Today we identify service articles published in Marketing, Management, Operations, Productions, Information Systems & Practioner-oriented Journals in the last month.
For more information about the alert system methodology go here
For all previous alerts go here
Aguirre, E., D. Mahr, K. de Ruyter, D. Grewal, J. Pelser and M. Wetzels (2017): The Effect of Review Writing on Learning Engagement in Channel Partner Relationship Management, Journal of Marketing, 82(2), pp.64-84
To develop the knowledge and skill sets of channel partner firms, manufacturers increasingly introduce learning programs as part of their relationship management strategies. However, the engagement of channel partners in these programs tends to be low. The current research, conducted in collaboration with a Fortune 100 information technology company, examines ways to strengthen learning engagement. In accordance with self-regulated learning theory, the authors propose and demonstrate that when channel partners write reviews of a learning module that they attended, beyond providing ratings, they are better able to reflect on the relevance of their learning experience and are further engaged in learning activities. The audience and focus of these written reviews determine the engagement of the channel partner sales personnel; therefore, review writing is a valuable, informal mechanism to motivate them. These effects are moderated by characteristics of both the channel partner (salesperson’s learning orientation and identification with the manufacturer) and the relationship with the manufacturer (length and exclusivity).
Link: http://dx.doi.org/10.1509/jm.15.0121 [Google]
Marinova, D., S. K. Singh and J. Singh (2018): Frontline Problem-Solving Effectiveness: A Dynamic Analysis of Verbal and Nonverbal Cues, Journal of Marketing Research (JMR), 55(2), pp.178-192
This study examines the impact of frontline employees’ problem solving on customer satisfaction (CSAT) during ongoing interactions prompted by service failures and complaints. Using outsourced regulation theory, the authors predict negative moderating effects of frontline relational work and displayed affect on the dynamic influence of frontline solving work on CSAT. Frontline employees’ verbal (nonverbal) cues provide the basis to identify solving and relational work (displayed affect). The authors test hypotheses with data from video recordings of real-life problem-solving interactions involving airline customers as well as a controlled experimental study. They find that frontline solving work has a positive effect on CSAT, and it increases in magnitude as the interaction unfolds. However, this positive effect becomes weaker for relatively higher levels of frontline relational work or displayed affect and, conversely, stronger for relatively lower levels over time. In summary, overdoing relational work and overdisplaying positive affect diminish the efficacy of problem-solving interactions, a finding that provides implications for theory and practice.
Link: http://dx.doi.org/10.1509/jmr.15.0243 [Google]
Kumar, V., A. Leszkiewicz and A. Herbst (2018): Are You Back for Good or Still Shopping Around? Investigating Customers’ Repeat Churn Behavior, Journal of Marketing Research (JMR), 55(2), pp.208-225
Service firms develop win-back strategies to rectify issues that cause customer churn and rebuild relationships with lost customers. To better support retention, it is important to understand how the revived relationship evolves and possibly ends again. To examine customers’ repeat churn behavior, we develop a “mixture cure–competing risks” model, jointly estimating the duration of second lifetimes, multiple reasons for churn, and heterogeneity of customers in exhibiting a related churn reason. The proposed model is tested using a data set from a large telecommunications provider including information on customer behavior and marketing activities during customers’ first and second lifetimes. We find support for the existence of a “cured” group of returning customers, defined as those who are not susceptible to churn for the same reason they churned previously. Our findings suggest that mitigating repeat churn behavior can extend customers’ second lifetime tenure and increase profitability by $150,000 over the lifetime of the customers in the sample (leading to gains of over $15 million for deferring second-lifetime churn in a million returning customers), depending on the type of churn.
