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Article
Publication date: 10 May 2021

Philip Davies, Glenn Parry, Laura Anne Phillips and Irene C.L. Ng

The purpose of this paper is to explore the interplay between firm boundary decisions and the management of both efficiency and flexibility and the implications this has for…

Abstract

Purpose

The purpose of this paper is to explore the interplay between firm boundary decisions and the management of both efficiency and flexibility and the implications this has for modular design in the provision of advanced services.

Design/methodology/approach

A single case study in the defence industry employs semi-structured interviews supplemented by secondary data. Data are analysed using thematic analysis.

Findings

The findings provide a process model of boundary negotiations for the design of efficient and flexible modular systems consisting of three phases; boundary ambiguity, boundary defences and boundary alignment.

Practical implications

The study provides a process framework for boundary negotiations to help organisations navigate the management of both-and efficiency and flexibility in the provision of advanced services.

Originality/value

Drawing upon modularity, paradox and systems theory, this article provides novel theoretical insight into the relationship between firm boundary decisions and the management of both-and efficiency vs. flexibility in the provision of product upgrade services.

Details

International Journal of Operations & Production Management, vol. 41 no. 5
Type: Research Article
ISSN: 0144-3577

Keywords

Content available

Abstract

Details

Journal of Service Management, vol. 29 no. 4
Type: Research Article
ISSN: 1757-5818

Book part
Publication date: 25 June 2012

Irene C.L. Ng and Laura A. Smith

Purpose – The purpose of this chapter is to provide a comprehensive understanding of current literature on value. In exploring perspectives on economics, choice, consumption and…

Abstract

Purpose – The purpose of this chapter is to provide a comprehensive understanding of current literature on value. In exploring perspectives on economics, choice, consumption and evaluation of value, assumptions and limitations of extant approaches are highlighted and an integrative framework of value is proposed. It is suggested that this integrative perspective on value has a number of implications for marketing theory and research.

Methodology/approach – This chapter conducts an extensive review and assimilation of value from management, marketing, philosophy and economics.

Findings – The chapter categorises the existing value literature into six themes of value understanding: utility, economic worth, perceived satisfaction, net benefit, means end and phenomenological experience. In so doing, the chapter identifies implicit assumptions in philosophy, chronology and consciousness of value and offers an integrative value framework which brings in the literature to understand the contextual invariances of value creation within a phenomenon (i.e. offering, affordance, context, agency and individual resources). In addition, it reconciles creation with choice and evaluation of the value ex ante and ex post. Finally, our chapter proposes the paradox of value – value which can be assessed, measured and even judged by an individual cannot be the value created.

Research limitations/implications – In shifting value away from exchange towards use, it is suggested that marketing positioning, segmentation and targeting strategies may need to consider five elements identified in the integrative value framework. Furthermore, as proposed by the framework, new business models may be achieved from understanding value creation in context.

Originality/value of chapter – This chapter extends existing literature on value through reconciliation of various theoretical literatures in management, marketing, philosophy and economics. Notably, it highlights implicit assumptions in philosophy, chronology and consciousness of value and their potential limitations. It proposes an integrative framework that can be used for understanding the future of marketing and new business models.

Details

Special Issue – Toward a Better Understanding of the Role of Value in Markets and Marketing
Type: Book
ISBN: 978-1-78052-913-4

Keywords

Article
Publication date: 27 February 2007

Irene C.L. Ng

The purpose of this paper is to highlight why service firms have difficulty in establishing channels and how transaction costs increase as a result. The paper shows how such…

3194

Abstract

Purpose

The purpose of this paper is to highlight why service firms have difficulty in establishing channels and how transaction costs increase as a result. The paper shows how such difficulties may be overcome a mechanism that uses service capacity strategically.

Design/methodology/approach

The paper uses a case study approach, and conducts a transaction cost analysis of the archival data of a cruise line along with the contract between the cruise line and a tour operator.

Findings

The results show that service intermediaries aren't able to take inventory and are unable to demonstrate their commitment. Consequently, both parties would be unwilling to establish a contract. However, commitment can be achieved through the intermediary investing in relationship‐specific assets that it could recover, subject to performance. Similarly, the firm could pledge its capacity for its investment in the specific assets. Such a mechanism aligns the interests of both.

Practical implications

This case analyses an actual contract between two service firms and the issues surrounding it.

Originality/value

As contracts and actual company data of this nature are usually confidential, this paper is useful to provide insights into the process of deliberation and formation of service contracts.

Details

Journal of Services Marketing, vol. 21 no. 1
Type: Research Article
ISSN: 0887-6045

Keywords

Open Access
Article
Publication date: 14 March 2016

Glenn C Parry, Saara A. Brax, Roger S. Maull and Irene C. L. Ng

Improvement of reverse supply chains requires accurate and timely information about the patterns of consumption. In the consumer context, the ways to generate and access such…

9476

Abstract

Purpose

Improvement of reverse supply chains requires accurate and timely information about the patterns of consumption. In the consumer context, the ways to generate and access such use-visibility data are in their infancy. The purpose of this study is to demonstrate how the Internet of Things (IoT) may be operationalised in the domestic setting to capture data on a consumer’s use of products and the implications for reverse supply chains.

