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"Scalability": The paradox of human resources in e-commerce
Abstract
This paper develops a framework exploring the question, “How does service affect the economics of e-commerce?” Development of the framework requires an understanding of the different forms service takes in e-commerce. These are described as “virtual” (either pure information or automated) and “physical” (requiring some degree of human intervention). The framework suggests that because the nature and quantity of physical service necessary to deliver value to customers influences the quantity of human intervention required, it also influences a firm’s ratio of variable to fixed costs, which alters its “scalability”. The paradox comes in that while reduced scalability is viewed negatively by many venture capitalists and proponents of e-commerce, the cause of that reduction in scalability, human intervention, may help a firm to differentiate its offering to customers, thus providing a source of competitive advantage.
... Globally, millions of people are linked with the internet and due to the exceptional growth of this network millions of people are added annually. Customers are engaging in self-service at a higher degree due to the internet (Hallowell, 2001). Further, today's business requires that organizations interact with their business partners and customers by utilizing advance technology to deliver services across the globe promptly. ...
... Innovation, thus, creates a culture in which there is a synergy of actions and thoughts on the customer's behalf. For creating new thoughts and subsequent new actions, it is necessary to destroy the old (Hallowell, 2001). Furthermore, every firm should scientifically undertake the tasks of destruction, protection and creation of their philosophy, processes and systems. ...
... The partners in Star Alliances Network have the facility to provide the service to their customers from almost 815 terminals in 130 countries, in a customer base environment. This is only a nightmare for any single airline working alone to provide this unmatched world class service (Hallowell, 2001). ...
In the current era, the firms are not competing on the basis of products but today’s competition is on the basis of services. In today’s technological era, the increasing growth of service sector posed a global challenge and at the same time an opportunity for the organizations. This paper gives a clear understanding about the constituents of “resource” for service firms, because with the technological revolution the conceptual definition of a nation’s or firm’s resource has dramatically changed. For this purpose, the knowledge, networks and technology are scrutinized as interdependent elements. The maintenance of network with outside and inside partners and customers of the organization is facilitated only by technology. Technology cuts cost and specifically its radical impact is on the way of thinking about “resources” of a country or firm. This study contends that in service firms, technology, network of relations, and knowledge is the ultimate “resource” that provide potential for innovation. Operationally, novelty can be understanding as an organization’s anticipation to “feel for the consumer” by providing superior value to the customers. Furthermore, it is also arguing in this study that, when a company is capable enough to focus its all energies to think on customer’s behalf, innovation in service then starts.
... Research into digital services supply chains has shown how unforeseen problems can lead to the phenomenon of fallout (Akkermans & Vos, 2003). Scalability is an important aspect of service ramp-ups, both the nature of the service and management assumptions affect it (Boyer, Hallowell, & Roth, 2001;Hallowell, 2001). ...
... Services that are pure information have high scalability and commoditised and standardised services exhibit higher scalability, while more unique or awkward handling issues exhibit lower scalability. Hallowell (2001) argued that scalability is often neglected when firms seek to maximise the growth of technologically intermediated services. To achieve high scalability, firms seek to reduce their dependence on human resources through automation. ...
... The speed of ramp-up is linked to scalability. Two factors that can limit scalability are the non-IT elements of the service and the complexity of the service (Boyer et al., 2001;Hallowell, 2001), these were evident in all three cases; thus limiting the scaling of the services. ...
Markets are pressuring companies to develop new services quickly and to get them to market as soon as possible, leading to pressure for rapid deployment and ramp‐ups. Such pressure has increased with the growing digitalisation of services sectors such as banking, insurance and media (McKinsey & Co., 2015). Ramp‐ups of such services usually require a significant commitment of resources, which may cause problems if the available resources do not match the demand growth or if they are diverted from other services and involve ramping up the whole service supply chain.
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... Research into digital services supply chains has shown how unforeseen problems can lead to the phenomenon of fallout (Akkermans & Vos, 2003). Scalability is an important aspect of service ramp-ups, both the nature of the service and management assumptions affect it (Boyer, Hallowell, & Roth, 2001;Hallowell, 2001). ...
... Services that are pure information have high scalability and commoditised and standardised services exhibit higher scalability, while more unique or awkward handling issues exhibit lower scalability. Hallowell (2001) argued that scalability is often neglected when firms seek to maximise the growth of technologically intermediated services. To achieve high scalability, firms seek to reduce their dependence on human resources through automation. ...
... The speed of ramp-up is linked to scalability. Two factors that can limit scalability are the non-IT elements of the service and the complexity of the service (Boyer et al., 2001;Hallowell, 2001), these were evident in all three cases; thus limiting the scaling of the services. ...
Volume ramp-ups are notoriously difficult in digital services, where market pressures can lead to ramping up too soon and too rapidly which in turn can lead to the need to ramp-down. This paper addresses the challenge of taking innovation to scale in an established firm by enhancing our understanding of the nature of service ramp-ups and ramp-downs. Digital service ramp-ups differ substantially from production ramp-ups as the speed is much greater, and problems are visible to customers. However there are similarities between service ramp-downs and product recalls and an important contribution is exploring the nature of ramp-downs their processes and possible causes. Using an engaged research approach, longitudinal data from three consecutive ramp-ups in a European telecom operator were collected. Through analyses of cases, qualitative and quantitative case data, and using a system dynamics model, we identified a set of issues that affect service ramp-ups and ramp-downs. These include the need to ramp up the service supply chain, biases leading to unrealistic assumptions about scalability and problem-solving, decision biases in various functions, launching digital services in beta form, a lack of transparency of capacity and lack of learning from previous ramp-ups. We show that if these problems are not addressed or resolution is delayed, this can lead to cycles of delay, backlogs and productivity problems and the inevitability of a ramp-down. We explore reasons and importance for such delays that lead to service ramp-downs.
... According to Hallowell (2001), business model scalability refers to the ability of the business model to enhance the company's growth and revenue and keep the cost base lower than the revenue. As Winter and Szulanski (2001) mentioned in their article, replication is a phenomenon which causes the creation of similar businesses that perfume services or deliver products. ...
... Novel platform framework adopted from 2.3 Ecosystem business models from scalability, replicability,Hallowell (2001), the business model scalability refers to the ability of the business model to enhance the company's growth and revenue and keep the cost base lower than the revenue. Also, companies' agility which helps the company to change easily. ...
Digitalization and its relevant disruptive technologies have changed people’s daily life. Business models which are the backbone of organizations are no exception. Along with the emergence of digitalization, the concept of business models has changed and evolved into new forms. Digitalization has changed the structure and components of the traditional business models, the relation between suppliers and customers, and the way of value creation and capture. Thus, it is necessary to investigate new alternative business models for organizations to secure and sustain them in their businesses.
This study aims at exploring and studying the platform business models from the owner’s perspective in the context of the port of Oulu to improve the understanding of the platform ecosystem, stakeholder's roles and needs. Also, scalability, replicability, and sustainability of the port business model were studied. This thesis applied the qualitative research method and inductive research approach. The collection of data was done through an interview, two workshops, a literature review, and a single case study in the port of Oulu. The qualitative research method provided the opportunity of a broader understanding of previous research, the case study, its limitations, and opportunities regarding alternative platform business models.
In the port ecosystem, the main goal is to provide a trustworthy, high capacity, and low latency connections for services utilized within the port. Also, optimizing the utilization of all network capabilities and opportunities locally inside the port area. The structure in the port includes physical and digital infrastructures such as 4G/5G wireless connections, fixed optical fiber connection, sensor networks, and data analytics solutions. The processes in the port address activities and services related to the port structure. The contingencies are regulations, standards, and local policies that influence port activities. A shift in port goals is expected to happen as modern communication networks and computing technologies offer further opportunities for trustworthy mobile connectivity, data storage, transfer and analytics, and external service. Real-time data processing, open data will be possible through low latency wireless technologies on the edge. The information service platforms could be used to optimize daily operations and enable new businesses. Global communication standards and data regulations will assure stakeholders about the conformity of business transactions.
