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Article
Publication date: 3 November 2021

Yu Xia, Jiqing Xie, Guangsi Zhang and Weijun Zhu

Upstream suppliers attempt to outsource product after-sales services to midstream third-party service providers while selling the product directly to downstream sellers…

Abstract

Purpose

Upstream suppliers attempt to outsource product after-sales services to midstream third-party service providers while selling the product directly to downstream sellers, forming a networked supply chain. However, a problem of information asymmetry in the market demand among supply chain members exists. The authors investigate the impact of demand information asymmetry among third-party service providers, upstream suppliers and downstream sellers in the supply chain on the supplier's contract selection under the networked framework.

Design/methodology/approach

The authors establish a model in which the supplier can use a wholesale price contract and facilitate a signaling game between the third-party service provider and the seller. Conversely, the supplier could use a menu contract to establish an incentive mechanism to solve information asymmetry. The authors propose heuristic algorithms to quickly estimate a supplier's optimal profit.

Findings

The results show that when the demand forecasting bias is relatively small, the use of a menu contract by the supplier could eliminate information asymmetry; when the demand forecasting bias is large enough, the signaling mechanism between the third-party service provider and the seller could alleviate the double marginalization effect in the supply chain. Although it is common to solve the asymmetric information problem by establishing incentive mechanisms, the authors found that in the latter case, the supplier is better off when no incentive mechanisms are implemented in the networked supply chain.

Originality/value

This study compares screening and signaling effects and compares firms' profits in both cases.

Details

Industrial Management & Data Systems, vol. 122 no. 1
Type: Research Article
ISSN: 0263-5577

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Article
Publication date: 6 September 2021

Arkajyoti De and Surya Prakash Singh

This paper investigates how the channel leadership strategies develop a post-coronavirus disease (COVID-19) resilient agri-supply chain, which reduces supplier and…

Abstract

Purpose

This paper investigates how the channel leadership strategies develop a post-coronavirus disease (COVID-19) resilient agri-supply chain, which reduces supplier and retailer's price loss and enhances the logistics service quality level considering logistics outsourcing of agri-product especially for the rapidly changing market condition.

Design/methodology/approach

Based on the classical leadership theory, two channel leadership strategies, i.e. LPL and SL, are considered. The proposed framework first derives the equilibrium price and service quality level decision among the supplier, the logistics provider and the retailer. Then it compares both leadership strategies in terms of the equilibrium prices and service quality theoretically. This article also presents a case study of Arabian dates pricing and supply chain to test the theoretically derived propositions.

Findings

Selection of suitable leadership strategy is a critical factor for profit maximization of the supply chain drivers and proper optimization of equilibrium price and service quality. Here, the product's quality and the market's socio-economic condition play an important role in selecting a suitable leadership strategy. A random transformation of the physical market to an e-commerce portal creates a wide variation of the market's socio-economic parameters, affecting the equilibrium pricing and the logistics provider's service quality.

Research limitations/implications

This study proposes a post-COVID-19 resilient agri-supply chain framework considering price and quality-dependent stochastic market demand, incorporating a wide range of socio-economic factors in the model to counteract the effect of rapid behavior change of agri-market due to COVID-19 norms. This research examines the effect of different channel leadership strategies to facilitate suitable decisions on prices and service quality and retrieve the profit of the supplier, retailer and logistics provider. The future models can incorporate competitiveness in logistics outsourcing, fourth-party logistics (4PL) and contract farming in the agri-supply chain. Each of the extensions can open avenues in different directions.

Practical implications

As the post-COVID-19 market and the customer behavior is randomly changing, and the traditional market is rapidly converting into supermarkets and e-commerce portals, this paper examines the model with a wide variety of e-commerce portals with multi-variation of product. It is conclusive that the product's quality and the market's socio-economic behavior significantly impact the equilibrium decision. The drivers of the supply chain must take them into account before choosing a particular channel leadership strategy.

Originality/value

This study considers a multi-product and multi-market (e-commerce) model by integrating a wide variety of products and the market's socio-economic parameters. The model is tested in a price and quality-dependent stochastic market condition, contributing to the literature by reconciling two different channel leadership strategies into the global logistics of fresh agri-product.