Design/methodology/approach

This study uses an explorative case approach drawing on data from studies of six UK households. “Horizontal” data, which reveals patterns in consumers’ use processes, is generated by combining “vertical” data from multiple sources. Use processes in the homes are mapped using IDEF0 and illustrated with the data. The quantitative data are generated using wireless sensors in the home, and qualitative data are drawn from online calendars, social media, interviews and ethnography.

Findings

The study proposes four generic measurement categories for operationalising the concept of use-visibility: experience, consumption, interaction and depletion, which together address the use of different household resources. The explorative case demonstrates how these measures can be operationalised to achieve visibility of the context of use in the home. The potential of such use-visibility for reverse supply chains is discussed.

Research limitations/implications

This explorative case study is based on an in-depth study of the bathroom which illustrates the application of use-visibility measures (UVMs) but provides a limited use context. Further research is needed from a wider set of homes and a wider set of use processes and contexts.

Practical implications

The case demonstrates the operationalisation of the combination of data from different sources and helps answer questions of “why?”, “how?”, “when?” and “how much?”, which can inform reverse supply chains. The four UVMs can be operationalised in a way that can contribute to supply chain visibility, providing accurate and timely information of consumption, optimising resource use and eliminating waste.

Originality/value

IDEF0 framework and case analysis is used to identify and validate four UVMs available through IoT data – that of experience, consumption, interaction and depletion. The UVMs characterise IoT data generated from a given process and inform the primary reverse flow in the future supply chain. They provide the basis for future data collection and development of theory around their effect on reverse supply chain efficiency.

Details

Supply Chain Management: An International Journal, vol. 21 no. 2
Type: Research Article
ISSN: 1359-8546

Keywords

Article
Publication date: 30 October 2009

Irene C.L. Ng

The purpose of this paper is to study the non‐consumption of a service by advance buyers, the re‐selling of relinquished capacity at spot time and the effect on the pricing of…

1401

Abstract

Purpose

The purpose of this paper is to study the non‐consumption of a service by advance buyers, the re‐selling of relinquished capacity at spot time and the effect on the pricing of advance and spot demand of services.

Design/methodology/approach

The paper employs mathematical economics modeling technique.

Findings

The model shows that advance prices are always lower than spot prices due to the non‐consumption effect and also that providing a refund to advance buyers, as insurance against non‐consumption, may be. By modeling in the capacity of the firm, the paper also presents the firm's capacity conditions when the firm does not sell in advance and also when market failure occurs i.e. when the firm does not sell in advance nor at consumption time.

Research limitations/implications

The model does not consider uncertainty in the spot price and assumes a one‐stage optimization. Furthermore, the model extension with refund is numerically derived.

Practical implications

This model informs industry on the significance of non‐consumption of a service and the re‐selling of relinquished capacity. It also highlights the importance of the interaction between capacity and refunds in advance and spot selling.

Originality/value

This paper contributes to extant literature by demonstrating that when heterogeneous demand behavior is explicitly modeled with non‐consumption, capacity and refunds, firms would then be able to understand where and how service revenue is being obtained (higher price or higher demand) and the impact of various sensitivities on revenue.

Details

Journal of Product & Brand Management, vol. 18 no. 7
Type: Research Article
ISSN: 1061-0421

Keywords

Article
Publication date: 1 May 1999

Irene C.L. Ng, Jochen Wirtz and Khai Sheang Lee

Services are by nature perishable. As such, managing a service firm’s capacity to match supply and demand has been touted as one of the key problems of services marketing and…

7449

Abstract

Services are by nature perishable. As such, managing a service firm’s capacity to match supply and demand has been touted as one of the key problems of services marketing and management practice. This paper advances an alternative perspective of unused service capacity. Based on a review of current literature and an exploratory study, this paper employs a theory‐in‐use methodology to map out a set of capacity strategy propositions. These propositions show a divergence between what literature suggests and what service firms actually practise with regard to reducing the occurrence of unused service capacity. The paper also demonstrates that capacity can be employed as a resource to achieve a series of strategic objectives that serve to improve the performance of the firm. Service firms should therefore approach capacity management not only from the standpoint of operations management, but also from that of marketing.

Details

International Journal of Service Industry Management, vol. 10 no. 2
Type: Research Article
ISSN: 0956-4233

Keywords

Article
Publication date: 14 October 2014

John Ahmet Erkoyuncu, Rajkumar Roy, Essam Shehab and Elmar Kutsch

In the light of challenges experienced in cost estimation at the bidding stage of complex engineering services in the defence industry (e.g. contracting for availability), the…

1311

Abstract

Purpose

In the light of challenges experienced in cost estimation at the bidding stage of complex engineering services in the defence industry (e.g. contracting for availability), the purpose of this paper is to present a framework to manage the influence of uncertainty on cost estimates.

