The customization of a service often depends on the “performance” delivered by front-stage service employees. Drawing on theories of dramaturgy and service marketing, we present a typology of four distinct and viable configurations for achieving different types of service customization. We explain how variations in the time pressure to customize a service, and the degree of customization required, combine to determine the characteristics of each configuration. With service organizations increasingly operating on a global basis, we discuss the fit between the preferences of different multicultural segments, the operational characteristics of a configuration, and the level of customization offered.
Perception gap and its impact on supply chain performanceGurdal Ertek
The main purpose of this paper is to frame the perception differences between the buyer and supplier on the supply chain’s operational delivery, and to investigate their causal relation to the overall supply chain performance. A conceptual three-level model is developed to theorise the structural existence of the perception gaps in primarily a dyadic buyer-supplier setting. Using the primary data gathered through a major survey exercise, confirmative factor analysis and structural equation modelling were conducted to test the
hypotheses on the significance and relevance of the perception gaps in supply chain management. This study provides a better conceptual understanding of the perception differences on the required as well as achieved operational
deliveries within the supplier-buyer dyad, and reveals their significant and negative causal impact on the overall supply chain performance.
http://ertekprojects.com/gurdal-ertek-publications/
bit.ly/1PXM70m
http://www.inderscienceonline.com/doi/abs/10.1504/IJBPSCM.2015.069919?jour
nalCode=ijbpscm
Perception gap and its impact on supply chain performanceGurdal Ertek
The main purpose of this paper is to frame the perception differences between the buyer and supplier on the supply chain’s operational delivery, and to investigate their causal relation to the overall supply chain performance. A conceptual three-level model is developed to theorise the structural existence of the perception gaps in primarily a dyadic buyer-supplier setting. Using the primary data gathered through a major survey exercise, confirmative factor analysis and structural equation modelling were conducted to test the
hypotheses on the significance and relevance of the perception gaps in supply chain management. This study provides a better conceptual understanding of the perception differences on the required as well as achieved operational
deliveries within the supplier-buyer dyad, and reveals their significant and negative causal impact on the overall supply chain performance.
http://ertekprojects.com/gurdal-ertek-publications/
bit.ly/1PXM70m
http://www.inderscienceonline.com/doi/abs/10.1504/IJBPSCM.2015.069919?jour
nalCode=ijbpscm
The Effect Service Quality to Customer Satisfaction and Customer Loyalty of A...IOSR Journals
Customer Loyalty is important for cultivated by the company, therefore the aim of this study to prove
how the effect of Service Quality and Customer Satisfaction in enhancing Customer Loyalty. Samples were
service users Railway Transport Argo Bromo Anggrek Jakarta Surabaya by using purposive side. Sample size of
300 respondents. Data analysis using Structural Equation Model (SEM). The results showed that Services
Quality significantly influence to customer satisfaction. Customer Satisfaction significant effect on Customer
Loyalty. Service Quality is not yet significant effect on Customer Loyalty, so that Customer Satisfaction is a
mediator of the relationship Service Quality on Customer Loyalty to PT Argo Bromo Anggrek Train Jakarta-
Surabaya. The implications that Customer Satisfaction is capable of mediating the quality of care in improving
Customer Loyalty.
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
This paper studies the impact of job contract types on perceived job quality using Finnish 2008 Quality of Work Life Surveys from years 1997, 2003 and 2008. In the analysis job contract types are adjusted to take into account the motive for doing temporary and part-time work. Our results from the Finnish QWLS imply that there are clear differences in job quality and work well-being by the type of job contract. Our results also show the importance of distinguishing between types of temporary and part-time work by the contract preference, i.e. whether these nonstandard employment arrangements are exercised involuntarily or not. Almost without exception involuntary temporary and involuntary part-time workers’ experiences of their job quality are weaker with
respect to core job quality indicators studied in this paper such as training possibilities, participation in employer-funded training, career possibilities, possibilities to learn and grow at work, job autonomy, and job insecurity.
Technology Management - A Complex Adaptive Systems ApproachIan McCarthy
There are systems methods and evolutionary processes that can help organisations understand the innovative patterns and competitive mechanisms that influence the creation, management and exploitation of technology. This paper presents a specific model based on the evolutionary processes of variation, selection, retention and struggle, coupled with fitness landscape theory. This latter concept is a complex adaptive systems theory that has attained recognition as an approach for visually mapping the strategic options an evolving system could pursue. The relevance and utility of fitness landscape theory to the strategic management of technology is explored, and a definition and model of technological fitness provided. The complex adaptive systems perspective adopted by this paper, views organisations as evolving systems that formulate strategies by classifying, selecting, adopting and exploiting various combinations of technological capabilities. A model called the strategy configuration chain is presented to illustrate this strategic process.
New Product Development as a Complex Adaptive System of DecisionsIan McCarthy
Early research on new product development (NPD) has produced descriptive frameworks and models that view the process as a linear system with sequential and discrete stages. More recently, recursive and chaotic frameworks of NPD have been developed, both of which acknowledge that NPD progresses through a series of stages, but with overlaps, feedback loops, and resulting behaviors that resist reductionism
and linear analysis. This article extends the linear, recursive, and chaotic frameworks by viewing NPD as a complex adaptive system (CAS) governed by three levels of decision making — in-stage, review, and strategic—and the accompanying decision rules. The research develops and presents propositions that predict how the configuration and organization of NPD decision-making agents will influence
the potential for three mutually dependent CAS phenomena: nonlinearity, selforganization, and emergence. Together these phenomena underpin the potential for NPD process adaptability and congruence. To support and to verify the propositions, this study uses comparative case studies, which show that NPD process adaptability occurs and that it is dependent on the number and variety of agents, their corresponding connections and interactions, and the ordering or disordering effect of the decision levels and rules. Thus, the CAS framework developed within this article maintains a fit among descriptive stance, system behavior, and innovation type, as it considers individual NPD processes to be capable of switching or toggling between different behaviors — linear to chaotic — to produce corresponding innovation outputs that range from incremental to radical in accord with market expectations.
Understanding the effects of outsourcing: unpacking the total factor producti...Ian McCarthy
Research on why firms should outsource and how they should do it has proliferated in the past two decades, but few consistent findings have emerged concerning the benefits of outsourcing. We argue that this is in part due to the lack of an adequate framework for measuring the effects of outsourcing. To address this, we present such a framework based upon the Cobb–Douglas productivity function. We explain how our framework can be used to unpack one component of the Cobb–Douglas productivity function, the ‘total factor productivity’, which represents the other numerous sub-variables that affect outsourcing productivity, beyond the capital and labour expenditures. We also demonstrate the framework using a simple illustrative example.
Understanding outsourcing contexts through information asymmetry and capabili...Ian McCarthy
Outsourcing is a strategic activity that has long been central to operations management research and practice. Yet, there are still many outsourcing management challenges that remain. In this article, we explore two of the outsourcing challenges that motivated this special issue and are central to the 10 articles included. To do this, we develop a theoretical model that examines how variations in capability fit and information asymmetry combine to present firms with four different outsourcing contexts. We then explain how each of the articles included in this special issue relate to our theoretical model and explore several avenues for future research.
Toward a Phylogenetic Reconstruction of Organizational LifeIan McCarthy
Classification is an important activity that facilitates theory development in many academic disciplines. Scholars in fields such as organizational science, management science and economics and have long recognized that classification offers an approach for ordering and understanding the diversity of organizational taxa (groups of one or more similar organizational entities). However, even the most prominent organizational classifications have limited utility, as they tend to be shaped by a specific research bias, inadequate units of analysis and a standard neoclassical economic view that does not naturally accommodate the disequilibrium dynamics of modern competition. The result is a relatively large number of individual and unconnected organizational classifications, which tend to ignore the processes of change responsible for organizational diversity. Collectively they fail to provide any sort of universal system for ordering, compiling and presenting knowledge on organizational diversity. This paper has two purposes. First, it reviews the general status of the major theoretical approaches to biological and organizational classification and compares the methods and resulting classifications derived from each approach. Definitions of key terms and a discussion on the three principal schools of biological classification (evolutionary systematics, phenetics and cladistics) are included in this review. Second, this paper aims to encourage critical thinking and debate about the use of the cladistic classification approach for inferring and representing the historical relationships underpinning organizational diversity. This involves examining the feasibility of applying the logic of common ancestry to populations of organizations. Consequently, this paper is exploratory and preparatory in style, with illustrations and assertions concerning the study and classification of organizational diversity.