Link: http://dx.doi.org/10.1509/jmr.16.0623 [Google]
Meyer, J., V. Shankar and L. L. Berry (2018): Pricing hybrid bundles by understanding the drivers of willingness to pay, Journal of the Academy of Marketing Science, 46(3), pp.497-515
Many companies are increasingly selling hybrid bundles, which comprise one or more goods and one or more services. Hybrid bundle pricing depends on understanding consumer willingness to pay (WTP) for the bundle, which rests on trade-offs among the benefits from four key drivers: service autonomy, complementarity, service quality variability, and overall bundle quality (basic vs. premium). The effects of these drivers and their interactions on the WTP of hybrid bundles are unknown. The authors develop hypotheses and test them rigorously using incentive-aligned choice-based conjoint and hierarchical Bayesian analysis. The results offer important guidelines for developing appropriate hybrid bundles. If a typical firm under budget constraint has to offer either of two hybrid bundles, one with high complementarity or one with service autonomy, the results suggest that it should offer the bundle with high complementarity. Furthermore, contrary to the conventional wisdom of minimizing service quality variability for premium quality bundles relative to basic quality bundles, the results recommend lowering service quality variability for basic quality bundles but maintaining it for premium bundles.
Link: http://dx.doi.org/10.1007/s11747-017-0546-5 [Google]
Karina Dahl Steffensen, M. V., Dorthe Crüger, Kathrina Dankl, Angela Coulter, Brad Stuart, and Leonard L. Berry (2018): Lessons in Integrating Shared Decision-Making Into Cancer Care, Journal of Oncology Practice, 14(4), pp.229-235
The benefits of shared decision-making (SDM) in health care delivery are well documented, but implementing SDM at the institutional level is challenging, particularly when patients have complex illnesses and care needs, as in cancer. Denmark’s Lillebaelt Hospital, in creating The Patient’s Cancer Hospital in Vejle, has learned key lessons in implementing SDM so that the organization’s culture is actually being transformed. In short, SDM is becoming part of the fabric of care, not a mere add-on to it. Specifically, the hospital chose and structured its leadership to ensure that SDM is constantly championed. It organized multiple demonstration projects focused on use of decision aids, patient-reported outcome measures, and better communication tools and practices. It designed programs to train clinicians in the art of doctor-patient communication. It used research evidence to inform development of the decision aids that its clinicians use with their patients. And it rigorously measured SDM performance in an ongoing fashion so that progress could be tracked and refined to ensure continuous improvement. Initial data on the institution’s SDM initiatives from the Danish national annual survey of patients’ experiences show substantial progress, thereby motivating Lillebaelt to reassert its commitment to the effort, to share what it has learned, and to invite dialogue among all cancer care organizations as they seek to fully integrate SDM in daily clinical practice.
Link: http://dx.doi.org/10.1200/JOP.18.00019 [Google]
Kumar, V., A. Lahiri and O. B. Dogan (2018): A strategic framework for a profitable business model in the sharing economy, Industrial Marketing Management, 69(), pp.147-160
There is an increasing interest in the rapid rise of the sharing economy, from both academicians and practitioners. Recent research has focused primarily on the relationship between sharing economy firms (service enablers) and customers. Moreover, service enablers have primarily allocated their resources to acquire a critical mass of customers. This study takes a balanced two-sided customer relationship approach toward understanding the dynamics of this triadic business model (service enabler – service provider – customer). To maintain this emerging economy’s fast-growth pace, service enablers should strive to acquire, retain, and win-back profitable service providers and customers simultaneously. We propose a conceptual strategic framework for the development of service providers and customers considering multigenerational aspects based on inferences from the literature, popular press, and interviews with members of the triad in the sharing economy. Based on our investigation, the sharing economy services are mostly adopted by Generation Y, whereas other generations are still in the early phase of adoption. Additionally, customer and service provider churn is high. We argue that this double-sided customer relationship framework will help firms take appropriate measures to keep all the actors involved in the process satisfied, loyal, and profitable in the long run.
Link: http://dx.doi.org/10.1016/j.indmarman.2017.08.021 [Google]
Gulati, R. (2018): STRUCTURE THAT’S NOT STIFLING, Harvard Business Review, 96(3), pp.68-79
Most leaders view employee freedoms and operational controls as antagonists in a tug-of-war. They tend to focus on regulating workers’ behavior, often putting a damper on commitment, innovation, and performance without realizing it. But freedom and control aren’t zero-sum, argues the author. By giving people a clear sense of their organization’s purpose, priorities, and principles—that is, by providing freedom within a galvanizing framework—leaders can equip employees to make on-the-ground decisions that are in the company’s best interests. Gulati uses businesses as diverse as Netflix, Alaska Airlines, and Warby Parker to show how freedom can function in different settings. A coherent framework helps employees develop a deeper understanding of the business, which can lead to improved engagement, creativity, efficiency, and customer service.
