Examining competitive priorities and competitive advantage in service organisations using Importance‐Performance Analysis matrix
Managing Service Quality: An International Journal
ISSN: 0960-4529
Article publication date: 6 September 2011
Abstract
Purpose
This paper aims to examine the ten competitive dimensions of service in terms of relative importance and contribution to business performance, using the Importance‐Performance Analysis (IPA) matrix.
Design/methodology/approach
Empirical data for this study was drawn from 190 managers of Australian service organisations, with primary responsibilities related to day‐to‐day corporate operations. The targeted service organisations encompassed various sectors, including: transportation, communications, banking, insurance, health care, education, wholesale, retail, and professional services.
Findings
Based on the four quadrants of the IPA matrix, the results suggest that customer retention and productivity need to be maintained, while innovation and speed may receive a lower priority. Brand image and cost‐effectiveness fall into the areas which need improvement, while quality by conformance and delivery are identified as “potential overkillers”. Furthermore, this paper tests the difference between high‐ and low‐performing firms and shows that low‐performing firms generally place a similar level of importance on the ten competitive dimensions as high‐performing ones, yet are not successful in converting what is important into performance.
Research limitations/implications
This paper contributes to strategic management in service organisations by mapping the level of importance of the ten competitive dimensions of service against their effectiveness in improving business performance.
Practical implications
The findings could help firms identify the competitive dimensions within their organisation that are effectively‐resourced, under‐resourced, or over‐resourced and provide guidance for, “fighting the good fight”.
Originality/value
This paper contributes to knowledge by identifying the competitive priorities held by service firms and their effectiveness in improving business performance.
Keywords
Citation
Prajogo, D.I. and McDermott, P. (2011), "Examining competitive priorities and competitive advantage in service organisations using Importance‐Performance Analysis matrix", Managing Service Quality: An International Journal, Vol. 21 No. 5, pp. 465-483. https://doi.org/10.1108/09604521111159780
Publisher
:Emerald Group Publishing Limited
Copyright © 2011, Emerald Group Publishing Limited