

In the globalized economy, companies compete on their value-added service offer. Japanese firms have a long tradition of outstanding manufacturing quality. However, the Japanese service industry is less developed in comparison with other OECD countries. Services have often been bundled together with products or internalized in manufacturing firms without separate visibility. We argue that this service bundling can be highly valuable in certain industries where there is a need to increase the service content. The paper uses the interface between product and package to show the potential strengths of the Japanese firms in terms of increasing value-added service in the value-chain. It offers a theoretical contribution to the discussion on the service economy and gives empirical examples from an industry in Japan.