The business model scalability in the port can happen through innovative algorithms for analyzing, managing, and increasing the port data. The replicability improves by new material tracking and workflows using the port data and new subscription algorithms. Sustainability requires optimizing the cost of the digital services, developing digitalized algorithms instead of manual processes, improving the performance of services, and the whole port digital ecosystem, monitoring the environmental performance and creating a system that can monitor all the traffic in the port area.
... Amit and Zott, 2001;Rappa, 2004;Bouwman and MacInnes, 2006). Business model scalability can be defined as a business model's ability to increase revenues faster than the corresponding cost base (Hallowell, 2001). ...
... Today, it is no longer a matter of big companies outperforming small start-ups; rather, those firms which grow fast and are responsive to change end up winning the game. Consequently, investors often look for 'infinite scalability': an early investment during a phase of low profitability might yield high returns as the company becomes highly profitable after amortising fixed costs by serving a large customer base (Hallowell, 2001). ...
There is broad consensus that a scalable business model plays a key
role in new venture success. However, the factors that influence business
model scalability have received little attention thus far. This paper aims to shed
more light on this topic by introducing an explorative model of business model
scalability. The proposed model is based on an analysis of (a) a wide body of
literature, in particular including a broad range of studies from
entrepreneurship, strategy and business model research and (b) data from
qualitative research based on in-depth expert interviews with experienced
entrepreneurs and investors. The model provides a basis for understanding the
role of a scalable business model in new venture growth and identifies
mechanisms for successful web-based business model innovations. This study
serves as a starting point for further research on business model scalability and
provides guidance for executives in assessing the potential of new business
models.
... Intuitively, it seems paradoxical that CBMs building on re-commerce is described as more challenging to scale than brick-and-mortar stores. Digital business models are generally described as highly scalable [61]. However, resale business models have trouble capitalising on the scalability potential of e-commerce due to low product standardisation. ...
Resale-based circular business models (CBMs) hold immense potential to contribute towards sustainability in fashion retail. To significantly impact triple bottom line (TBL) sustainability, these fashion CBMs need to be scalable. This paper investigates the challenges for scaling resale-based fashion from a TBL perspective, as well as the strategic resources required to solve these. Based on 15 semi-structured interviews, six key scalability challenges and six main strategic resources are identified. Findings show that even though challenges are mostly referred to in economic terms, environmental and social challenges are also present. The difference is that those challenges are less visible, partly due to the lack of clear and standardised tools and definitions to interpret scale. Lessons from the study can be insightful for practitioners in reflecting on the scalability potential of their CBMs from a TBL perspective and understanding what resources to make use of or develop.
... Başlarda yüksek miktarda finansal kaynak kullanan ve tek hedefi müşteri tabanını büyütmek olan bir teknoloji girişiminin ilerleyen süreçlerde sabit maliyetlerini optimize edebilmesi ve genişleyen müşteri tabanından gelir elde edebilmesi ancak güçlü bir iş modeline geçiş yapmasıyla mümkün olmaktadır. Melek yatırımcı açısından güçlü bir iş modelinin halihazırda planlanmış olması, girişimin erken aşamalarda katlanacağı kayıpları ne kadar hızlı telafi edilebileceği ile ilgili önemli bir sinyaldir (Hallowell, 2001). ...
Melek yatırımcıların yatırım kararları çok sayıda değişkene sahip karmaşık denklemlere benzemektedir. Melek yatırımcılığın fazlasıyla ‘kişiselleşmiş’ bir aktivite olması nedeniyle her melek yatırımcının kendi heves ve hedefleri doğrultusunda özel karar parametrelerine sahip olması doğaldır. Buna karşın, melek yatırımcıların erken aşamadaki girişimlere yatırım yaparak maruz kaldıkları ortak riskler (vekâlet riski, icra riski, piyasa riski) ve
bu risklerin melek yatırımcılar açısından önemi bağlamında ele alındığında, bazı değerlendirme kriterlerinin melek yatırım kararlarının yönünü tayin etmekte yeterli gelebileceği düşünülmektedir. Bu araştırma kapsamında 1) melek yatırım kararlarının yönünü tayin eden az sayıda ama kritik önemdeki girişimci ekip ve girişim fırsatı odaklı değerlendirme kriterlerinin hangileri olduğunun keşfedilmesi, 2) geçmiş araştırmalarda savunulan “melek yatırımcıların vekâlet riskini icra riski ve piyasa riskinden daha fazla önemsediği” tezinde hareketle, girişimci ekibin yeterliliğinin yatırım kararı üzerinde hâkim olup olmadığının
test edilmesi amaçlanmaktadır. Araştırmanın ulaştığı bulgular melek yatırımcılığa yeni başlayacak olan kişilere yatırım fırsatlarının değerlendirilmesi sürecinde yararlanabilecekleri bir ‘kontrol listesi’ sunması ve girişimciler tarafından melek yatırımcıların karar sistematiğinin daha iyi anlaşılmasına katkı sağlayacak olması bakımından önemlidir. Araştırma geçmişte Kuzey Amerika ve Avrupa ülkelerinde yapılmış olan melek yatırımcılık odaklı araştırmaların bulgularını Türkiye’den ampirik kanıtlarla destekleyecek olmasına ek olarak, çok sayıda Türk melek yatırımcıyı kapsayan geniş bir örnekleme sahip olması (n=122) ve Türk melek yatırımcıların yatırım kararlarını odağına alan ilk akademik araştırmalar arasında yer alması ile literatüre katkıda bulunmaktadır.
... According to Björkdahl and Holmén (2013, p. 217) 'a scalable business model refers to its ability to increase revenues faster than the corresponding cost base.' While BM scalability was already addressed in regard to e-commerce internet BM (Hallowell, 2001), the rise of platforms and data-driven services has seen the goal of scaling a digital BM and achieving success and growth raised to the next level (Evans and Gawer, 2016). The goal of digital BMI is not its implementation, as most existing BMI processes reveal (e.g., Wirtz and Daiser, 2018), but rather its scalability. ...
The digital transformation is forcing manufacturing firms to innovate beyond new products and services and to develop their digital business model innovation (BMI) processes in order to stay competitive. This study explores how the innovation processes of manufacturing firms can be designed in order to develop novel business models to address the challenges of digitalization. The study uses a multiple-case study approach, where data on BMI processes was collected in six manufacturing firms. The results show that the design of BMI processes in the digital age differs conceptually between B2C and B2B manufacturing firms. While BMI processes in B2C firms follow a semi-structured approach that considers experimentation, process models in B2B firms show similarities with a new product development (NPD) hybrid model comprising stage-gate methods and agility. This new typology aims to structure the heterogeneity of BMI process models described in the literature. Finally, this study proposes two archetype process models for digital BMI for B2C and B2B firms with specific digital process characteristics that manufacturing firms could consider when designing a BMI process in the context of digital transformation without reinventing the wheel over and over again.
... However, without adequate planning and support of the delivery system, it failed to fulfill 10% of the orders. Without proper customer service, employees in the customer services were struggling to handle a large number of disappointed customers taking days to respond to emails and keeping the customers on hold for 20 minutes (Hallowell, 2001). ...
Human resources are the driving force and source of the core competitive advantage of any business. The purpose of this chapter is to discuss how human resource management (HRM) practices and human resource (HR) strategies are formulated and utilized in the context of e-commerce firms. When discussing e-commerce, relatively less attention is paid to HRM-related issues. However, analyzing, carefully, both the successful start-ups (i.e., Dollar Shave Club and Warby Parker) and e-commerce giants (i.e., Amazon and Alibaba) treat HRM as a critical success factor. Because business success depends on the careful integration of HRM strategies with business requirements and strategies. In this chapter, the different HRM practices and strategies adopted by different e-commerce firms will be discussed.
