Learning from Customers: Individual and Organizational Effects in Outsourced Radiological Services

41 Pages Posted: 18 Jan 2013 Last revised: 16 Oct 2014

See all articles by Jonathan R. Clark

Jonathan R. Clark

Pennsylvania State University

Robert S. Huckman

Harvard Business School; National Bureau of Economic Research (NBER)

Bradley R. Staats

University of North Carolina Kenan-Flagler Business School

Multiple version iconThere are 2 versions of this paper

Date Written: January 2013

Abstract

The ongoing fragmentation of work has resulted in a narrowing of tasks into smaller pieces that can be sent outside the organization and, in many instances, around the world. This trend is shifting the boundaries of organizations and leading to increased outsourcing. Though the consolidation of volume may lead to productivity improvement, little is known about how this shift toward outsourcing influences learning by providers of outsourced services. When producing output, the content of the knowledge gained can vary from one unit to the next. One dimension along which output can vary --a dimension with particular relevance in outsourcing--is the end customer for whom it is produced. The performance benefits of such customer experience remain largely unexamined. We explore this dimension of volume-based learning in a setting where doctors at an outsourcing firm complete radiological reads for hospital customers. We examine more than 2.7 million cases read by 97 radiologists for 1,431 customers and find evidence supporting the benefits of customer-specific experience accumulated by individual radiologists. Additionally, we find that variety in an individual's customer experience may increase the rate of individual learning from customer-specific experience for a focal task. Finally, we find that the level of experience with a customer for the entire outsourcing firm also yields learning and that the degree of customer depth moderates the impact of customer-specific experience at the individual level. We discuss the implications of our results for the study of learning as well as for providers and consumers of outsourced services.

Suggested Citation

Clark, Jonathan R. and Huckman, Robert S. and Staats, Bradley R., Learning from Customers: Individual and Organizational Effects in Outsourced Radiological Services (January 2013). NBER Working Paper No. w18723. Available at SSRN: https://ssrn.com/abstract=2202660

Jonathan R. Clark (Contact Author)

Pennsylvania State University ( email )

University Park
State College, PA 16802
United States

Robert S. Huckman

Harvard Business School ( email )

Technology & Operations Management
435 Morgan Hall
Boston, MA 02163
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Bradley R. Staats

University of North Carolina Kenan-Flagler Business School ( email )

McColl Building, CB#3490
Chapel Hill, NC 27599
United States

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