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Open Access
Article
Publication date: 16 May 2024

Oscar F. Bustinza, Ferran Vendrell-Herrero, Philip Davies and Glenn Parry

Responding to calls for deeper analysis of the conceptual foundations of service infusion in manufacturing, this paper examines the underlying assumptions that: (i) manufacturing…

Abstract

Purpose

Responding to calls for deeper analysis of the conceptual foundations of service infusion in manufacturing, this paper examines the underlying assumptions that: (i) manufacturing firms incorporating services follow a pathway, moving from pure-product to pure-service offerings, and (ii) profits increase linearly with this process. We propose that these assumptions are inconsistent with the premises of behavioural and learning theories.

Design/methodology/approach

Machine learning algorithms are applied to test whether a successive process, from a basic to a more advanced offering, creates optimal performance. The data were gathered through two surveys administered to USA manufacturing firms in 2021 and 2023. The first included a training sample comprising 225 firms, whilst the second encompassed a testing sample of 105 firms.

Findings

Analysis shows that following the base-intermediate-advanced services pathway is not the best predictor of optimal performance. Developing advanced services and then later adding less complex offerings supports better performance.

Practical implications

Manufacturing firms follow heterogeneous pathways in their service development journey. Non-servitised firms need to carefully consider their contextual conditions when selecting their initial service offering. Starting with a single service offering appears to be a superior strategy over providing multiple services.

Originality/value

The machine learning approach is novel to the field and captures the key conditions for manufacturers to successfully servitise. Insight is derived from the adoption and implementation year datasets for 17 types of services described in previous qualitative studies. The methods proposed can be extended to assess other process-based models in related management fields (e.g., sand cone).

Details

International Journal of Operations & Production Management, vol. 44 no. 13
Type: Research Article
ISSN: 0144-3577

Keywords

Open Access
Article
Publication date: 20 February 2023

Caitlin Ferreira, Jeandri Robertson, Raeesah Chohan, Leyland Pitt and Tim Foster

This methodological paper demonstrates how service firms can use digital technologies to quantify and predict customer evaluations of their interactions with the firm using…

1307

Abstract

Purpose

This methodological paper demonstrates how service firms can use digital technologies to quantify and predict customer evaluations of their interactions with the firm using unstructured, qualitative data. To harness the power of unstructured data and enhance the customer-firm relationship, the use of computerized text analysis is proposed.

Design/methodology/approach

Three empirical studies were conducted to exemplify the use of the computerized text analysis tool. A secondary data analysis of online customer reviews (n = 2,878) in a service industry was used. LIWC was used to conduct the text analysis, and thereafter SPSS was used to examine the predictive capability of the model for the evaluation of customer-firm interactions.

Findings

A lexical analysis of online customer reviews was able to predict evaluations of customer-firm interactions across the three empirical studies. The authenticity and emotional tone present in the reviews served as the best predictors of customer evaluations of their service interactions with the firm.

Practical implications

Computerized text analysis is an inexpensive digital tool which, to date, has been sparsely used to analyze customer-firm interactions based on customers' online reviews. From a methodological perspective, the use of this tool to gain insights from unstructured data provides the ability to gain an understanding of customers' real-time evaluations of their service interactions with a firm without collecting primary data.

Originality/value

This research contributes to the growing body of knowledge regarding the use of computerized lexical analysis to assess unstructured, online customer reviews to predict customers' evaluations of a service interaction. The results offer service firms an inexpensive and user-friendly methodology to assess real-time, readily available reviews, complementing traditional customer research. A tool has been used to transform unstructured data into a numerical format, quantifying customer evaluations of service interactions.

Details

Journal of Service Theory and Practice, vol. 33 no. 2
Type: Research Article
ISSN: 2055-6225

Keywords

Open Access
Article
Publication date: 14 September 2023

Ömer Tuğsal Doruk

This study aims to use a comparative analysis to examine the channel of deferring cash commitments, which can be seen as a strategic solution to mitigate the impact of COVID-19 on…

Abstract

Purpose

This study aims to use a comparative analysis to examine the channel of deferring cash commitments, which can be seen as a strategic solution to mitigate the impact of COVID-19 on Moldova's service sector.

Design/methodology/approach

This paper uses the Oaxaca–Blinder decomposition analysis. The World Bank's post-COVID-19 survey is used. The methodology takes into account heterogeneity among firms.

Findings

The results of the Oaxaca–Blinder decomposition analysis show that service firms use deferred cash commitments more than industrial firms, corporate governance and their pandemic-related strategies are also effective in the post-COVID Moldovan economy. The results are robust to different modeling alternatives.

Originality/value

COVID-19 can be considered a key source of uncertainty for firms, especially those operating in economies where financial frictions occasionally occur in a transition economy. Therefore, this study can shed new light on the impact of COVID-19 on financial strategies in a transition economy.