... Venture capital funds before investing in the e-commerce firms, study the background and the potentiality of business through analysing the assets, segments, product, and number of customers and financial strength of a company because it determines their profit percent against the percent of fund invested infirm. Hallowell (2001) suggest that the venture capital investing in internet business looks forward to knowing the 'infinite scalability' of a firm which means the capability of the business to add a number of potential customers at an extremely low incremental cost. The study introduces the various parameters a VC's looking in firms in order to invest in it. ...
... The paper at hand focuses on scaling business models by means of the integration of digital services. However, the term scaling is widely discussed in different contexts, for example from an IT perspective (Duboc et al., 2012) or from a business model perspective (Hallowell et al., 2001). ...
The emerging trends of digitalization and servitization offer new opportunities for product centric companies to innovate their business model. The interaction between the innovation of business models, the increasing service orientation and the ongoing digitalization of business models raise questions regarding a methodical approach. To the best of our knowledge, there is a research gap addressing the innovation of business models by means of digital and service aspects. We therefore propose an iterative process model to scale digital service business models by the ongoing integration of digital services in each iteration phase. The process model consists of four phases: the maturity assessment of the initial business model, the ideation of new service proposals, an impact analysis, and the business model design. The process follows the Design-Research-Methodology and was validated in a case study at Mercedes-Benz-Vans.
... Another stream of literature discusses scalability at the cross-section of information technology and business strategy. For example, Hallowell (2001) establishes the scalability of e-commerce systems as their ability to accommodate growing customer and order numbers as well as handle an increase in services and functions effectively and efficiently. Other authors such as Rappa (2004), Bouwman and MacInnes (2006) and Stampfl et al. (2013) build on the notion of the scalability of e-commerce systems and connect it to the scalability of the underlying business model. ...
Purpose
The purpose of this paper is to explore how big-picture sustainability strategies are translated into tangible product development efforts. The authors assert that most sustainable products currently remain confined to niche markets and do not permeate the mainstream. The authors propose that there is a missing link between strategic sustainability goals and operational product development initiatives. The authors establish a path to bridging this gap.
Design/methodology/approach
The manuscript is based on a qualitative research design with a sample of 32 companies. Data were collected from semi-structured interviews with product developers as well as secondary data analysis.
Findings
The authors delineate three empirically derived approaches firms from the sample pursue to develop sustainable products. The authors identify a phenomenon that the authors’ call the fallacy of trickle-down product sustainability. The authors find that only one of the three approaches – codification – is equipped to successfully turn strategic sustainability targets into authentic sustainable products.
Practical implications
This study provides an actionable guide to executives and product developers with respect to bridging the gap between often elusive sustainability aspirations and tangible product improvements via the process of rigorous codification.
Originality/value
This study provides a novel and unique perspective into strategy, sustainability and product development. The authors synthesize the extant literature on sustainable product development, juxtapose the emergent structure with primary interview data, and elaborate the resource-based view (RBV) to provide theoretical and practical implications. The authors establish scalability as the missing RBV capability of many attempts toward mass–market compatibility of more sustainable products.
... Parte da operação da empresa encontra-se completamente automatizada e parafraseando uma entrevistada "se o sistema ficar fora do ar, a operação do negócio é interrompida, gerando prejuízo para a empresa". Com base no que foi observado, é possível compreender que a tecnologia é um dos fatores que sustenta a escalabilidade do modelo de negócio (Santala, 2013), permitindo à organização atender vários clientes adicionais a um custo incremental baixo (Hallowell, 2001). Por entender que a tecnologia é um ativo importante para o cumprimento do modelo de negócio, a empresa decidiu ter uma equipe interna que é a responsável por desenvolver: as automatizações dos processos operacionais; os relatórios analíticos; as soluções para os clientes internos e externos; os aplicativos que são distribuídos nas plataformas móveis; e as integrações com sistemas terceiros. ...
Introdução
A aplicação das novas tecnologias emergentes no meio financeiro ao redor do mundo tem sido liderada por esforços para desconstruir e repensar modelos de negócio consolidados (Adomavicius, Bockstedt, Gupta & Kauffman 2007).
Criar novas experiências aos usuários, desenvolver soluções inovadoras, gerenciar a infraestrutura tecnológica, superar a rigidez do sistema legal e se colocar como alternativa no mercado tradicional são elementos que as organizações denominadas Fintechs precisam combater para sobreviver em um mercado restrito a grandes grupos.
Problema de Pesquisa e Objetivo
Este trabalho tem como objetivo analisar a importância da tecnologia dentro do modelo de negócio de uma empresa do tipo Fintech ao propor o seguinte problema de pesquisa: qual é o direcionador do modelo de negócio de uma Fintech, a tecnologia ou inovação na cadeia de valor tradicional?
Fundamentação Teórica
Schueffel (2017) conduziu uma revisão da literatura acadêmica e, após analisar as diversas definições, o autor compila a seguinte conceituação: “Fintech é uma nova indústria financeira que aplica tecnologia para evoluir as atividades financeiras” (p.45).
Zott, Amit e Massa (2010) revelaram que o modelo de negócio tem sido empregado na tentativa de explicar: 1) o mercado eletrônico (e-business) e o uso da tecnologia da informação nas organizações; 2) questões estratégicas, como a criação de valor, vantagem competitiva e desempenho da empresa; e 3) inovação e gestão da tecnologia.
Metodologia
A metodologia empregada para a pesquisa foi o estudo de caso. Foram utilizados dados secundários investigados na revisão da literatura e dados primários obtidos através da pesquisa de campo de natureza exploratória e qualitativa.
O objeto de estudo é uma empresa que oferece crédito para seus clientes por meio de plataformas digitais e em 2017 recebeu o maior aporte de investimento em uma Finech na América Latina.
A coleta de dados foi realizada por meio de entrevistas semiestruturadas individuais e uma entrevista em grupo que foram realizadas durante o mês de junho de 2018.
Análise dos Resultados
Pôde ser observado através do caso, que a partir do amadurecimento do modelo de negócio, a tecnologia é um importante ativo na redução dos custos, no aumento da eficiência operacional e na garantia de um crescimento escalável do negócio. O caso em questão permitiu levantar um conjunto de hipóteses para estudos futuros: a) as Fintechs nem sempre nascem de tecnologias disruptivas; b) nem sempre a Fintech tem como objetivo eliminar um intermediário; c) estratégias não estão só no campo das tecnologias, mas da forma de gerar valor.
Conclusão
A empresa estudada demonstrou a importância de prototipar em ciclos curtos o seu modelo de negócio até conseguir amadurecê-lo para buscar um ganho de escala.
Diferentemente do que foi apontado por Dapp et al. (2014), o caso não se destacou inicialmente por conta da tecnologia, mas pelo fato de encontrar uma engenharia financeira que permitisse com que a empresa oferecesse crédito a partir de um serviço pouco explorado no mercado brasileiro.
As limitações desta pesquisa são inerentes ao estudo de um único caso, sendo assim, os resultados não podem ser generalizados.
... "A scalable business model is one that is flexible and where the addition of new resources brings increasing returns" (Nielsen & Lund, 2018: 66). Hence, there are many successful companies with multi-million dollar businesses, such as Facebook, Groupon, or Salesforce, which are former Internet start-ups (Stampfl, Prügl & Osterloh 2013;Markides 2008) that utilize the e-business ability to serve numerous additional customers at extremely low incremental cost (Hallowell, 2001). Many companies will integrate ICT in their business processes in order to innovate their business models so they can surpass their competitors and increase their profit making abilities. ...
Purpose: The paper explores the antecedents to business model scalability.
Design/Methodology/Approach: The paper is conceptual and exploratory in nature and builds on the practice / action learning approach.
Findings: The paper presents an action research based framework for approaching and understanding the change needs of business models and business model scalability as practices. These practices are based on a literature review of business opportunities, scalability and market dynamics.