Complex adaptive system mechanisms, adaptive management practices, and firm p...Ian McCarthy
As a fascinating concept, the mechanisms of complex adaptive system (CAS) attracted many researchers from a variety of disciplines. Nevertheless, how the mechanism-related variables, such as strategic resonance, accreting nodes, pattern forming, and catalytic behavior of organization, impact the firm product innovativeness is rarely addressed empirically in the new product development (NPD) literature. Also, there exist limited studies on the antecedents of the mechanisms of CAS in the NPD literature. In this respect, we identified and operationalized the adaptive management practices, which involve bonding, nonlinear, and attractor behaviors of management, as antecedents of mechanisms and firm product innovativeness. By studying 235 firms, we found that (1) strategic resonance and accreting nodes are positively related to firm product innovativeness, (2) bonding, nonlinear, and attractor behaviors of management positively influence the mechanism variables, and (3) market and technology turbulence impact the adaptive management practices. We also found that mechanisms of CAS partially mediate the relationship between adaptive management practices and firm product innovativeness.
When customers get clever: Managerial approaches to dealing with creative con...Ian McCarthy
Creative consumers (defined as customers who adapt, modify, or transform a proprietary offering) represent an intriguing paradox for business. On
one hand, they can signify a black hole for future revenue, with breach of copyright and intellectual property. On the other hand, they represent a gold mine of ideas and business opportunities. Central to business is the need to create and capture value, and creative consumers demand a shift in the mindsets and business models of how firms accomplish both. Based upon their attitude and action toward customer innovation, we develop a typology of firms’ stances toward creative consumers. We then consider the implications of the stances model for corporate strategy and
examine a three-step approach to dealing with creative consumers: awareness, analysis, and response.
The Effect Service Quality to Customer Satisfaction and Customer Loyalty of A...IOSR Journals
Customer Loyalty is important for cultivated by the company, therefore the aim of this study to prove
how the effect of Service Quality and Customer Satisfaction in enhancing Customer Loyalty. Samples were
service users Railway Transport Argo Bromo Anggrek Jakarta Surabaya by using purposive side. Sample size of
300 respondents. Data analysis using Structural Equation Model (SEM). The results showed that Services
Quality significantly influence to customer satisfaction. Customer Satisfaction significant effect on Customer
Loyalty. Service Quality is not yet significant effect on Customer Loyalty, so that Customer Satisfaction is a
mediator of the relationship Service Quality on Customer Loyalty to PT Argo Bromo Anggrek Train Jakarta-
Surabaya. The implications that Customer Satisfaction is capable of mediating the quality of care in improving
Customer Loyalty.
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
This paper studies the impact of job contract types on perceived job quality using Finnish 2008 Quality of Work Life Surveys from years 1997, 2003 and 2008. In the analysis job contract types are adjusted to take into account the motive for doing temporary and part-time work. Our results from the Finnish QWLS imply that there are clear differences in job quality and work well-being by the type of job contract. Our results also show the importance of distinguishing between types of temporary and part-time work by the contract preference, i.e. whether these nonstandard employment arrangements are exercised involuntarily or not. Almost without exception involuntary temporary and involuntary part-time workers’ experiences of their job quality are weaker with
respect to core job quality indicators studied in this paper such as training possibilities, participation in employer-funded training, career possibilities, possibilities to learn and grow at work, job autonomy, and job insecurity.
Technology Management - A Complex Adaptive Systems ApproachIan McCarthy
There are systems methods and evolutionary processes that can help organisations understand the innovative patterns and competitive mechanisms that influence the creation, management and exploitation of technology. This paper presents a specific model based on the evolutionary processes of variation, selection, retention and struggle, coupled with fitness landscape theory. This latter concept is a complex adaptive systems theory that has attained recognition as an approach for visually mapping the strategic options an evolving system could pursue. The relevance and utility of fitness landscape theory to the strategic management of technology is explored, and a definition and model of technological fitness provided. The complex adaptive systems perspective adopted by this paper, views organisations as evolving systems that formulate strategies by classifying, selecting, adopting and exploiting various combinations of technological capabilities. A model called the strategy configuration chain is presented to illustrate this strategic process.
New Product Development as a Complex Adaptive System of DecisionsIan McCarthy
Early research on new product development (NPD) has produced descriptive frameworks and models that view the process as a linear system with sequential and discrete stages. More recently, recursive and chaotic frameworks of NPD have been developed, both of which acknowledge that NPD progresses through a series of stages, but with overlaps, feedback loops, and resulting behaviors that resist reductionism
and linear analysis. This article extends the linear, recursive, and chaotic frameworks by viewing NPD as a complex adaptive system (CAS) governed by three levels of decision making — in-stage, review, and strategic—and the accompanying decision rules. The research develops and presents propositions that predict how the configuration and organization of NPD decision-making agents will influence
the potential for three mutually dependent CAS phenomena: nonlinearity, selforganization, and emergence. Together these phenomena underpin the potential for NPD process adaptability and congruence. To support and to verify the propositions, this study uses comparative case studies, which show that NPD process adaptability occurs and that it is dependent on the number and variety of agents, their corresponding connections and interactions, and the ordering or disordering effect of the decision levels and rules. Thus, the CAS framework developed within this article maintains a fit among descriptive stance, system behavior, and innovation type, as it considers individual NPD processes to be capable of switching or toggling between different behaviors — linear to chaotic — to produce corresponding innovation outputs that range from incremental to radical in accord with market expectations.
Understanding the effects of outsourcing: unpacking the total factor producti...Ian McCarthy
Research on why firms should outsource and how they should do it has proliferated in the past two decades, but few consistent findings have emerged concerning the benefits of outsourcing. We argue that this is in part due to the lack of an adequate framework for measuring the effects of outsourcing. To address this, we present such a framework based upon the Cobb–Douglas productivity function. We explain how our framework can be used to unpack one component of the Cobb–Douglas productivity function, the ‘total factor productivity’, which represents the other numerous sub-variables that affect outsourcing productivity, beyond the capital and labour expenditures. We also demonstrate the framework using a simple illustrative example.
Understanding outsourcing contexts through information asymmetry and capabili...Ian McCarthy
Outsourcing is a strategic activity that has long been central to operations management research and practice. Yet, there are still many outsourcing management challenges that remain. In this article, we explore two of the outsourcing challenges that motivated this special issue and are central to the 10 articles included. To do this, we develop a theoretical model that examines how variations in capability fit and information asymmetry combine to present firms with four different outsourcing contexts. We then explain how each of the articles included in this special issue relate to our theoretical model and explore several avenues for future research.
Toward a Phylogenetic Reconstruction of Organizational LifeIan McCarthy
Classification is an important activity that facilitates theory development in many academic disciplines. Scholars in fields such as organizational science, management science and economics and have long recognized that classification offers an approach for ordering and understanding the diversity of organizational taxa (groups of one or more similar organizational entities). However, even the most prominent organizational classifications have limited utility, as they tend to be shaped by a specific research bias, inadequate units of analysis and a standard neoclassical economic view that does not naturally accommodate the disequilibrium dynamics of modern competition. The result is a relatively large number of individual and unconnected organizational classifications, which tend to ignore the processes of change responsible for organizational diversity. Collectively they fail to provide any sort of universal system for ordering, compiling and presenting knowledge on organizational diversity. This paper has two purposes. First, it reviews the general status of the major theoretical approaches to biological and organizational classification and compares the methods and resulting classifications derived from each approach. Definitions of key terms and a discussion on the three principal schools of biological classification (evolutionary systematics, phenetics and cladistics) are included in this review. Second, this paper aims to encourage critical thinking and debate about the use of the cladistic classification approach for inferring and representing the historical relationships underpinning organizational diversity. This involves examining the feasibility of applying the logic of common ancestry to populations of organizations. Consequently, this paper is exploratory and preparatory in style, with illustrations and assertions concerning the study and classification of organizational diversity.
Complex adaptive system mechanisms, adaptive management practices, and firm p...Ian McCarthy
As a fascinating concept, the mechanisms of complex adaptive system (CAS) attracted many researchers from a variety of disciplines. Nevertheless, how the mechanism-related variables, such as strategic resonance, accreting nodes, pattern forming, and catalytic behavior of organization, impact the firm product innovativeness is rarely addressed empirically in the new product development (NPD) literature. Also, there exist limited studies on the antecedents of the mechanisms of CAS in the NPD literature. In this respect, we identified and operationalized the adaptive management practices, which involve bonding, nonlinear, and attractor behaviors of management, as antecedents of mechanisms and firm product innovativeness. By studying 235 firms, we found that (1) strategic resonance and accreting nodes are positively related to firm product innovativeness, (2) bonding, nonlinear, and attractor behaviors of management positively influence the mechanism variables, and (3) market and technology turbulence impact the adaptive management practices. We also found that mechanisms of CAS partially mediate the relationship between adaptive management practices and firm product innovativeness.