Link: http://dx.doi.org/ [Google]
Dawar, N. and N. Bendle (2018): MARKETING IN THE AGE OF ALEXA, Harvard Business Review, 96(3), pp.80-86
Over the next decade, as artificially intelligent assistants like Alexa and Siri become the main channel through which people get information, goods, and services, the way companies acquire, serve, and retain customers will radically change. Because the bots will have deep knowledge about individuals’ habits and preferences, they’ll be able to anticipate a consumer’s needs even better than the consumer herself can. They’ll ensure that routine purchases flow uninterrupted to homes and constantly scan and analyze complex offerings like insurance and data plans for the best deals. And the more AI assistants satisfy consumers, the more trust in them will replace trust in brands. Marketing will soon become a battle for AI assistants’ attention, say Dawar and Bendle. Brands will focus on influencing AI algorithms and compete for placement on the assistants’ platforms. In return, brands will be able to get data on consumers from the platforms. That’s something companies will need in this new world, because AI assistants’ never-ending reassessment of purchases will force businesses to keep producing new tailored offers and innovations for customers. INSETS: WILL BRANDS MATTER?;THE COMING PLATFORM SHAKEOUT;THREE QUESTIONS FOR BRANDS.
Link: http://dx.doi.org/ [Google]
Aristidou, A. and M. Barrett (2018): Coordinating Service Provision in Dynamic Service Settings: A Position-practice Relations Perspective, Academy of Management Journal, 61(2), pp.685-714
How is continuity of service provision supported in dynamic service settings (DSS) when interactions span space and time, and are being increasingly infused by technology? We explored this question through our 18-month qualitative study of the DSS of UK mental health. We found that the pattern of interaction that emerges is constantly reconfigured through processes of spanning time, stretching space, and through distributed agency. Further, we found that service provision does not only occur among work roles with clear (cross)organizational links but also through diverse interaction among current customers and their friends, as well as customer-to-customer interactions. We characterize such service provision which is not anchored to any service organization as being extraorganizational. Further, we highlight the importance of the history of interactions and how trust built through diverse interactions in the past may influence trust building in current interactions. To explain our findings we introduce the concepts of “position-practices” and position-practice relations (PPR) to theorize how diverse interactions among dispersed actors contribute to service provision continuity in DSS. We develop a conceptual process model which identifies processes of spanning time, and the stretching of space by which the PPR web of service provision is dynamically reconfigured, and identify consequences for both our case as well as other dynamic service settings.
Link: http://dx.doi.org/10.5465/amj.2015.0310 [Google]
Yuanguang, Z., Z. Zhichao, M. C. Chou and T. Chung-Piaw (2018): Resource Pooling and Allocation Policies to Deliver Differentiated Service, Management Science, 64(4), pp.1555-1573
Resource pooling strategies have been widely used in industry to match supply with demand. However, effective implementation of these strategies can be challenging. Firms need to integrate the heterogeneous service level requirements of different customers into the pooling model and allocate the resources (inventory or capacity) appropriately in the most effective manner. The traditional analysis of inventory pooling, for instance, considers the performance metric in a centralized system and does not address the associated issue of inventory allocation. Using Blackwell’s Approachability Theorem, we derive a set of necessary and sufficient conditions to relate the fill rate requirement of each customer to the resources needed in the system. This provides a new approach to studying the value of resource pooling in a system with differentiated service requirements. Furthermore, we show that with “allocation flexibility,” the amount of safety stock needed in a system with independent and identically distributed demands does not grow with the number of customers but instead diminishes to zero and eventually becomes negative as the number of customers grows sufficiently large. This surprising result holds for all demand distributions with bounded first and second moments.