Details

The International Journal of Logistics Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0957-4093

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Book part
Publication date: 15 September 2016

Elaine Y.T. Chew and Stephanie Onggo

The aim of this chapter is to understand the nature of business collaboration between healthcare service providers and tourism agencies in Malaysia. Interviews with 17…

Abstract

The aim of this chapter is to understand the nature of business collaboration between healthcare service providers and tourism agencies in Malaysia. Interviews with 17 healthcare service providers in Malaysia reveal that most of the collaboration between healthcare service providers and tourism agencies in Malaysia is informal or loose, despite their intention to leverage on medical tourism for business expansion. Close and tight collaborations are rare. The findings point towards the main reasons behind the rare collaboration which are the high customer orientation of healthcare service providers, the strategic move of business and support for government agenda.

Details

Tourism and Hospitality Management
Type: Book
ISBN: 978-1-78635-714-4

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Book part
Publication date: 20 October 2017

Gary M. Fleischman, Eric N. Johnson and Kenton B. Walker

Purpose: We examined whether the five-service quality dimensions described by SERVQUAL (SQ) and SERVPERF (SP) are consistent with perceived dimensions of management…

Abstract

Purpose: We examined whether the five-service quality dimensions described by SERVQUAL (SQ) and SERVPERF (SP) are consistent with perceived dimensions of management accounting (MA) service quality and we compared responses from users and providers.

Design/methodology/approach: We surveyed experienced providers and users of MA services to learn their perceptions and expectations of accounting service quality using SQ/SP adapted to an MA context. We used principal components analysis (PCA) to investigate service quality dimensions.

Findings: Participant responses identified three dimensions of MA service quality. There was a high degree of correspondence in dimensions of service quality between users and providers, but with notable differences in service priorities. A performance-only (SP) approach seems to provide a better measure of overall service quality than performance minus expectations (SQ).

Research limitations/implications: Participants self-selected to participate. Respondents were not matched by organization. The SQ/SP instrument may not capture important organization specific attributes. Our approach may serve as a guide for future studies of accounting service quality.

Practical implications: SP may be more useful to managers who wish to evaluate overall service quality. SQ may be more useful to identify specific gaps between user perceptions and expectations. SQ/SP assessments may help to improve the quality of MA service delivery and provider-user communications.

Originality/value: This is the first empirical study to our knowledge that reports on MA service quality dimensions using both the SQ and SP instruments. This study investigated perceptions and expectations of MA service users and providers. Our sample is a cross-section of experienced professionals.

Details

Advances in Management Accounting
Type: Book
ISBN: 978-1-78743-297-0

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Article
Publication date: 28 July 2021

Zhongpeng Cao, Qian Xiao, Weiling Zhuang and Lina Wang

As self-service technologies (SSTs) become more prevalent, service providers are actively encouraging customers’ involvement with these technologies, sometimes even…

Abstract

Purpose

As self-service technologies (SSTs) become more prevalent, service providers are actively encouraging customers’ involvement with these technologies, sometimes even forcing their customers to use SSTs. This paper aims to examine the influence of the SST-only (vs full-service) mode on customers’ negative attitude toward SST providers through the mediating mechanism of powerlessness and explores how SST familiarity and SST anthropomorphism moderate the impacts of the SST-only mode on powerlessness.

Design/methodology/approach

Three experiments were performed, study 1 tested the main and mediating effect and studies 2 and 3 verified the moderating effects.

Findings

The results suggest that customer perceived powerlessness mediates the relationship between SST-only (vs full-service) mode and negative attitude toward SST providers. When the levels of SST familiarity and SST anthropomorphism are high, the impacts of SST-only on powerlessness are attenuated. Alternative mediating mechanism of powerlessness is examined and ruled out.

Research limitations/implications

Future research should investigate other moderators that may reduce the impacts of SST on customer powerlessness. These moderators could be service-operating procedures, SST interface design, types of service situations and customer characteristics. In addition, other consequences of powerlessness, other than the negative attitude toward SST providers and intention to switch investigated here, should be investigated as well.

Practical implications

This research provides guidelines helping service providers to improve their customers’ SST usage experience by showing both SST familiarity and SST anthropomorphism may alleviate the negative effects of SST-only mode on customer perceived powerlessness more effectively.

Originality/value

This research examines the role of customers’ psychological reactions toward the SST-only mode, particularly from the perspective of power and control.

