Managerial Decisions in Service Industry: Case of Information Technology

The service sector has become increasingly important for economic growth and wealth in the United States. It is the fastest growing sector among the three traditional sectors: goods, manufacturing and services. This paper investigates differences in the patterns of decision-making processes between private organizations in the service sector. It specifically looks at IT-purchasing decisions of three private corporations. The paper is based on a literature review that provides a theoretical basis for the analysis, expert interviews and a set of (informal) questionnaires that were sent out to mid and high-level decision makers of the three organizations.