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This chapter covers four main concepts: (a) providing an understanding of service; (b) organizing hospitality decisions and processes; (c) defining strategic service visions; and (d) dissecting operations strategies for hospitality services. In the first section, the definition of service, the five service dimensions, and the service package are covered. In the second section, hospitality decisions and processes are framed by service concepts and the service-profit chain. A service concept is the starting point for developing hospitality operations strategies, while the service-profit chain explains the link from customer satisfaction and customer loyalty to a service firm’s growth and profitability. In the third section, the strategic service vision is explored. Successful service firms all have a strategic service vision, which includes a set of ideas and actions organized in a systematic way to maximize a firm’s performance. In the fourth and final section, the operations strategy for hospitality services is covered. Successful service operations occur when management defines and adheres to a competitive operations strategy.

Section 404 of the Sarbanes–Oxley Act (SOX) altered the relationship between auditors and their clients by requiring an external audit of companies’ internal controls. Regulatory guidance is interpreted and applied by external auditors to comply with SOX. The purpose of this paper is to apply service operations management theories and techniques to the internal control audit process to better understand the role regulatory guidance plays in audit services. We discuss service operations management theories that apply to the production of audit services and employ the operations management technique of simulation to examine the effects of a historical relationship between the client and the auditor, information sharing between the client and the auditor, and the auditor’s perceived risk of the client on the internal control audit process. The application of service operations management theories and the simulation results illustrate that risk and information sharing are key factors for the audit process. The results suggest the updated Public Company Accounting Oversight Board guidance from Auditing Standard 2 to Auditing Standard 5 appropriately increased audit effectiveness by encouraging risk-based judgments and information sharing. This paper merges accounting and service operations management research to examine the effects of regulatory guidance on the internal control audit process. The paper uses simulation to illustrate the importance of interpreting regulatory guidance and the specific effects of risk and information sharing on the internal control audit process.

This chapter reviews the literature on servitization to understand whether and how mergers and acquisitions (M&As) have been dealt with and what the portrayed consequences are of servitization through M&As. Servitization refers to how manufacturing firms extend and remodel their offerings to focus on value in use rather than product transfer. The rationale of the chapter follows from how business model innovation or business modeling has been predicted as the next M&A wave, while the focus on servitization has been pronounced in research and practice as a means for manufacturing firms to refocus operations during the past decade. The chapter concludes that while the servitization literature is vibrant, the mode of reaching service competence and renewing business is not well explored in the literature. In line with the predicted next M&A wave, servitization through M&As would thereby create an interesting path for future research.

This study sheds light on the uncharted phenomenon of regional management in coordinating services across borders. Based on a multiple case study of four German industrial manufacturing firms with servitization strategies we seek to better understand what kind of organizational challenges servitization poses for the MNC and whether these challenges can be met through regional management models. This chapter initiates a conversation on the available design options for running service operations regionally.

The paper provides an overview of research published in the innovation and operations management (IOM) literature on 15 methods for cost management in new product development, and it provides a comparison to an earlier review of the management accounting (MA) literature (Wouters & Morales, 2014).

This structured literature search covers papers published in 23 journals in IOM in the period 1990–2014.

The search yielded a sample of 208 unique papers with 275 results (one paper could refer to multiple cost management methods). The top 3 methods are modular design, component commonality, and product platforms, with 115 results (42%) together. In the MA literature, these three methods accounted for 29%, but target costing was the most researched cost management method by far (26%). Simulation is the most frequently used research method in the IOM literature, whereas this was averagely used in the MA literature; qualitative studies were the most frequently used research method in the MA literature, whereas this was averagely used in the IOM literature. We found a lot of papers presenting practical approaches or decision models as a further development of a particular cost management method, which is a clear difference from the MA literature.

This review focused on the same cost management methods, and future research could also consider other cost management methods which are likely to be more important in the IOM literature compared to the MA literature. Future research could also investigate innovative cost management practices in more detail through longitudinal case studies.

This review of research on methods for cost management published outside the MA literature provides an overview for MA researchers. It highlights key differences between both literatures in their research of the same cost management methods.

This chapter presents the key results of a research project that explored managing service productivity in Sub-Saharan Africa through the lens of lived experiences of bank executives employed as ‘knowledge workers’ in the Nigerian banking sector. The study adopted a qualitative phenomenological research design. Data was gathered from 16 Nigerian top bank executives purposively selected using semi-structured face-to-face interviews. Trans Positional Cognition Approach (TPCA), a new phenomenological research method, was used to analyse the data gathered. The study data analysis yielded five themes; micromanagement practices, use of dysfunctional strategies to drive service operations, deposit mobilisation target as a productivity measure, managerial indifference to potential nescience economy issues and master-servant (power culture) strategy, which epitomises fundamental managerial approaches adopted in the sector. The study identified critical service productivity management issues grounded in reality that influence the capability and potentiality of the study knowledge workers. It also contributes the novel, ‘official knowledge worker lived experience of service productivity model’ for use by decision-makers in the banking sector. Thus, it sets an agenda for these ‘knowledge workers’ line managers’ and bank regulators in the research setting. The study extended the viable system model by applying it in this phenomenological enquiry and using it to explain/deepen our understanding of the findings that emerged. The output of this work contributes to scholarly knowledge on service productivity management from the sub-Saharan African banks’ perspective. It can be generalisable in countries with similar financial and economic characteristics like the research setting.

Operations management involves utilizing given resources as efficiently as possible to deliver services to customers and meet business goals. Developing efficient business operations requires a hospitality organization to design efficient service environments, as part of its mission. This chapter articulates the key design and planning strategies for the development of a successful hospitality organization. The first section covers the process of location selection, as the most important factor leading to the success of a hospitality organization. The second section discusses strategies for estimating the number of users (service employees and customers) during peak and idle times to justify a costly financial investment. The third section concerns the readers with the topic of layout planning, with the goal of service optimization for a targeted number of customers. The fourth section deliberates workflow conditions, and finally, the last section addresses the ambience and design of the physical hospitality environment, which is crucial for customer evaluation of a hospitality organization as it creates a first impression.