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This chapter discusses the constitution of Shared Services and the value of a consensual agreement of a definition for academe and practice. It explores the operating principles and services, the concepts of internal customer and internal service, and their importance for the practitioner and research communities.

This chapter employed a broad review of the literature to examine Shared Services. The research team used NVivo as a tool to create a database of key articles and books to analyze the key concepts and topics.

There is a lack of consensus on the definition of Shared Services in the research and practitioner community. Additionally, the concept of internal customer requires greater exploration and understanding within the context of Shared Services. How Shared Services provides competitive advantage to organizations is also not well understood.

This discussion provides a challenge to the research community to focus on the contributions of shared services to business management theory. This requires a consensus that is currently nonexistent, to ensure the correct use of the terminology and model.

By establishing a clearer understanding of what is Shared Services, the academic and the practitioner community, in particular, will gain greater competencies on Shared Services to support change management programs during the implementation phases and minimize implementation costs by lowering organizational and people resistance. The variants in shared services terminology create confusion which is likely to result in ambiguity during implementation and have practical implications on governance, customers and service, benefits realization and performance.

This chapter addresses the lack of agreed definition of the term Shared Services and the role of the internal customer and consequent internal service delivery.

To determine the degree to which UK manufacturing companies have adopted an internal‐customer‐oriented philosophy, a survey was undertaken using a modified version of the Parasuraman SERVQUAL model. The majority of respondents indicated the existence of type 1,2,3 and 4 gaps in the internal customer management process within their firms. Major influencers of these service gaps include departments placing internal efficiency ahead of internal customer needs elsewhere in their organization, minimal effort to gain further understanding of internal customer requirements and a lack of formal quality standards for managing internal customer relations. Respondents consider their departments are able and willing to enhance the quality of provision if the issue was given higher priority by senior management. Identified obstacles to greater emphasis on an internal customer philosophy include insufficient trust between departments and low confidence levels over ability to manage the process. Unless British firms can be persuaded to revise their opinions about the importance of creating effective internal customer chains, concern must exist about the capability of the UK industry to achieve “world class” manufacturing standards.

Analogies between internal and external service quality suggest that internal quality can be assessed without too much regard to differences between organizational customers and fee‐paying customers. Research into organizational networks, however, indicates the importance of environmental and atmospheric factors in exchange activities. In this paper we explore the gaps in service quality arising from the conflict between departmental and organizational loyalties. Using methods derived from the external model of service quality put forward by Parasuraman, Zeithaml and Berry, we consider the value of internal research into service quality and suggest that organizational power struggles and lack of communication lead to misunderstandings about the priorities and resources available for internal service exchanges. The greater empathy generated among the participating departments suggests that improvement can occur when there is closer interaction between “warring” but nevertheless dependent departments. Balanced against this is an overarching need for organizational goals to take precedence and for limited resources to be allocated according to the ultimate needs of the external customer.

This paper aims to build upon the debate in the service quality literature regarding both the theoretical and practical effectiveness of expectations data in the measurement of internal service quality (ISQ). Gap‐based and perceptions‐only approaches to measuring ISQ are tested and their respective benefits and limitations evaluated.

The internal service context used in this study is the provision of e‐procurement software, training, and user support in four organisations. The two approaches are evaluated in terms of reliability and validity, as well as pragmatic aspects of survey administration.

The various tests carried out indicate that both the gap‐measure and perceptions‐only measure are reliable and valid, the latter being the marginally higher performer. Both approaches were found to have benefits and limitations, and so the empirical study, combined with contributions from the literature, generates some understanding of the internal service context in which the two approaches might be appropriate.

The survey was based on an internal e‐procurement service; as such, the variables and dimensions selected to measure ISQ in this context inevitably limit the scope of the research.

For operations managers, the paper clarifies the basis on which they might choose between the two approaches to ISQ measurement.

This study is the first to directly test and compare the relative merits of these two approaches to ISQ measurement. The paper also offers insights as to the operational contexts in which each approach might be appropriate.

This paper discusses findings from an exploratory study concerning internal marketing in the UK retail bank industry. In order to enhance efficiency and provide motivation to employees many UK banks have adopted internal marketing. The paper adopts the approach of first defining the generic research area, and then describing the research approach. It is concerned with first identifying the rhetoric of internal marketing as employed in UK banks, and second with exploring the practice of reality of internal marketing as practiced within UK banks. The paper is grounded in Mason's view that theoretical positions or data explanations move from the particular context of internal marketing views and expand within banks to the general theoretical contribution to be made. Findings are explored via two extant relationships and three anomalies based on the data analysis. Evidence from the study suggests that internal marketing is being taken seriously but in such a way as to be managerially, not employee, oriented. At best, internal marketing within this industry is regarded as a form of window dressing or part of the trappings of marketing, rather than having any substantive base or rationale insofar as employees are concerned.

The purpose of this paper is to implement statistical process control (SPC) in service quality using three-level SERVQUAL, quality function deployment (QFD) and internal measure.

The SERVQUAL questionnaire is developed according to internal services of train. Also, it is verified by reliability scale and factor analysis. QFD method is employed for translating SERVQUAL dimensions’ importance weights which are derived from Analytic Hierarchy Process into internal measures. Furthermore, the limits of the Zone of Tolerance are used to determine service quality specification limits based on normal distribution characteristics. Control charts and process capability indices are used to control service processes.

