Globalized service providers’ perspective for facility management outsourcing relationships

2019 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ka Leung Lok ◽  
Albert So ◽  
Alex Opoku ◽  
Haiyu Song

Purpose The Contingency Outsourcing Relationship (CORE) model originated from the Four Outsourcing Relationship Types (FORT) model and the CORE model is used in the globalized facility management (FM) industry while the FORT model is originally used in the global information technology industry. The purpose of this paper is to analyze the CORE model through the rankings of relationship between a client and a globalized FM service provider from the perspective of the FM service provider in one of the four categories (i.e. in-house, technical expertise, commitment and common goals) and the application of this model with the aid of artificial neural networks (ANNs). Design/methodology/approach A quantitative methodology using a survey is used to analyze the four types of outsourcing categories. First, the background theory and a set of rules of the CORE is introduced and discussed regarding the proper ways to identify the rankings collected from the survey. Findings The study reveals that an interesting understanding of the outsourcing categories can be systematically implemented into the FM outsourcing relationships through the methodology of scientific artificial intelligence. FM outsourcing categorization may help to define the appropriate relationship; as either not too aggressive or too passive. Originality/value The outcome generated from the ANN can be considered a strong and solid reference to assess and define the existing outsourcing relationships between the stakeholders and the service providers with the goal to assign an outsourcing category to the service provider based on the learnt rules.

2021 ◽  
Vol 13 (9) ◽  
pp. 4740
Author(s):  
Ka Leung Lok ◽  
Albert So ◽  
Alex Opoku ◽  
Charles Chen

The Contingency Outsourcing Relationship (CORE) model originated from the Four Outsourcing Relationship Types (FORT) model; the CORE model is used in the globalized Facility Management (FM) industry, while the FORT model is originally used in the global information technology industry. The purpose of this paper is to thoroughly analyse the simulated case studies of the four different categories (i.e., in-house, technical expertise, commitment and common goals) of the CORE model from the perspective of the various clients. This study builds on the previous work on the outsourcing relationships between a client and a globalized FM service provider. It further explores the application of this model with the aid of artificial neural networks (ANNs) towards a sustainable future. A quantitative methodology through a survey is used to analyse eight outsourcing strategies for the four outsourcing relationships. A set of revised rules of the CORE is introduced and discussed regarding the approaches to investigate the four simulated outsourcing relationship systems. The study further reveals that an interesting understanding of the four outsourcing categories can be systematically and efficiently implemented into the FM outsourcing relationships through the methodology of scientific Artificial Intelligence (AI). It is concluded that FM outsourcing categorization may help to define the appropriate relationships. This further detailed outcome generated from the ANN can be clearly considered a strong and solid reference to define and explain the existing outsourcing relationships between the stakeholders and the service providers with the aim to assign an outsourcing category to the FM relationship between the client and service provider based on the learnt rules.


2019 ◽  
Vol 33 (2) ◽  
pp. 245-254 ◽  
Author(s):  
Athanasia Daskalopoulou ◽  
Kathy Keeling ◽  
Rowan Pritchard Jones

PurposeService research holds that as services become more technology dominated, new service provider roles emerge. On a conceptual level, the potential impact of different roles has been discussed with regard to service provider readiness, job performance and overall experience. However, as yet, there is sparse empirical support for these conceptual interpretations. The purpose of this paper is to provide an understanding of the new service provider roles that emerge due to the increase of technology mediation in services.Design/methodology/approachThis study follows a qualitative methodology. Insights are drawn from in-depth interviews with 32 junior and senior health-care service providers (across 12 specialties) and 5 information governance/management staff.FindingsThis analysis illustrates that new service provider roles include those of the enabler, differentiator, innovator, coordinator and sense-giver. By adopting these roles, health-care service providers reveal that they can encourage, support and advance technology mediation in services across different groups/audiences within their organizations (e.g. service delivery level, peer-to-peer level, organizational level). This paper further shows the relationships between these new service provider roles.Originality/valueThis study contributes to theory in technology-mediated services by illustrating empirically the range of activities that constitute each role. It also complements prior work by identifying that service providers adopt the additional role of sense-giver. Finally, this paper provides an understanding of how by taking on these roles service providers can encourage, support and advance technology mediation in services across different groups/audiences in their organization.