Link: http://dx.doi.org/10.1287/mnsc.2016.2674 [Google]
Smirnova, M. M., J. Frösén and V. A. Rebiazina (2018): Customer orientation as a multidimensional construct: Evidence from the Russian markets, Journal of Business Research, 86(), pp.457-467
This study revisits one of the most widely used concepts in marketing – customer orientation (CO) – in the context of the Russian emerging market. Analysis of three sets of survey data, combined with insights from in-depth interviews with industry experts, suggest that customer orientation in the Russian market consists of two distinct dimensions: customer-centric strategy and customer service delivery. Both dimensions contribute to firms’ ability to serve their customers, adapt to their market environment, and optimize growth and profitability. However, the relative impact of the two dimensions of CO does differ across diverse types of performance outcomes, suggesting that both are critical in a firm’s quest to improve its overall business performance.
Link: http://dx.doi.org/10.1016/j.jbusres.2017.10.040 [Google]
Diallo, M. F. and A. M. Seck (2018): How store service quality affects attitude toward store brands in emerging countries: Effects of brand cues and the cultural context, Journal of Business Research, 86(), pp.311-320
This cross-cultural research investigates how store brand perceptual cues and cultural differences affect the relationships between service quality and attitude toward store brands in two emerging countries. Using mall intercept surveys, the authors gather data from 1027 respondents in Brazil and Vietnam. Based on structural equation modeling results show that both positive and negative perceptual brand cues mediate the effects of overall service quality, store physical aspects, store reliability, and personnel attention on attitude toward store brands. Moreover, specific mediation processes arise; perceived price and functional risk mediate these effects in both countries investigated, whereas store brand perceived value and financial risk do not. The cultural context moderates the relationships as well, such that the effects of overall service quality, store physical aspects, and store personnel attention on attitude toward store brands are stronger in Brazil than in Vietnam. However, the effect of store reliability does not differ across countries.
Link: http://dx.doi.org/10.1016/j.jbusres.2017.08.017 [Google]
Balaji, M. S., S. Jha, A. S. Sengupta and B. C. Krishnan (2018): Are cynical customers satisfied differently? Role of negative inferred motive and customer participation in service recovery, Journal of Business Research, 86(), pp.109-118
This study examines the role of consumer cynicism in service recovery, specifically the process through which cynicism influences customer satisfaction. This study also investigates the role of customer participation in the recovery process when alleviating outcomes among cynical customers. Across one pilot study and two experiments, we demonstrate that cynicism negatively moderates the effects of perceived justice on satisfaction. Additionally, we demonstrate the mediating role of negative inferred motive in the relationship between perceived justice and customer satisfaction. Highly cynical customers were found to less favorably evaluate customer satisfaction than less cynical customers, as they infer recovery efforts to be motivated by firms’ self-interest rather than customers’ interest. We also demonstrate that increasing customer participation in service recovery through joint recovery can overcome adverse outcomes and increase customer satisfaction among highly cynical customers. These findings offer important insights for service managers in designing effective service recovery strategies for cynical customers.
Link: http://dx.doi.org/10.1016/j.jbusres.2018.01.023 [Google]
Anning-Dorson, T. (2018): Customer involvement capability and service firm performance: The mediating role of innovation, Journal of Business Research, 86(), pp.269-280
This study contributes to the literature on customer involvement by assessing the influence firm-level customer involvement capability has on service firm performance in two economic contexts. The study further examines innovation as a necessary mediator between customer involvement capability and firm performance. Data collected from service firms operating in two countries, the United Kingdom and Ghana, is analysed and used to validate the article’s theoretical and empirical contributions. The results show that customer involvement capability has a positive and direct relationship with service firm performance in Ghana but a negative and direct relationship in the British context. The implication is that the effect of firm-level capability can be context-specific and that its development must therefore be aligned with the context in which a firm operates. On the other hand, it was found that in both contexts, innovation (product and process) mediated the relationship between involvement capability and firm performance.
