Managing service innovation: the need for selectivity rather than 'best practice'

In 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. Four system configurations are identified, and the results provide an opportunity for updating the typologies of services, and suggest that practices and performance are multi-dimensional.     

BUILDING CARS TO CUSTOMER ORDER — WHAT DOES IT MEAN FOR INBOUND LOGISTICS OPERATIONS?

The automotive industry is undergoing a strategic transition. Cost pressure from rising stock levels in the market and increasing incentives needed to sell these vehicles are forcing vehicle manufacturers to rethink their prevalent “stock‐push” approach, building vehicles against a forecast and selling from stock, in favor of a stock‐less “build‐to‐order” order fulfillment strategy. More responsive order fulfillment at the vehicle manufacturer level however will not only require flexible and responsive component supply, but will also have wide ramifications for the logistics operations. Based on three case studies of major inbound logistics operations, this exploratory study assesses their ability to support such a build‐to‐order approach, as well as the potential implications of such transition. The paper concludes with a set of general strategies for how these implications could be mitigated.     

The effect of accounting firm size and member rank on professionalism

The relationship between the number of employees in a firm, their rank, and the level of professionalism among firm members is evaluated in 19 accounting firms, involving 325 accountants engaged in public practice. Professionalism is measured using five individual traits plus a composite. Results indicate that one trait (i.e. a belief that the profession provides a service to society) and the composite were inversely related to firm size. Rank or position in the firm hierarchy demonstrated an even stronger, independent effect on three professionalism traits and the composite, with higher member rank associated with higher levels of professionalism. Issues related to the future study of professionalism among accountants are discussed.     

Relationship disconnect in retail banking

It has been established that increasing the role of technology in a service organisation can serve to reduce costs and improve service reliability. It is argued, however, that there remains an important role for personalised relationships in the delivery of any service proposition. Throughout this paper both of these perspectives will be discussed and an attempt is made to reconcile these apparently opposing views in the emerging age of technology-enabled remote relationships. Findings from a longitudinal research study with a large UK case bank that focused on the area of remote relationships are revisited and reinterpreted with management from the case bank in question. Through this reflective lens the bank's recent strategic decision to no longer proactively relationship manage its personal customer base is examined. In light of this deliberate relationship disconnection strategy key marketing implications are discussed.     

Question order effects in taste testing of beverages

The effect of order position has been demonstrated in marketing research, sometimes compromising survey results. This paper studies the influence of order position in product taste trials of carbonated beverages using a sequential monadic design. The authors measure attitude ratings across product trials rather than across products to examine the effect of order position on preference ratings.     

Why Press Coverage of a Client Influences the Audit Opinion

In this study I use an experiment to examine why auditors are more likely to issue going–concern opinions when the client has been the subject of negative press coverage prior to the date of the audit opinion. I find no evidence that negative press coverage increases auditors' perceptions of legal liability, as was suggested in the prior literature. I do find, however, that negative press coverage increases auditors' perception of a client's bankruptcy probability and this, in turn, leads auditors to modify the audit opinion. Because the press coverage presented in this study provides no new information, the results suggest that auditors react too strongly to redundant information. This over–reaction can result in inefficient allocation of audit resources and can have deleterious affects on clients. Accordingly, policy makers, auditors and their clients might be interested in how auditors' reliance on redundant information can be reduced.     

Bank Real Estate Lending and the New England Capital Crunch

The stock of real estate loans held by New England banks has declined dramatically. Given the limited potential for real estate investments, weak demand for real estate loans is to be expected. However, supply as well as demand factors may account for some of the decline in bank real estate loans. This paper documents that bank lending for real estate may have been constrained by a capital crunch, whereby poorly capitalized banks shrank their assets, including real estate loans, to satisfy capital requirements. Because the loss of bank capital is so widespread in New England, bank-dependent borrowers may have difficulty obtaining real estate financing.     

EVIDENCE ON ADJUSTMENTS IN MAJOR NATIONAL STOCK MARKET LINKAGES OVER THE 1980S

This paper measures the alterations that have occurred in equity market correlations for six major internationally active stock exchanges between 1980 and 1987. The markets are chosen so as to allow for geographical diversity while still accounting for almost ninety percent of total worldwide equity market capitalization. The VAR variance decomposition technique is used to measure intermarket linkage patterns. We find substantial alterations in intermarket linkage patterns occurring over the 1980s. While the US market (the New York Stock Exchange) is still the dominant financial force in world equities trading, other markets (particularly those in the Pacific Basin region) now account for an increasing impact on observed index correlations in the system. This paper suggests that world financial integration is, in part, responsible for the altered linkage patterns observed over the 1980s.