SPC is used for service quality through a structured framework. Also, an adapted SERVQUAL questionnaire is created for measuring quality of train’s internal services. In the case study, it is shown that reliability is the most important dimension in internal services of train for the passengers. Also, the service process is not capable to perform in acceptable level.

The proposed algorithm is practically applied to control the quality of a train’s services. Internal measure is improved for continuous data collection and process monitoring. Also, it provides an opportunity to apply SPC on intangible attributes of the services. In the other word, SPC is used to control the qualitative specifications of the service processes which have been measured by SERVQUAL.

Since SPC is usually used for manufacturing processes, this paper develops a model to use SPC in services in presence of qualitative criteria. To reach this goal, this model combines SERVQUAL, QFD, normal probability distribution, control charts, and process capability. In addition, it is a novel research on internal services of train with regard to service quality evaluation and process control.

It is the purpose of this article to explore the relevance of the concept of internal marketing to the financial service arena and the extent to which it may be possible to utilise internal marketing as a means of reducing the service gaps postulated by Parasuraman et al. The study is based on an analysis of 33 depth interviews with managers from two major UK clearing banks. In general, the research found no evidence that internal marketing as a concept is as yet fully understood by management, either at the junior, or more senior levels, within each organisation. There is at present little understanding of the needs of employees, and internal market research is noticeably absent. The results reveal a clear need for both institutions to adopt a more strategic perspective on their internal marketing activity. It will be argued that a failure to do so is likely to result in a widening of the service gaps and failure to compete effectively in a market increasingly driven by the quality of the service demanded.

This paper aims to explore the determinants of perceived internal service complexity in internal service encounters. In this context, the nature of internal service complexity is considered, to identify its promoting and limiting factors, as well as its non-linear effects on internal service quality.

To acquire information on factors influencing internal service complexity, a broad literature review was conducted. Furthermore, to validate and verify these results, structural equation modeling’ was used in the context of a quantitative study with 705 internal customers.

The results revealed four promoting and seven limiting complexity determinants at organizational, interdepartmental and internal supplier-related levels. Moreover, the findings showed that an optimal, moderate level of internal service complexity maximizes internal service quality.

As the findings are restricted to this study, further research should be conducted with regard to different types of companies and internal customers. Furthermore, future research should take variability over time into account. Executing a longitudinal approach to internal service complexity might therefore be appropriate.

Managers should note that exclusively reducing internal service complexity is insufficient; rather, a hybrid strategy of lowering and controlling is indispensable for an optimization. Based on the identified complexity determinants, a three-step guidance to optimize internal service is proposed.

Despite examining the construct complexity, previous research has neither analyzed internal service complexity nor studied its determinants. This paper provides an empirical model that analyzes inhibiting and promoting factors of internal service complexity as well as its non-linear effects on internal service quality.

The purpose of this study was to determine the roles of employee proficiency, adaptivity and proactivity in predicting different aspects of internal service.

Managers evaluated 142 professional employees on proficiency, adaptivity and proactivity and about six weeks later 2–3 internal customers evaluated each of the employees on dimensions of internal service, namely reliability (i.e. performing dependably and accurately), assurance (i.e. knowledge, courtesy, and the ability to inspire trust and confidence), responsiveness (i.e. willingness to help customers and provide prompt service) and empathy (i.e. caring and providing individualized attention).

Employee proficiency and proactivity were the main predictors of delivering reliable services. Employee proficiency was the main predictor for creating a sense of assurance. Employee adaptivity was the main predictor of being viewed as responsive. Employee proactivity was the main predictor for establishing a sense of empathy.

In a given situation, some aspects of internal service will be more important than others. The results will enable organizations to improve internal service in a more effective and efficient manner by developing interventions that are targeted at the specific dimension of interest.

The authors identified the types of employee behaviors that are likely to be most effective in impacting different aspects of internal service.

The purpose of this paper is to provide an insight into some of the present issues and concerns facing the practice of internal marketing (IM) in the UK retail‐banking sector. Over the years banks have moved from being supply‐oriented to sales‐oriented in their approach to business and more recently have espoused the notion of becoming marketing‐oriented. In order to achieve marketing orientation it is desirable that banks should adopt IM concepts and procedures.

The research study aimed at building theory in the area of IM through case study research carried out at branch level. It was primarily qualitative since the aim was to uncover people's views and experiences of IM corroborated by documentary and quantitative data sources. A total of 35 business units from seven different UK banking organisations situated in Stoke‐on‐Trent, Cannock, and Stafford were studied.

Evidence seems to suggest that, while the banks may espouse the ideal of instilling a strong service mentality and customer orientation, the bureaucratic nature of their organisations stands in the way of facilitating this outcome.

Only one industry is represented in this study. The focus on banks is topical, given the environmental dynamics of marketing in the UK, although the empirical data's parochiality undermines their generalisability. However, this need not be an issue if it is set in the context of the UK market as a whole. Similarly, only branch personnel were researched and only banks from a certain geographic area participated in the study.

The research findings raised questions regarding the ability of banks to adopt and implement change initiatives such as IM when their bureaucratic/mechanistic structure often hinders their efforts.

The study's findings present interesting challenges for further systematic research regarding IM among practitioners and academics.