scholarly journals Direct and indirect value creation in offshored knowledge-intensive services

2017 ◽  
Vol 47 (2/3) ◽  
pp. 137-155 ◽  
Author(s):  
Kristin Brandl
Keyword(s):  
Production Process ◽  
Value Creation ◽  
Service Provider ◽  
Service Management ◽  
Service Providers ◽  
Content Type ◽  
Production Processes ◽  
Service Production ◽  
Knowledge Intensive ◽  
The Impact

Purpose Despite increasing interest in offshoring of knowledge-intensive services, it is still undetermined as to whether the sourcing of services truly creates the anticipated value for clients. Moreover, even less is known about whether value is created for service providers in the process beyond the general service trade. This lack of knowledge is due to the challenges of capturing value creation, the unique production process of the services, and the impact of offshoring on both value creation and the production process. The purpose of this paper is to study offshored service production processes of knowledge-intensive services in order to identify direct and indirect value creation for clients as well as service providers in the process. Design/methodology/approach The paper applies a multiple case study method and studies one conglomerate with three offshored service production processes. The chosen method allows for the investigation of the service production process and indirect/direct value creation within the process. Findings The study finds that there is direct value creation for the client and the service provider towards the end of the production processes as expected. However, more importantly, it finds additional indirect value creation in various production stages. The indirect value is reflected in enhanced understanding of problems and own operations for the client and increased knowledge about clients and problem-solving approaches for the service provider. Research limitations/implications This study contributes to offshoring literature by providing a comprehensive understanding of value creation in service offshoring for clients as well as service providers. It also contributes to the service management literature as a study of direct and indirect value creation in services, particularly within the production process of the services. Practical implications The study allows practitioners to gain insights on the value creation logic of offshored services and the value created beyond that logic. More specifically, it allows client firms to gain details of various values and benefits of service offshoring and service provider firms to gain a focused perspective on value creation in their own service production that can lead to competitive advantages. Originality/value The paper is novel and original through its approach to study offshoring from a value creation logic perspective, including not only the client but also the service provider perspective. It also applies a service production process perspective that is novel in offshoring literature.

Examining the role of customer engagement in augmenting referral value

2019 ◽  
Vol 29 (5/6) ◽  
pp. 539-564
Author(s):  
Gurjeet Kaur Sahi ◽  
Rita Devi ◽  
Satya Bhusan Dash
Keyword(s):  
Social Exchange ◽  
Service Provider ◽  
Structural Equation ◽  
Service Providers ◽  
Reliability And Validity ◽  
Customer Engagement ◽  
Motivation Theory ◽  
Content Type ◽  
The Impact

Purpose The purpose of this paper is to examine the impact of a customer engagement-enabling platform on a value captured by the firm and value acquired by the customer. It explores the relevance of relational and expertise value for customers during the engagement process so as to ensure positive referrals about the service provider. Design/methodology/approach Using a sample of 482 students, the study examines the customer engagement efforts of professional institutes that provide training to prepare for the civil service examinations of the Union Public Service Commission. The survey is confined to central areas of New Delhi, India. Statistical techniques including confirmatory factor analysis and structural equation modelling are used to analyse the data, and reliability and validity tests are performed. Findings The findings reveal the indispensable role of service providers as creators of a meaningful effective learning process and of interpersonal relations with customers for generating more business through customer referrals. Research limitations/implications The study validated the moderating role of relational value between customers’ expertise value and their referrals on the basis of motivation theory, which asserts that customers’ motivation to contribute to the organisation is driven by the individuals’ extrinsic relational need for belongingness, acceptance by like-minded individuals, and feedback, recognition and respect from employees of the organisation. Originality/value The study contributes to the existing literature by integrating the well-developed social exchange and motivation theory so as to investigate the factors that propel customers’ positive word of mouth for the service provider.

scholarly journals Value creation and destruction in the marketisation of human services

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Melanie Randle ◽  
Nadia Zainuddin
Keyword(s):  
Value Creation ◽  
Human Services ◽  
Service Providers ◽  
Developed Countries ◽  
Disability Services ◽  
Content Type ◽  
Disability Service ◽  
Key Factor ◽  
Degree Of Disability ◽  
The Impact

