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Timo Rinne

This chapter explores the characteristics of the service sector and its links with the concept of strategic entrepreneurship (SE). This interpretive analysis is based on existing literature about both the service sector and SE and supported by qualitative evidence from the managers of small service firms. The findings in this chapter extend the concept of SE by introducing strong links between SE and aspects of the service business and they suggest that specific domains of SE can be linked either to an employee’s competence or to managerial skills in the service organization. Based on these findings, a new model for strategic human resource management in small service organizations is introduced. In addition, this chapter proposes ideas for future research in the area of SE and strategic human resource management. Key words: entrepreneurship, strategy, organization, human resources, services