Organizing for Service Innovation: Best-Practice or Configurations?
AbstractIn this paper we contrast the notions of best-practice and configurations contingent on environmental conditions. The analysis draws upon our study of 38 UK and 70 US service firms which includes an assessment of the organization, processes, tools and systems used, and how these factors influence variation in the development and delivery of new services. The best-practice framework is found to be predictive of performance improvement in samples in both the UK and USA, but the model better fits the USA than UK data. We analyze the UK data to identify alternative configurations. Four system configurations are identified: project-based; mass customization; cellular; and organic-technical. Each has a different combination of organization, processes, tools and systems which offer different performance advantages. The results provide an opportunity for updating the typologies of operations and adapting them to include services, and begin to challenge the notion of any universal 'best practice' management or organization of new product or service development.
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Bibliographic InfoPaper provided by SPRU - Science and Technology Policy Research, University of Sussex in its series SPRU Working Paper Series with number 77.
Length: 38 pages
Date of creation: 01 Jan 2002
Date of revision:
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service industry; performance improvement; best-practice; alternative system configurations;
Find related papers by JEL classification:
- L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
- L8 - Industrial Organization - - Industry Studies: Services
- O2 - Economic Development, Technological Change, and Growth - - Development Planning and Policy
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