Design/methodology/approach

The research applied the Soft Systems Methodology and benefitted from interaction with four major organisations in the defence industry through document sharing, semi-structured interviews, workshops, and case studies.

Findings

The framework is composed of seven stages to plan, identify, prioritise, classify, and manage cost uncertainties. Through the validation of three case studies some of the key benefits of the framework were realised in project planning, uncertainty visualisation, and capability management.

Research limitations/implications

The research has been applied in the defence sector in the UK and focuses on the bidding stage. Further research needs to be applied to confirm that the findings are applicable across industries and across the life cycle.

Originality/value

The paper builds on the theory behind risk and uncertainty management and proposes an innovative framework that avoids the assumption of “perfect” knowledge by raising questions about the validity of the input data.

Article
Publication date: 12 October 2010

Irene C.L. Ng and Sai S. Nudurupati

This case study aims to explore the risks and challenges associated with the implementation of outcome‐based contracts (OBCs) in maintenance, repair and overhaul services in the…

3311

Abstract

Purpose

This case study aims to explore the risks and challenges associated with the implementation of outcome‐based contracts (OBCs) in maintenance, repair and overhaul services in the defence industry. It also aims to identify ways to address and reduce them.

Design/methodology/approach

The case study approach was used to capture the dynamics of OBCs in B2B service delivery. The challenges and risks were explored using qualitative approaches such as in‐depth interviews, and findings were abstracted through grounded theory. The factors identified from the above findings were structured in a survey and validated using simple descriptive statistics.

Findings

This study identified the challenges and risks of implementing OBCs, which include complexity and unpredictability of costs, dependability on customer in delivering the service and cultural change from traditional setting. Although the survey results revealed 11 factors that could mitigate these challenges and risks, the most important factors are mutual expectations, teamwork, shared information and materials as well as the firm's access to customer resources.

Practical implications

This study's results have practical implications for businesses implementing OBCs in the B2B arena. Ensuring the presence of these factors, identified from this study, in OBC delivery would overcome most of the challenges and risks faced.

Originality/value

Although research has been done on OBCs, many are conceptual or theoretical studies. This study is an empirical research into the challenges and risks of OBCs and the factors that could mitigate them; this advances knowledge in this domain.

Details

Journal of Service Management, vol. 21 no. 5
Type: Research Article
ISSN: 1757-5818

Keywords

Article
Publication date: 28 January 2014

Laura Smith, Roger Maull and Irene C.L. Ng

The purpose of this paper is to provide further insight into operations management of the product-service (P-S) transition, known as servitization, and the resulting product…

9194

Abstract

Purpose

The purpose of this paper is to provide further insight into operations management of the product-service (P-S) transition, known as servitization, and the resulting product service system (PSS) offerings. In exploring the P-S transition, this paper adopts a service-dominant (S-D) logic view of value creation, using it as a lens through which to explore value propositions of the P-S transition and their operations design.

Design/methodology/approach

This paper presents an in-depth case study of an original equipment manufacturer of durable capital equipment who, over the last five years, has expanded its offerings to include use- and result-orientated PSS. The research design uses a multi-method approach; employing 28 in-depth qualitative interviews with customers and employees and analysis of texts, documents and secondary data including five years of enterprise resource planning (ERP), call centre and contract data.

Findings

The paper identifies ten generic P-S attributes that are abstracted into four nested value propositions: asset value proposition; recovery value proposition; availability value proposition; and outcome value proposition. In examining the operations design for delivery of these value propositions, it is found that the role and importance of contextual variety increases as the organisation moves through the value propositions. Interdependencies amongst the value propositions and differences in operational design for each value proposition are also found.

Research limitations/implications

The paper investigates PSS through a S-D logic mindset. First, the paper considers value propositions of PSS not according to “product” or “service” but in terms of how resources (both material and human) are optimally designed to co-create customer value. Second, a value co-creation system of nested value propositions is illustrated. In so doing, the findings have a number of implications for literature on both PSS and S-D logic. In addition, the research adds to the PSS literature through the identification and consideration of the concept of contextual use variety.

Practical implications

The paper demonstrates the complexity of the transition from product to service. Specifically, service cannot be seen as a bolt-on extra to their product offering; complexity caused by interactions and changes to the core offering require a systems perspective and consideration of both firm and customer skills and resources.

Originality/value

This paper extends existing literature on the P-S transition and its implications for operations management. Notably, it takes an S-D logic perspective of value creation and in so doing highlights the importance and role of contextual use variety in the P-S transition. It also provides further empirical evidence that the P-S transition cannot be treated as discrete stages but is evolutionary and requires a complex systems perspective.

Details

International Journal of Operations & Production Management, vol. 34 no. 2
Type: Research Article
ISSN: 0144-3577

Keywords

1 – 10 of 116