Service Sectors Role for Economic Development at Local and National Level

by Çağatay Başarir (Volume editor) Özer Yilmaz (Volume editor)
©2022 Edited Collection 278 Pages


The book of “Service Sectors Role for Economic Development at Local and National Level” consists of 13 chapters. The book covers deep research from different perspectives upon the evolution of services by researchers who are professionals in their research areas. Moreover, different, and rigorous analyses of all areas influenced by service sectors were made to fill the gap of the source about the services with various dimensions.

Table Of Contents

  • Cover
  • Title
  • Copyright
  • About the editors
  • About the book
  • This eBook can be cited
  • Preface and Acknowledgements
  • Contents
  • List of Contributors
  • 1 Service Sector Within the Scope of Industry 4.0 (Arzu Alvan)
  • 2 Emotional Labor in the Workplace: A Meta-Analysis Study (İlksun Didem Ülbeği)
  • 3 Customer Participation, Service Orientation and the Role Ambiguity of Service Providers (Müjde Aksoy and Erdoğan Koç)
  • 4 Analysis of in Air Transportation Sector the Passengers’ Movements and Inflation Interaction with Wavelet Coherence Method (Nalan Gelirli)
  • 5 Digital Transformation and the Impact of Artificial Intelligence on the Hospitality Industry (F. Gül Aygen İspahi)
  • 6 Women Managers’ Perceptions of Organizational Citizenship Behaviors in The North Cyprus Hospitality Industry (Arzu Atan, Hale Ozgit and Fatos Silman)
  • 7 Turkish Validation of the Happiness at Work Scale (İlksun Didem Ülbeği)
  • 8 Strategic Human Resources Management: Is Engagement the Promised Land For HRM? (Halis Demir and Gizem Demir)
  • 9 An Evaluation of Factors Influencing Mobile Banking Adoption within the Framework of the Technology Acceptance Model (Sercan Hatipoğlu)
  • 10 Investigation of Environmental and Social Performance of Integrated Reports in the Turkish Banking Sector (Sibel Kahraman Ak)
  • 11 Interaction Analysis between USD and Non-Performing Loans: A Wavelet Analysis (Şükrü Umarbeyli and Arzu Alvan)
  • 12 Regional Development in the European Union and the Impact of the Service Sector on Regional Policy and Regional Development (Yasemin Başarır and Didem Öztürk Günar)
  • 13 The Impact of Climate Change and EU Green Deal on Port Competitiveness (Elif Koç)
  • List of Figures
  • List of Tables

←8 | 9→

List of Contributors


Assoc. Prof., Kıbrıs İlim University



Asst. Prof., Kıbrıs İlim Üniversity



Phd, Student, İstanbul University


Elif KOÇ

Asst. Prof., Bandirma Onyedi Eylül University


Erdoğan KOÇ

Prof., Bahçeşehir University,



Prof., Cyprus International University



Phd. Trabzon,



Phd. İstanbul



Assoc. Prof., Cyprus International University hozgit@ciu.edu.tr←9 | 10→


Prof., Recep Tayyip Erdoğan University


İlksun Didem ÜLBEĞİ

Assoc. Prof., Çukurova University



Asst. Prof, Bandırma Onyedi Eylül




Asst. Prof., Kıbrıs İlim University



Asst. Prof, Bandırma Onyedi Eylül University



Lect., İstanbul Şişli Voc. School.



Asst. Prof., Kıbrıs İlim University



Phd., Balıkesir


←10 | 11→
Arzu Alvan

1 Service Sector within the Scope of Industry 4.0

Highlights: In this study, the new forms that occur in social, economic and business ways at the last point reached by technological advances in the dynamics of the changing world are discussed in the service sector. At the core of the digitized knowledge economy is a starting point about the flexibility and adaptability of the workforce, because many of the high-demand jobs today didn’t exist two decades ago, so investing in education would be an important step towards achieving that flexibility if we started investing in education as soon as possible. Industry 4.0 is a revolution that requires a fundamental change in everything about the world, from the way we live, the way we produce, and the way we communicate with each other. In this study, Service 4.0 is discussed within the scope of Industry 4.0. The service industry has moved from Service 1.0 to Service 4.0 today. One third of global economic growth is by the service sector. While some companies are still doing business with old-style models, the companies that have undergone transformation are rapidly bringing the end of those who do business with the old version as the pioneers of the industry. Traditional business models are now under the threat of service innovation. Being aware of this, service companies should make a breakthrough as soon as possible and start the transformation with new technologies in order to get a share from this growth.