Purpose Governments are increasingly marketising human services in developed countries, with the aim of giving individuals more choice and control over the support they receive. Marketisation effectively transforms “clients” into “consumers” who are exposed to competitive market conditions and the marketing strategies of service organisations. However, the heterogeneity amongst citizens leaves some segments of populations more vulnerable within marketised systems. The purpose of this study is to examine the impact of the marketisation of human services on the value delivered to consumers of disability services. Given that the nature of disabilities can vary greatly, the study also examines the impact of the degree of disability on value creation and destruction for disability service consumers. Design/methodology/approach Qualitative, individual-depth interviews were conducted with 35 participants: 17 were consumers of disability services (either because they have a disability or care for someone who does) and 18 were disability service providers (for example, managers of disability programmes). Findings Factors that influence value creation and destruction include quality and turnover of staff, organisation and communication of service providers, ability to advocate effectively, level of funding and accessibility of services. Heterogeneity amongst consumers is also identified as a key factor affecting the creation and destruction of value. Originality/value To the best of the authors’ knowledge, this is the first study to apply marketing techniques, such as market segmentation, to identify heterogeneity in relation to value creation and value destruction in the context of human services. It also considers the notion of consumer vulnerability, stemming from disability, as an important lens through which the outcomes of marketised human service systems can be evaluated.

scholarly journals Does big data analytics influence frontline employees in services marketing?

2017 ◽  
Vol 23 (3) ◽  
pp. 623-644 ◽  
Author(s):  
Saradhi Motamarri ◽  
Shahriar Akter ◽  
Venkat Yanamandram
Keyword(s):  
Big Data ◽  
Data Analytics ◽  
Service Providers ◽  
Research Question ◽  
Big Data Analytics ◽  
Frontline Employees ◽  
Skill Levels ◽  
Content Type ◽  
Knowledge Intensive ◽  
The Impact

Purpose Big data analytics (BDA) helps service providers with customer insights and competitive information. It also empowers customers with insights about the relative merits of competing services. The purpose of this paper is to address the research question, “How does big data analytics enable frontline employees (FLEs) in effective service delivery?” Design/methodology/approach The research develops schemas to visualise service contexts that potentially benefit from BDA, based on the literature drawn from BDA and FLEs streams. Findings The business drivers for BDA and its level of maturity vary across firms. The primary thrust for BDA is to gain customer insights, resource optimisation and efficient operations. Innovative FLEs operating in knowledge intensive and customisable settings may realise greater value co-creation. Practical implications There exists a considerable knowledge gap in enabling the FLEs with BDA tools. Managers need to train, orient and empower FLEs to collaborate and create value with customer interactions. Service-dominant logic posits that skill asymmetry is the reason for service. So, providers need to enhance skill levels of FLEs continually. Providers also need to focus on market sensing and customer linking abilities of FLEs. Social implications Both firms and customers need to be aware of privacy and ethical concerns associated with BDA. Originality/value Knitting the BDA and FLEs research streams, the paper analyses the impact of BDA on service. The research by developing service typology portrays its interplay with the typologies of FLEs and BDA. The framework portrays the service contexts in which BD has major impact. Looking further into the future, the discussion raises prominent questions for the discipline.

Service production process: implications for service productivity

2014 ◽  
Vol 63 (8) ◽  
pp. 1012-1030 ◽  
Author(s):  
Andrews Agya Yalley ◽  
Harjit Singh Sekhon
Keyword(s):  
Production Process ◽  
Design Methodology ◽  
Transformation Process ◽  
Content Type ◽  
Service Production ◽  
Process And Outcome ◽  
Service Productivity ◽  
Multidisciplinary Perspective ◽  
The Impact ◽  
Practical Implications

Purpose – The purpose of this paper is to differentiate the production process within services from the dominant manufacturing-based production process, with the objective of delineating the production process in services and highlighting its implication for service productivity. Design/methodology/approach – This study critically reviewed the extant literature on the production processes in manufacturing and services from a multidisciplinary perspective and proposed a framework for the service production process and its relationship with service productivity. Findings – The production process for services differs from the dominant manufacturing-based production process and entails an input, transformation process and outcome dimensions. Therefore, any advancement in services, particularly the conceptualisation and measurement of service productivity, is dependent on the application of a service-specific production process. Research limitations/implications – The understanding and delineation of the production process in services would further scholarly understanding of what is means to be productive in services and the impact on the validity of the conceptualisation and measurement of service productivity and other service-related concepts. Practical implications – The proposed service-based production process can further managerial understanding of the measurement and management of productivity in services. Originality/value – This paper delineates the production process in services and highlighted its implication for service productivity. This study, therefore, is a step forward in developing service-specific concepts and measures, particularly service productivity.