When customers get clever: Managerial approaches to dealing with creative con...Ian McCarthy
Creative consumers (defined as customers who adapt, modify, or transform a proprietary offering) represent an intriguing paradox for business. On
one hand, they can signify a black hole for future revenue, with breach of copyright and intellectual property. On the other hand, they represent a gold mine of ideas and business opportunities. Central to business is the need to create and capture value, and creative consumers demand a shift in the mindsets and business models of how firms accomplish both. Based upon their attitude and action toward customer innovation, we develop a typology of firms’ stances toward creative consumers. We then consider the implications of the stances model for corporate strategy and
examine a three-step approach to dealing with creative consumers: awareness, analysis, and response.
Achieving contextual ambidexterity in R&D organizations: a management control...Ian McCarthy
Research on how managers control R&D activities has tended to focus on the performance measurement systems used to exploit existing knowledge and capabilities. This focus has been at the expense of how broader forms of management control could be used to enable R&D contextual ambidexterity, the capacity to attain appropriate levels of exploitation and exploration behaviors in the same R&D organizational unit. In this paper, we develop a conceptual framework for understanding how different types of control system, guided by different R&D strategic goals, can be used to induce and balance both exploitation and exploration. We illustrate the elements of this framework and their relations using data from biotechnology firms, and then discuss how the framework provides a basis to empirically examine a number of important control relationships and phenomena.
Why do some patents get licensed while others do not?Ian McCarthy
To understand why some patents get licensed and others do not, we estimate a portfolio of firm- and patent-level determinants for why a particular licensor’s patent was licensed over all technologically similar patents held by other licensors. Using data for licensed biopharmaceutical patents, we build a set of alternate patents that could have been licensed-in using topic modeling techniques. This provides a more sophisticated way of controlling for patent characteristics and analyzing the attractiveness of a licensor and the characteristics of the patent itself. We find that patents owned by licensors with technological prestige, experience at licensing, and combined technological depth and breadth have a greater chance at being chosen by licensees. This suggests that a licensor’s standing and organizational learning rather than the quality of its patent alone influence the success of outward licensing.
The ability of current statistical classifications to separateservices and ma...Ian McCarthy
This paper explores the performance of current statistical classification systems in classifying firms and, in particular, their ability to distinguish between firms that provide services and firms that provide manufacturing. We find that a large share of firms, almost 20%, are not classified as expected based on a comparison of their statements of activities with the assigned industry codes. This result is robust to analyses on different levels of aggregation and is validated in an additional survey. It is well known from earlier literature that industry classification systems are not perfect. This paper provides a quantification of the flaws in classifications of firms. Moreover, it is explained why the classifications of firms are imprecise. The increasing complexity of production, inertia in changes to statistical systems and the increasing integration of manufacturing products and services are some of the primary and interrelated explanations for this lack of precision. We emphasise, however, that such classification problems are not resolved using a ‘technical fix’. Any statistical classification method involves a number of tradeoffs.
Organisational diversity, evolution and cladistic classificationsIan McCarthy
This article presents a case for the construction of a formal classification of manufacturing systems using cladistics, a technique from the biological school of classification. A seven-stage framework for roducing a manufacturing cladogram is presented, along with a pilot case study example. This article describes the role that classification plays in the pure and applied sciences, the social sciences and reviews the status of existing manufacturing classifications. If organisational diversity and organisational change processes are governed by evolutionary mechanisms, studies of organisations based on an evolutionary approach such as cladistics could have potential, because as March [March JG. The evolution of evolution. In: Baum JAC, Singh JV, editors. Evolutionary dynamics of organizations. Oxford University Press, 1994. p. 39±52], page 45, states ``there is natural speculation that organisations, like species can be engineered by understanding the evolutionary processes well enough to intervene and produce competitive organisational effects''. It is suggested that a cladistic study could provide organisations with a ``knowledge map'' of the ecosystem in which they exist and by using this phylogenetic and situational analysis, they could determine coherent and appropriate action for the specification of change.
Achieving Agility Using Cladistics: An Evolutionary AnalysisIan McCarthy
To achieve the status of an agile manufacturer, organisations need to clearly understand the concept of agility, relative to their industrial and business circumstances and to then identify and acquire the appropriate characteristics which will result in an agile manufacturing organisation. This paper is not simply another discussion on the definition of agility, or a philosophical debate on the drivers and characteristics of agility. This paper presents an evolutionary modelling technique (cladistics) which could enable organisations to systematically manage and understand the emergence of new manufacturing forms within their business environment. This fundamental, but important insight is valuable for achieving successful organisational design and change. Thus, regardless of the industrial sector, managers could use cladistics as an evolutionary analysis technique for determining ``where they have been and where they are now''. Moving from a non-agile manufacture to an agile manufacture is a process of organisational change and evolutionary development. This evolutionary method will enable organisations to understand the landscape of manufacturing possibilities that exist, to identify appropriate agile forms and to successfully navigate that landscape.
Innovation in manufacturing as an evolutionary complex systemIan McCarthy
The focus of this paper is on innovation in terms of the new product development processes and to discuss its main features. This is followed by a presentation of the new ideas emerging from complex systems science. It is then demonstrated how complex systems provides an overall conceptual framework for thinking about innovation and for considering how this helps to provide understanding and advice for the organisation of new product development in different circumstances. Three case studies are quoted which illustrate the application of these new ideas.
Making a face: Graphical illustrations of managerial stances toward customer ...Ian McCarthy
Creative consumers – consumers who adapt, modify or transform a proprietary offering – represent an intriguing paradox for business. On the one hand they can be a black hole for future revenue, with breach of copyright and intellectual property, while on the other hand they represent a gold mine of ideas and business opportunities. This problem is central to business – business needs to both create and capture value; the problem is that creative consumers demand a shift in the mindsets and business models of how firms both create and capture value. We develop a typology of firms’ stances to creative consumers based upon their attitude and action towards customer innovation. We then consider the implications of the stances model for corporate strategy, and examine a three-step approach to dealing with creative consumers, namely, awareness, analysis and response.
Game on: Engaging customers and employees through gamificationIan McCarthy
Managers are frequently tasked with increasing the engagement levels of key stakeholders, such as customers and employees. Gamification - defined as the application of game design principles to change behavior in non-gaming contexts - is a tool that, if crafted and implemented properly, can increase engagement. In this article we discuss how gamification can aid customer and employee engagement, and delineate between four different types of customers and employees who act as ‘players’ in gamified experiences. We include illustrative examples of gamification and conclude by presenting five lessons for managers who wish to utilize gamification.
Unpacking the Social Media Phenomenon: Towards a Research AgendaIan McCarthy
In this paper, we highlight some of the challenges and opportunities that social media presents to researchers, and offer relevant theoretical avenues to be explored. To do this, we present a model that unpacks social media by using a honeycomb of seven functional building blocks. We then examine each of the seven building blocks and, through appropriate social and socio-technical theories, raise questions that warrant further in-depth research to advance the conceptualization of social media in public affairs research. Finally, we combine the individual research questions for each building block back into the honeycomb model to illustrate how the theories in combination provide a powerful macro-lens for research on social media dynamics.
Data-Driven Simulation-Enhanced optimization of Service operationsSudhendu Rai
This paper describes a systematic six-step data-driven simulation-based methodology for optimizing people-based service systems on a large distributed scale that exhibit high variety and variability. The methodology is exemplified
through its application within the printing services industry where it has been successfully deployed by Xerox Corporation across small, mid-sized and large print shops generating over $250 million in profits across the customer value chain. Each
step of the methodology consisting of innovative concepts co-development and testing in partnership with customers, development of software and hardware tools to implement the innovative concepts, establishment of work-process and practices for customer-engagement and service implementation, creation of training and infrastructure for large scale deployment, integration of the innovative offering within the framework of existing corporate offerings and lastly the monitoring and deployment of the financial and operational metrics for estimating the return-on investment and the continual renewal of the offering are described in detail.