Details

Journal of Money and Business, vol. 3 no. 2
Type: Research Article
ISSN: 2634-2596

Keywords

Open Access
Article
Publication date: 28 August 2019

María-Luz Martín-Peña, José-María Sánchez-López and Eloísa Díaz-Garrido

This paper aims to present a comprehensive framework that integrates the emerging trends of servitization and digitalization in manufacturing. The influence between digitalization…

17552

Abstract

Purpose

This paper aims to present a comprehensive framework that integrates the emerging trends of servitization and digitalization in manufacturing. The influence between digitalization and servitization is defined and quantified. Their contribution to firm performance is analyzed.

Design/methodology/approach

This paper presents a theoretical model that captures the relationships between the analyzed variables. Drawing on the Spanish Business Strategy Survey, hypothesis testing is conducted using data on 828 Spanish industrial firms. Linear regression models are built to capture the effect of each variable on firm performance and the type of interaction between the variables.

Findings

Servitization and digitalization are positively related to firm performance. Digitalization positively mediates the relationship between servitization and firm performance. The mediating effect of digitalization contributes to differentiating between the direct and indirect effects of servitization on firm performance.

Practical implications

The paper provides a useful analysis framework for firms to evaluate servitization and digitalization as success strategies. It is proposed that firms must simultaneously commit to digital transformation and the incorporation of services to create value, especially in business-to-business settings. Servitization and digitalization interact to exert a greater influence on performance.

Originality/value

The paper contributes to the theory on service strategy by providing an analysis model that includes digitalization as a mediator of the relationship between servitization and firm performance. Digitalization may provide a mechanism to unlock the benefits of servitization and thereby enhance firm performance.

Details

Journal of Business & Industrial Marketing, vol. 35 no. 3
Type: Research Article
ISSN: 0885-8624

Keywords

Open Access
Article
Publication date: 1 November 2019

Allam K. Abu Farha, Paul Sergius Koku, Sam O. Al-Kwifi and Zafar U. Ahmed

The service marketing literature has traditionally argued that the marketing practices of service firms that operate in diverse cultures should also differ. This paper aims to…

4375

Abstract

Purpose

The service marketing literature has traditionally argued that the marketing practices of service firms that operate in diverse cultures should also differ. This paper aims to investigate this argument by examining the marketing practices of service firms in two highly diverse countries “Canada and Qatar” in the context of a contemporary conceptual framework.

Design/methodology/approach

Survey data were collected in both countries using a self-administered questionnaire that was used in previous contemporary marketing practice (CMP) studies. The data analysis was conducted in two stages. First, descriptive statistics were used to determine cross-national differences in the intensity of use of various CMP activities in Qatar compared to Canada. Second, cross-national differences in various combinations of marketing practices were identified using a cluster analysis.

Findings

The results indicate that service firms in both countries have more similarities than differences and that the overall patterns of marketing practices are similar. In addition, the firms’ marketing practices reflect aspects of all four marketing approaches rather than just one.

Research limitations/implications

The study was conducted in only two countries, thus generalisability of its findings and conclusions may not be possible.

Practical implications

The results of this study can help marketers to better understand the changing marketing environment and identify new marketing solutions when operating in different environments.

Originality/value

This study enhances the literature on service marketing and expands the application of the CMP framework to a new context that has not been addressed in previous studies.

Open Access
Article
Publication date: 18 August 2017

Patrick Das, Robert Verburg, Alexander Verbraeck and Lodewijk Bonebakker

Since the 2008 financial crisis, the financial industry is in need of innovation to increase stability and improve quality of services. The purpose of this paper is to explore…

19362

Abstract

Purpose

Since the 2008 financial crisis, the financial industry is in need of innovation to increase stability and improve quality of services. The purpose of this paper is to explore internal barriers that influence the effectiveness of projects within large financial services firms focussing on potentially disruptive and radical innovations. While literature has generally focused on barriers within traditional technology and manufacturing firms, few researchers have identified barriers for these type of firms.

Design/methodology/approach

A framework of internal barriers was developed and validated by means of an explorative case study. Data were collected at a European bank by exploring how innovation is organized and what barriers influence effectiveness of eight innovation projects.

Findings

Six items were identified as key barrier for potentially disruptive and radical innovations (e.g. traditional risk-avoidance focus, and inertia caused by systems architecture). As such, in the sample these were more important than traditionally defined barriers such as sources of finance, and lacking exploration competences.

Research limitations/implications

Based on a small number of projects within one firm, the results highlight the need for more in-depth research on the effects of barriers and how barriers can be overcome within this industry.

Originality/value

The results show that there is a discrepancy between the societal demand for radical change within the financial industry and the ability of large financial services firms to innovate. The study identifies which unique internal barriers hamper potentially disruptive and radical innovation in large financial services firms.

Details

European Journal of Innovation Management, vol. 21 no. 1
Type: Research Article
ISSN: 1460-1060

Keywords

Open Access
Article
Publication date: 24 September 2024

Ryuichi Nakamoto, Hao-Cheng Chen, Hiroki Noguchi and Shohei Funatsu

The Penrose effect, or the limitation of the growth rate during expansion due to managerial constraints, has been examined in the context of business diversification, withdrawal…

Abstract

Purpose

The Penrose effect, or the limitation of the growth rate during expansion due to managerial constraints, has been examined in the context of business diversification, withdrawal and MNE’s foreign direct investment, primarily in the for-profit sector. However, insufficient attention has been paid to its impact on professional service firms, particularly in the context of their expansion through service exports. The main purpose of this study is to examine the Penrose effect in the internationalization of professional service firms through service exports.

