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Abstract

Details

Servitization Strategy and Managerial Control
Type: Book
ISBN: 978-1-78714-845-1

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Article

Kristin Brandl

Despite increasing interest in offshoring of knowledge-intensive services, it is still undetermined as to whether the sourcing of services truly creates the anticipated…

Abstract

Purpose

Despite increasing interest in offshoring of knowledge-intensive services, it is still undetermined as to whether the sourcing of services truly creates the anticipated value for clients. Moreover, even less is known about whether value is created for service providers in the process beyond the general service trade. This lack of knowledge is due to the challenges of capturing value creation, the unique production process of the services, and the impact of offshoring on both value creation and the production process. The purpose of this paper is to study offshored service production processes of knowledge-intensive services in order to identify direct and indirect value creation for clients as well as service providers in the process.

Design/methodology/approach

The paper applies a multiple case study method and studies one conglomerate with three offshored service production processes. The chosen method allows for the investigation of the service production process and indirect/direct value creation within the process.

Findings

The study finds that there is direct value creation for the client and the service provider towards the end of the production processes as expected. However, more importantly, it finds additional indirect value creation in various production stages. The indirect value is reflected in enhanced understanding of problems and own operations for the client and increased knowledge about clients and problem-solving approaches for the service provider.

Research limitations/implications

This study contributes to offshoring literature by providing a comprehensive understanding of value creation in service offshoring for clients as well as service providers. It also contributes to the service management literature as a study of direct and indirect value creation in services, particularly within the production process of the services.

Practical implications

The study allows practitioners to gain insights on the value creation logic of offshored services and the value created beyond that logic. More specifically, it allows client firms to gain details of various values and benefits of service offshoring and service provider firms to gain a focused perspective on value creation in their own service production that can lead to competitive advantages.

Originality/value

The paper is novel and original through its approach to study offshoring from a value creation logic perspective, including not only the client but also the service provider perspective. It also applies a service production process perspective that is novel in offshoring literature.

Details

International Journal of Physical Distribution & Logistics Management, vol. 47 no. 2/3
Type: Research Article
ISSN: 0960-0035

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Article

Andrews Agya Yalley and Harjit Singh Sekhon

The purpose of this paper is to differentiate the production process within services from the dominant manufacturing-based production process, with the objective of…

Abstract

Purpose

The purpose of this paper is to differentiate the production process within services from the dominant manufacturing-based production process, with the objective of delineating the production process in services and highlighting its implication for service productivity.

Design/methodology/approach

This study critically reviewed the extant literature on the production processes in manufacturing and services from a multidisciplinary perspective and proposed a framework for the service production process and its relationship with service productivity.

Findings

The production process for services differs from the dominant manufacturing-based production process and entails an input, transformation process and outcome dimensions. Therefore, any advancement in services, particularly the conceptualisation and measurement of service productivity, is dependent on the application of a service-specific production process.

Research limitations/implications

The understanding and delineation of the production process in services would further scholarly understanding of what is means to be productive in services and the impact on the validity of the conceptualisation and measurement of service productivity and other service-related concepts.

Practical implications

The proposed service-based production process can further managerial understanding of the measurement and management of productivity in services.

Originality/value

This paper delineates the production process in services and highlighted its implication for service productivity. This study, therefore, is a step forward in developing service-specific concepts and measures, particularly service productivity.

Details

International Journal of Productivity and Performance Management, vol. 63 no. 8
Type: Research Article
ISSN: 1741-0401

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Article

María Dionisia Elche Hortelano and Ángela Gongález‐Moreno

The aim of this paper is to contribute to the understanding of innovation in services. First, service firms were classified according to the degree of customization of…

Abstract

The aim of this paper is to contribute to the understanding of innovation in services. First, service firms were classified according to the degree of customization of service product and technology, because it reflects the degree of interaction between producer and consumer. This is a key element in the process of production and, hence, in the innovation developed by these firms. Second, we identified four different modes of innovation in Spanish service firms, which reflect diverse patterns of innovation according to depth of changes introduced by firms. Finally, we examined how the innovation patterns are generalized by the type of service firms, confirming that there is a relationship between production and innovation strategies. This paper yields empirical evidence from Spanish services, showing that service firms develop innovations coherently according to their production strategy.

Details

Management Research: Journal of the Iberoamerican Academy of Management, vol. 5 no. 2
Type: Research Article
ISSN: 1536-5433

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Article

Christian Grönroos and Katri Ojasalo

– The purpose of this paper is to analyse the mutual learning implications for service productivity of the characteristics of service and service production.

