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Open Access
Article
Publication date: 15 May 2023

Nijs Bouman and Lianne Simonse

Engaging with customers and addressing unmet value have become increasingly challenging within multi-stakeholder environments of service innovation. Therefore, this paper aims to…

3768

Abstract

Purpose

Engaging with customers and addressing unmet value have become increasingly challenging within multi-stakeholder environments of service innovation. Therefore, this paper aims to address this challenge by studying how strategic design abilities address unmet value in service engagement strategies.

Design/methodology/approach

The authors conducted a qualitative inductive study at a multinational corporation and interviewed marketing and design professionals on their innovation practices in service engagement strategies.

Findings

From the inductive analysis, this study identified three strategic design abilities that effectively contribute to addressing unmet value throughout the co-evolving process of service engagement: envisioning value, modelling value and engaging value. Based on this, this study proposes the emerging co-evolving loop framework of service engagement strategies.

Research limitations/implications

The limitation of this emerging theory is a lack of broad generalizability with mutual exclusivity or collective exhaustiveness across industries. A theoretical implication of the framework is the integration of strategic design and services marketing towards co-created engagement strategies.

Practical implications

The service engagement loop framework can be of great value to service innovation processes, for which an integrated, cross-functional approach is often missing.

Social implications

The findings further suggest that next to a methodological skillset, strategic design abilities consist of a distinct mindset.

Originality/value

This paper introduces strategic design abilities to address unmet value and proposes a novel co-evolving loop framework of service engagement strategies.

Details

Journal of Services Marketing, vol. 37 no. 10
Type: Research Article
ISSN: 0887-6045

Keywords

Open Access
Article
Publication date: 29 June 2020

Paolo Gaiardelli and Lucrezia Songini

The purpose of this paper is to analyse the fit between the strategy of service centres and their business model (BM) and to identify the BM components' characteristics and links…

4020

Abstract

Purpose

The purpose of this paper is to analyse the fit between the strategy of service centres and their business model (BM) and to identify the BM components' characteristics and links that allow it to stand out in terms of service delivery and business performance.

Design/methodology/approach

This study applies an inductive qualitative multiple case study approach through the empirical analysis of top-performing Italian service centres operating in the Medium–Heavy Commercial Vehicle sector.

Findings

Research findings underline that the BM components of top performers are consistent amongst each other and with the adopted strategy and make a positive impact on the firm's performance. In particular, top performers are characterised by a solid financial structure based on equity, formalised and flexible organisational structures and processes, clarity in strategic direction and long-term orientation, grounded capabilities, competences and skills, trustful relationships with main service partners and a comprehensive set of managerial mechanisms.

Research limitations/implications

This paper presents some limitations, typical of qualitative research based on case studies. Future works may include other dimensions of performance for identifying top performers, and extend the empirical analysis to different sectors and national contexts.

Originality/value

This paper supports the relevance of contingency theory – particularly the strategy-structure-performance paradigm – in the analysis of the role of a BM in successful servitization strategies of service centres. It highlights that the BMs of the top-performing companies are characterised by some common elements. From a practical perspective, the authors provide insights that can be useful for designing successful service-based BMs for service networks.

Details

International Journal of Productivity and Performance Management, vol. 70 no. 5
Type: Research Article
ISSN: 1741-0401

Keywords

Open Access
Article
Publication date: 13 June 2020

Albert Plugge, Shahrokh Nikou and Harry Bouwman

Due to the convergence of rapid business developments and digitization challenges, service orientation is back on the research agenda as a concept to improve firms’ business…

4765

Abstract

Purpose

Due to the convergence of rapid business developments and digitization challenges, service orientation is back on the research agenda as a concept to improve firms’ business services. Yet, little is known about the type of determinants that are relevant and to what degree they affect a firm’s service-oriented strategy.

Design/methodology/approach

Building on structural equation modeling (SEM) and a unique data set of 131 international firms from different continents, the authors identify and analyze the key determinants in the context of a firm’s service-oriented strategy.