Link: http://dx.doi.org/10.1016/j.jbusres.2017.07.015 [Google]
Wang, D., D. J. Morrice, K. Muthuraman, J. F. Bard, L. K. Leykum and S. H. Noorily (2018): Coordinated Scheduling for a Multi‐server Network in Outpatient Pre‐operative Care, Production & Operations Management, 27(3), pp.458-479
Many parts of the healthcare system remain fragmented and outpatient surgical care is no exception. In this study, we develop a coordinated pre‐operative scheduling approach between Anesthesiology and Internal Medicine to optimize patients’ medical conditions prior to surgery. Coordinating these two services has conceptual appeal because any health issues discovered by the anesthesiologist can often be addressed by a general internist. We design a patient‐centered approach that allows the patient to see both providers, if necessary, on a single visit. This problem is modeled as a two‐station stochastic network, where each station (or clinic) may be staffed by multiple parallel providers and patients see the first available provider. To solve the scheduling problem, we formulate an optimization model to maximize the net benefit of scheduling patients. The objective balances benefits against patient waiting time and clinic overtime costs. We develop a scheduling method with a booking limit to create a balanced network schedule. Due to the complexity of this problem, the solution approach is myopic. In addition, we develop a hybrid method that combines analytical calculation and simulation‐based optimization. We demonstrate our approach on a healthcare network at The University of Texas Health Sciences Center in San Antonio. We compare our method against other policies and show that it yields high quality and robust results. Based on the level of generality of our model and results, the insights gained are not limited to the particular application, but can be applied to other patient‐centered models where scheduling coordination can be used.
Link: http://dx.doi.org/10.1111/poms.12800 [Google]
Nazerzadeh, H. and R. S. Randhawa (2018): Near‐Optimality of Coarse Service Grades for Customer Differentiation in Queueing Systems, Production & Operations Management, 27(3), pp.578-595
We analyze a service firm that caters to price and delay‐sensitive customers who are differentiated on both their value for the service and the cost of waiting. There is a continuum of customer types in our setting and we model each customer’s cost of waiting to be linear in the delay incurred with a multiplier that is an increasing linear or sub‐linear function of the customer’s value for the service. Using a large system approach, we characterize the firm’s revenue maximizing menu of price and delay quotations and the value of customer differentiation. We further characterize the value of offering coarse or few service grades and find that offering two service grades is asymptotically optimal on the typical square‐root scale, relative to the optimal policy.
Link: http://dx.doi.org/10.1111/poms.12818 [Google]
Chen, C. M. and D. J. Thomas (2018): Inventory Allocation in the Presence of Service‐Level Agreements, Production & Operations Management, 27(3), pp.553-577
Retailers often use service‐level agreements (SLAs) to evaluate their supplier’s performance. Based on an examination of 70 SLAs from practice, we conclude that in terms of evaluating fill rate, these SLAs vary in at least three key dimensions: (i) Supplier performance can be evaluated for each demand request or over some longer horizon, (ii) the acceptable fill rate can be 100% or something less than 100%, and (iii) the non‐compliance charge can be a flat fee, a per‐unit‐short fee, or both. For a supplier operating a periodic‐review inventory system and serving multiple retailers, each with an SLA, we investigate the impact of inventory allocation rules on SLA compliance and expected non‐compliance costs across the three dimensions of review horizon, fill rate target and non‐compliance cost structure. We derive several analytic results when retailers are symmetric. For the single‐period setting and a fill rate target of 100%, we characterize the optimal allocation rule and rank other rules common in practice and the literature. We also characterize the optimal rule for the single‐period setting when the fill rate target is less than 100% and the SLA specifies a flat‐fee non‐compliance charge. In the multiple‐period case, we characterize the optimal rule when the fill rate target is 100%. When the fill rate target is less than 100% and the performance review horizon is more than one period, we develop a simple heuristic that outperforms common allocation rules.
Link: http://dx.doi.org/10.1111/poms.12814 [Google]
Valtakoski, A. and L. Witell (2018): Service capabilities and servitized SME performance: contingency on firm age, International Journal of Operations & Production Management, 38(4), pp.1144-1164
Purpose The purpose of this paper is to study the impact of back-office (BO) service capability and front-office (FO) service capability, and how firm age influences the impact of these service capabilities on small and medium size enterprise (SME) performance.Design/methodology/approach Based on the prior literature on servitization and firm operational capabilities, hypotheses were developed on the impact of service capabilities on firm performance. These hypotheses were tested using a survey and externally sourced financial data on 224 SMEs in the software industry.Findings FO service capability has a positive impact on firm performance of SMEs. The effect of BO service capability was weaker and partly contrary to expectations, showing a negative effect on firm performance for young SMEs. As hypothesized, the impact of both BO and FO service capability is moderated by firm age. Young SMEs benefit more from FO service capability. For older SMEs, BO service capability becomes increasingly more important.Practical implications As different capabilities lead to different outcomes, SMEs need to carefully consider which service capabilities to invest in. As the relative importance of capabilities changes over time, SMEs need to be ready to change their strategic focus over time toward BO capabilities to attain optimal outcomes.Originality/value The findings suggest that factors such as industry, firm size, and firm age affect the optimal servitization path, and that current understanding of servitization does not necessarily apply to all servitized firms. The study also provides further evidence of the impact of service capabilities on firm performance.
