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The influence of variability and strategy of service supply chains on performance

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Abstract

This paper aims to empirically examine how customer-induced variability, process variability, supply chain strategy, and business performance interrelate in a service firm context. Quantitative data were collected via a questionnaire-based survey. A total of 376 organizations responded and 313 responses were usable. This represents an adjusted response rate of 10.43 %. The survey results were analyzed by factor analysis, ANOVA, and regression models. The results provided the basis for testing the proposed model. They indicated a positive association between customer-induced variability and process variability. Since firms have different levels of variability, each firm will have a different strategic focus. The emphasis of that strategy will, in turn, result in greater flexibility and customer satisfaction. More specifically, firms with high and low levels of variabilities are suggested to focus on the cost- and flexibility-oriented strategies, respectively.

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Notes

  1. The EMBA students are medium- to high-level industry managers with at least 7-year working experience. To meet the objectives of this research, the 7 EMBA students were selected from the service industry.

  2. The database was formed in 2003. Currently, the database has more than 13,000 firms based in Taiwan. Approximately 65 % of these firms (8525) are classified in the service sector.

  3. The North American Industry Classification System (NAICS, http://www.census.gov/eos/www/naics/) is the standard used by Federal statistical agencies in classifying business establishments for the purpose of collecting, analyzing, and publishing statistical data related to the U.S. business economy.

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  1. Department of Business Administration, National Chengchi University, Taipei, Taiwan

    Sonia M. Lo

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Correspondence to Sonia M. Lo.

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Lo, S.M. The influence of variability and strategy of service supply chains on performance. Serv Bus 10, 393–421 (2016). https://doi.org/10.1007/s11628-015-0275-0

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