Keywords: Industry 4.0, Service 4.0, Knowledge Economy, Digitization, Big Data


Production patterns and practices can be studied to understand the workings of the economy. Because it is the production systems that fully reveal the powers of humanity. The most advanced production system during the industrial revolution was mechanized production, which turned into industrial mass production. In our time, it is the digitized knowledge economy. At the core of the digitized knowledge economy is a starting point about the flexibility and adaptability of the workforce, because many of the high-demand jobs today didn’t exist two decades ago, so investing in education would be an important step towards achieving that flexibility if we started investing in education as soon as possible. Private sector companies should cooperate with universities on the issues that industries need, and while universities renew themselves with programs to meet the demands, they should be units where knowledge itself is produced, as well as educating knowledgeable and flexible staff for the economy. Technology is hidden inside the product, as technology develops, it emerges as ←11 | 12→higher quality and differentiated products. The demand for knowledge workers is high in the markets where knowledge economies are moving forward. The supply of programs to train these workers is too small to compare with this demand. In this process, flexible and well-educated individuals are needed. Companies should train workers to be versatile and knowledgeable about every stage of production. For this purpose, joint studies should be carried out with schools and universities that train technical staff (Stiglitz 1999).

One of the ways to make all parts of the economy capable of producing in technologies that lead the knowledge economy in the forms of production stuck in the old technology is to ensure that more people have access to productive resources and opportunities. All educational institutions should be able to respond to this situation that the system has transformed. Of course, this is not a problem that can be solved overnight. It will take time, so act as early as possible. The decentralized market economy, in which different ownership and contracting regimes will experimentally coexist, can no longer adhere to the old version of itself. In the new production systems called Industry 4.0, technological infrastructures that will enable the widespread use of information by digitalization should be created and deepened and expanded in order to increase the productivity of every unit in the economy (Unger 2019).

Starting production with information-based and digital technologies requires the transformation of traditional elements such as production, advertising, marketing and distribution, which have been customary for about 250 years. At this point, the internet, with the opportunities it offers us, facilitates the creation of both individual, economic, commercial and social relations on a new platform, that is, on a digital platform. Since this network can be established much faster and more widely than before, it provides the opportunity to reach all parts of the world in a very short time. For example, Facebook has a social network with connections to 3 billion people. Once the network is established, information can spread between them cheaply and almost instantly. Thus, technology forms the basis of establishing economic and social relations and making transactions between them much more fluent, easier and in a short time than before. In addition, the possibility of unfair attitudes and behaviors that hinder competition in the money economy weakens in digital environments (Brunnermeier, James et al., 2019).

At the level reached in the field of artificial intelligence, machines seem to be candidates to disable the human factor in production and in many parts of the economy, with their equipment that can collect, use and analyze information about almost everything in the digital environment, and even make decisions at the last stage (Ruggles & Holtshouse, 1999; Ruggles, 2009). As can be seen ←12 | 13→in Fig. 1.1, we can understand from the increasing number of manufacturing companies producing robots that the world is going digital in the service sector, as in almost all areas of life. The United States is leading in this regard. The number of companies producing robots in the USA, which was around 150 in 2017, is expected to increase by one and a half times in the near future. In this sector, a considerable number of countries lead after the USA, followed by France, Germany and Japan.

Fig. 1.1.Service Robots Manufacturers by Country of Origin (World Robotics, 2017)

Source: https://ifr.org/news/why-service-robots-are-booming-worldwide

The rapidly expanding use of robots, especially in industries that are traditionally labor-dependent, such as the service industry, and that are sensitive to minimum wages, is fast becoming a necessary de facto proposition for robotics companies. Service industries include cleaning services, security and safety services, delivery services, logistics and warehouse operations, and manufacturing operations. It is clear that the workforce that is expected to be in demand the most in the information economy, besides robots, will be for people who are expert workforce, computer and internet literate, equipped with the ability to process data, develop algorithms and simulation models, and innovate on production processes and systems. Therefore, digitized knowledge is the catalyst and connective tissue in modern economies (Holtshouse 2010).

