Customer Interaction and Innovation in Hybrid Offerings:Investigating Moderation and Mediation Effects for Goods and Services Innovation

Hybrid offerings are bundles of goods and services offerings provided by the same firm. Bundling value offerings affects how firms innovate, interact with customers, and customize their goods and services. However, it remains unclear how customer interaction might drive the innovation performance of various bundled components. Therefore, this study investigates the effects of customer interactions and service customization on both goods and services innovations in a hybrid offering context, using a unique data set of 146 information technology and manufacturing firms. Customer interaction appears beneficial to both goods and services innovation in a hybrid offerings context, but service customization has different direct effects on goods versus services innovation. As a potential mediator, customer knowledge mobilization resources exert different effects on the goods and services elements of hybrid offerings. Furthermore, for high-interaction customers, medium levels of technical modularity lead to most favorable innovation outcomes for services innovation. The results thus suggest that providers of hybrid offerings should foster customer interactions, to drive the innovation performance of the good and service components, while still making sure to implement service customization strategies. These findings have notable implications for service innovation research

Examining service triad operations: Formation, functioning, and feedback exchanges

We study service triads by examining the member-to-member exchanges underpinning service formation, functioning, and feedback. A service triad comprises two serviced customers from the supplier's standpoint and two service providers from the end user's standpoint, which can cause operational complexity and challenges. We view the service triad as an operating entity and study four information-rich cases to improve our understanding of this operational complexity. Leveraging scholarly knowledge related to service operations management and ecosystems theory, we uncover several interesting patterns related to the formation, functioning, and feedback exchanges. First, the formation exchanges depend on the value creation goal of the service triad. Second, the service buyer engages in operational coordination, despite delegating the delivery of services to the supplier. Third, feedback exchanges allow the service triad to monitor service performance for further improvement and innovation. Our qualitative inquiry focusing on the visualization and codification of members’ participation in exchanges advances our collective understanding of service triads beyond the dominant focus on structure and governance

Why We Need a Service Logic: A Comparative Review

This paper considers perspectives of service that define what has been called service logic. We review two contemporary service logics and compare them in terms of strategic and managerial insights. The first is the Service-Dominant Logic of Marketing, which provides a prescriptively interesting \u27theory of the firm,\u27 but not a descriptively pragmatic or informative \u27theory of strategy.\u27 In other words, it suggests why organizations exist without meaningfully directing managerial decisions and actions pertaining to the provision of service outcomes. It also absorbs all economic activity into the realm of \u27service,\u27 thus reducing or eliminating the ability to distinguish managerial insights along a service/non-service dimension. The second is the Unified Service Theory, which explicitly discriminates between service and non-service activities, and prescribes managerial approaches that are unique to each. We introduce a strategic application that we call Process DNA, which posits that firms\u27 value realization efforts are composed of sequences of processes. Some processes (service processes) involve interaction between firms and customers, and other processes (non-service processes) are decoupled. Firms can gain strategic advantage by altering the arrangement of interactive and decoupled processes within a process sequence

Agility in Retail Banking: A Numerical Taxonomy of Strategic Service Groups

This research demonstrates that operations agility---defined as the ability to excel simultaneously on operations capabilities of quality, delivery, flexibility, and cost in a coordinated fashion---is a viable option for retail banks encountering increasing environmental change. The question of whether there is empirical evidence that services, specifically retail banks, display the characteristics of agility like their manufacturing counterparts is open to debate. Conventional wisdom in operations management posits that most successful services trade off one capability for another. Drawing from the resource-based view of the firm, combinative capabilities view, and the cybernetics work of Ashby (1958), theoretical arguments suggest the contrary. The agility paradigm is viable in environments calling for a mix of strategic responses. Applying cluster analytic techniques to a sample of retail banks, using capabilities as taxons, we identify four strategic service groups: agile, traditionalists, niche, and straddlers. Our empirical results provide thematic explanations consistent with theory that account for how the agile strategic group offers a unique configuration of service concept, resource competencies, strategic choices, and business orientation. Profiles of the operations strategies of each strategic service group suggest that each group has found a fit between what certain segments of the market may want and what they have to offer. In particular, we found that the agile group exhibited greater resource competencies than its counterparts, requiring greater investments in infrastructure and technology. Consistent with theory, agile banks performed better over time on an absolute measure of return on assets.Agility, Retail Banking, Service Operations Strategy, Empirical Research

Service Operations: What’s Next?

