A Tale of Two Countries’ Conservatism, Service Quality, and Feedback on Customer Satisfaction

This article compares the influence of service quality on customer satisfaction in the United Kingdom and the United States and considers the moderating effect of systematic customer feedback and complaint processes. Propositions are developed concerning country differences based on British conservatism. Hypotheses were tested using data from the International Service Study. The results support the conservatism hypothesis, empirically demonstrating that customer reaction to good service is similar, but U.K. and U.S. customers tend to respond differently to poor service encounters based on cultural norms. The authors propose that customer feedback is an often-overlooked factor in explaining the relationship between service quality and customer satisfaction. Much valuable customer feedback may be unrealized in Britain, thus losing the opportunity to improve service design and delivery and creating a vicious cycle. Without intervention, British service firms will continue to deliver levels of service lower than would be acceptable in the United States

Examining the Influence of Operational Intellectual Capital on Capabilities and Performance

Managers have long been challenged by an abundance of internal and external demands and uncertainties in their operating environments. Anecdotal evidence and a growing number of research studies have advocated process flexibility and product innovation as organization-level operating capabilities critical for responding to such demands and uncertainties, and have highlighted the need for more efficient and effective management of the firm's knowledge-based resources. Leveraging arguments from the resource-based and knowledge-based views of the firm, we introduce a second-order latent construct called operational intellectual capital, which represents the organization's operating know-how embedded in a system of complementary (i.e., covarying) knowledge-based resources. We argue that operational intellectual capital influences organization-level operating capabilities such as process flexibility and product innovation, which, in turn, influence business performance. We empirically examine these relationships using structural equation modeling on a cross-section of U.S. manufacturing survey data. Statistical results from the estimation of a coalignment model and comparisons with several other models support our operational intellectual capacity conceptualization and its impact on operating capabilities and business performance, respectively. Our research thus suggests the importance of possessing and leveraging a system of complementary knowledge-based operating resources, and addresses the need for the reformulation of operations strategy theory in terms of the emergent knowledge-based view of the firm.operations strategy, operational intellectual capital, operating capabilities, business performance, structural equation modeling