2019 ◽  
Vol 56 (5) ◽  
pp. 842-861
Author(s):  
Irit Nitzan ◽  
Danit Ein-Gar

Many service providers offer supplementary products related to their ongoing services (e.g., fitness centers offer fitness smartwatches). In seven studies, the authors show that the payment method for such supplementary products (multiple payments vs. a single lump sum) affects customers’ tendency to defect from the provider’s core service over time. Specifically, when customers pay for add-ons in multiple payments—provided that (1) they perceive the add-on as being bundled with the core service and (2) the payment period has an end point—they are initially less likely to defect from the service provider than when they pay in a single payment. Over time, however, as payments are made, this gap closes, such that defection intentions under the two payment methods eventually become similar. The authors propose that this phenomenon reflects “commitment projection,” wherein a decrease in customers’ commitment to the add-on product over time is projected onto their commitment to the service provider. These findings carry important managerial implications, given that many service providers offer add-on products in multiple-payment plans and that customers’ defection decisions substantially affect firms’ profitability.


2015 ◽  
Vol 26 (3) ◽  
pp. 486-515 ◽  
Author(s):  
Nathalie Dens ◽  
Patrick De Pelsmacker ◽  
Nathalia Purnawirawan

Purpose – Consumers often discuss brands and companies online, but no research details how service providers’ responses to online reviews influence other readers’ perceptions of the reviews and responses. Based on justice theory and the accountability principle, both integrated in equity theory, the purpose of this paper is to examine how service providers should react to different degrees of negative reviews to enhance readers’ attitudes, patronage intentions, and intentions to spread positive word of mouth. Design/methodology/approach – A 3 (review set balance: positive, neutral, negative) × 6 (response strategy) full-factorial between-subjects experiment included 973 respondents. Findings – More negative balance demands more effort from the service provider to create positive attitudes and encourage behavioural intentions. If a minority of reviewers are dissatisfied, no response is necessary; if the review set is neutral, the service provider should apologize and promise to resolve the problem; if a majority of reviewers are dissatisfied, the most effective response includes both an apology, promise and compensation. These effects are mediated by readers’ perceived trust in the response. Word of mouth also requires more effort than favourable attitudes or patronage intentions. Research limitations/implications – This research reflects the authors’ choices with regard to review set balance and managerial responses, which ensure internal validity but may limit external validity. Originality/value – This study applies offline service recovery strategies to an online review context. It also explicitly incorporates the bystander (potential customer) perspective.


Author(s):  
Göran Svensson ◽  
Carmen Padin

Purpose The study aims to describe the interactive gaps between service receiver learning curves and service provider adaptive curves, as well as the cause-effect-outcome in processes and interfaces of service encounters, through the perspective of teleological actions. Design/methodology/approach This paper includes a qualitative study based on non-probability sampling of informants (air passengers). Findings The empirical findings indicate interactive gaps in teleological service encounters and a cause-effect-outcome sequence in the associated processes and interfaces. Research limitations/implications The study provides knowledge on how to manage the interactive interface between a service provider and a service receiver and a foundation for enhancing complaint handling in service encounters after critical incidents have occurred. Practical implications Service providers need to balance their teleological actions in relation to the service receivers’ teleological actions when critical incidents occur. Originality/value The paper takes into account service receiver teleological learning curves in relation to service provider teleological adaptive curves in an interactive transformative service encounter (TSE)-model that provides multiple opportunities for further research.


2010 ◽  
Vol 23 (1) ◽  
pp. 82-110 ◽  
Author(s):  
Gloria Agyemang

PurposeThe purpose of this paper is to analyse whether the development of a needs‐based funding formula for resource allocation incorporates the needs of funders or the needs of the service providers.Design/methodology/approachThe paper analyses interview data and documentary evidence gathered from a UK local education authority about the creation of a “needs‐based” formula for sharing resources to schools. It employs and extends a framework developed by Levačić and Ross to evaluate needs‐based formula funding.FindingsAlthough formula funding is purported to be a more objective method of resource allocation, the paper finds that as with other resource allocation methods the power relations between the funder and the service provider impacts on the extent to which service provider needs are incorporated into the funding formula.Research limitations/implicationsThis paper considers only the funding of schools. Further work is needed to investigate formula funding for other public services.Practical implicationsDebates between funders and service providers should be encouraged by policy makers to ensure that allocations based on the funding formula are acceptable to service providers.Originality/valueThe paper provides a useful analysis of a needs‐based funding formula for resource allocation in schools and whether this incorporates the needs of funders or the needs of the service providers.


2017 ◽  
Vol 73 (1) ◽  
pp. 160-180 ◽  
Author(s):  
Maria Lindh ◽  
Jan Michael Nolin

Purpose The purpose of this paper is to explore persuasive rhetoric by critically scrutinizing metaphorical devices utilized by leaders of the cloud industry. This paper introduces a critical approach to the promotion of cloud technology. Design/methodology/approach In total, 13 video clips from YouTube were analyzed, containing presentations and talks delivered by leaders of Google, Apple, Facebook and Amazon – four of the most influential companies within the information technology industry, sometimes referred to as GAFA. With the help of conceptual metaphor theory, often-repeated metaphors for cloud technologies reveal what properties were promoted and hidden. Findings GAFA mainly used the same persuasive metaphors to promote cloud computing’s positive aspects. Potentially negative or complex issues were mostly avoided. Cloud technology was uniformly described in metaphors of control, empowerment, transformation and automation. Implicitly, GAFA exerts power through the extensive dissemination of their metaphors and these are used in order to negotiate and overcome doubts about cloud computing and related technologies. Originality/value This is the first study aimed at understanding the persuasive rhetoric of GAFA, seen as a uniform object of study.