Practical Implications: From a managerial and entrepreneurial perspective, the findings of the paper highlight the role and dynamism of the business environment and the continuous assessment of the business environ- ment in evaluating business opportunity and changes in opportunity.
Originality/Value: The paper proposes a novel framework for business model synchronization against busi- ness opportunity, and vice versa. It also connects the business model to the market and hence to the market value of the firm.
... There are many successful companies with multi-million dollar businesses such as Facebook, Groupon, Salesforce which are former Internet start-ups ( Stampfl, Prügl & Osterloh 2013;Markides 2008) that are using the e-business ability to serve numerous additional customers at extremely low incremental cost ( Hallowell, 2001). Many companies will integrate ICT in their business processes in order to innovate their business models to surpass their competitors and profit making, thus firms utilizing ICT are able to achieve arrogant performance and attain accelerated growth and profit growth compare to traditional businesses ( Sakellaridis & Stiakakis 2011). ...
The exponential growth of wireless services with diversity of devices and applications depending on connectivity has inspired the research community to come up with novel concepts to improve the efficiency of spectrum use. Recently, several spectrum sharing system concepts have been introduced and widely researched to cope with spectrum scarcity, though, to date, only a few have reached the policy and standardization phase. Moreover, only a subset of these concepts has gained industry interest with pre-commercial deployments and lucrative business model characteristics. This paper analyzes sharing economy business antecedent factors of the three topical regulatory approaches for spectrum sharing: global TV White Space (TVWS), Licensed Shared Access (LSA) from Europe, and Citizens Broadband Radio Service (CBRS) from the US. A comparison is made between these concepts to identify similarities and differences for developing a successful scalable sharing concept. Key factors for a sharing economy enabled scalable business model are introduced including platform, reduced need for the ownership, leverage of underutilized assets, adaptability to different policy regimes, trust, and value orientation. The results indicate that all analyzed sharing concepts meet basic requirements to scale, TVWS radically lowering entry barrier, LSA leveraging key existing assets and capabilities of mobile network operators, and CBRS extending the business model dynamics. The Sharing Economy provides a dynamic framework for analyzing and developing the spectrum sharing business models.
... The information flow through the internet tends not only to answer questions, but to raise them as well. Human contact seems important in problematic situations; the internet is not very capable of providing customers with professional opinions (Hallowell, 2001). The creation of true economic value is the final arbiter of business success (Porter, 2001). ...
The greatest health issues on construction sites have always been extreme temperature
and noise. An investigative study of the temperature and noise exposure of metals and
wood cutting operators on a construction jobsites was conducted at three different distances away from the workers' working position (0, 6 & 10) feet. The study was done in order to determine the relationships between temperature and noise and how they could impact workers’ health. Twenty construction workers were sampled at different time in one day, once in the morning and afternoon. The noise level and temperature of the enclosed area were also measured. Results revealed that majority of workers were not concerned about wearing ear protection. Findings also revealed a positive relationship between temperature and noise. One-way ANOVA result revealed a statically significant effect of temperature on noise (F = 527.83, p < 0.0001). Thirty percent of the workers felt that noise level in the afternoon annoyed the more. The findings from this study suggest a proper monitoring of an enclosed work construction site temperature.
... Recent literature on scalability exists but remains scarce, even after extensive searches in both Ebso-host and Google Scholar (Bergin & School, 2001;Dyer & Ericksen, 2005;Hallowell, 2001;Mohan & Potnis, 2010;Patel, Fiet, & Sohl, 2011;Penrose, 1955). Menasce, for instance, discusses scalability for the case of online IT-services (Menasce, 2000), explaining the importance of emphasizing the potential growth in customers and their likely future changes in behavior during the initial design phase, i.e. via capacity planning and architecture selection. ...
This paper asks whether or not there is a hierarchy of entrepreneurship that goes beyond life cycle models of organizations to indicate a path to scalability. We posit a model illustrating a hierarchy that incorporates five progressive levels: solo, small, stable, salient and scalable. Embracing critical elements of any entrepreneurial venture -- the entrepreneur, the opportunity and available resources -- the model incorporates the key external variables: cultural, societal, legal and financial as well as internal attributes: confidence, skills, vision and leadership. We assume that global competitiveness motivates theentrepreneur to develop strategies to climb the hierarchy in order to achieve salience and scalability. The robustness of the model is then tested against recent entrepreneurship literature. Finally, we discuss the hypothesis the greater the scalability of a venture, the greater the job creation, which has significant policy implications.
... Recent literature on scalability exists but remains scarce, even after extensive searches in both Ebso-host and Google Scholar (Bergin & School, 2001;Dyer & Ericksen, 2005;Hallowell, 2001;Mohan & Potnis, 2010;Patel, Fiet, & Sohl, 2011;Penrose, 1955). Menasce, for instance, discusses scalability for the case of online IT-services (Menasce, 2000), explaining the importance of emphasizing the potential growth in customers and their likely future changes in behavior during the initial design phase, i.e. via capacity planning and architecture selection. ...
This chapter reviews the topic of immigration and entrepreneurship.It presents a literature review of the economic impact of immigration on both host and origin countries and discusses the influence of immigration and the level of host country innovation. The main part of the review is an in-depth analysis of different aspects that influence the impact immigration has on host country entrepreneurship level. Within this review we present the main findings and explore the main gaps. Further research should test empirically in a world-wide cross country sample the specific variables that explain the level of immigrant entrepreneurship and their impact on native entrepreneurship levels.
... Worldwide people are currently connected to the Internet. Internet facilitates customer for higher degree of selfservice or customization while selecting their products [11]. Electronic mass media is playing a vital factor in empowering customers, too. ...
In the complex business word, service is increasingly getting the centre stage in the economies across the world. The exponential necessity of innovative service in one hand is providing excellent opportunity and on other hand, posing a number of challenges to the firms. In this circumstance, the policy makers of the businesses are aware about the challenges and are keenly interested to develop a general strategy which will enhance their competency in rapidly changing business context. They are actively trying to identify the resources and competencies that are necessary for their competitiveness. This study will investigate and examine the factors that are responsible for the growth of service sector in the increasingly complex business world and propose a strategic direction to harness the competitive edge by configuring their resources with the help of real world example; especially, in developing country context. Growth and sustainability through innovative service is the central theme of this paper.
... The bar code system and Radio Frequency Identification System (RFID) are data collection technologies that can facilitate logistics data collection and exchange. The Internet is the infrastructure to make communications of business information among several organizations more efficiently and can enable customers to engage in a higher degree of self-service [19]. Decision support systems are a specific class of information system that supports business and organizational decision-making activities. ...
It is essential that logistics service providers invest in information systems to help them coordinate the supply chain networks. This paper studies the factors affecting the innovation in logistics information systems for logistics service providers in Taiwan form the perspective of internal and external context. A questionnaire is developed to survey the innovation in logistics information systems for logistics service providers in Taiwan. The method of factor analysis is used to find some major configurations for each influential factor and the multiple regression method is employed to analyze of the influences of the configurations on he innovation in logistics information systems. It can be found that both internal and external factors have significant influences on the innovation in logistics information systems for logistics service providers in Taiwan.
... Worldwide people are currently connected to the Internet. Internet facilitates customer for higher degree of selfservice or customization while selecting their products [11]. Electronic mass media is playing a vital factor in empowering customers, too. ...
In the complex business word, service is increasingly getting the centre stage in the economies across the world. The exponential necessity of innovative service in one hand is providing excellent opportunity and on other hand, posing a number of challenges to the firms. In this circumstance, the policy makers of the businesses are aware about the chal-lenges and are keenly interested to develop a general strategy which will enhance their competency in rapidly changing business context. They are actively trying to identify the resources and competencies that are necessary for their com-petitiveness. This study will investigate and examine the factors that are responsible for the growth of service sector in the increasingly complex business world and propose a strategic direction to harness the competitive edge by configur-ing their resources with the help of real world example; especially, in developing country context. Growth and sustain-ability through innovative service is the central theme of this paper.