Findings

The findings show that in order to cater for changes, organizations have to manage and adapt the coherence of the determinants’ business services, business processes and knowledge sharing continuously. Moreover, the results show that a service-oriented strategy is not only influenced by business services as such, but business services mediate the relationships between business processes, governance and process-aware information systems to a service-oriented strategy.

Research limitations/implications

A limitation is imposed by the limited sample size and the unbalanced response of participants (executive management). In future research, a more extensive survey among a broader group of participants will help the authors to develop their model further in order to generalize the results, as well as more finely grained research related to geography and size might be pursued. Future empirical research is necessary to identify and test the relationships between other constructs and study their effect on a firm’s service-oriented strategy.

Practical implications

On a practical level, the authors postulate that an organization’s executive management should pay attention to invest in an organizational entity (department) that manages business services continuously. This organizational entity has to ensure that related processes and knowledge sharing are in place to establish and maintain a service-oriented strategy.

Originality/value

This research contributes to service-oriented literature by operationalizing the implementation of an organization’s service-oriented strategy. The authors’ insights go beyond the findings of Aier et al. (2011). The authors found that a service-oriented strategy influences service-oriented project success positively. The authors extended these findings, based on a unique data set, by studying business services and influencing determinants (i.e. business processes, governance, PAIS and knowledge sharing) within the context of service orientation. The renewed attention to the concept of service orientation provides insights into critical determinants that influence the implementation of a service-oriented strategy.

Details

Business Process Management Journal, vol. 27 no. 8
Type: Research Article
ISSN: 1463-7154

Keywords

Open Access
Article
Publication date: 15 July 2019

Ángel López-Jáuregui, Mercedes Martos-Partal and Jose María Labeaga

This study aims to propose a theoretical framework and provide empirical evidence on the most successful marketing strategies for obtaining behavioural loyalty in small and medium…

7098

Abstract

Purpose

This study aims to propose a theoretical framework and provide empirical evidence on the most successful marketing strategies for obtaining behavioural loyalty in small and medium enterprises (SMEs).

Design/methodology/approach

The data are based on 475 telephone surveys conducted among Spanish hairdressers. The authors have used ordinary least squares to estimate the empirical model.

Findings

Pricing, services and communication (Web page and in-store communication) are the main drivers of customer loyalty. SMEs have to be cautious with the use of social networks to avoid damaging loyalty. In addition, those positioned at high-price segments should pay more attention to communication on the Web, and all companies should find a balance between in-store communication and the sale of products for use at home.

Research limitations/implications

Further research should try to replicate the findings with data from consumers and firms.

Practical implications

Service managers need to understand the optimal strategy to succeed in the market. The key insights of this study could also apply to other sectors, such as health, personal care and wellness services.

Originality/value

Previous research focussed mainly on large companies, while the role of loyalty in the success of SMEs has been poorly studied, with focus only on the antecedents and the measurement of loyalty. This study contributes to the previous research by analysing the effect of the strategy (price, range of services, communication, size and location) in the achievement of loyalty in SMEs.

Objetivos

Este trabajo propone un marco teórico y aporta evidencia empírica sobre las estrategias de marketing más exitosas en la consecución de lealtad comportamental en PYMEs.

Metodología

Se ha realizado una encuesta telefónica a 475 peluqueros españoles. El modelo utilizado para la estimación es el de mínimos cuadros ordinarios.

Resultados

Precio, servicios, y comunicación (página web y comunicación en la tienda) son los principales generadores de lealtad. Las PYMEs tienen que ser cautelosas con el uso de las redes sociales para evitar dañar la lealtad. Además, aquellas posicionados en altos precios deben prestar más atención a la comunicación en la web y todas deben encontrar un equilibrio entre la comunicación en el tienda y la venta de productos para su uso en casa.

Limitaciones

Investigaciones futuras podrían replicar este estudio usando datos de consumidores y de empresa.

Implicaciones prácticas

Los gerentes necesitan entender la estrategia óptima para tener éxito en el mercado. Las ideas claves de este trabajo podrían aplicarse a otros servicios personalizados de salud y bienestar.