CONCEPTUALTHEORETICAL PAPERCustomer engagement in serviceAlleneMcclendon878
CONCEPTUAL/THEORETICAL PAPER
Customer engagement in service
V. Kumar1,2,3,4 & Bharath Rajan1 & Shaphali Gupta1,5 & Ilaria Dalla Pozza6
Received: 1 February 2017 /Accepted: 20 September 2017 /Published online: 7 October 2017
# Academy of Marketing Science 2017
Abstract We develop a framework to facilitate customer en-
gagement in service (CES) based on the service-dominant (S-
D) logic. A novel feature of this framework is its applicability
and relevance for firms operating both in developed and emerg-
ing markets. First, we conduct a qualitative study involving
service managers from multinational companies (MNCs)
across the developed and emerging markets to understand the
practitioner viewpoints. By integrating the insights from the
interviews and the relevant academic literature, this framework
explores how interaction orientation and omnichannel model
can be used to create positive service experience. We also iden-
tify the factors that moderate the service experience, and
categorize them as follows: offering-related, value-related, en-
abler-related, and market-related. Further, we also propose that
perceived variation in service experience moderates the influ-
ence of service experience on satisfaction and emotional attach-
ment, which ultimately impacts customer engagement (CE).
From these factors, we advance research propositions that dis-
cuss the creation of positive service experience. One of the
study’s key contributions is that MNCs can focus their attention
on the moderators to ensure consistency in positive service
experience, in an effort to enhance CE.
Keywords Service experience . Customer engagement .
Developed markets . Emerging markets . Service-dominant
logic
Introduction
The emergence of service activities globally can be observed
at the firm level through the concept of customer engagement
(CE). In such an environment, engaging with customers has
been recognized as a viable way for enhancing brand and firm
performance (Gartner 2014). For instance, Gallup research
found that on a per-trip basis, Bfully engaged^ customers in
the consumer electronics industry spent $373, compared to
$289 by the Bactively disengaged^ customers (Sorenson and
Adkins 2014). With financial performance at stake, service
firms would, therefore, be more inclined to engage with their
customers.
Research studies have identified CE as a key success factor
for firms (Kumar and Pansari 2016; Verhoef et al. 2010). In
this regard, value contribution from customers to the firms
extends beyond just purchases transactions to also include
non-purchase related customer behaviors (Kumar and
Reinartz 2016). All these ways of customer value contribution
Satish Jayachandran served as Area Editor for this article.
* V. Kumar
[email protected]
Bharath Rajan
[email protected]
Shaphali Gupta
[email protected]
Ilaria Dalla Pozza
[email protected]
1 Center for Excellence in Brand & Customer Management, J. Mack
Robinson College of Business, Georgia State Univ ...
Communication and Control Processes in the Delivery of Se.docxmadlynplamondon
Communication and Control Processes in the Delivery of Service Quality
Author(s): Valarie A. Zeithaml, Leonard L. Berry and A. Parasuraman
Source: Journal of Marketing, Vol. 52, No. 2 (Apr., 1988), pp. 35-48
Published by: American Marketing Association
Stable URL: http://www.jstor.org/stable/1251263
Accessed: 18-05-2017 23:45 UTC
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Valarie A. Zeithaml, Leonard L. Berry, & A. Parasuraman
Communication and Control
Processes in the Delivery
of Service Quality
Delivering consistently good service quality is difficult but profitable for service organizations. Under-
standing why it is so difficult and how it might be facilitated is the purpose of the article. The authors'
intent is to identify a reasonably exhaustive set of factors potentially affecting the magnitude and direc-
tion of four gaps on the marketer's side of their service quality model. Most factors involve (1) com-
munication and control processes implemented in service organizations to manage employees and (2)
consequences of these processes, such as role clarity and role conflict of contact personnel. Literature
from the marketing and organizational behavior fields on these topics is reviewed and integrated with
qualitative data from an exploratory study. Discussion centers on insights that can be obtained from
empirical testing of the extended model.
THE delivery of quality in goods and services has
become a marketing priority of the 1980s (Leon-
ard and Sasser 1982; Rabin 1983). Though marketers
of tangible goods have defined and measured quality
with increasing levels of precision (Crosby 1979; Gar-
vin 1983), marketers of services experience difficulty
in understanding and controlling quality. Because ser-
vices are performances rather than objects, precise
manufacturing specifications for uniform quality rarely
can be established and enforced by the firm. Quality
in services is not engineered at the manufacturing plant,
then delivered intact to the consumer. Most services
cannot be counted, measured, inventoried,.
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1. This chapter should be cited as follows: McCarthy I. P., Pitt L. F. & Berthon P. R. 2010. Service
Customization Through Dramaturgy, in Mass Customization – Engineering and Managing Global Op-erations.
Editors: Flavio S. Fogliatto, and Giovani J. C. da Silveira, pages: 43-64, Springer, London
Service customization through dramaturgy
Ian P. McCarthy1
Segal Graduate School of Business, Simon Fraser University
500 Granville Street
Vancouver, BC V6C 1W6, Canada
ian_mccarthy@sfu.ca
Leyland Pitt2
Segal Graduate School of Business, Simon Fraser University
500 Granville Street
Vancouver, BC V6C 1W6, Canada
lpitt@sfu.ca
Pierre Berthon3
Bentley University
Bentley, 175 Forest St., Waltham, MA 02452, U.S.A
pberthon@bentley.edu
1 Ian P. McCarthy is the Canada Research Chair in Technology and Operations Management in
the Segal Graduate School of Business at Simon Fraser University. His research focuses on the
genesis and diversity of different operations management strategies and practices; and in particu-lar
the use of control systems, the customization of products and services, and the design and
management of new product development processes.
2 Leyland Pitt is Professor of Marketing at the Segal Graduate School of Business, Simon Fraser
University, and Senior Research Fellow at the Leeds University Business School, Leeds, United
Kingdom. His work has appeared in journals such as California Management Review, Sloan
Management Review and MIS Quarterly for which he also served as Associate Editor.
3 Pierre R. Berthon is the Clifford F. Youse Chair of Marketing at Bentley College. Professor
Berthon's teaching and research focuses on electronic commerce, marketing information pro-cessing,
organization and strategy, and management decision-making. He has written over seven-ty
academic papers. A number of his papers have won awards in the US and in the UK.
2. 2
Abstract
The customization of a service often depends on the “performance” delivered by
front-stage service employees. Drawing on theories of dramaturgy and service
marketing, we present a typology of four distinct and viable configurations for
achieving different types of service customization. We explain how variations in
the time pressure to customize a service, and the degree of customization required,
combine to determine the characteristics of each configuration. With service or-ganizations
increasingly operating on a global basis, we discuss the fit between the
preferences of different multicultural segments, the operational characteristics of a
configuration, and the level of customization offered.
1 Introduction
Mass customization has been one of the most studied and discussed topics of the
last ten years, in the area of operations management, and yet there has been very
little research, conceptual or empirical, that examines how service organizations
deliver effective forms of customization. This is the case despite the fact that op-erations
management scholars have argued that there is a need for research on
mass customization in service organizations (Da Silveira, Borenstein and Fogliat-to,
2001; Roth and Menor, 2003), and that many service organizations would ben-efit
from “segment of one” strategies (Peppers and Rogers 1999) for “molecular
markets” (Day and Montgomery 1999).
With this Chapter we seek to address this gap, by presenting a typology that re-veals
how service organizations might design and manage their processes based
on different dramaturgy concepts (Clark and Mangham, 2004; Gardner, 1992;
Goffman, 1959; Grove and Fisk, 1988, 1997; Grove, Fisk and Laforge, 2004;
Grove, Fisk, and John, 2000; Haahti, 2003; Ritti and Silver, 1986). In particular,
we focus on how the “drama” of the service encounters - the engagement of ser-vice
employees and customers - can be designed to achieve different forms of cus-tomization.
We suggest that these encounters can be viewed as some form of
adaptive performance that is acted out by service employees (the actors) for cus-tomers
(the audience). Using two key dramaturgy concepts, scripts (the set of
rules and instructions that govern the content and delivery of a service process),
and improvisation (the ability to rewrite and deliver a script), we explore the range
of service customization that can be achieved.
To show how the nature of a service performance can be effectively designed to
satisfy different customer expectations, we use two operations management di-mensions:
the relative time pressure to customize, and the degree of customization
required. Different combinations of these dimensions result in a typology of four
service customization configurations (embellished customization, predetermined
3. 3
customization, prompt customization, and intuitive customization), each of which
specifies an “operational type” that is defined by a set distinct operational charac-teristics
(Bozarth and McDermott, 1998; McCarthy, 1995; McCarthy, 2004a).