Link: http://dx.doi.org/10.1108/IJOPM-06-2016-0328 [Google]
Um, K. H. and A. K. W. Lau (2018): Healthcare service failure: how dissatisfied patients respond to poor service quality, International Journal of Operations & Production Management, 38(5), pp.1245-1270
Purpose Few scholars have so far explored how healthcare service quality affects patient dissatisfaction, leading to negative behavior responses when a healthcare service fails. The purpose of this paper is to examine how different service quality attributes affect patient dissatisfaction leading to a variety of asymmetric negative behavior responses.Design/methodology/approach Following a survey of 453 dissatisfied outpatients in Korea, structural equation modeling with a series of post hoc analyses is used to test the research model. It consists of five hypotheses.Findings Outcome quality is found to be the most significant variable affecting patient dissatisfaction, followed by administrative quality, interactive quality, and environmental quality. Dissatisfied patients tend to engage more in active behaviors (e.g. negative word-of-mouth, switching, and complaining) than in remaining passive in a non-linear way. Also, the mediating role of dissatisfaction is found to be significant.Research limitations/implications This paper has empirically identified the most significant service quality attributes that lead to dissatisfied patients and negative behaviors on their part. These findings indicate that different quality attributes of service failure lead to different actions. However, this study has suffered from a few limitations as a result of its research context and scope.Originality/value This paper is one of the very few empirical studies examining the relationships among the output and process quality attributes, patient dissatisfaction, and actual behaviors in a healthcare service failure context.
Link: http://dx.doi.org/10.1108/IJOPM-11-2016-0669 [Google]
Sousa, R. and M. Amorim (2018): Architectures for multichannel front-office service delivery models, International Journal of Operations & Production Management, 38(3), pp.828-851
Purpose Multichannel (MC) service providers have been adopting a wide diversity of front-office service delivery models, i.e. different ways of employing channels to support the delivery of the service activities that involve customer interaction. Despite this, we are still faced with a paucity of concepts to understand the myriad of possible choices. The purpose of this paper is to develop a theoretical framework and basic design architectures to provide a structured understanding of the diversity of operational design choices for MC front-office service delivery models, their efficacy implications, and how they fit with the provider’s service strategy.Design/methodology/approach The study employs the analytical conceptual approach. The authors logically develop the architectures based on the operations management theory and provide corresponding empirical illustrations based on secondary sources, direct observation, and case studies.Findings The authors propose two theoretically meaningful dimensions to characterize and distinguish between delivery models (channel redundancy and channel span) and put forward four anchor architectures for such models: generalist, parallel, constricted, and centralized. The authors identify the operational efficacy implications (effectiveness and efficiency) of the different architectures, and develop a set of propositions and design principles for selecting appropriate architectures.Research limitations/implications Future research should develop empirical measures for the dimensions underlying the architectures.Originality/value The study extends existing service process classifications by capturing the MC traits of front-office processes. The authors offer design principles to assist firms in selecting architectures that are aligned with their service strategy. The framework and architectures provide seminal concepts to support a wealth of future empirical studies.
