Abstract:The field of service modularity, unlike product modularity, is widely new area in the research. Therefore, there is not much knowledge about the modular service architecture. Therefore, this research tries to fill the research gap and find the key characteristics of the modular service architecture. The objective of the thesis is to create more understanding about the service modularity and the modular value chain structure. This research aims to describe the value chain structure from the perspective of the travel agency and link the roles and responsibilities of customer and suppliers to the modular value chain.To address the issue, comparative study with two companies with different level of modular service architecture is selected. The study is conducted as multiple-case study with semi-structured interviews and secondary data research. To analyze the data a theoretical framework is developed that helps to identify the modular service dimensions and the level of the service modularity.The findings suggest that the highly modular value chain has three important characteristics. The first one is the wide collaboration with customer and co-creation of service offerings. The second one is the long-term relationship with the suppliers. The final characteristic is the continuous two-way communication with its suppliers and customers that enables the responsive and flexible service structure. These findings are formulated as hypotheses that should be further tested with quantitative methods.
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