The characteristics of the service customization configurations we propose reveal
how organizations can use dramaturgy concepts to provide a personalized service
in terms of a change in content only, or a change in delivery only, or a change in
both content and delivery. By content we mean the core service offering (e.g. a
meal at a restaurant, or a legal document drawn up by a lawyer); and by delivery
we mean the interpersonal behavior that service employees use to deliver the core
content of the service (e.g. variations in attentiveness, tone of voice, and gestures).
With variations in these service characteristics we follow the contingency theory
view of organizations (Hofer, 1975), and argue that service organizations with
customization configurations that fit specific and desired customization demands
will achieve superior performance over those organizations with customization
configuration misfits.
With this focus and using this approach, we make two core contributions: the use
of dramaturgy concepts for studying customization, and the creation of a typology
for understanding how performances can be designed to deliver customized ser-vices.
Together these contributions respond to the research gap indentified by
Johnston (1999: 117), who explained that “the service encounter is the crux of
service delivery, yet how much do we know about which are the right scripts, atti-tudes,
behaviors to achieve the desired effect?” These contributions, we believe,
point to at least three major implications for researchers and managers. First, ser-vice
organizations should concentrate on one customization configuration only, to
ensure high levels of configuration fit, otherwise they risk developing a mix of in-effective
service customization capabilities. Second, while the effectiveness of the
configuration depends on the nature of the service and the context of its opera-tions,
the two configurations at the extremes of our typology (embellished custom-ization
and intuitive customization), will tend to outperform the other two middle
configurations (predetermined customization and prompt customization). Third,
and in line with the theme for this section of the book - Mass Customization and
the Global Firm – the nature of any customization by service performance should
be designed to suit different nationalities or cultural segments.
2 Background
In this section of our Chapter we highlight that there is limited operations man-agement
research on service customization, and explain why service organizations
can benefit from mass customization. From this review of the few studies that
have examined the mass customization of services, we identify and justify two
customization dimensions – the time pressure to customize the service perfor-mance,
and the degree of performance customization required – that bound and
4. 4
shape our typology. We then present the dramaturgy concepts that we use to ex-plore
the range of customization in a service customization configuration, and the
associated capabilities.
2.1 Customization of Service Operations
While many researchers have debated and studied how industrial companies use
mass customization principles to design, build and supply physical products (e.g.
Da Silveira et al., 2001; Duray, 2002; Fogliatto, da Silveira and Royer, 2003;
McCarthy, 2004b; Salvador, Rungtusanatham and Forza, 2004; Tu, Vonderembse
and Ragu-Nathan, 2001), there has been a dearth of research on how mass custom-ization
applies to the service industry. It is widely recognized that services differ
from manufactured products in terms of intangibility (objects versus performanc-es),
heterogeneity (significant variations in how a service can be delivered and
variation in types of customers and their requirements), and simultaneity (the pro-duction
and consumption of services often occur at the same time) (see Kellogg
and Nie, 1995). There is perhaps less awareness of the fact that service organiza-tions,
relative to manufacturing organizations, have a greater ability and tendency
to offer some form of customization. This is especially the case for services with
high levels of customer-service employee engagement, as these encounters can be
designed and managed to personalize both the content and delivery of the service
(Czepiel, Solomon and Surprenant, 1985; Lovelock, 1984; Schlesinger and
Heskett, 1992). Pine and Gilmore (1999) have taken this idea further to suggest
that what some industries offer, and indeed what consumers want from them, are
not services, but experiences that are as distinct from services as services are from
goods. The experience economy, they suggest, offers consumers a customized,
transformative encounter.
Yet, despite this capacity for service organizations to customize, we know very lit-tle
about the different “operational types” or “configurations” (Bozarth and
McDermott, 1998; McCarthy, 1995) that underlie the design and diversity of dif-ferent
service customization offerings. Such knowledge is essential for pursuing
the three main goals of operations management research: describing, explaining
and predicting the effects of different operational practices (McCarthy et al.,
2000). Also, while services marketing research has shown that customers from
different cultures and nationalities have different expectations about the content
and delivery of a service (e.g. Clark, 1990; Donthu and Yoo, 1998), there has been
very little research, with the exception of that by Pullman, Verma and Goodale
(2001), on what these differences mean when it comes to customizing service op-erations.
Instead, prior research has focused on examining the information tech-nology
enablers for modeling, configuring and delivering different customized
services (e.g. Akkermans et al., 2004; Ansari and Mela, 2003; Jiao, Ma and Tseng,
2003; Meyer and DeTore, 2001; Peters and Saidin, 2000; Varki and Rust, 1998),
5. 5
or has examined the challenges and benefits of trying to implement mass custom-ization
concepts in specific service sectors such as catering (Chen and Hao, 2007),
secondary schools (Waslander, 2007), financial services (Winter, 2002), and care
of the elderly (Essen, 2008).
Although the research on technology enablers is important for developing custom-ization
strategies for service operations, there are many types of services that are
technology-light, relying instead on forms of interpersonal intervention and inter-action
to provide a personalized service (Bettencourt and Gwinner, 1996). These
interpersonal encounters typically occur in industries such as banking, manage-ment
consultancy, healthcare, and hospitality, where the service can be produced
and consumed in the same physical location. They offer significant opportunities
for designing processes that prompt or constrain different modes of “employee
adaptiveness” (Thompson, 1989) for creating and delivering effective customiza-tion.
We suggest that service organizations can move towards different types of mass
customization through an analysis of the operational dimensions that prompt or
facilitate different types of service customization. In response, we propose a ty-pology,
explained below, which uses concepts from dramaturgy and service mar-keting.
2.2 Typology Dimensions: Time Pressure to Customize and Level
of Customization Required
Service customization is dependent both on the potential level of customization
the service organization can offer, and on the ability of the organization to realisti-cally
deliver the required customization within a specific time given the resources
and constraints the company faces. These two requirements correspond to Slack’s
(1983, 2005) dimensions of manufacturing flexibility, “the range of states a pro-duction
system can adopt” (2005:1194), and the response, “the ease with which it
moves from one state to another” (2005:1194), both of which underlie the two op-erational
dimensions of our typology.
The first dimension of our typology is the time pressure to customize, which re-lates
to Slack’s (2005) flexibility response in manufacturing, and to the notion that
the ability to customize is affected by a firm’s ability to implement time-based
manufacturing processes (Tu et al., 2001). We use the term “time pressure” as
studies argue that this is the main factor that differentiates unplanned improvised
behaviors from planned routine behaviors (Crossan et al., 2005) which significant-ly
differentiate the “performance” of service encounters. Time, in particular the
speed of service, has also been identified as a determinant of service quality (see
Johnston, 1999). As we focus on services that involve high levels of employee-customer
interaction, the time lag between the requests and the subsequent re-sponses
can vary significantly. Consequently, we suggest that these lag variations
6. 6
create different time pressures to deliver a customized service that influences the
type of customization configuration required. If the time pressure is low, then ser-vice
employees have a relative abundance of time to adapt their behavior, and the
content and delivery of the service. They have the time to determine, plan, and re-act
to any customization requests in a manner that is relatively controlled, detailed
and considered. If the time pressure to customize is high, then service employees
will rely on intuition and spontaneity, to sense and deliver customization in a real-time
and highly simultaneous fashion. In sum, this customization dimension re-flects
the amount of time a service employee has to scan for and interpret the cues
that signal a specific customer need, and to then customize the delivery and con-tent
of the required service.
The second dimension of our typology, the level of customization, relates to
Slack’s (2005) flexibility range, and has been an enduring theme in studies of
mass customization in manufacturing (for a review, see Da Silveira et al., 2001).
However, this prior research is unable to capture the degree of service customiza-tion
as delivered by front-stage service employees, because it focuses on how the
level of customization varies in terms of the manufacturing strategies followed, on
the position in the value chain at which the customization occurs, and on how and
who adapts the products. Consequently, we draw upon the product and process in-novation
literatures (Dewar and Dutton, 1986; McDermott and O’Connor, 2002),
and put forward simple and fitting categories for the magnitude of customization,
in terms of both the content of the service, and its delivery. We suggest that a low
level of service customization (either in terms of content, delivery, or both) will
involve employees incrementally adapting and using existing knowledge and re-sources
(personal and organizational) to adjust a standard service. A high level of
service customization, on the other hand, will require employees to access or de-velop
new knowledge and resources, so as to radically alter a standard service ei-ther
in terms of content, delivery or both.
2.3 Dramaturgy
The basic premise of the dramaturgical perspective is that people behave and ex-press
themselves according to the situations they face, i.e. they put on an act.