... The observed moderating effect of DFI may be extrapolated to gauge the importance of e-service quality as a tool to drive e-loyalty in MC services with different degrees of scalability (Hallowell, 2001). For example, in the banking sector we find services with very different degrees of scalability. ...
Purpose
Services provided through the internet (e‐services) are typically offered as part of a broader Multi‐Channel (MC) service package, combining these services with services delivered through traditional channels (e.g. phone, physical facilities). Customers of e‐services display heterogeneity in channel use, ranging from customers with a high Degree of Focus on the Internet (DFI) channel (internet‐oriented customers) to customers with a low DFI (low focus on the internet and strong reliance on traditional channels). The purpose of this study is to examine whether a customer's DFI moderates the relationship between e‐service quality (eSQ) and e‐loyalty behavioral intentions in an MC e‐service.
Design/methodology/approach
Perceptual and objective data were collected from multiple sources in a major retail MC e‐banking service (survey of online customers, transactional data and customer database).
Findings
First, there is high diversity in DFI among e‐service customers; second, a customer's DFI negatively moderates the quality‐loyalty relationship.
Research limitations/implications
The study should be extended to other types of e‐services.
Practical implications
eSQ seems to be a more important driver of e‐loyalty behavioral intentions for low DFI customers than for high DFI (internet‐oriented) customers. Different strategies may need to be employed to drive retention across customers with different levels of DFI. Specifically, driving e‐loyalty among internet‐oriented customers may require complementing eSQ investments with additional retention mechanisms (e.g. building communities or creating switching barriers). DFI should be recognized as a useful and readily available customer segmentation variable for devising loyalty strategies.
Originality/value
The study pioneers the examination of the impact of channel use on the quality‐loyalty relationship. It breaks new ground in proposing DFI as a relevant customer segmentation variable for e‐service research and practice. External validity is enhanced by the use of objective (rather than self‐reported), real‐world data to measure customer channel use.
... On the Web, for example, the service is exposed to millions of potential users. As a result, the virtual back office needs to be highly scalable, that is, to be able to respond adequately to highly fluctuating and unpredictable demand levels (Hallowell 2001;Heim and Sinha 2001). ...
Services employing virtual channels of delivery such as the Internet are typically multichannel. Service quality research in traditional services and, more recently, in e-services tends to take a single-channel perspective. This article argues that a multichannel setting introduces a set of complexities that call for a broader conceptualization of service quality, recognizing that customer experience is formed across all moments of contact with the firm through several channels. Building on existing research, the article develops a framework for conceptualizing multichannel service quality, distinguishing between virtual, physical, and integration quality. Integration quality is identified as a key new service quality component. The framework also addresses how the three components of service quality are delivered by the different parts of the service delivery system and identifies the associated challenges for providing good levels of service quality. A number of research and managerial implications as well as future research needs are put forward.
... Some of this work has studied linkages between service quality and perceptions of performance, satisfaction, and loyalty among consumers (Heim and Sinha, 2001;Boyer et al., 2002;Thirumalai and Sinha, 2005;Boyer and Hult, 2005a,b). Other research has articulated a number of service quality roles that are conducive to the generation of competitive advantage for retailers (Hallowell, 2001;Starr, 2003;Piccoli et al., 2004). Few studies, however, have empirically linked retail pricing policies to services in the supply chain (Rabinovich and Bailey, 2004). ...
In this paper, we investigate the relationship between Internet retailer margins and retailer promises regarding product distribution service. We focus particularly on Internet retailing in a drop-ship context, because this model provides a purer separation of these activities and the related costs and constitutes a critical context for the empirical examination of the relationship between retailer margins and promises. Drawing upon retailer and consumer perspectives, we articulate and justify a set of propositions regarding the relationships among different Internet retailer margins and promised product distribution service performance. We examine a sample comprising over 2000 retail transactions with customers and find partial empirical support for the set of propositions. Specifically, the results show that product margins and the margins on shipping and handling are inversely proportional. We also find a direct relationship between promised product distribution service performance and shipping and handling margins even after key product characteristics known to influence the cost side of the margin equation are controlled for. These results confirm an intuitively logical view of the relationships among pricing and promised product distribution service performance. The study also offers insights for practitioners regarding the opportunity to enhance performance in this domain and demonstrates the benefit and power of employing objective measures drawn from the vast array of information captured via online transactions.
... The information flow through the internet tends not only to answer questions, but to raise them as well. Human contact seems important in problematic situations; the internet is not very capable of providing customers with professional opinions (Hallowell, 2001). Moreover, by using the internet, manufacturers can sell directly to customers and provide customer support online. ...
Purpose
– To investigate the impact of the internet in “traditional” market rules.
Design/methodology/approach
– An opinion piece based on Michael Porter's arguments for the new economy.
Finding
– Michael Porter's arguments for the new economy provide a useful starting point in the analysis of the environment. His arguments are based on exaggerated phenomena. Factors that determine a sector's profitability could be enriched with the innovation that prevails in the particular sector.
Originality/value
– An attempt to criticize Porter's thoughts regarding internet and industry structure and to enrich the Porter's five forces model with the “power of innovation”.
... Billions of people worldwide are currently connected to the Internet, and exponential growth in this international network means that millions more are being connected annually. The Internet enables customers to engage in a higher degree of self-service (Hallowell, 2001), The nature of business today demands that ®rms interact with their customers and business partners using technology to provide services instantaneously across international borders. With this emerging paradigm, ®rms have had to Innovation in logistic services reassess the opportunities and challenges and have had to re-examine how they conceptualise and conduct their business. ...
Service industries hold an increasingly dynamic and pivotal role in today's knowledge-based economies. The logistics industry is a classic example of the birth and development of a vital new service-based industry, transformed from the business concept of transportation to that of serving the entire logistical needs of customers. Quantum advances in science, technology, and communication in the new millennium have compelled firms to consider the potential of the so-called new “resources” (technology, knowledge and relationship networks) that are essential if firms are to operate effectively within the emerging business model, and to utilise the opportunities to innovate and gain market leadership. Through an extensive literature review, this paper examines the factors that nurture innovation in logistics services, identifies the contributions of the new “resources” and, using industry examples, examines the application of these resources to logistics firms as they assume an extended role within the new business model.
... Human contact seems important in problematic situations, Internet is not very capable of providing customers with professional opinions (the scalability of service, see. e.g. Hallowell, 2001). ...
The aim of the paper is to identify essential effects of e-commerce on company's business processes and structure. The main focus is on b-to-b wholesaler environment; however, more general implications will also be presented. The data, mostly qualitative by nature, have been collected through a case study. E-business might just be ordinary business that utilizes the modern tools of information technology in streamlining and re-engineering business processes. But it does not have to limit to that. Evolution tends to be tender for structures; revolution, however, breaks the walls that have been considered as fundamental. The turning point towards e-business, respectively, besides of steps of evolution may also include revolutionary elements. B-to-b e-commerce between companies has increased evidently during the recent years. Electronic commerce challenges the traditional channels of buying and selling and thereby influences simultaneously the internal processes of companies. Essentially, this is only aesthetics – scratching a surface. E-business has also potential to alter the fundamental structures of companies. Developing e-business requires advanced and innovative solutions e.g. in logistics and supply-chain management. Often the whole structure of a company has to be – or should be – adjusted to the novel mode of operation.
A considerable amount of research has been conducted on business models. Yet, success of business models, and, in particular, what influences their ability to scale have remained widely unexplored. However, in a digital world, being able to quickly scale a business model is important to compete. This study therefore aims at discovering themes that enable digital business models to scale by elaborating on the core question: Which constituent activities of a business model, described by their content, structure, and governance, enable a digital business model to scale? To address this gap, a case study analysis of an online music streaming service startup is used with a grounded theory approach to identify and examine activities and contextual elements that enable and inhibit its business model to scale. Our study reveals that a range of activities can be attributed to three major themes: (1) the principle of data-driven decision taking, (2) the notion of iterating fast and learning quickly, and (3) the acquisition of funding.