The impact of collective brand personification on happiness and brand loyalty

2020 ◽  
Vol 54 (10) ◽  
pp. 2365-2386
Author(s):  
Dominique Braxton ◽  
Loraine Lau-Gesk
Keyword(s):  
Service Provider ◽  
Brand Loyalty ◽  
Service Providers ◽  
Well Being ◽  
Core Values ◽  
Content Type ◽  
Retail Service ◽  
Store Environment ◽  
The Impact ◽  
Frontline Service

Purpose Frontline service providers are a key touchpoint in a customer’s overall experience with a brand. Though they are recognized as important contributors to brand experiences, service providers have received relatively little attention in both experienced marketing and branding research. This paper aims to illuminate the importance of understanding factors that contribute to the role services providers play within the environmental context of the customer’s brand journey. Design/methodology/approach This study uses two experimental studies to show that greater customer happiness and customer loyalty could be achieved through collective brand personification whereby the frontline service provider’s identity and core values align with those of the brand persona and store environment. Findings Specifically, findings reveal that customer happiness increases because of feelings of belongingness and greater brand authenticity when the service provider aligns with the retailer’s brand persona and store environment. Research limitations/implications While this study gets us closer to understanding how managers can leverage human capital in the retail service environment, there are opportunities to further explore issues such as the impact of collective brand personification on the employee. Practical implications Given the strong desire companies have to bolster customer happiness to increase brand loyalty, the findings bolster the importance of understanding the influential factors associated with frontline service providers. Their role in creating optimal customer experiences should not be underestimated. Social implications As an important cautionary note, firms should take care when creating the appearance and personality-based occupational qualifications by considering social norms and the impact on societal well-being (e.g. self-consciousness and exclusion can lead to serious illnesses and including depression). Study shows that people have an inherent need to feel accepted and belong to social groups that help to construct and affirm their self-concept, and appreciate opportunities that empower them to seize control against exclusion. Therefore, appearance and personality-based occupational qualifications should be strategically aligned with the image and goals of the firm, and not subject to management bias from an unconscious reaction to an applicant’s physical and interpersonal presentation. Originality/value The present study builds on both customer experience and branding literature by examining the relationship between customer happiness and collective brand personification – where the frontline service provider’s identity and core values align with those of the brand. Two experiments test the hypotheses that customer happiness increases because of feelings of belongingness with the brand and the consumer’s perception of the brand’s authenticity when the customer service provider aligns with the brand’s identity and core values.

scholarly journals Latent classes of accounting outsourcing firms

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jouni Juntunen ◽  
Sinikka Lepistö ◽  
Mari Juntunen
Keyword(s):  
Firm Performance ◽  
Service Provider ◽  
Service Providers ◽  
Equation Modeling ◽  
Latent Classes ◽  
Research Model ◽  
Business Services ◽  
Content Type ◽  
Competitive Capabilities ◽  
The Impact

Purpose Outsourcing of accounting increasingly attracts research interest, but research concerning the impact of the benefits of outsourcing on firm capabilities and performance across firms remains limited. This paper aims to reveal the unobservable latent classes of firms that outsource their accounting functions by testing a research model concerning the topic. Design/methodology/approach The authors build on accounting outsourcing research and adapt a research model from the literature on business services outsourcing. The authors analyze the data from 261 small and medium-sized enterprises in Europe using finite mixture structural equation modeling (FMSEM) and additional methods. Findings The authors reveal three latent classes with different research models. Thriving outsourcers (N = 103) have a positive attitude toward accounting outsourcing and associate competitive capabilities with mediating the relationship from outsourcing benefits to firm performance. Annoyed outsourcers (N = 143) are dissatisfied with their accounting service provider and only associate outsourcing benefits with competitive capabilities. Convenient outsourcers (N = 15) feel comfortable with their current accounting service provider and associate outsourcing benefits with neither capabilities nor with firm performance. Research limitations/implications The study initiates the discussion about the unobservable heterogeneity among accounting outsourcers. The study introduces the use of the FMSEM method in accounting outsourcing research. Practical implications The study offers novel insights concerning accounting outsourcers and proposes original explanations for their outsourcing decisions that would help both the outsourcers and accounting service providers. Originality/value The study might be the first to categorize accounting outsourcers using FMSEM.

The impact of intellectual capital on firm performance: a study of Indian firms listed in COSPI

2018 ◽  
Vol 19 (5) ◽  
pp. 935-964 ◽  
Author(s):  
Neha Smriti ◽  
Niladri Das
Keyword(s):  
Firm Performance ◽  
Intellectual Capital ◽  
Value Creation ◽  
Generalized Method Of Moments ◽  
Value Added ◽  
Secondary Data ◽  
Share Price ◽  
Content Type ◽  
Listed Firms ◽  
The Impact

Purpose The purpose of this paper is to examine the effect of intellectual capital (IC) on financial performance (FP) for Indian companies listed on the Centre for Monitoring Indian Economy Overall Share Price Index (COSPI). Design/methodology/approach Hypotheses were developed according to theories and literature review. Secondary data were collected from Indian companies listed on the COSPI between 2001 and 2016, and the value-added intellectual coefficient (VAIC) of Pulic (2000) was used to measure IC and its components. A dynamic system generalized method of moments (SGMM) estimator was employed to identify the variables that significantly contribute to firm performance. Findings Indian listed firms appear to be performing well and efficiently utilizing their IC. Overall, human capital had a major impact on firm productivity during the study period. Furthermore, the empirical analysis showed that structural capital efficiency and capital employed efficiency were equally important contributors to firm’s sales growth and market value. The growing importance of the contribution of IC to value creation was consistently reflected in the FP of these Indian companies. Practical implications This study has robust theoretical grounds and employs a validated methodology. The present study extends knowledge of IC among academicians and managers and highlights its contribution to value creation. The findings may help stakeholders and policymakers in developing countries properly reallocate intellectual resources. Originality/value This study is the first study to evaluate IC and its relationship with traditional measures of firm performance among Indian listed firms using dynamic SGMM and VAIC models.