Goffman (1999) argued that this was a universal social trait, for as individuals we
are torn between the desire to act spontaneously and the need to follow social ex-pectations.
He contends that we are conditioned to “put on” acts or performances.
In these performances individuals endeavor to persuade others that they are indeed
consistent and stable people who play their social roles well.
The dramaturgical perspective has gained much attention in the management liter-ature
in general (Gardner, 1992; Ritti and Silver, 1986; Pine and Gilmore, 1998,
1999; Clark and Mangham, 2004; Haahti, 2003) and in the services marketing lit-erature
in particular (Grove and Fisk, 1997; Grove, Fisk and John, 2000; Grove,
7. 7
Fisk and LaForge, 2004). Both researchers and practitioners alike are interested in
the fact that employees in service settings function in a very real sense as perform-ers
in a drama, and that many dimensions of the interaction can impact both the
level of service that customers receive, and the satisfaction they express.
Hochschild (1983) for example, suggested the term “emotional labor” to describe
how employees in a service setting perform when they are required to “feel”, or at
least to project the appearance of feeling and emotions as they engage in job relat-ed
interactions. So for example employees in a service setting may feel sympathy
for a customer’s dissatisfaction, and are indeed expected by the customer to dis-play
that they feel sympathy. As such interactions are central to many service or-ganizations,
management researchers have argued that all services are essentially a
performance, which cannot be held or stored - only experienced (Grove and Fisk,
1997; Pine and Gilmore, 1998, 1999; Grove et al. 2000; Grove et al., 2004). In-deed,
Pine and Gilmore (1998, 1999) talk about the provision of experiences that
go beyond mere services, they are personalized, transformative events that are de-liberately
staged, like any theatrical event.
We suggest that the metaphor of understanding services as theatre is particularly
useful for understanding and achieving service customization. It offers a novel ap-proach
that service organizations can use to control and manipulate the interaction
of the customer with the point of service delivery. The specific drama or theatrical
reality of a service operation can play an important role in creating and sustaining
value in these types of service organizations, because “how the service is per-formed,
e.g. the courtesy and care that is displayed, is just as important as what is
performed, e.g. the specific tasks that are completed.” (Grove et al., 2000: 21). We
suggest that dramaturgy concepts can be used to study how service organizations
control and benefit from two critical aspects of employee adaptiveness: the ability
to adapt interpersonal behavior, and the ability to adapt the core service offering
(Bettencourt and Gwinner, 1996; Gwinner et al., 2005). Also, as Gwinner et al.
(2005) explain, prior studies on employee adaptiveness have tended to examine
only one of these capabilities at a time, despite the fact that some services can be
produced and consumed simultaneously. They also reveal that existing research
has tended to view employee adaptiveness as a discretionary or “extra-role behav-ior”
that is not formally mandated by service organizations in terms of how they
design their processes, and control and reward employees. In contrast, we take the
view put forward by Gwinner et al. (2005), that adaptive employee behaviors rep-resent
a capability that should be formally considered when designing and manag-ing
service processes for customization.
To examine how service organizations might use different forms of employee
adaptiveness we focus on one of the three “Ps” of dramaturgy (Grove et al., 2000)
– the performance, and the types of scripts and improvisation capabilities required
to deliver service customization configurations. The other two “Ps” – participants
and physical setting - provide the basis for further research on how these elements
can also be used to provide customized services. The participants are both the ac-tors
(the service employees), and the audience (the service customers); together
8. 8
they constitute how a service is delivered and received. The service customers
may have varied expectations and needs, which they bring to the interaction. Often
they must be physically present during the service delivery, just like a theatrical
audience, regardless of how humdrum or spectacular the service encounter may
be. Furthermore, in some situations, consumers may play a greater role than that
of being a passive audience, they become a "partial employee of the service or-ganization
through co- production or even self-service” (Chase and Erikson, 1987:
195).
The setting for dramaturgy is the performance interface, and this takes different
forms for different services. It may be a physical venue such as a hotel or a restau-rant,
but equally nowadays it may be a website or a telephone conversation. In
terms of service operations management, the interface involves decisions about
controlling the flow of information, materials and customers, but in terms of
dramaturgy, it also involves what have been called atmospherics (Kotler, 1973),
which are the features of the interface that produce emotional, physical and in turn
behavioral effects in customers. The interface then in itself serves the function of
complementing the performance and setting the scene. As services are highly in-tangible,
these experiences provide customers with extrinsic cues for judging the
quality of a service (Zeithaml, Berry and Parasuraman, 1988). Consequently, the
performance interface offers a servicescape, a physical venue or technological
medium in which "the service is assembled and in which the service provider and
customer interact, combined with tangible commodities that facilitate performance
or communication of the service" (Booms and Bitner, 1981, p. 36).
2.4 The Service Performance: Scripts and Improvisation
The performance elements of dramaturgy are the process and outcome of the ser-vice
and its consumption. They combine the actions of both the customers and the
service employees, with the effects of the physical setting. The performances giv-en
by service organizations are largely delivered to customers by front-stage em-ployees
with different levels of expertise and training (e.g. lawyers, doctors, ac-countants,
management consultants, receptionists, and restaurant servers), who
engage with the customers. The performance is supported by a range of back-stage
staff and systems, which are hidden from the customers. Consequently, for many
types of service organizations “the primary determinant of successful customiza-tion
is the ability and motivation of the frontline customer contact employees to
appropriately implement customization strategies in real time” (Gwinner et al.,
2005: 132).
We now turn to describe how personalized performances can vary in terms of how
they are designed and controlled through the use of different types of scripts (sim-ple
versus complex, and fixed versus adaptable), and the use of service employees
with capabilities that range from fully adhering to the script (limited improvisa-
9. 9
tion), to adapting both the content and delivery of the script (pure improvisation)
(see Table x.1).
Table x.1: Service Customization through Dramaturgy
Dramaturgy Concepts Definition and Examples Customization Implications
Performance A performance is the process and
outcome associated with the deliv-ery
and consumption of a service.
It combines the actions of both the
customers (audience) and the ser-vice
employees (actors). For ex-ample,
management consultants
“put on a show” when trying to
convince clients to buy their ser-vices.
The nature of the perfor-mance
can vary in terms of
the level of what gets cus-tomized
(the service delivery
and/or the service content)
and the time pressure to cus-tomize
it.
Scripts Scripts define the steps and actions
in the performance. They specify
when and where they happen, how
they are delivered, the participants
involved, what is said, how it is
said, and the various props (service
tools) to be used. For example,
servers working in a restaurant
may have to wear a uniform and
speak to customers in a very spe-cific
way.
The nature of a customized
service depends on how
complex or simple the script
is, or how fixed or adaptable
it is.
Improvisation Improvisation is when a service
employee rewrites and adaptively
delivers a script for a service per-formance.
For example, physicians
alter their tone and style (custom-izing
script delivery) and/or alter
the service offering (customizing
the content of the script) for differ-ent
patients with different needs.
The nature of a customized
service depends on the type
of improvisation capability,
which ranges from limited
improvisation (or highly
compliant) to pure improvi-sation.
In terms of service operations, a script is a set of formal and informal instructions
that specify or guide the actions of service employees. It is essentially the story of
how the service experience will start, take place and end. Like service blueprinting
or process mapping (Shostack, 1984), scripts define the steps and actions in the
process, when and where they happen, how they are delivered, the participants in-volved,
what is said, how it is said, and the various props (service tools) to be
used. While it is recognized that organizational scripts vary from strong to weak
10. 10
(Gioia and Poole, 1984) depending on how precisely they seek to control and di-rect
the steps and actions of a process, our dimensions of time pressure to custom-ize
and level of customization required, combine to create conditions requiring
scripts that vary in terms of how simple or complex they are, and how fixed or
adaptable they are.
If a script is simple, it consists of a small number of rules and instructions that fo-cus
largely on outcomes, rather than specifying in minute detail the way to achieve
the outcomes. Complex scripts, on the other hand, consist of a large number of de-tailed
rules and instructions that focus on defining all aspects of the how, the
when, the who, and the what, for all of the service process activities. If a script is
highly fixed, then the service organization strictly prohibits any deviation from the
script. The service performance, both in terms of content and delivery, regardless
of whether it is specified in a simple or complex way, must be closely adhered to.
However, it is possible for scripts to be partly fixed, so that only the service con-tent
is fixed or only the service delivery is fixed, but not both. For example, when
patients visit a laboratory testing service for blood tests and other specialized clin-ical
tests, each service employee they engage with from the receptionist to the
phlebotomist, will follow a relatively complex and fixed script concerning the
clinical steps involved in taking, labeling and transporting the blood sample.