Human resources are the driving force and source of the core competitive advantage of any business. The purpose of this chapter is to discuss how human resource management (HRM) practices and human resource (HR) strategies are formulated and utilized in the context of e-commerce firms. When discussing e-commerce, relatively less attention is paid to HRM-related issues. However, analyzing, carefully, both the successful start-ups (i.e., Dollar Shave Club and Warby Parker) and e-commerce giants (i.e., Amazon and Alibaba) treat HRM as a critical success factor. Because business success depends on the careful integration of HRM strategies with business requirements and strategies. In this chapter, the different HRM practices and strategies adopted by different e-commerce firms will be discussed.
O livro “Estudos de tempos e movimentos: Uma abordagem lean para aumentar a eficiência de processos físicos e digitais” foi elaborado para ser um guia para acadêmicos e profissionais que almejam alcançar uma eficiência global e sustentável de processos produtivos. O livro adota uma abordagem lean, uma vez que esta é uma filosofia gerencial difundida mundialmente em inúmeras indústrias e organizações de serviços, a qual é primordial para pessoas e empresas que buscam a melhoria contínua de seus métodos de trabalho. Este livro utiliza gestão visual e estratégias didáticas para apresentar o tema em uma linguagem acessível, através de estudos de caso e exemplos práticos relevantes, para que o leitor desenvolva uma visão crítica sobre o tema. Site oficial: www.TemposEficientes.com.br
Dieses Buch analysiert die digitale Transformation von Medien. Damit soll der Wandel von Medien, Medienindustrien, Medienorganisationen und Mediennutzungen aus heterogenen Perspektiven verstehbar und die digitale Transformation der Medien gestaltbar gemacht werden. Die Beitragsautoren stellen theoriebildende und praxisfördernde Überlegungen zur Medienfinanzierung und Erlösmodellierung von klassischen, aber auch neuen Medien sowie die Rolle des Journalismus unter veränderten Rahmenbedingungen des Medienwandels vor.
Die erheblichen Fortschritte in emergenten Technologien haben den Markt für neue Teilnehmer und disruptive Geschäftsmodelle geöffnet. Die neuen Mitspieler destabilisieren die bestehende Medienlandschaft und ziehen die Aufmerksamkeit des Publikums auf sich. Mit dem Konzept der digitalen Transformation rücken somit unweigerlich die Zusammenhänge und wechselseitigen Durchdringungen von digitalen Medientechnologien, den Veränderungsimperativen von Medienorganisationen, Medienwandel und Wandel von Journalismus und Öffentlichkeit ins Zentrum der Diskussionen. Daher müssen sich traditionelle Medienunternehmen veränderungswillig zeigen, um weiterhin marktfähig zu bleiben und zu überleben.
Service strategy literature emphasizes the alignment of target market, service concept, and service delivery system. This article reports scale development of a resource bundle that is useful to implement service strategies in Internet retailing. Three dimensions of the resource bundle are proposed in this study. They cover three alignment parts between target market and service concept, service concept and service delivery system, and target market and service delivery system. To rigorously develop the measurement scale, this study uses a two-stage procedure which comprises an item-level study that uses judges and a scale-level study that employs a survey of Internet retailers. Finally, a second-order measurement model of the resource bundle with a total of 14 measurement items was established. Results of the confirmatory factor analysis reveal empirical evidence of resource complementarities, thereby providing critical information about desirable resource allocation for Internet commerce and, in turn, carrying some managerial implications.
Eprint link:
https://www.tandfonline.com/eprint/Ghjrn7A7kDDHUtPCVcvw/full?target=10.1080/02642069.2019.1606905
This paper investigates service classification schemes in order to understand how to increase productivity in services. A useful model for this purpose is the one proposed by Schmenner in 2004. However, this model is limited to traditional services, and it does not consider the unique characteristics of e-commerce business, which create new trends in productivity management. Accordingly, we conduct a Systematic Literature Review (SLR) to develop a classification scheme, which would be suitable for e-commerce services. Based on this research, a multidimensional model is proposed splitting the Schmenner’s ‘degree of variation’ dimension into two axes: degree of interaction with customers and degree of customisation for customers. In addition to these theoretical contributions to Schmenner’s matrix, the SLR complements the previous reviews presented by authors such as Cook, D. P., Goh, C., & Chung, C. H. (1999. Service typologies : A state of the art survey. Production and Operations Management, 8(3), 318–338) and Van der Valk, W., & Axelsson, B. (2015. Towards a managerially useful approach to classifying services. Journal of Purchasing and Supply Management, 21(2), 113–124). The value of this paper to managers is the recognition of differences in productivity management between these two types of services: managers can overcome the traditional trade-off cost versus customisation and explore e-commerce to increase their profits while increasing customisation for their customers. Moreover, the model proposed in this paper can be used to assist organisations in strategic planning and service portfolio management.
In service supply chains, disturbances amplify from one stage to another. In the current chapter we find that on top of this a further complication occurs. When workloads in the frontoffice become stressed, quality in backoffice processes suffers even more. Frontoffice staff will make more errors under stress. Those extra errors lead to more backoffice rework, which further increases workloads. This then gets amplified in other stages, as quality issues and workloads cascade down the service supply chain. Workloads become especially stressed during the volume ramp-up phase for new services. We therefore look at some examples of unsuccessful new service introductions.
In the modern world, the internationalization of companies creates value by combining foreign market entry with innovation. This is especially true of small and medium sized enterprises (SMEs) that seek to profit from a global market presence. These enterprises do not have abundant financial resources; instead, they have to leverage their knowledge resources, innovative ideas and networking skills in order to expand, while the value of their proposition to large partners and customers might depend on the scale of their activities. The aim of this chapter is to provide a qualitative framework in conjunction with preliminary case-study evidence of the combined role of technological advances and organizational arrangements in the evolution of value-creation processes in globalizing SMEs. The case evidence is based on three Estonian-born globalizing SMEs. These enterprises operate in a dynamic business environment, which is characterized by regional variations in business opportunities (level of competition), customer habits, partnership opportunities as well as changes in technological platforms (e.g. emergence of mobile applications). All these aspects make value creation in such an internationalization process very intricate.
Service industries hold an increasingly dynamic and pivotal role in today's knowledgebased economies. The logistics industry is a classic example of the birth and development of a vital new servicebased industry, transformed from the business concept of transportation to that of serving the entire logistical needs of customers. Quantum advances in science, technology, and communication in the new millennium have compelled firms to consider the potential of the socalled new “resources” (technology, knowledge and relationship networks) that are essential if firms are to operate effectively within the emerging business model, and to utilise the opportunities to innovate and gain market leadership. Through an extensive literature review, this paper examines the factors that nurture innovation in logistics services, identifies the contributions of the new “resources” and, using industry examples, examines the application of these resources to logistics firms as they assume an extended role within the new business model.
Recently, internet technology is considered to be the most used information and communication technology by organizations: it can ease the process of transactions and reinforce the relation between companies and customers. This investigation empirically examines the impact of e-ticketing technique on customer satisfaction; a convenience sample of Jordanian airline passengers that had booked flights in the last 12 months through companies offering e-ticketing services was acquired. The findings indicate that customer satisfaction with e-ticketing services was influenced by all of the independent variables measured (Data security, Customer and Technical Support, and User-Friendliness) were noted to have significant impact on customer satisfaction with e-ticketing services.
Internet retailing literature shows that customers׳ experience with a retailer׳s website and order fulfillment separately influence repurchase intention. This study examines these two experiences׳ interactive effects on repurchase intention. Our research model includes a product type as a moderator, because the type of product can likewise affect a customer׳s experience with the retailer׳s website and order fulfillment. Results of multiple-group structural equation modeling (SEM) from customer reviews of 306 Internet retailers demonstrate that the interactive effects of a web site experience and order fulfillment are significant. In the interactive mechanism, order fulfillment experience is proven to serve as a proximal cause of repurchase intention. The moderating role of product type is significant as well. This finding suggests that practitioners should have unmatched measures for retailing different types of goods.
