Modeling the Operational Capabilities for Customized and Commoditized Services

Journal of Operations Management (Forthcoming)

43 Pages Posted: 18 Sep 2013

See all articles by Tim Coltman

Tim Coltman

University of Wollongong - Faculty of Business (BUS)

Timothy M. Devinney

University of Manchester - Alliance Manchester Business School

Date Written: September 17, 2013

Abstract

According to the extant service operations management literature, substantial gains can be achieved for providers that are adept at aligning internal operational capabilities with customer needs. However, the most influential models in the field attempt to explain this alignment without regard to the core resource allocation choices relating operational capabilities to different service offerings. To further our understanding of service operations alignment, we apply a unique combination of experimental scenarios and discrete choice modeling to measure the role of managers in orchestrating operational capabilities. Using the third-party logistics tender review and bid preparation process as an empirical setting, we reveal the resource allocation choices that managers make between six distinctive operational capabilities (customer engagement, cross-functional coordination, creative solutions, operations improvement, IT infrastructure and professional delivery) and show the subtle ways in which these capabilities interact as the service context moves from one based on commoditization to one based on customization.

Keywords: Service operations, Strategic alignment, Discrete choice analysis, Capabilities

JEL Classification: L1, L6, L8, C25, C44, M11

Suggested Citation

Coltman, Tim and Devinney, Timothy M., Modeling the Operational Capabilities for Customized and Commoditized Services (September 17, 2013). Journal of Operations Management (Forthcoming), Available at SSRN: https://ssrn.com/abstract=2326930

Tim Coltman (Contact Author)

University of Wollongong - Faculty of Business (BUS) ( email )

Building 40A, Level 2
NSW, 2522
Australia
+61 (2) 4221 3912 (Phone)
+61 (2) 9313 7279 (Fax)

Timothy M. Devinney

University of Manchester - Alliance Manchester Business School ( email )

Booth Street West
Manchester, M15 6PB
United Kingdom

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