However, the interpersonal communication elements of the service delivery (e.g.
tone of voice, vocabulary and gestures) may vary to suit the age, gender and eth-nicity
of the patient. Conversely, if a script is highly adaptive, then employees
with appropriate training and expertise are allowed to reactively and proactively
adapt the service content and its delivery to suit the needs and expectations of the
customer. They may be responding to customized needs that are predicted or un-anticipated,
and they may be trying to control and manipulate the customer to help
ensure a successful performance outcome.
Delivering different types of scripts requires service employees to “act” in differ-ent
ways, ranging from highly limited improvisation to pure improvisation. Each
type of improvisation requires employees with certain service skills, and job spe-cific
experience and knowledge. Limited improvisation, for example, involves
closely adhering to the predetermined rules, instructions, and standards that gov-ern
the delivery of a service. Service employees with limited improvisation capa-bilities
will tend not to be “mavens”, i.e. trusted experts who have problem-solving
skills to deliver services in novel ways. Instead, employees with limited
improvisation capabilities only “do things by the book”, and are unwilling or una-ble
to deviate from the script. As the need for more advanced forms of improvisa-tion
increases, so this requires employees who are both trained and allowed to re-write
and deliver the script for a service process.
A review by Moorman and Miner (1998) found that improvisation had both a con-tent
aspect and a temporal aspect, which were present in a range of organizational
and social activities that included sports, management processes, firefighting, mu-sic,
education, theater and health care. In terms of service performances, this
means that improvisation involves what gets changed in a script (i.e. instructions
11. 11
concerning the service content, the service delivery, or both), and when that
change happens. The greater the change in script content and the shorter the time
gap between rewriting a script and delivering the new action, the greater the level
of improvisational capability. When the content and delivery are simultaneously
adapted, in a spontaneous and seamless manner, we call this the level of pure im-provisation.
3 A Typology of Service Customization Configurations
In this section we explain how the time pressure to customize and the level of cus-tomization
required combine to produce different service customization configura-tions.
To explore these combinations and the resulting configurations, we present
a typology, based on a simplified matrix of time against level of customization.
The scale for the time pressure to customize is either low (lots of time available
relative to the type of customization required), or high (little or no time available
relative to the customization required). Similarly the scale for the level of custom-ization
is either high (a radical customization involving a significant change in the
content and/or delivery of the service) or low (little or no change in the content
and/or delivery of the service). High-low combinations of these two dimensions
give rise to our four ideal configurations (see Figure x.1).
3.1 Embellished Customization
The first customization configuration we consider occurs when both the time pres-sure
to customize and the level of customization required are low. This creates a
configuration that we call embellished customization, as it involves a performance
that is rigid and highly planned, so as to deliver minor adaptations of a standard-ized
service in an effective and efficient manner. This configuration does not offer
any radical customization of the service content or its delivery. It represents the
lowest level of customization in our typology. At best, service employees may fi-ne-
tune their interpersonal behavior so to deliver the service more efficiently and
meet service targets. For example, consider telephone marketers and other similar
call centre type support services. These conversation based performances are high-ly
scripted to ensure service repeatability and reliability. What is spoken, how it is
spoken, and the call handling time are all highly controlled and even “recorded for
training purposes”. There is little time pressure to adapt the service, as no signifi-cant
customization of the service content and service delivery is allowed by the
organization or expected by the customer. This configuration, and the call centers
that exemplify it, represent a service customization that is so rational and scientific
12. 12
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13. 13
3.2 Predetermined Customization
The second service customization configuration in our typology occurs when the
time pressure to customize is low, and the level of customization required is high.
We refer to this configuration as predetermined customization, because this com-bination
of dimensions operationally suits a performance that involves significant
customization of the service content, for anticipated or premeditated needs. For
example, consider the service customization delivered by independent financial
advisors in the UK. They are regulated by the Financial Services Authority (FSA),
an independent non-governmental body that aims to ensure that they are appropri-ately
trained and accredited to conduct their business with customers in a specific
way. The advisors closely follow a complex script that is modularly adaptable, so
as to suit the needs of different clients with varying financial circumstances. Thus,
the delivery of the service is highly controlled and standardized, and the final con-tent
of the core service, the financial product options that are offered, will be cus-tomized
according to the rules and regulations defined by the script.
To deliver this form of service customization requires what we call a formulaic
improvisation capability, whereby the service provider has a relative wealth of
time to adapt and compile the service content, to suit the needs of the customer.
The customization is formulaic as the change in service content can be predeter-mined
and formulated into a set of service options. For example, once independent
financial advisors have collected information about the circumstances and needs
of their clients, they typically have a significant amount of time to research and
then formulate a set of financial product options that suit those needs and circum-stances.
Formulaic improvisation occurs because there is the abundance of time to
determine needs and then to devise the content of the core service offering (e.g.
the financial products), while the complex and controlling nature of the scripts
limit any radical customization of the service delivery itself (e.g. how the financial
advisor determines the needs of the customer).
3.3 Prompt Customization
The third service customization configuration we propose occurs when the time
pressure to customize is high and the level of customization required is low. We
refer to this as prompt customization, as it involves rapidly customizing interper-sonal
behavior to adapt a service in prompt fashion. This form of customization
occurs because there is a high level of employee-customer engagement and signif-icant
process visibility (i.e. the service delivery employees are largely on the front-stage),
which together increase the expectation of customers that they be treated as
individuals. However, in this configuration, customers typically understand that
the content of the core service is relatively standardized. For example, casual din-
14. 14
ing restaurant chains such as Pizza Hut, Denny’s or the International House of
Pancakes, have relatively standardized, but modular menus that allow incremental
levels of customization for customers who typically want and appreciate this level
and type of service content variety. However, as these types of restaurants tend to
compete by emphasizing the delivery aspect of their service, the different types of
customer that frequent these restaurants share the expectation that they will be
greeted, served, and sometimes even entertained by a service performance that
suits their needs.
To provide this prompt form of service customization requires employees to
quickly and incrementally adapt and use existing and highly familiar knowledge
and resources, to deliver the personalized service. We call this rehearsed improvi-sation
as it involves employees training and practicing how to act out a simple and
fixed script. The script is simple in that the number of rules and instructions is rel-atively
small and largely focused on service delivery outcomes, as opposed to de-tailing
how every service activity should be performed. The script is fixed in that
these simple, outcome-based rules must be closely adhered to. Thus, training is
given to employees to ensure that they have the diversity of repertoires necessary
to recognize, adaptively engage with, and deliver a customized service experience
to different types of customers.
3.4 Intuitive Customization
The final service customization configuration, which we refer to as intuitive cus-tomization,
occurs when the time pressure to customize is high and the degree of
service customization required is also high. While service organizations conform-ing
to any of our proposed configurations will engage in some form of experience
that creates an emotional connection with customers (Pullman and Gross, 2004),
this final configuration focuses on using dramaturgy to create highly personalized
connections with customers. Intuitive customization goes beyond carefully refor-mulating
the core content of a service, or rapidly providing an incremental adapta-tion
in the interpersonal delivery. It offers a highly enhanced form of service cus-tomization
that aims to create memorable and positive impressions for customers.
This configuration uses dramaturgy to make customers feel as if they have truly
“experienced” a customized service, rather than consumed it.
To effectively engage with and learn from customers, service employees for this
configuration must be able to perform tasks and manage the service encounter,
with high levels of flexibility and effective attendance. This involves using highly
adaptive scripts, which afford the service employees the freedom to tailor the con-tent
and delivery of a service to specific customer needs. The scripts are also sim-ple
in that they consist of a small number of simple rules that largely govern the
desired output of service (e.g. employees at Disney resort hotels are simply
charged with making dreams come true), as opposed to detailing how every little
15. 15
action and task should be performed during the service. This script simplicity
avoids cognitively overloading service employees, helping them to interpret the
needs of different customers and situations, and then use their experience and
skills to try to exceed their expectations.