Originalidad/valor

La investigación previa se centra principalmente en grandes empresas mientras que el papel de la lealtad en el éxito de las pymes ha sido escasamente investigado y se ha centrado en los antecedentes y la medición de la lealtad. Este estudio realiza una contribución al analizar el efecto de la estrategia (precio, surtido de servicios, comunicación, tamaño y localización) en la consecución de la lealtad en las pymes.

Palabras clave

Lealtad; pequeñas y medianas empresas; Pymes; peluqueros; estrategia de marketing; salon

Tipo de artículo

Artículo de investigación

Open Access
Article
Publication date: 7 November 2023

Ingo Oswald Karpen, Bo Edvardsson, Bård Tronvoll, Elina Jaakkola and Jodie Conduit

Service managers increasingly strive to achieve sustainability through strategies centered on circularity. With a focus on saving, extending and (re)generating resources and their…

Abstract

Purpose

Service managers increasingly strive to achieve sustainability through strategies centered on circularity. With a focus on saving, extending and (re)generating resources and their enclosing service systems, circularity can contribute to environmental, social and financial gains. Yet, the notion of circularity is surprisingly understudied in service research. This article seeks to provide an initial conceptual understanding of circular service management, introducing illustrative strategies and research priorities for circular service management. This paper provides a roadmap for scholars, practitioners and policymakers to develop a deeper understanding of the opportunities from adopting circular services.

Design/methodology/approach

The authors explore the concept of circular service management by drawing upon existing literature on sustainability, circularity and service research. Strategies of circular service management and research priorities emerge on the basis of industry best practice examples and research on sustainability challenges and opportunities.

Findings

Service researchers have largely ignored the concept and role of circularity for service businesses. Extant research on the topic nearly exclusively features in non-service journals and/or does not seek to advance service theory through circularity. This article argues that circular service management enables the implementation of service thinking in the pursuit of sustainability and outlines four types of circular service management strategies.

Originality/value

The authors introduce the concept of circular service management and highlight the role of service research for designing and managing circular systems and operations. This article also offers a research agenda connecting managerial challenges and opportunities with key service research priorities for circular service management. This provides a roadmap for scholars, practitioners and policymakers to develop a deeper understanding of pursuing circular services, thereby contributing to a more sustainable future.

Details

Journal of Service Management, vol. 34 no. 6
Type: Research Article
ISSN: 1757-5818

Keywords

Open Access
Article
Publication date: 5 December 2016

Caixia Liu and Jinhwan Hong

Chinese consumers’ cross-border internet shopping, so called “haitao” is an emerging popular trend in China. Haitao can be understood as service innovation process because it…

11327

Abstract

Purpose

Chinese consumers’ cross-border internet shopping, so called “haitao” is an emerging popular trend in China. Haitao can be understood as service innovation process because it creates new market spaces and provides differentiated values for Chinese customers.

Design/methodology/approach

This study aims to explore the service innovation strategies and success factors of haitao business in the Chinese market. The authors selected two successful haitao sites of Amazon.cn and Gmarket.co.kr, as representatives of a global player and a niche player, and conducted a comparative case study to analyze their service innovation strategies and key success factors.

Findings

This comparative case analysis based on value chain framework revealed some common success factors such as trust, advanced system and alliances as well as their service innovation efforts. Amazon has advantages such as efficient logistics system and global sourcing, whereas Gmarket has advantages such as product category, sales promotions, and payment system.

Originality/value

This study provides some implications for managers with localization, alliances and platform strategies.

Details

Asia Pacific Journal of Innovation and Entrepreneurship, vol. 10 no. 1
Type: Research Article
ISSN: 2071-1395

Keywords

Open Access
Article
Publication date: 17 January 2024

Anastasia Krupskaya

The purpose of this paper is to identify and describe the influence of the knowledge base (KB) of the company on driving forces of innovation processes in knowledge-intensive…

Abstract

Purpose

The purpose of this paper is to identify and describe the influence of the knowledge base (KB) of the company on driving forces of innovation processes in knowledge-intensive services (KIS) and to compare the level of innovativeness of the final services.