Design/methodology/approach

This study focuses on large Japanese patent firms as traditional professional service firms and constructs panel data for 48 large patent firms over the observation period from 2002 to 2010 to test our hypotheses.

Findings

Our results demonstrate a negative relationship between degree of internationalization and international business growth, thus confirming the Penrose effect. Furthermore, we found that the degree of internationalization has a curvilinear relationship with international business growth and that institutional distance does not have a negatively moderating effect on the relationship between the degree of internationalization and international business growth.

Originality/value

This study made a theoretical contribution to Penrose's growth theory and previous studies on international management and professional service firms and international management by showing that the Penrose effect can be observed in the international expansion of professional service firms through service exports. Moreover, this study identifies the factors that modify the Penrose effect, thereby making a significant theoretical contribution.

Details

Asia-Pacific Journal of Business Administration, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1757-4323

Keywords

Open Access
Article
Publication date: 13 March 2023

Eias Al Humdan, Yangyan Shi, Masud Behina, Md. Maruf Hossan Chowdhury and A.K.M. Shakil Mahmud

This paper aims to investigate the conditional indirect effect of innovativeness on performance via supply chain agility (SCA) in the service industry at higher and lower…

2452

Abstract

Purpose

This paper aims to investigate the conditional indirect effect of innovativeness on performance via supply chain agility (SCA) in the service industry at higher and lower collaborative relationships.

Design/methodology/approach

The hypothesised model is operationalised with survey data from 245 Australian service firms collected via LinkedIn and analysed using structural equation modelling and fuzzy set qualitative comparative analysis (fsQCA).

Findings

The analysis found that SCA significantly mediates the relationship between innovativeness and performance. Further, the conditional indirect effect of innovativeness on performance via SCA was significant when the collaborative relationship was high. Results also revealed that a configuration of both innovativeness and agility better predicts performance.

Originality/value

This study is an early attempt to investigate SCA in service industries by scrutinizing SCA from an innovative point of view. While previous studies have demonstrated the role of innovativeness in enhancing a firm's performance, this study explores this link further by investigating the conditional indirect effect of innovativeness on performance via SCA at different levels of collaborative relationships.

Details

International Journal of Physical Distribution & Logistics Management, vol. 53 no. 11
Type: Research Article
ISSN: 0960-0035

Keywords

Open Access
Article
Publication date: 19 January 2021

Linda Gabbianelli and Tonino Pencarelli

The purpose of the paper is to investigate the marketing and communication activities carried out by small management consulting firms and how they relate to customers.

5839

Abstract

Purpose

The purpose of the paper is to investigate the marketing and communication activities carried out by small management consulting firms and how they relate to customers.

Design/methodology/approach

After the framing of the literature on the subject, the study is based on the results of a survey carried out through an online questionnaire. The sample under investigation is represented by 914 small consulting firms located in central Italy.

Findings

Results show that half of the sample carried out marketing and communication activities, mainly through the website and social media, while others participating in events as speakers at conferences. It also emerges that management consulting firms carry out activities aimed at maintaining relationship with customers even if they do not invest time in market research in order to find potential and new clients.

Practical implications

The study suggests that management consulting firms should adopt a systematic and strategic approach to communication and should develop a complete and integrated digital communication strategy, as well as to rethink the consulting business model.

Originality/value

There are no previous studies that provide insight into the everyday practice of marketing and communication of small management consulting services in today's dynamic and changing economic environment.

Details

The TQM Journal, vol. 36 no. 9
Type: Research Article
ISSN: 1754-2731

Keywords

Open Access
Article
Publication date: 31 August 2013

Hee-sung BAE, Woo-young LEE and Yang-kee LEE

This research has three objectives: one is to develop measuring criteria for ascertaining performance of customs clearance firms, another is to test reliability and validity of…

Abstract

This research has three objectives: one is to develop measuring criteria for ascertaining performance of customs clearance firms, another is to test reliability and validity of the factors, and the third is to analyze the relationship between customer service and firm performance. This research gathered the data from customs clearance firms. Reliability and validity concerned with the collected data are tested by exploratory factor analysis and confirmatory factor analysis and the relationship between variables is tested by analyzing structural equation modeling. The results are as follows. There are no problems in reliability and validity. According to the result of the analysis, customer service is divided into customer focus, customer needs, customer response and flexibility and performance is classified into customer performance and financial performance. The result of empirical tests is as follows. Customer focus has a positive effect on customer performance and financial performance. Flexibility has a positive effect on both types of performance. This means that firms which have discriminative services and a high level of flexibility through collaboration with customers can achieve high levels of customer performance and financial performance.

Details

Journal of International Logistics and Trade, vol. 11 no. 2
Type: Research Article
ISSN: 1738-2122

Keywords

1 – 10 of over 6000