To deliver such highly adaptive scripts requires what we call a pure improvisation
capability. As defined earlier in this paper, improvisation is a capability that al-lows
service employees to rewrite and deliver the script for a service process; it
concerns what gets changed in a script, and when that change happens. The great-er
the change in script content, and the shorter the time gap between rewriting a
script and delivering its content, the purer the improvisational performance. Stud-ies
of improvisation in organizations argue that this capability involves “intuition
guiding action in a spontaneous way” (Crossan and Sorrenti, 1997: 156), as well
as “a large skill repertoire, the ability to do a quick study, trust in intuitions, and
sophistication in cutting losses” (Weick, 2001: 352). Thus, pure improvisation is
not about undertaking pre-planning that tries to anticipate every service need and
situation; it is a reactive and instinctive capability that senses the actions and reac-tions
of customers, and then in real time, simultaneously adapts both the content
of the service and how it is delivered, so as to satisfy the needs of customers.
Emergency service providers such as paramedics and the pre-hospital medical and
trauma care they provide, exemplify this type of configuration. These service pro-viders
have the expertise and training to rapidly diagnose, treat, and transport a
vast diversity of patient types, with an equally vast diversity of disorders and care
needs. Sometimes the situations faced by paramedics, and other similar service
professionals such as firefighters, are so unusual and unfamiliar, that it feels like
“vu jade-the opposite of deja vu: I've never been here before, I have no idea where
I am, and I have no idea who can help me” (Weick, 1993: 633-634). In such situa-tions
the successful customization of the service involves performances whereby
the actors (e.g. the emergency professionals) learn and act on the spot, so that the
composition and delivery of unique life saving scripts is a seamless and just-in-time
act.
4 Discussion and Implications
We believe that this Chapter offers two core contributions to research on the mass
customization of services, which will prompt future empirical research to test the
role of scripts and improvisation in customizing the service encounter. First, by in-troducing
and using dramaturgy, we present a novel and appropriate approach for
envisaging and studying the two options that service employees have for custom-izing
a service encounter: interpersonal adaptive behavior and service-offering
adaptive behavior (Gwinner et al., 2005). To do this, we focus on the design of the
service encounter (i.e. scripts), and on the training and delivery capabilities (i.e.
improvisation) required. These concepts provide a novel and useful approach for
16. 16
facilitating future operations management research on how service performances
may be customized to suit the tastes of different customers, both locally and glob-ally.
Our second core contribution is the typology and its descriptive, explanatory and
predictive insights. Existing service typologies use customization combined with
the degree of customer contact as one dimension and the degree of process labor
intensity as the other dimension (Chase, 1981; Schmenner, 1995, 2004). Our ty-pology
offers two different customization specific dimensions, the relative time
pressure to customize, and the degree of customization required, to reveal how the
reveal how the speed and magnitude of the desired customization will affect the
“performance” of the service encounter. The descriptions of each of the service
customization configurations in our typology help to explain how the design and
delivery of these encounters can vary for different customization dimensions. As
we suggest in the next section when we discuss the implications of this typology,
the configuration descriptions also provide a basis for developing and testing spe-cific
predictions about which service customization configurations will be suc-cessful
under a particular set of circumstances, and for testing which combination
of scripts and improvisation options would be most effective under a particular set
of circumstances. In sum, like typologies in general, ours provides a framework
for other researchers to test how our proposed configurations and their variations
might influence service performance. We now discuss three implications of these
contributions that have relevance for both academic research and management
practice concerned with the customization of service operations.
4.1 Configuration Fit
In line with prior service management research on strategic fit and focus (e.g.
Schmenner, 1986, 2004; Staughton and Williams, 1994), we suggest that those or-ganizations
that ensure that their individual processes are focused on one service
customization configuration are likely to be more effective than those service or-ganizations
that use multiple configurations at the same time, or a hybrid of multi-ple
configurations. This we suggest is largely because there are risks and trade-offs
in trying to be configurationally ambidextrous. However, while this notion of
focused operations is consistent with Skinner’s (1974) seminal work on the issue,
most of the work that supports this view is based on firms operating in relatively
stable environments (e.g. Stobaugh and Telesio, 1983; Hayes and Clark, 1985).
Consequently, others have argued that in more dynamic environments organiza-tions
should be less focused or specialized, as this helps them to quickly shift or
adapt their operations in line with changes in their environment (see Mukherjee,
Mitchell and Talbot, 2000).
Thus, our typology and its configurations provide a theoretical basis for studying
strategic fit issues in service customization. Researchers can empirically examine
17. 17
the fit of each configuration, within its external context, through the use of the
customization dimensions that we suggest define and support each customization
configuration. Researchers can also investigate internal fit by studying the con-sistency
between the types of scripts and improvisation capabilities proposed for
each configuration, as well as their consistency with variations in the two other
dramaturgy elements: participants and physical setting.
4.2 The Lure of the Diagonal
Typologies of service strategies in general (e.g. Schmenner, 1986, 2004), product-process
strategies (Hayes and Wheelwright, 1979), and corporate strategies (e.g.
Porter 1980), all suggest that competitive forces compel firms to focus on attain-ing
the extreme configurations available. The perception is that these extreme con-figurations
offer the greatest potential for high performance relative to the other
intermediate configuration options available, because they provide the greatest fo-cus
on either lowering costs or adding value. In our typology these extreme con-figurations
represent a diagonal between the top-left quadrant (i.e., the no frills
customization -embellishment) and the bottom-right quadrant (i.e., premium expe-riential
customization - intuitive). The lure of this diagonal and its perceived per-formance
returns provide an interesting proposition for empirical validation. One
approach for doing this would be to identify service organizations in different in-dustry
contexts that conform to each of the configurations, and then to assess cus-tomer
perceptions of service quality. This approach would acknowledge that even
though the potential for greater effectiveness may be on this diagonal, the best
configuration will depend on the characteristics of the service industry and its of-fering
and location in the world.
4.3 Global Services and Customizing the Performance
Our Chapter also has implications for understanding how service organizations
should operate globally and address different cultural segments. In particular our
focus on the service encounter as a theatrical performance provides a basis for in-vestigating
the customization strategies that service managers might implement to
address the different preferences for service customization that exist in different
countries.
Prior research on service differentiation strategies for global markets can be simp-ly
divided into two camps (see Pullman et al., 2002). There is the view that global
service organizations should not design processes that are significantly adapted for
different markets and neither should a global service model seek to significantly
customize the content or delivery of the offerings (Heskett, 1987). Instead service
18. 18
organizations should develop internationally strong brands and rely on the appeal
and familiarity of the global service, to create a force that will eventually over-come
any service-cultural preference misfit that might exist. For example,
McDonald’s have successfully transferred their service operations model around
the world, with limited adaptation of its content and delivery (Pullman et al.,
2001). When this service strategy is both appropriate and possible, we suggest that
it will involve service encounters based on our embellished configuration. This
configuration offers process design characteristics (i.e. complex and fixed scripts),
and process delivery capabilities (i.e. limited improvisation), that are consistent
with the aim of largely maintaining a relatively standardized service offering. This
approach to customization is so limited that it offers a people-based and service
encounter approach to achieving global service operations that complements the
“service factory” (Levitt, 1972) and “industrialized intimacy” (Kolesar, Van Ryzin
and Cutler, 1998) models, both of which have typically relied on using infor-mation
systems to track a customer’s history and preferences for personalizing
limited aspects of the service (Pullman et al., 2001).
The second major view of service differentiation strategies for global markets is
that certain markets have cultural expectations that will require managers to cus-tomize
and operate services that suit these needs (Mathe and Perras, 1994). If such
service customization involves significant adaptation of the service content, then
this will require the complex and adaptable scripts and formulaic improvisation
that define our predetermined customization. If a regional context requires a ser-vice
to be customized primarily in terms of its delivery, then this would involve
the simple and fixed scripts that characterize prompt customization. And if the ex-pectations
are such that both the content and delivery of the service must be radi-cally
altered on a regular basis, then this would suit the scripts (simple and adapt-able),
and the pure improvisation that define intuitive service customization.
5 Conclusion
Although mass customization has captured the attention of academics and busi-ness
leaders for nearly 25 years, prior operations management research on this
topic has tended to overlook how mass customization might function in service
organizations. As service organizations represent a growing segment of the overall
business sector, and are becomingly increasingly globalized, we believe that it is
important to identify and examine the operational configurations necessary for de-livering
different types of service customization. Introducing ideas from drama-turgy
and from service marketing, this Chapter provides a novel and powerful ty-pology
for conceptualizing and studying the diversity and design of customization
in service organizations. We believe the dimensions of the typology, and the re-sulting
performance configurations and their defining scripts and improvisation
19. 19
capabilities, provide descriptive, explanatory and predictive contributions that will
have significant theoretical and practical impact.
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Abbreviations
Table x.2: List of Abbreviations
FSA Financial Services Authority
UK United Kingdom