Link: http://dx.doi.org/10.1108/IJOPM-10-2015-0612 [Google]
Rabetino, R., W. Harmsen, M. Kohtamäki and J. Sihvonen (2018): Structuring servitization-related research, International Journal of Operations & Production Management, 38(2), pp.350-371
Purpose The purpose of this paper is to organize and connect past research from different servitization-related scholarly communities.Design/methodology/approach This study reviews more than 1,000 articles by combining author co-citation and qualitative content analyses.Findings The structure and boundaries of the field are mapped, and the characteristics of the three identified servitization-related communities are assessed qualitatively. These three communities are product-service systems, solution business, and service science. The findings demonstrate that a narrow range of theories and qualitative methods dominate in existing research.Originality/value Through the lens of the sociology of science, this review critically evaluates servitization-related research and offers a list of themes that are considered important to the future development of the field. Regarding future research, the main recommendations are as follows: increasing the use of well-established theories from adjacent mature fields, borrowing ideas from different research communities to stimulate knowledge accumulation within and across communities, and reducing the level of description while increasing the number of confirmatory, quantitative, and longitudinal research designs. Finally, the development of formal structures for socialization (e.g. conferences and special issues) could allow the field to achieve a greater degree of scientific maturity and would influence the direction and pace of the development of servitization-related research.
Link: http://dx.doi.org/10.1108/IJOPM-03-2017-0175 [Google]
Lenka, S., V. Parida, D. R. Sjödin and J. Wincent (2018): Towards a multi-level servitization framework, International Journal of Operations & Production Management, 38(3), pp.810-827
Purpose The dominant-view within servitization literature presupposes a progressive transition from product to service orientation. In reality, however, many manufacturing firms maintain both product and service orientations throughout their servitization journey. Using the theoretical lens of organizational ambivalence, the purpose of this paper is to explore the triggers, manifestation and consequences of these conflicting orientations.Design/methodology/approach A multiple case study method was used to analyze five large manufacturing firms that were engaged in servitization. Semi-structured interviews were conducted with 35 respondents across different functions within these firms.Findings Servitizing firms experience organizational ambivalence during servitization because of co-existing product and service orientations. This paper provides a framework that identifies the triggers of this ambivalence, its multi-level manifestation and its consequences. These provide implications for explaining why firms struggle to implement servitization strategies due to co-existing product and services orientations. Understanding organizational ambivalence, provides opportunity to manage related challenges and can be vital to successful servitization.Originality/value Considering the theoretical concept of ambivalence could advance the understanding of the effects and implications of conflicting orientations during servitization in manufacturing firms.
Link: http://dx.doi.org/10.1108/IJOPM-09-2016-0542 [Google]
Broekhuis, M. and K. Scholten (2018): Purchasing in service triads: the influence of contracting on contract management, International Journal of Operations & Production Management, 38(5), pp.1188-1204
Purpose The purpose of this paper is to investigate purchasing practices in service triads by exploring the link between ex ante contracting and ex post contract management and how these practices influence the satisfaction of buyers and suppliers (in concessionary arrangements) with their relationship in terms of meeting the needs of the buyer’s customers.Design/methodology/approach An in-depth exploratory multiple case study was carried out in a shop-in-shop context. Multi-method and multi-source data collection included interviews, documents and the contracts between buyer and supplier, providing evidence of the formal and relational structures in both the contracting and contract management stages.Findings The case findings provide evidence that behavioural standards established in a social contract are important prerequisites for the establishment and subsequent management of a formal contract. Second, this study shows that, when outsourcing core services in a service triad, a combination of performance-oriented and behavioural-oriented contract terms, covering a mix of topics related to both the customer-experience and to buyer-supplier-oriented aspects, contribute to aligning the buyer’s, suppliers’ and customers’ interests. The main findings are presented in a causal model and formulated as propositions.Originality/value This paper is one of the first studies to explore how core services are outsourced in a service triad. It provides evidence that the social contract between buyer and supplier influences the establishment of the formal contract as well as contract management, and a mix of contract topics, some related to the customers’ experience and others purely buyer-supplier oriented, contribute to the alignment of buyer’s, suppliers’ and customers’ interests.