Reducing transportation emissions

2016 ◽  
Vol 23 (3) ◽  
pp. 674-703 ◽  
Author(s):  
Henrik Pålsson ◽  
Ola Johansson
Keyword(s):  
Service Providers ◽  
Freight Transportation ◽  
Industrial Sector ◽  
Content Type ◽  
Logistics Service Providers ◽  
Minor Influence ◽  
Transportation Emissions ◽  
Reduce Emissions ◽  
The Impact ◽  
Practical Implications

Purpose – The purpose of this paper is to examine the intention of companies to reduce transportation emissions by 2020 and the barriers and the discriminating factors that affect the reduction. Design/methodology/approach – A literature review identified potential logistical and technical actions and their barriers, and discriminating factors for reducing transportation emissions. A survey of freight transport-intensive industries in Sweden examined the effects of, intention for implementation of and barriers to 12 actions to reduce CO2 emissions from freight transportation. In total, 172 logistics managers responded, representing a response rate of 40.3 per cent. Findings – Logistics service providers (LSPs) and freight owners are likely to reduce a considerable amount of CO2 emissions from freight transportation by 2020 using a combination of actions. The lowest level of confidence was for reducing CO2 emissions by changing logistics structures, while there was greater confidence by means of operational changes. The actions have few barriers, but there is often a combination of barriers to overcome. Three discriminating factors influence the intention of a firm to reduce transportation emissions: perceived potential, company size and LSP/freight owner. The industrial sector of a freight owner has minor influence. Companies that are particularly likely to reduce emissions are LSPs, large companies, and those that perceive a large reduction potential. Research limitations/implications – Logistical and technical barriers appear to hinder companies from implementing actions, while organisational barriers and external prerequisites do not. Barriers cannot be used to predict companies’ intentions to reduce transportation emissions. The authors examined the impact of three discriminating factors on reduction of transportation emissions. The research is based on perceptions of well-informed managers and on companies in Sweden. Practical implications – The findings can be used by managers to identify firms for benchmarking initiatives and emissions-reducing strategies. Originality/value – The study provides insights into intended CO2 reductions in transportation by 2020. It presents new knowledge regarding barriers and discriminating factors for implementing actions to reduce transportation emissions.

Sustainable life cycle offers through cooperation

2015 ◽  
Vol 4 (1) ◽  
pp. 4-24 ◽  
Author(s):  
Julia Selberherr
Keyword(s):  
Sustainable Development ◽  
Life Cycle ◽  
Business Model ◽  
Value Creation ◽  
Business Models ◽  
Service Providers ◽  
Construction Sector ◽  
Content Type ◽  
New Business ◽  
Societal Level

Purpose – Sustainable buildings bear enormous potential benefits for clients, service providers, and our society. To release this potential a change in business models is required. The purpose of this paper is to develop a new business model with the objective of proactively contributing to sustainable development on the societal level and thereby improving the economic position of the service providers in the construction sector. Design/methodology/approach – The modeling process comprises two steps, the formal structuring and the contextual configuration. In the formal structuring systems theory is used and two levels are analytically separated. The outside view concerns the business model’s interaction with the environment and its impact on sustainability. The inside view focusses on efficient value creation for securing sustainability. The logically deductively developed business model is subsequently theory-led substantiated with Giddens’ structuration theory. Findings – The relevant mechanisms for the development of a new service offer, which creates a perceivable surplus value to the client and contributes to sustainable development on the societal level, are identified. The requirements for an efficient value creation process with the objective of optimizing the service providers’ competitive position are outlined. Research limitations/implications – The model is developed logically deductively based on literature and embedded in a theoretical framework. It has not yet been empirically tested. Practical implications – Guidelines for the practical implementation of more sustainable business models for the provision of life cycle service offers are developed. Social implications – The construction industry’s impact requires it to contribute proactively to a more sustainable development of the society. Originality/value – This paper analyzes the role for the players in the construction sector in proactively contributing to sustainable development on the societal level. One feasible strategy is proposed with a new business model, which aims at cooperatively optimizing buildings and infrastructures and taking the responsibility for the operating phase via guarantees.

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