SEGMENT PROFITABILITY OF THE US BUSINESS SERVICE SECTOR - SOME REFLECTIONS ON THEORY AND PRACTICE

''Business'' services are those services provided for business custome rs. As a group, this sector has been the largest single division of th e US service sector, comprising 25-30 per cent of services as defined by the Department of Commerce over the 1982 to 1992 decade. A least sq uares analysis of cross-sectional information indicated relative marke t share and revenue per employee were statistically significant compon ents of profitability in this sector. States that focus on these facto rs may lend direction to the management of services, especially at the strategic level.