Details

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

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Book part
Publication date: 23 May 2016

Fergus Lyon

As entrepreneurship and market mechanisms are increasingly seen as a central part of public sector reforms to health and education, this chapter examines the…

Abstract

Purpose

As entrepreneurship and market mechanisms are increasingly seen as a central part of public sector reforms to health and education, this chapter examines the entrepreneurial behaviour of public service providers in rural areas of the United Kingdom. Specific questions to be addressed include: How do rural providers (GPs, hospitals, schools) respond to the ‘market’ for provision of public services in rural areas? What are the constraints in acting entrepreneurially in these rural ‘markets’?

Methodology/approach

This chapter draws on a review of the literature and an empirical study of health care providers and schools with an emphasis on provision in rural areas and non-metropolitan urban areas. The results are based on 130 interviews with public, private and not-for-profit sector providers, and commissioners in health and education. Providers interviewed include schools, primary health care providers (General practitioners) and hospitals.

Findings

The challenges facing rural provision are examined. In terms of income generation providers reported the difficulties in having the critical mass required to keep services viable. There was particular attention to finding ways of diversifying income sources to increase turnover. Providers for rural areas are also having to find ways of coping with increased costs compared to urban providers, with limited account taken by the commissioners/buyers of services. The constraints related to introducing entrepreneurial behaviour to individuals who are resistant to risk taking and innovation based on market forces are also examined.

Research limitations

The work is based on a qualitative survey of a number of sectors. Further larger sample work is required to explore the propositions identified in more detail. The policy context has also been changing, with a need to identify how changes in government have affected the nature of entrepreneurship in public services.

Practical implications

The chapter provides policy implications and insights for providers of rural public services. There is a need to encourage diversity of income sources and to encourage collaboration between providers. There is also a need to identify where entrepreneurs in the public, private and social enterprise sectors are unwilling to deliver.

Originality/value

The chapter identifies key theoretical issues related to the role of enterprise in delivering public services. Further insights are provided regarding the role of rurality on both enterprise behaviour and public service delivery.

Details

New Perspectives on Research, Policy & Practice in Public Entrepreneurship
Type: Book
ISBN: 978-1-78560-821-6

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Article
Publication date: 8 April 2020

Simon Hazée, Thijs Johannes Zwienenberg, Yves Van Vaerenbergh, Tine Faseur, Audrey Vandenberghe and Olivier Keutgens

Technological innovations such as smart mobile devices and mobile applications gave rise to a new business model: collaborative consumption. This business model, which is…

Abstract

Purpose

Technological innovations such as smart mobile devices and mobile applications gave rise to a new business model: collaborative consumption. This business model, which is receiving significant attention from researchers and practitioners, is characterized by an intermediating digital platform that facilitates exchanges between customers and peer service providers. However, many digital platform providers still fail to build a critical mass of demand and supply. Accordingly, the aim of this research is to develop a better understanding of the barriers perceived by both customers and peer service providers.

Design/methodology/approach

This study uses a mixed-method qualitative approach to develop a comprehensive understanding of the factors that explain the rejection of collaborative consumption. In particular, six focus groups and 14 in-depth interviews were conducted, totaling 50 Belgian participants (with a mean age of 33 years). In addition, 375 online critical incidents—retrieved from various sources, such as review websites and social networks—were used for triangulation purposes. All data were analyzed using a thematic analytic approach.

Findings

Customers and peer service providers reject collaborative consumption because of a complex set of multidimensional functional and psychological barriers. In particular, actors may perceive barriers related to complexity, value, risk, compatibility, contamination, image, and responsibility, which prevent them from participating in collaborative consumption.

Originality/value

This paper builds theory on the reasons why both customers and peer service providers reject collaborative consumption. The research identifies several barriers that were not captured in prior research. Digital platform providers can use the research findings to more fully understand actors' decision-making processes in collaborative consumption.

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Article
Publication date: 19 September 2020

Ka Leung Lok, Albert So, Alex Opoku and Haiyu Song

The Contingency Outsourcing Relationship (CORE) model originated from the Four Outsourcing Relationship Types (FORT) model and the CORE model is used in the globalized…

Abstract

Purpose

The Contingency Outsourcing Relationship (CORE) model originated from the Four Outsourcing Relationship Types (FORT) model and the CORE model is used in the globalized facility management (FM) industry while the FORT model is originally used in the global information technology industry. The purpose of this paper is to analyze the CORE model through the rankings of relationship between a client and a globalized FM service provider from the perspective of the FM service provider in one of the four categories (i.e. in-house, technical expertise, commitment and common goals) and the application of this model with the aid of artificial neural networks (ANNs).