Purpose: The purpose of this paper is to present exciting and innovative research questions in service operations that are aligned with eight key themes and related topics determined by the Journal of Service Management (JOSM) Service Operations Expert Research Panel. By offering a good number of such research questions, this paper provides a broad range of ideas to spur conceptual and empirical research related to service operations and encourage the continued creation of deep knowledge within the field, as well as collaborative research across disciplines that develops and incorporates insights from service operations. Design/methodology/approach: Based on a Delphi study, described in the companion article, “Service Operations: What Have We Learned?,” the panel identified eight key research themes in service operations where leading-edge research is being done or has yet to be done (Victorino et al., 2018). In this paper, three or four topics within each theme are selected and multiple questions for each topic are proposed to guide research efforts. The topics and questions, while wide-ranging, are only representative of the many ongoing research opportunities related to service operations. Findings: The field of service operations has many interesting research topics and questions that are largely unexplored. Furthermore, these research areas are not only increasingly integrative across multiple themes within operations but often transcend functional disciplines. This creates opportunities for ever more impactful research with a greater reach throughout the service system and suggests that service researchers, regardless of functional affiliation, can contribute to the ongoing conversation on the role of service operations in value creation. Originality/value: Leveraging the collective knowledge of the JOSM Service Operations Expert Research Panel to expand on the research themes generated from the Delphi study, novel questions for future study are put forward. Recognizing that the number of potential research questions is virtually unlimited, summary questions by theme and topic are also provided. These questions represent a synopsis of the individual questions and can serve as a quick reference guide for researchers interested in pursuing new directions in conceptual and empirical research in service operations. This summary also serves as a framework to facilitate the formulation of additional research topics and questions

Service Operations: What Have We Learned?

Purpose: The purpose of this paper is to identify research themes in service operations that have great potential for exciting and innovative conceptual and empirical work. To frame these research themes, the paper provides a systematic literature review of operations articles published in the Journal of Service Management (JOSM). The thorough review of published work in JOSM and proposed research themes are presented in hopes that they will inspire impactful research on service operations. These themes are further developed in a companion paper, “Service operations: what’s next?” (Field et al., 2018). Design/methodology/approach: The JOSM Service Operations Expert Research Panel conducted a Delphi study to generate research themes where leading-edge research on service operations is being done or has yet to be done. Nearly 700 articles published in JOSM from its inception through 2016 were reviewed and classified by discipline focus. The subset of service operations articles was then further categorized according to the eight identified research themes plus an additional category that primarily represented traditional manufacturing approaches applied in service settings. Findings: From the Delphi study, the following key themes emerged: service supply networks, evaluating and measuring service operations performance, understanding customer and employee behavior in service operations, managing servitization, managing knowledge-based service contexts, managing participation roles and responsibilities in service operations, addressing society’s challenges through service operations, and the operational implications of the sharing economy. Based on the literature review, approximately 20 percent of the published work in JOSM is operations focused, with earlier articles predominantly applying traditional manufacturing approaches in service settings. However, the percentage of these traditional types of articles has been steadily decreasing, suggesting a trend toward dedicated research frameworks and themes that are unique to the design and management of services operations. Originality/value: The paper presents key research themes for advancing conceptual and empirical research on service operations. Additionally, a review of the past and current landscape of operations articles published in JOSM offers an understanding of the scholarly conversation so far and sets a foundation from which to build future research