This study proposes an e-service resource bundle (E-SRB) as an antecedent of electronic service channel (e-channel) success in small retail service providers. The E-SRB indicates a collection of three resources: e-market acuity, e-IT competence, and e-service agility. Given the interdependence of these three resources in delivering quality e-services, the authors hypothesize about their complementarity and its positive effect on performance. The results of this structural equation modeling using survey data show support for the proposed hypotheses, demonstrating that the E-SRB positively influences e-channel performance. The performance impact is not limited to perceived financial performance but extends to self-reported dollar-based sales and profits. These results have theoretical implications when it comes to linking e-service quality to financial performance. They also carry managerial implications for small-scale e-retailing, where limited resources can seriously impede the full use of the e-channel. One of these implications concerns what resources are necessary and how to allocate them in order to improve an e-service system. In the end, this study suggests that managers should understand the interrelationships that might exist among resources that collectively influence performance.
Internet retailing offers merchants limitless shelf space. This has led experts to highlight the existence of a “long tail” of offerings on the web and assert that the future of online business is “selling less of more.” However, it is difficult for Internet retailers of physical goods to sell a large scope of products without having to handle potentially large amounts of product returns from customers. This is due to the fact that customers can and do get overwhelmed by excessive product variety and often make erroneous purchasing decisions. We shed light on this issue through an assessment of theoretical predictions based on data from sales and returns of almost 7000 products in a particular product category. While retailers can benefit from expanding the scope of their inventories to generate Internet sales, the success of this strategy will depend on the control of unjustified product returns by consumers and the management of recurrent execution errors and product fit failures in transactions with customers. Furthermore, from our results, the gains that this strategy will bring to retailers will be bound by the amount of time products have been available on the Internet retailer's site, as well as by other attributes such as product price and size.
Gives a brief review of factors underlying dot-com failures. Suggests implications for future research and teaching in different aspects of service management, concluding that case histories of dot-com failures are a rich source for discussion and analysis.
Services lie at the very hub of the economic activity of all societies, and interlink closely with all other sectors of the economy. The exponential growth of services internationally has not only intensified competition, but has also simultaneously posed a challenge and an opportunity for the managers of services. This study examines the factors underlying the growth of services, and emerging views on what constitutes a “resource” for service organisations. To this end, the roles of technology, knowledge and networks are examined as interdependent factors. It is argued here that today’s “resources” are the culmination of various advances in knowledge. Technology facilitates the maintenance of networks with customers and partners inside and outside the firm. The network of relationships renders the firm’s capabilities “amorphous” in nature. This study suggests that this amorphous knowledge represents the true “resource” in a service firm, and ultimately provides the creative potential for “innovation” – the so-called “core competency”. However, innovation per se does not benefit the firm unless it manifests superior value in the customer-driven marketplace. Moreover, this study argues that service innovation results only when a firm is able to focus its entire energies to think on behalf of the customer.
The rapid growth of the Internet has provided tremendous opportunities for service companies to offer quality services. The prime drivers and motivations for offering such services through the Net are to reduce transaction costs and to provide efficient and effective service to customers. But what are the determinants essential for building a successful electronic service (e-service) operation? This paper addresses this specific issue by isolating the essential determinants from the available literature, and assessing them individually to obtain better insights and understanding. This could help companies to design and develop robust foundations on which to build successful e-service operations. The boundaries between e-service, e-business and e-commerce are blurred and sometimes confusing. This paper aims to clarify some of these ambiguities.
Der letzte Samstag vor Weihnachten, der 23. Dezember 2000, war einer der umsatzstärksten Tage für den Schweizer Einzelhandel. Die Kunden besorgten ihre letzten Weihnachtsgeschenke und versorgten sich mit Lebensmitteln für die folgenden vier Tage. Zwei Stunden vor Ladenschluss brach der elektronische Zahlungsverkehr (electronic fund transfer, EFT) in weiten Teilen der Schweiz zusammen. Während mehr als dreißig Minuten war es nicht möglich, an den Automaten Geld zu beziehen oder in den Geschäften mit elektronischen Zahlungsmitteln zu bezahlen. Der Grund für die Panne war eine Fehlfunktion des Roboters, welcher die Datensicherungsbänder automatisch wechselt.
Consumers’ access to the Internet has greatly expanded their ability to compare offers across a wide array of retailers. In some particular industries (i.e., music), the Internet has also provided consumers with unprecedented opportunities to consider retail offers involving physical goods (i.e., CDs) alongside specialized services. As shown in this paper, these circumstances have important implications for the design and management of customer relationships. These circumstances also permeate relationships across retail and wholesale echelons in music supply chains. In particular, an empirical analysis shows that online consumer access to information on CD retail markups compels retailers to market a level of service quality that is consistent with that markup information. However, limitations in consumer access to markup data, available only to wholesalers and to Internet retailers, allow retailers to inversely link their markups to the fulfillment service quality offered to consumers with wholesaler support.
Service encounters are critical in all industries, including those that have not been traditionally defined as service industries.
The increasing deployment of technology is altering the essence of service encounters formerly anchored in a “low-tech, high-touch”
paradigm. This article explores the changing nature of service, with an emphasis on how encounters can be improved through
the effective use of technology. The authors examine the ability of technology to effectively (1) customize service offerings,
(2) recover from service failure, and (3) spontaneously delight customers. The infusion of technology is examined as an enabler
of both employees and customers in efforts to achieve these three goals. Although the infusion of technology can lead to negative
outcomes and may not be embraced by all customers, the focus of this article is on the benefits of thoughtfully managed and
effectively implemented technology applications. Past research and industry examples are featured and future research directions
and managerial implications are highlighted.
The chapter presents a summary and extension of our book, Winning the Service Game, published in 1995 by Harvard Business School Press (Schneider
& Bowen
, 1995). We summarize the “rules of the game” we had presented there concerning the production and delivery primarily of consumer
services and note several advances in thinking since we wrote the book. We emphasize that people (customers, employees, and
managers) still are a prominent key to success in service and that this should be fully recognized in the increasingly technical
sophistication of service science
. The foundation of this thesis is the idea that promoting service excellence and innovation
requires an understanding of the co-creation of value by and for people. Further, that such co-creation is most likely to
effectively occur when an appropriate psycho-social context is created for people as they produce, deliver and experience
a service process. Such a context is the result of understanding the complexities of the people who are a central component
of the service delivery
system.
textlessptextgreaterThe attainment of quality in products and services has become a pivotal concern of the 1980s. While quality in tangible goods has been described and measured by marketers, quality in services is largely undefined and unresearched. The authors attempt to rectify this situation by reporting the insights obtained in an extensive exploratory investigation of quality in four service businesses and by developing a model of service quality. Propositions and recommendations to stimulate future research about service quality are offered.
While management skills can improve service systems, a manager is better off if he or she first has a clear understanding of the operating characteristics that set one service system apart from another. This author offers one view of services, which, if followed, results in a "rational approach to the rationalization" of services. His view, quite simply, is that the less direct contact the customer has with the service system, the greater the potential of the system to operate at peak efficiency. And, conversely, where the direct customer contact is high, the less the potential that exists to achieve high levels of efficiency. This distinction between high- and low-contact systems provides a basis for classifying service production systems that can enable the manager to develop a more effective service operation.
In service settings, customer satisfaction is often influenced by the quality of the interpersonal interaction between the customer and the contact employee. Previous research has identified the sources of satisfaction and dissatisfaction in service encounters from the customer's point of view; this study explores these sources in service encounters from the contact employee's point of view. Drawing on insights from role, script, and attribution theories, 774 critical service encounters reported by employees of the hotel, restaurant, and airline industries are analyzed and compared with previous research. Results generally support the theoretical predictions and also identify an additional source of customer dissatisfaction—the customer's own misbehavior. The findings have implications for business practice in managing service encounters, employee empowerment and training, and managing customers.