Abstract

Purpose

The purpose of this paper is to analyse the mutual learning implications for service productivity of the characteristics of service and service production.

Design/methodology/approach

This is a conceptual paper. The starting point is, first of all, that productivity as a management concept should help a firm to manage its economic profit, and secondly, that service organizations are open systems, where the customers participate as co-producers and are exposed to the firm’s production resources and processes. Unlike in manufacturing, to understand productivity in service organizations as a means of managing profit, cost effects and revenue effects of changes in the productions system cannot be separated. Due to the interaction between customers and the firm’s resources during service production, dialogical collaboration between them develops. This enables mutual learning.

Findings

Given the social dynamics in service production processes, four learning processes that influence service productivity are identified. Two processes enhance the organizations’s internal efficiency (cost savings), and two enhance its external effectiveness (perceived quality, revenue generation); two are organization-driven, two are customer-driven.

Research limitations/implications

The mutual learning model demonstrates how the service provider by learning from the dynamics of service encounters in many ways can manage the productivity of the organizations’s processes. It shows that learning enables improvement of service productivity through effects enhancing both internal efficiency and external effectiveness.

Originality/value

In a productivity context, learning has not earlier been studied as a mutual learning phenomenon.

Details

International Journal of Quality and Service Sciences, vol. 7 no. 2/3
Type: Research Article
ISSN: 1756-669X

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Article

Oscar Barros

The purpose of this paper is to present a process architecture pattern for designing particular components of a complex service. The proposal emphasizes the design of the…

Abstract

Purpose

The purpose of this paper is to present a process architecture pattern for designing particular components of a complex service. The proposal emphasizes the design of the service production flow component, following modularity ideas, which determines the sequence of actions needed to generate a high quality and efficient service. The authors report its applications to the design of the flow in a single emergency department (ED) case.

Design/methodology/approach

In complex services, production design is usually lacking because production activities are not clearly defined and, in many cases, they are dynamically determined as the service is produced according a client’s particular needs. In health services, for example ED, this generates a chaotic production flow that uses resources very inefficiently. The methodology uses a reference architecture, integrating it with disciplines – modularity, analytics and evaluation methods – that provide ideas for formally designing these complex services. This is mainly justified by the fact that, in many such services, no formal design exits and their production processes are the result of practice evolution.

Findings

Methodology was applied to the ED of a large public hospital. The authors first analyzed ED’s production and performance data. The authors found two patients’ groups that used more than 90 percent of resources. Therefore, design focused on these groups, defining specialized production lines for them and with physical space remodeled by an architecture project, resulting in well-defined separated workflows for each production line. Design also includes coordination with complementary shared services, including specialists consultations’ requests and execution, and request, processing and reception of laboratory and radiology examinations. The authors implemented new workflows producing a decrease of 26 percent in patients’ delays. More detailed results based on three months of observations also showed, for example, a reduction in examinations waiting times of 80 percent and an increase in the consultation resolution for cardiological patients from 24 to 80 percent in the same day, which means a significant quality increment.

Research limitations/implications

Thus, the authors conclude the plausibility of the idea they proposed that an important design problem in health services, in terms of potential improvements in capacity utilization, is production design. This provides the opportunity to reduce investing large amounts of resources in new hospitals and to instead use the alternative to generate large amounts of capacity by production performance improvements.

Practical implications

The authors are replicating the approach in other hospitals with extensions to inpatient and ambulatory services.

Social implications

Approach produces better service in public hospitals, which is a problem in emergencies in the world.

Originality/value

Formal design approach in health production services is proposed that provides great value by generating capacity, due to better use of resources, that reduces investment needs in new facilities.

Details

Business Process Management Journal, vol. 26 no. 2
Type: Research Article
ISSN: 1463-7154

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Article

Anu Bask, Mervi Lipponen, Mervi Rajahonka and Markku Tinnilä

Modularity has been identified as one of the most important methods for achieving mass customization. However, service models that apply varying levels of modularity and…

Abstract

Purpose

Modularity has been identified as one of the most important methods for achieving mass customization. However, service models that apply varying levels of modularity and customization also exist and are appropriate for various business situations. The objective of this paper is to introduce a framework with which different customer service offerings, service production processes, and service production networks can be analyzed in terms of both modularity and customization.

Design/methodology/approach

The paper builds theory and offers a systematic approach for analyzing service modularity and customization. To illustrate the dimensions of the framework, the authors also provide service examples of the various aspects.

