Internet service provision and content services: paid peering and competition between internet providers

We consider the relationship of Internet service providers (ISP) and content service providers (CP) in the Internet ecosystem. Currently, the position of ISPs is challenged by the emergence of powerful content service providers, especially with the spreading of bandwidth-demanding video services. The further investment in the network capacity may be hindered by prevailing business models that largely exclude the ISPs from sharing in the major cash flows resulting from content provision. We develop modeling tools for evaluation of business models of ISPs and present results of an analysis of two models with the potential for the generation of additional cash flows for ISP: paid content peering and service differentiation. Firstly, we show that under certain conditions on the cost structure and the level of demand elasticity and uncertainty, it can be profitable for a powerful content provider to resort to paid content peering, thus transferring to the ISP a part of his content provision revenue. The resulting business model may provide substantial benefits to all major participants in this ecosystem: network providers, content and service providers and end users. After this we consider competition in the Internet provision sector and show that - also in this case - the paid content peering can help ISPs to expand the network capacity and at the same time increase profits of content providers. The end users benefit from the lower prices for content services. Finally, we consider the situation when an ISP differentiates the service offer by engaging in content provision, thus entering in direct competition with content providers.     

Platform quality factors influencing content providers’ loyalty

This study investigates what platform quality factors affect the contents of the loyalty of content providers to support the continued expansion and sustainability of online platforms. It analyses empirically the influence of platform quality on the satisfaction with and loyalty to the service as well as on the platform's ability to secure content providers from a survey of 222 platform users. It confirms five significant findings for platform quality and user loyalty. First, all five factors of SERVQUAL have meaningful effects on platform user satisfaction. Second, factors affecting service quality differ by gender. Third, while male users regard platform technology as most critical, female users are more concerned about platform events and interests. Fourth, female users care more about customer responses than male users do; however, the user interface is the most critical aspect for both genders. Finally, platform quality has a significant impact on satisfaction and loyalty among content providers. It identifies the importance of platform service quality as a factor to increase user (content providers) loyalty on the platform. And it also investigates differences according to user gender by subdividing platform service users and indicates how service quality effects can change according to user characteristics.     

Big content providers weighing on non-neutrality?

There is a trend for big content providers such as Netflix and YouTube to give grades to Internet Service Providers (ISPs), to incentivize those ISPs to improve at least the quality offered to their service. We design in this paper a model analyzing ISPs’ optimal allocation strategies in a competitive context and in front of quality-sensitive users. We show that the optimal strategy is non-neutral, that is, it does not allocate bandwidth proportionally to the traffic share of content providers. On the other hand, we show that non-neutrality does not benefit ISPs but is surprisingly favorable to the perceived quality for users.

     

Finnish polytechnics as providers of knowledge-intensive services

Polytechnics are newcomers in companies' regional innovation environments in Finland. Particularly in regions with no university of their own or with only few knowledge-intensive business services (KIBS) providers, they may become, and in some cases already are, important providers of science-and-technology-related services. The aim of this article is to analyse the roles, possibilities and challenges of polytechnics as public KIBS providers. Also, the position of polytechnics as a tool of Finnish innovation policy will be discussed.     

Consumers' inferences about quality across diverse service providers

When consumers encounter different services as part of the same service experience they may use information about one group of service providers to draw inferences about the quality they expect to receive from another group of service providers. This research identifies the conditions under which information about the quality of one type of service (e.g., a hotel's front desk) influences quality perceptions of another type of service (e.g., a hotel's tour services). Results show that consumers' beliefs about managerial control influence generalizations across service providers. Also, consumers infer managerial control from the spatial proximity between the premises of the service providers. © 2009 Wiley Periodicals, Inc.     

How context interferes with similarity-attraction between customers and service providers

According to the similarity-attraction effect, customers should prefer service providers who are perceived to be similar; yet cosmetic features such as visible tattoos are often prohibited in professional settings, suggesting that they do not provide an advantage for service providers. This research explores the extent to which contextual factors interfere with the similarity-attraction effect for any particular cosmetic feature. The findings of three experimental studies demonstrate that sharing a cosmetic feature with a customer is not enough to elicit the similarity-attraction effect; a shared cosmetic feature must also be (1) salient, (2) unique among a set of service providers, and (3) the only salient shared cosmetic feature. The implication is that the similarity-attraction effect will be over-estimated in controlled experiments that do not account for contextual information.     

大规模定制模式下基于顾客需求的物流服务商选择研究

以大规模定制(MC)为背景,根据企业顾客的服务需求,提出了一个基于质量功能展开(Quality Function Deployment,QFD)和TOPSIS(综合距离评价)算法相结合选择物流服务商的新方法。首先依据QFD的方法,对基于顾客需求的物流服务商进行了详细分析,然后运用TOPSIS算法,综合考虑几项指标,从候选物流供应商中选择满足顾客需求的"理想物流服务商"。最后,通过举例验证思路的科学性和合理性。     

Exploring different airport users’ service quality satisfaction between service providers and air travelers

This study investigates appropriate attributes— physical environment, outcome, and interactional quality—to measure users' satisfaction that influences airport users' satisfaction level. With these three attributes and users’ perspectives for air travelers and service providers, we generate a conceptual model of airport service quality and satisfaction. The findings indicate that different perceptions exist between airport service providers and air travelers. Air travelers are more concerned with interaction and outcome (convenience) quality attributes, while services providers reflect on interaction and physical environment (servicescape) quality attributes. The airport service quality is found to be significantly related to airport reuse, and destination revisits. An appropriate service-training program is needed to reduce the gap in the level of satisfaction.     

