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The purpose of this research is to develop an index for assessing service capability when the customer considers satisfactory a certain range of service performance, the so‐called zone of tolerance.

Literature on service research and statistical process control (SPC) was used to develop a conceptual approach that is later worked out for implementation. Some of the quality function deployment principles are used in the approach to articulate customer perceptions and expectations with parameters of service performance.

It is demonstrated that traditional capability indices do not cope properly with service performance characterized by a zone of tolerance and that the new capability index, proposed by the authors, is more than adequate to deal with the specific features of services.

It was assumed that performance levels within the zone of tolerance are not perceived as different by customers and that service performance could be considered as normally distributed. Further research is clearly needed, not only to test the assumptions in different service environments, but also to assess the robustness of the proposed index when the assumptions are violated.

Improvement efforts of the organizations can be better allocated if the relation between customer expectations and service performance is understood and characterized.

A new approach to understand the relationship between customer expectations and perceptions and service performance is launched. The approach led to the development of a service capability index and might constitute a contribution to all researchers and practitioners that intend to spread SPC principles within the service sector.

Empirical research on quality improvement in service organisations has been growing in recent years but it still lags behind the developments observed in manufacturing. It has been generally recognised that more research is needed in the field, especially with regard to the application of quantitative methods that can help managers in the decision‐making process. Results of research carried out in a bank are presented, focusing the main aspects of the service recovery process after a complaint has occurred. A specific methodology is proposed to analyse the failures and corresponding complaints in service delivery, with the ultimate goal of articulating internal and external measures of performance. The methodology provides a better knowledge of the impact caused by operational factors (internal measures) on customer perceptions (external measures), so that management actions can then be taken accordingly.

The purpose of this paper is to study the effect of total quality management (TQM) resources on strategic product innovation. It addresses the apparent tension between quality management and innovation management and seeks empirical support for the proposition that quality management resources can be used to support strategic innovation. Based on resource-based view, it defines key resources that firms develop during implementation of TQM systems: TQM culture, product design capability, and process improvement capability – and assesses the role of these resources in the success of product innovation.

A survey of 112 manufacturing firms was conducted and the resulting data were analyzed using partial least squares (PLS) to determine how TQM constructs affect strategic product innovation.

The main finding suggests that only product design capability contributes to strategic product innovation. TQM culture has a direct influence on process improvement and product design capabilities but not on product innovation. The effect of innovation capability and innovation orientation on product innovation was only supported for innovation capability. The effect of innovation orientation is mediated by the development of innovation capability.

The paper focusses on the level of maturity of capability development without taking into consideration the time since adoption. Also, the measure of product innovation is based on the degree of product newness but does not dichotomize in terms of radical vs incremental. Several arguments supporting a negative relationship between TQM and innovation often refer to radical or breakthrough innovation. It would be interesting to test the model while distinguishing between radical and incremental innovation. The use of cross-sectional data is a methodological limitation.

The results suggest that managers can leverage their quality management systems to support product innovation. In particular, the ability to design quality into products leads to higher levels of strategic production innovation. The successful deployment of TQM capabilities requires an integrative and well-structured approach, involving top leadership engagement of employees and customer orientation. While TQM culture is critical to the development of quality management capabilities, it does not directly affect the innovativeness of a firm.

The paper explores the relationship between quality management systems and strategic product innovation. Further work is needed to test whether TQM effect on strategic innovation is different for radical and incremental products, and for other innovation outcomes such as process and service innovation.

The patterns of adoption of quality management practices and techniques vary across national boundaries. This article presents the findings of a questionnaire survey into the quality management procedures and tools adopted in three European countries, the UK, Portugal and Finland. A total of 450 responses are analysed. The main differences between the three countries are outlined with regard to factors motivating the implementation of quality systems, quality tools and techniques used, outcomes from quality management and problems encountered in providing quality training. The results are then analysed under the perspective of the probable impact of national culture. The models of national culture developed by Hofstede, Trompenaars and Earley and Erez were used for this purpose. The main conclusion is that these models can help to explain, to a great extent, much of the variation observed and constitute a basis for understanding why particular quality management approaches are adopted.