Findings

In the previous literature, the concepts of modularity and customization have often been discussed in an intertwined manner. The authors find that when modularity and customization are regarded as two separate dimensions, and different perspectives– such as the service offering, the service production process, and the service production network – are combined we can create a useful framework for analysis.

Research limitations/implications

Rigorous testing is a subject for future research.

Practical implications

The framework helps companies to analyze their service offerings and to compare themselves with other companies. It seems that in practice many combinations of modularity and customization levels are used in the three perspectives.

Originality/value

This paper develops a framework for analyzing service offerings in terms of modularity and customization. The framework provides a basis for analyzing different combinations of these two aspects from the three perspectives, and herein lies its value.

Details

Journal of Business & Industrial Marketing, vol. 26 no. 5
Type: Research Article
ISSN: 0885-8624

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Article

Nicola Morelli

The purpose of this paper is to propose a methodological approach to design product service systems based on an active participation of customers to the value production

Abstract

Purpose

The purpose of this paper is to propose a methodological approach to design product service systems based on an active participation of customers to the value production process. Furthermore, the paper aims to present methods and techniques that can be used to understand local context and highly individualized needs, and to integrate local actors, including users in the value production process.

Design/methodology/approach

Methods and tools presented in this paper are structured into three main categories: analytical tools, development tools and representation techniques. Such tools will be illustrated through examples from case studies.

Findings

Methods and techniques presented in this paper are borrowed from other disciplines and adapted to the task of service design. The new methods relate to a new paradigmatic framework and are not easy to compare with existing methods, they are rather complementary to existing knowledge on service design.

Practical implications

The new methodological approach implies a shift in the role of industrial companies that are supposed to leave their prominent role in value creation and become facilitators of a process of value co‐production.

Originality/value

This paper considers a fundamental change in the role for customers and industrial companies in the value‐creation process. Consequently, it presents a methodological approach to support such change.

Details

Journal of Manufacturing Technology Management, vol. 20 no. 5
Type: Research Article
ISSN: 1741-038X

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Article

Sanna Tuurnas

– The purpose of this paper is to report on how public service professionals cope with co-production as a way to produce and develop public services.

Abstract

Purpose

The purpose of this paper is to report on how public service professionals cope with co-production as a way to produce and develop public services.

Design/methodology/approach

The paper draws on the literature of co-production and collaborative public service innovation. The research approach was an explorative case study, presenting a pilot neighbourhood co-production project.

Findings

Conflicting approaches to co-production with various implications are used simultaneously, causing uncertainly among the professional co-producers. When moving from rhetoric to practice there seems to be a lack of tools and methods for applying and utilising the possibilities of co-production. The processes of co-production and their implications should be thoroughly understood and managed throughout public service organisations, from politicians to frontline workers.

Practical implications

The paper demonstrates that co-production calls for renewed organisational structures and managerial tools, especially concerning the evaluation of co-production. Focal managerial, organisational, cultural and processual notions for supporting professional co-production are provided.

Originality/value

This paper makes an important contribution to the discussion of co-production, examining an important, yet understudied, perspective on public service professionals as co-producers.

Details

International Journal of Public Sector Management, vol. 28 no. 7
Type: Research Article
ISSN: 0951-3558

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Article

Sarah-Anne Munoz

Current policy context in the UK promotes the “co-production” of health and care services – with service users and providers working in partnership. However, the…

Abstract

Purpose

Current policy context in the UK promotes the “co-production” of health and care services – with service users and providers working in partnership. However, the assumption that all individuals and communities have the personal resources, skills and willingness to get involved in co-produced services may have implications for social and geographical equity of access to health and care services. The paper presents the results of a nine-month action research project with a remote and rural community in Scotland to discuss the implications of co-produced health and care services for remote and rural community members – particularly those with ageing populations.

Design/methodology/approach

The research project worked with community members, health care providers and commissioners to develop a community social enterprise model for home care delivery. Textual resources collected during this action research process were subject to thematic analysis in order to explore community perceptions and experiences of service co-production development in the remote and rural context.

Findings

The qualitative analysis showed that community members identified some positive aspects of being involved in service co-production relating to sense of community, empowerment and personal satisfaction. However, negative impacts included increased feelings of pressure, strain and frustration among those who took part in the co-production process. Overall, the community was reluctant to engage with “transformative” co-production and traditional provider-user dynamics were maintained.

Originality/value

The example is used to demonstrate the types of resources that rural individuals and communities draw on in order to create social enterprises and how the potentially negative impacts of co-produced services for different types of social and geographical community may be overlooked in contemporary policy and practice.

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