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This study aims to identify means to overcome some of the current problems in public service productivity measurement. The objective is to develop a new method for measuring productivity in large public organizations.

The research is carried out as a constructive case study in the City of Helsinki, Finland. Interviews are used in order to identify practical requirements for measurement. The measurement data from around 200 units is used in testing the method.

The new method applies an approach proposed in the literature. It aggregates measurement information from component measures used at the operative level. Based on test calculations and evaluation it is argued that the new method is managerially more relevant than a conventional method.

This study tested the method only to a limited extent. It is necessary to gain more understanding by applying the method in different organizations, and by using longer time periods.

Current productivity measures of public services have been criticized for providing information that lacks managerial relevance. The method described in this study aims to improve relevance in two ways. It enables the gathering of more detailed measurement information from the operative levels of large organizations. In addition, it facilitates the use of different measurement methods in different service providing departments and units.

Many of the existing studies examine productivity measurement at the macro‐level. This study presents a measurement method that is a step forward in developing more sophisticated measurement systems in public organizations. The study also describes and highlights the role of component productivity measurement at the operative level.

The aim of the paper is to describe the differences between networked and non‐networked firms' methods intended to increase profitability, methods for intended growth, implemented and intended openness development, and experiences of networking.

The research approach is empirical and descriptive. Data were gathered by mail survey from Finnish software producers.

Networked firms intended to improve profitability by boosting resource efficiency, while non‐networked firms concentrated on price increases. No difference occurred in firms' perceptions of their profitability. Networked firms intended to grow by mergers and acquisitions and by cooperation with partners. Non‐networked firms were eager to grow by developing new software products. Networked firms intended to increase information sharing more and were more open in sharing information concerning firms' technical competencies, cost, and commitments to other organizations. Lack of marketing resources was the most important reason for firms to join a network.

The research setting (how the firms are classified in groups, for example) could benefit from deeper analysis of how network characteristics are connected and which variables best estimate and describe the degree of networking of a firm. A larger sample of firms should be covered to achieve generalizable results. Systematic comparison of industries would also provide essential information on network dynamics.

Networked firms had grown more than non‐networked firms but no connection between profitability perceptions and networking was obtained. In software industry, growth may produce networks but networking seems to support growth.

The aim of this paper is to create a framework in which the behaviour of unit costs in public sector outsourcing situations can be analysed.

Explorative case study concentrating on theory building.

Public sector organisations have not concentrated on analysing or modelling the unit cost behaviour in outsourcing situations. The lack of systematic cost management tools seems to lead to poorly managed and non‐profitable outsourcing projects or ignorance of the possibilities of outsourcing.

By utilising the results of the study, decision making regarding outsourcing in public sector could be based both on forecast cost development and on political judgement instead of relying only on political judgement without understanding cost behaviour.

The paper introduces a new framework to be used as a tool in practice and to be validated in further studies.