Facilities ◽  
2016 ◽  
Vol 34 (1/2) ◽  
pp. 28-42 ◽  
Author(s):  
Carl-Alexander Graubner ◽  
Andrea Pelzeter ◽  
Sebastian Pohl

Purpose – The purpose of this paper is to present the development of an action and assessment framework to make sustainability in German facility management (FM) transparent, measurable and assessable. Design/methodology/approach – The underlying research project’s approach to develop the new action and assessment framework consisted of a three-step methodology: to define and substantiate sustainability in FM, to operationalise and quantify sustainability in FM and to validate the developed system draft through an initial pilot study. Findings – The main result of the presented research project is a set of 24 criteria, organised into the separate areas of environmental, economic and sociocultural quality, as well as the quality of FM organisation and the sustainability of building/contract-specific facility services. The assessment methodology reflects the strategic approach of a plan–do–check–act loop to create a transparent and objective appraisal and a practical action framework. Research limitations/implications – The outcome of the study is initially only a measurement and assessment framework. To transform the finalised system draft and assessment tool into a certification system, further steps of development are necessary. Practical implications – The newly developed action and assessment framework is able to cure the blind spot that the relevant players (building owners, users and service providers) suffer from while developing, purchasing and comparing concepts for sustainable FM. The results and practical experiences of its initial pilot study show that this new framework can make the building operation phase and its processes transparent, measurable and assessable. Social implications – The guideline is also able to establish a crucial basis for the development of corporate sustainability strategies and sustainability reporting. This is an important step in closing the existing gap in numerous corporate social responsibility reports. Originality/value – Due to its assessment methodology and the calibration of its criteria, this new action and assessment framework both diversifies and completes the range of existing sustainability certification systems.


2019 ◽  
Vol 29 (5/6) ◽  
pp. 539-564
Author(s):  
Gurjeet Kaur Sahi ◽  
Rita Devi ◽  
Satya Bhusan Dash

Purpose The purpose of this paper is to examine the impact of a customer engagement-enabling platform on a value captured by the firm and value acquired by the customer. It explores the relevance of relational and expertise value for customers during the engagement process so as to ensure positive referrals about the service provider. Design/methodology/approach Using a sample of 482 students, the study examines the customer engagement efforts of professional institutes that provide training to prepare for the civil service examinations of the Union Public Service Commission. The survey is confined to central areas of New Delhi, India. Statistical techniques including confirmatory factor analysis and structural equation modelling are used to analyse the data, and reliability and validity tests are performed. Findings The findings reveal the indispensable role of service providers as creators of a meaningful effective learning process and of interpersonal relations with customers for generating more business through customer referrals. Research limitations/implications The study validated the moderating role of relational value between customers’ expertise value and their referrals on the basis of motivation theory, which asserts that customers’ motivation to contribute to the organisation is driven by the individuals’ extrinsic relational need for belongingness, acceptance by like-minded individuals, and feedback, recognition and respect from employees of the organisation. Originality/value The study contributes to the existing literature by integrating the well-developed social exchange and motivation theory so as to investigate the factors that propel customers’ positive word of mouth for the service provider.


2017 ◽  
Vol 27 (2) ◽  
pp. 217-230 ◽  
Author(s):  
Vanessa Ratten ◽  
Kayhan Tajeddini

Purpose This paper aims to build on opportunity identification and resource-based view theory, this paper examines the internationalization process of family firms. The role of innovativeness in influencing the internationalization rate of family firms is explored in terms of customer responsiveness, proactiveness and risk-taking. Design/methodology/approach Multiple case studies were carried out with several family businesses in the information technology industry in Australia. Findings The findings of this research suggest that innovativeness of family firms depends on responsiveness to customer needs in the international market while involving a degree of risk-taking. In addition, the results suggest family firms are not proactive in their pursuit of international market opportunities. Research limitations/implications If family firms focus more on becoming more innovative, then they will stand a better chance to successfully enter more international markets. Originality/value The paper highlights the need for family firms to embrace their innovativeness as a distinctive capability for their internationalization efforts. Several new research directions that may enhance the understanding of family firm innovation and internationalization are suggested.


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