Design/methodology/approach

A quantitative methodology using a survey is used to analyze the four types of outsourcing categories. First, the background theory and a set of rules of the CORE is introduced and discussed regarding the proper ways to identify the rankings collected from the survey.

Findings

The study reveals that an interesting understanding of the outsourcing categories can be systematically implemented into the FM outsourcing relationships through the methodology of scientific artificial intelligence. FM outsourcing categorization may help to define the appropriate relationship; as either not too aggressive or too passive.

Originality/value

The outcome generated from the ANN can be considered a strong and solid reference to assess and define the existing outsourcing relationships between the stakeholders and the service providers with the goal to assign an outsourcing category to the service provider based on the learnt rules.

Details

Management Decision, vol. 59 no. 1
Type: Research Article
ISSN: 0025-1747

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Article
Publication date: 26 November 2020

Khadija Ali Vakeel, Edward C. Malthouse and Aimei Yang

Digital business platforms (DBPs) such as Alibaba and Google Shopping are partnership networks that use the Internet to bring service providers (e.g. retail vendors) and…

Abstract

Purpose

Digital business platforms (DBPs) such as Alibaba and Google Shopping are partnership networks that use the Internet to bring service providers (e.g. retail vendors) and customers together. One of the benefits of DBPs is network effects, in which customers can purchase from multiple providers, giving rise to a unique network. However, few studies have explored which service providers benefit from network effects and which do not.

Design/methodology/approach

Using the theories of transaction costs and network analysis, the authors apply network models to DBPs to understand which service providers benefit from network effects.

Findings

The authors identify three segments of service providers: (1) those with high prominence (connection to providers with high network centrality), (2) those with high network constraint (adjacent to isolated providers) and (3) those with low prominence and constraint. The authors find that segments (1) and (3) benefit from reciprocated customer exchanges, and thus benefit from network effects, while high constraint segment (2) providers do not benefit from reciprocated exchanges. Moreover, the authors find that for segments (2) and (3) future sales have a negative association with unreciprocated customer exchanges, while segment (1) has no significant association between unreciprocated exchanges and future sales.

Research limitations/implications

The authors discuss implications for a multisided platform (MSP), as it decides which service providers to attract, promote and recommend. They can use this study’s results to know which segments of providers will increase network effects to make the platform more valuable.

Practical implications

This paper provides managers of service platforms with strategies for managing relations with their service providers.

Social implications

Service platforms are an important and disruptive business model. The authors need to understand how network effects operate to create efficient platforms.

Originality/value

This paper extends the literature on MSPs by quantifying network effects and showing not all service providers benefit equally on an MSP from network effects. Critical insights into network effects on the MSP are provided, including different ways it can impact provider sales.

Details

Journal of Service Management, vol. 32 no. 4
Type: Research Article
ISSN: 1757-5818

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Article
Publication date: 1 December 2020

Wentao Zhan, Minghui Jiang and Chengzhang Li

Customer-intensive services refer to the service that a provider needs to invest in customers with high patience and experience. Within a certain rate range, the slower…

Abstract

Purpose

Customer-intensive services refer to the service that a provider needs to invest in customers with high patience and experience. Within a certain rate range, the slower service rate and the longer service time, the higher customer’s utility; however, this may cause queue congestion. And the advertising of service provider will affect the revenue. The purpose of this paper is to investigate the effects of advertising on the optimal price, service rate and the optimal revenue of such service provider at different development stages.

Design/methodology/approach

This paper investigates the service strategies of service provider based on advertising effects. The authors first divide service provider into insufficient customers or sufficient customers according to the development stage, then analyze the impact of advertising at different stages. The authors focus on the formulation of the optimal price, service rate and the optimal revenue of service provider at different stages.

Findings

This paper finds that in the insufficient customers stage, the service provider’s strategy of “small profits but quick turnover” is conducive to quickly accumulating customers. With the development of service provider, the advertising indirectly increases the revenue of service provider by maintaining popularity. The result also shows that with the development of service provider, the initiative of such service market has gradually been mastered by service provider, from “buyer market” to “seller market.”

Originality/value

The finding provides an alternative explanation for the impact of advertising on service provider’s optimal strategies; it also solves the settings of service price and rate of customer-intensive service provider at different development stages. This study is essential to create the optimal revenue and solve supply–demand conflicts (such as doctor–patient conflict) between service provider and customers.

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