Link: http://dx.doi.org/10.1108/IJOPM-12-2015-0754 [Google]
Brandon-Jones, A. and D. Knoppen (2018): The role of strategic purchasing in dynamic capability development and deployment, International Journal of Operations & Production Management, 38(2), pp.446-473
Purpose The purpose of this paper is to report on research into the impact of two sequential dimensions of strategic purchasing – purchasing recognition and purchasing involvement – on the development and deployment of dynamic capabilities. The authors also examine how such dynamic capabilities impact on both cost and innovation performance, and how their effects differ for service as opposed to manufacturing firms.Design/methodology/approach The authors test hypotheses using structural equation modeling of survey data from 309 manufacturing and service firms.Findings From a dynamic capability perspective, the analysis supports the positive relationships between purchasing recognition, purchasing involvement, and dynamic capability in the form of knowledge scanning. The authors also find support for the positive impact of knowledge scanning on both cost and innovation performance. From a contingency perspective, data supports hypothesized differences caused by industry, whereby service-based firms experience stronger positive linkages in our model than manufacturing-based firms. Finally, emerging from the data, the authors explore a re-enforcing effect from cost performance to purchasing involvement, something that is in line with the dynamic capabilities perspective but not typically addressed in operations management (OM) research.Originality/value The research offers a number of theoretical and managerial contributions, including being one of a relative few examples of empirical assessment of dynamic capability development and deployment; examining the enablers of dynamic capability in addition to the more commonly addressed performance effect; assessing the contingency effect of firm type for dynamic capabilities; and uncovering a return (re-enforcing) effect between performance and enablers of dynamic capabilities.
Link: http://dx.doi.org/10.1108/IJOPM-10-2015-0656 [Google]
Beltagui, A. and M. Candi (2018): Revisiting service quality through the lens of experience-centric services, International Journal of Operations & Production Management, 38(3), pp.915-932
Purpose The purpose of this paper is to revisit prevailing notions of service quality by developing and testing a model of service quality for experience-centric services.Design/methodology/approach By problematizing the service quality literature, a model is developed to capture impacts of outcome-achievement, instrumental performance and expressive performance on customer loyalty. A multi-group structural equation model is tested to establish the moderating effect of perceived service character – utilitarian or hedonic.Findings Outcome-achievement mediates the direct relationships between instrumental and expressive performance, respectively, and loyalty; the strength of these relationships is moderated by perceived service character.Research limitations/implications Emotional design to improve the experience is effective provided the expected outcome is achieved. However, for services that customers perceive as experience-centric, the outcome may be somewhat ambiguously defined and expressive performance is valued more highly than instrumental performance.Practical implications Understanding customers’ perception of a service – whether customers seek value related to outcomes or emotions – is crucial when selecting appropriate measures of service quality and performance. Creating a good experience is generally beneficial, but it must be designed according to the character of the service in question.Originality/value The research presents empirical evidence on how service experience contributes to customer loyalty by testing a model of service quality that is suited to experience-centric services. Furthermore, it identifies the importance of understanding service character when designing and managing services.
Link: http://dx.doi.org/10.1108/IJOPM-06-2015-0339 [Google]
Beltagui, A. (2018): A design-thinking perspective on capability development, International Journal of Operations & Production Management, 38(4), pp.1041-1060
Purpose The purpose of this paper is to examine the interaction between new product development (NPD) capabilities and business model innovation (BMI) by studying the adaptation of capabilities in a manufacturing firm as it adopts a service business model.Design/methodology/approach An in-depth case study is used to identify design capabilities and document how these have been developed as the firm has adapted its NPD processes to the needs of its service business model.Findings Design capabilities are proposed as a facilitator of servitization, allowing a manufacturing firm to develop service offerings that build on resources such as knowledge and experience. Conversely, the scope of servitization is restricted by the extent to which these design capabilities can be updated to suit the demands of a new business model.Practical implications Servitization is presented as an imperative for manufacturing firms, yet research has not addressed the implications for NPD nor investigated how BMI affects NPD capabilities. This study shows the need to identify whether current NPD processes help or hinder BMI and proposes how managers can adapt NPD processes to a new business model.Originality/value A three-stage process is identified for adapting NPD processes – as BMI changes the nature of products and services required, existing processes are supplemented by design activities requiring expert knowledge, these are subsequently refined into design methods that can be incorporated into the NPD process, and eventually design tools allow automation and efficiency.
Link: http://dx.doi.org/10.1108/IJOPM-11-2016-0661 [Google]
