Implications of the shift from manufacturing economy to service economy

In the past few decades, there has been a shift from manufacturing to service economy in many places of world. With specific reference to Hong Kong, 95% of Hong Kong’s GDP is made up by the service industries. Conceptually, these two economies are associated with different production characteristics, organizational structures, and desired attributes of workers and leaders. In this paper, the differences between these two economies in terms of the production modes are discussed. In particular, the implications of the economy on effective leadership requirements are outlined. With specific reference to the service leadership model proposed by the Hong Kong Institute of Service Leadership and Management, the 12 dimensions of the service-oriented personal brand and the 25 principles of service leadership are highlighted.