This research attempts to (1) demonstrate that, contrary to conventional wisdom, “outlier” firms in a number of service industries have sustained competitive advantage through both cost leadership and differentiation (dual competitive advantage); and (2) suggest a framework explaining the phenomenon. The framework argues that service differentiation and cost leadership can be sustained concurrently through the support of a combination of organizational and strategic positioning-based initiatives. Specifically, organizational factors that encourage employee commitment and choices inherent to each firm's strategic positioning which focus operations on specific needs of targeted customers are both critical to the achievement of dual competitive advantage at these firms. These organizational and positioning based initiatives affect the firms examined both independently and interactively, creating formidable barriers to emulation. Analyses estimate the scale of the organizational and positioning choice benefits to cost leadership, demonstrating that these firms rely on both. Evidence presented suggests that employee commitment may be the source of these firms' ability to sustain their dual competitive advantage.
Sustainable competitive advantage has proved elusive for companies in the 1990s. While making enormous investments in technology, research, and state-of-the-art marketing, many of today's managers continue to ignore the single most important factor in achieving and maintaining competitive success: people. Yet all evidence indicates that the source of competitive advantage is shifting from technology, patents, or strategic position to how a company manages its employees. In this excerpt from his newly published book, Competitive Advantage through People, Jeffrey Pfeffer describes how successful companies have overcome the barriers to change and offers a solid framework—with specific actions—for implementing these changes in any industry.
In service settings, customer satisfaction is often influenced by the quality of the interpersonal interaction between the customer and the contact employee. Previous research has identified the sources of satisfaction and dissatisfaction in service encounters from the customer's point of view; this study explores these sources in service encounters from the contact employee's point of view. Drawing on insights from role, script, and attribution theories, 774 critical service encounters reported by employees of the hotel, restaurant, and airline industries are analyzed and compared with previous research. Results generally support the theoretical predictions and also identify an additional source of customer dissatisfaction-the customer's own misbehavior. The findings have implications for business practice in managing service encounters, employee empowerment and training, and managing customers.
One of the profound consequences of the on-going information revo-lution is its influence on how economic value is created and extracted. Specifically, when buyer-seller transactions occur in an information-defined arena, information is accessed and absorbed more easily, and arranged and priced in different ways. Most important, the information about a product or service can be separated from the product or service itself. In some cases, it can become as critical as the actual product or service in terms of its effect on a company's profits. Consider how many wholesalers sell used cars in Japan. Until the mid-1980s, the vehicles were transported weekly to one of several established lo-cations, where they were sold to retailers at live auction. This traditional method was inherently in-efficient because at any given auction, only about 45% of the inventory sold. But in 1985, Masataka Fujisaki, an entrepre-neur, saw an opportuni-ty to transform the mar-ketplace; he created a proprietary computer and satellite communi-cations system called AUCNET. Each week, sellers call AUCNET with a list of the cars they're offering. Then an AUCNET inspector travels to the sellers' lots, veri-leffrey F. Raypoit is an assistant professor of business administration in the Service Management Interest Group at the Harvard Business School in Boston, Mas-sachusetts. His research explores the impact of informa-tion technologies on information-based products and services, with a focus on service quality in technology-intensive customer interfaces, fohn J. Sviokla is an associ-ate professor at the Harvard Business School. He studies how companies can augment their products, services, channels, and management processes to increase profits and customer retention, particularly with the aid of new information technologies.
In exemplary service organizations, executives understand that they need to put customers and frontline workers at the center of their focus. Those managers heed the factors that drive profitability in this service paradigm: investment in people, technology that supports frontline workers, revamped recruiting and training practices, and compensation linked to performance. They also express a vision of leadership in somewhat unconventional terms, referring to an organization's "patina of spirituality" and the "importance of the mundane." In this article, Heskett, Jones, Loveman, Sasser, and Schtesinger take a close look at the links in the service-profit chain, which puts hard values on soft measures so that managers can calibrate the impact of employee satisfaction, loyalty, and productivity on the value of products and services delivered. Managers can then use this information to build customer satisfaction and loyalty and assess the corresponding impact on profitability and growth. Describing the links in the service-profit chain, the authors explain that profit and growth are stimulated by customer loyalty; loyalty is a direct result of customer satisfaction; satisfaction is largely influenced by the value of services provided to customers; value is created by satisfied, loyal, and productive employees; and employee satisfaction, in turn, results from high-quality support services and policies that enable employees to deliver results to customers. By completing the authors' service-profit chain audit, companies can determine not only what drives their profit but how they can sustain it in the long term.
Self-service technologies (SSTs) are increasingly changing the way customers interact with firms to create service outcomes. Given that the emphasis in the academic literature has focused almost exclusively on the interpersonal dynamics of service encounters, there is much to be learned about customer interactions with technology-based self-service delivery options. In this research, the authors describe the results of a critical incident study based on more than 800 incidents involving SSTs solicited from customers through a Web-based survey. The authors categorize these incidents to discern the sources of satisfaction and dissatisfaction with SSTs, The authors present a discussion of the resulting critical incident categories and their relationship to customer attributions, complaining behavior, word of mouth, and repeat purchase intentions, which is followed by implications for managers and researchers.
A model of service quality is developed which includes three groups of service quality components: physical and procedural, behavioural, and judgemental. Classification schemes for service operations based on their relative degrees of labour intensity, process and product customisation, and contact and interaction between the customer and the service organisation are reviewed and synthesised. The application of the service quality model to different classes of service organisations are discussed.
Increasing labor costs and advances in technology are encouraging service firms to consider offering technology-based self-service options to consumers. Yet, little is known about how consumers would evaluate such options. Two alternative models of service quality are proposed based on an attribute versus overall affect approach. The attribute model is based specifically on what consumers would expect from such options. The overall affect model is based on the consumer's feelings toward the use of technology. A study is conducted to test these models for a new (proposed) technology-based self-service option, with and without the effect of different waiting times. Implications for firms in terms of service design and promotion are discussed, and directions for future research are indicated.
The research regarding complex organizations is scarce at this time. Few research studies have investigated the function both of the open, uncertain systems and the closed, certain systems of different organizations. This book is cited as a "conceptual inventory;" its main purpose is to formulate possible propositions to further study the similarities and differences of organizational behaviors across disciplines. It explores such issues as organizational design, technology and structure, and assessment of organizations. The analysis then examines the ways in which the following variables and concepts impact an organization: human variables, discretion, control of complex organizations, and the administrative process. Based upon the conducted research, both external sources (generalized and contingency) and internal sources (interdependence) of uncertainty are identified among complex organizations. Although most organizations seek a state of self-control, the means by which they achieve this state differ between organizations. The differing responses of administrators to uncertainty within their respective organizations are explored. Possible areas of future research are proposed, including the utilization of both operational and conceptual research. (AKP)
Toy retailers find investors unforgiving on blunders
- J Anders
Self-service and technology: unanticipated and unintended effects on customer relationships
- J G Barnes
- P A Dunne
- W J Glynn
Models of service delivery: an integrative perspective
- C Goodwin
- R Radford
Dual competitive advantage in labor-dependent services: evidence, analysis, and implications
- R. Hallowell
Lessons in the service sector
- J L Heskett
The Service Profit Chain: How Leading Companies Link Profit and Growth to Loyalty, Satisfaction, and Value
- J.L Heskett
- Sasser, W.E. Jr, Schlesinger, L.A.
Winners, Losers, and Microsoft
- S.J Liebowitz
- S.E. Margolis
The power of predictability”
- H H Stephenson
- M C Mondoveanu
Managerial competence in a complex business environment: a multidimensional approach
- H.H Stephenson
- M.C Mondoveanu
- A. Nanda