Design/methodology/approach

The paper investigates through qualitative research 11 KIS organisations with different KB.

Findings

The research results identified and described the influence of the KB on driving forces of innovations processes and its results in companies with four newly identified KBs (analytical, synthetic, symbolic and compliance).

Research limitations/implications

Further research, based on a larger number of companies, is needed to confirm the results of this research and to complement the effect of the KB on driving forces of innovation.

Practical implications

This research can help organisations understand how to develop strategic plans and new ideas for innovative services depending on the KB of the organisation.

Social implications

The description of successful innovation processes and results in several leading companies presented in the study may help other companies in identifying knowledge-integration practices to improve performance and innovation processes that support multiplicity, productivity and creativity.

Originality/value

The study systemised the sources of new ideas for innovation in companies with different KB, several driving forces of innovation were identified and how these forces are affected by each KB; lastly, innovation results were compared in companies with different KB.

Details

foresight, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1463-6689

Keywords

Open Access
Article
Publication date: 18 December 2023

Christian Grönroos

In servitization research, there has been a call to move further toward the development of business models based on a service approach. This article aims to answer this call by…

Abstract

Purpose

In servitization research, there has been a call to move further toward the development of business models based on a service approach. This article aims to answer this call by adopting service logic (SL) and developing strategies and organizational resources and processes to create a service-centric business model called servification, defined as the process of identifying and developing strategies and organizational resources and processes to create a business model based on SL.

Design/methodology/approach

This article is conceptual and extends servitization in the direction of service-centric business model innovation by drawing on and extending SL.

Findings

The article defines service as a higher-order concept according to SL and develops the concept of a helping strategy as the foundation for a service-based business model. Further, it develops a typology of organizational resources and processes that must be developed for the emergence of such a business model.

Research limitations/implications

Since this article is the first to conceptually develop servification, more both theoretical and empirical research is naturally required. The development of servification takes servitization in the direction of service-based business model innovation and also contributes to the research on SL.

Practical implications

Servification enables the development of service-centric strategies and organizational resources and processes and service-based business models.

Originality/value

This article is the first to adopt SL in studies of business model innovation.

Details

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

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…

16549

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: 25 August 2023

Nathalie Kron, Jesper Björkman, Peter Ek, Micael Pihlgren, Hanan Mazraeh, Benny Berggren and Patrik Sörqvist

Previous research suggests that the compensation offered to customers after a service failure has to be substantial to make customer satisfaction surpass that of an error-free…

Abstract

Purpose

Previous research suggests that the compensation offered to customers after a service failure has to be substantial to make customer satisfaction surpass that of an error-free service. However, with the right service recovery strategy, it might be possible to reduce compensation size while maintaining happy customers. The aim of the current study is to test whether an anchoring technique can be used to achieve this goal.

Design/methodology/approach

After experiencing a service failure, participants were told that there is a standard size of the compensation for service failures. The size of this standard was different depending on condition. Thereafter, participants were asked how much they would demand to be satisfied with their customer experience.

Findings

The compensation demand was relatively high on average (1,000–1,400 SEK, ≈ $120). However, telling the participants that customers typically receive 200 SEK as compensation reduced their demand to about 800 SEK (Experiment 1)—an anchoring effect. Moreover, a precise anchoring point (a typical compensation of 247 SEK) generated a lower demand than rounded anchoring points, even when the rounded anchoring point was lower (200 SEK) than the precise counterpart (Experiment 2)—a precision effect.

Implications/value

Setting a low compensation standard—yet allowing customers to actually receive compensations above the standard—can make customers more satisfied while also saving resources in demand-what-you-want service recovery situations, in particular when the compensation standard is a precise value.

Details

Journal of Service Theory and Practice, vol. 33 no. 7
Type: Research Article
ISSN: 2055-6225

Keywords

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