In the light of all these, the aim of this study is to examine the trends in the service sector within the scope of industry 4.0. In this direction, Industry 4.0 will be discussed in the continuing chapter. Topics such as Web 3 and digitalization, which are the main topics that Industry 4.0 feeds on, will also be examined in ←13 | 14→the following chapters. After the service sector is examined within the scope of Industry 4.0, finally comments and thoughts on the subject will be given.

1 Industry 4.0

In these days when the world is in the process of transition from electronic and physical production forms to production systems dominated by artificial intelligence, the developments in technology are at a dizzying pace. There is a world reshaped before us, and this new world needs new definitions. This transformation is a transformation towards increasingly decentralization of business and production processes that are largely dependent on central authorities. This great transformation that the world is going through is in an increasingly digital form. Digitization penetrates every aspect of life and opens the doors of the virtual world to us. Technological platforms such as blockchain and web 3, which play a leading role in this new digital environment, have begun to include many economic and financial activities from production methods to service models. All these digital production and service systems can be considered within the scope of Industry 4.0.

In this context, the aim of this study is to examine the innovations promised by the fourth industrial revolution to the services sector. In order to understand Industry 4.0, we need to know the industry and production models experienced in previous periods. As it is visualised at Fig. 1.2, at the last decade of 18th century, the transition from simple manual labor to large-scale and standardized production with steam engines can be called the first industrial revolution. This was followed by the second industrial revolution during the late part of 19th century, with the adaptation of electricity to production technologies. In the third industrial revolution, computers were included in the system at 1970s. The fourth industrial revolution, which started at the beginning of the 21st century, includes many systems.

In this new production period, we started to experience the communication and interaction between cyber systems, physical systems and people.

Fig. 1.2.Industrial Revolutions

Source: https://kfactory.eu/short-history-of-manufacturing-from-industry-1-0-to-industry-4-0/

←14 | 15→

1.1 Historical Process of Industrial Revolution

According to the study of the World Economic Forum (WEF), there are four industrial revolutions. In the WEF report1, it emphasizes that the first revolution started in 1784 and the second took place in 1870. Industry 4.0 is the next generation industry that plans its own production, capacity, input, raw material demand, capacity and supply chain. Industry 1.0 was pioneered by the United Kingdom (1840s). The concept of the industrial revolution was first mentioned in a letter written by Otto on 6 July 1799 (Veblen 1990). In the first industrial revolution led by the United Kingdom, we see that the use of steam in machines started to replace manual production with machines. In this process, we see a partial decrease in human labor. An important factor that stands out in the historical process of the industrial revolution is that while the need for manpower decreases in each revolution, the need for qualified manpower increases (Gubán & Kovács, 2017; Rejikumar, Arunprasad et al., 2019).


ISBN (Softcover)
Publication date
2023 (February)
Banking Confidence Index Financial Markets Liquidity Creation Shadow Banking
Berlin, Bern, Bruxelles, New York, Oxford, Warszawa, Wien, 2022. 278 pp., 20 fig. b/w, 32 tables.

Biographical notes

Çağatay Başarir (Volume editor) Özer Yilmaz (Volume editor)

Özer Yılmaz works as an academician in Bandirma Onyedi Eylul University, Management Information Systems Department. He has studies on marketing management, consumer behaviour, service marketing and marketing research. He instructs international marketing, consumer behaviour, marketing research lessons both in graduate and undergraduate degree. Çag˘atay Bas¸arır works as an academician in Bandirma Onyedi Eylul University, International Trade and Logistics Department. He has studies on financial markets, stock exchange markets, commodity markets and precious metals in the field of time series analyses, multi criteria decision analysis and performance measurement. He instructs financial management, financial analysis, financial markets, international finance and portfolio management lessons both in graduate and undergraduate degree.


Title: Service Sectors Role for Economic Development at Local and National Level