The performance implications of strategic capital for public leisure providers

Strategic capital has emerged as a key source of competitive heterogeneity in the private sector. Despite this, little is known about the performance implications of strategic capital in public organisations. Adopting a resource-advantage perspective, we examine the performance implications of strategic capital for public leisure providers. Analysing data generated from public leisure providers, we find that effective strategy implementation enables leisure providers to exploit comparative advantages, which is itself a source of sustained advantage. Furthermore, high performers are endowed with significantly greater levels of strategic capital – which include ‘strategy commitment’, ‘implementation support’, ‘implementation effectiveness’, and ‘learning’ – in contrast with low performers. Important differences between internal and external approaches to provision are also identified and discussed, along with the implications of this study for researchers and public policy.     

Service providers’ sustainable service innovation: service-dominant logic

This study examined the service innovation in different service providers with multiple case-study approach. From the perspective of service-dominant logic, four service innovation development models can be distinguished in Technology Development Program companies in Taiwan, including service system integrator and niche market, innovative service solution provider and niche market, innovative service solution provider and mass market, and service system integrator and mass market. Service providers develop ICT platforms, customer relationship management systems, community commerce services, and multi-channel services that are appropriate for a specific industry. On the one hand, active improvement of ICT service system integration extends company capabilities toward external cooperative partners through the provision of integrated product services and comprehensive solutions. On the other hand, innovative service solutions optimize consumer experience and customer relationship management and improve business effectiveness and reduce operations costs due to an important role assigned to services and experience in product sales.     

Triadic relationship between customers,service providers and government in a highly regulated industry

This study investigates the triadic interplay among the government, service providers and customers in a highly regulated environment in a centrally planned economy influenced by communist political ideology. In order to answer the research question, we conducted two studies: Study 1 is a qualitative study aiming at exploring various aspects of the triadic interplay among customers, service providers and the regulatory framework, and Study 2 employed a quantitative approach to validate some findings in Study 1. It was found that the relationships between the three main entities in the market were not balanced. Service providers were more passive in their relationship with regulators. In addition, communications between customers and regulators were limited and not well-established. Customers had not been sufficiently engaged and thus, had little voice in the formulation of regulations. Furthermore, the perception of a firm's service quality and innovativeness was different among customers with different levels of perceived regulatory control and regulatory knowledge. As regulatory control and knowledge increased, customers were more likely to perceive a higher level of service quality and innovativeness. The research extends the domain of relationship marketing by incorporating the influence of the government or regulatory framework in the relationship between customers and service providers. The findings of this study can provide practical insights for policymakers and help service providers to effectively manage the relationships with their customers and regulatory bodies.     

Extending the international new venture phenomenon to digital platform providers: A longitudinal case study

People increasingly interact with services enabled by digital platforms. This has been a consequence of the digitalization of artifacts, which has transmuted traditional businesses into digital forms. With the increasing digitalization and modularization of services, digital platforms have given many digital service providers possibilities to scale globally, and to rapidly transcend national borders by serving multi-sided markets. However, we still know very little about how digital platform providers actually internationalize their services, or how they make their platforms available for global markets. In this paper, we contribute to the increasing literature on digital-based INVs, examining how firms of this type internationalize their services, and more specifically, how recent technological developments have shaped the firms’ internationalization processes. Drawing on concepts from the network approach to internationalization, resource dependency theory, and INV theory, we extend the scope of INV theory via a model that encompasses the internationalization process of digital platform providers. We report on a longitudinal case study of a digital platform provider (covering the period 2000–2017), which allowed us to gain in-depth insight into the INV phenomenon.     

Service failure,time pressure,and conscientiousness of service providers: the dual processing model perspective

Service providers often work under serious time constraints that increase the likelihood of service failure. This study uses a dual processing model to investigate how time pressure and the conscientiousness of service providers interact to influence service failure. This study hypothesizes that time pressure is positively related to service failure for health service providers with low levels of conscientiousness, but not for those with high levels of conscientiousness. A cross-sectional design and paper-based questionnaires were used. The study hypotheses were then analyzed using regression analyses. The results of this study supported the hypotheses. Moreover, the empirical findings support the dual processing model.     

Integration and organisational learning capabilities in third-party logistics providers

This study applies resource-based theory to explore logistics. A survey of 1011 forwarder-based third-party logistics providers in Taiwan was undertaken to examine the relationships between integration capability, organisational learning capability, service performance, and financial performance, using the structural equation modelling technique. The results show that four hypotheses were supported by the model, indicating that a significant positive relationship existed between integration capability, organisational learning capability and service performance. Moreover, the results also supported a significant positive relationship between organisational learning capability and financial performance. A positive relationship between service performance and financial performance was also supported.     

Technology strategy and performance: a study of information technology service providers from selected Asian countries

The provision of information technology (IT) services to support a wide range of information and communication technology (ICT) products has experienced rapid growth in recent years, particularly in less developed countries in Asia. This paper develops a conceptual model to test the impacts of the technology strategy of IT service providers on two measures of performance based on the experience of a sample of 98 IT firms from Korea, China, Thailand and the Philippines. It is found that technology strategy related to the adoption and diffusion of technology contributes positively to both performance measures. While the technology capabilities of firms, both internal and external, are important for financial performance, internal technological capabilities are more effective for the firm’s response to market changes. The technology competence of employees reflected by their education levels and the availability of in-house training are also found to be crucial for financial performance. The overall results suggest that technology strategy contributes significantly towards the performance of IT service providers but the impacts of different strategies on the financial and strategic performance of firms vary markedly.

Switching behavior of U.S. mobile phone service customers after providers shift from contract to no contract mobile phone service plans

The study examines the impact of the recent shift of the mobile phone service providers in the U.S., from contract to no contract mobile phone service offerings, on the switching behavior of customers in different age groups. Consistent with previous research, the findings ascertain that switching barriers related to relational benefits, availability and attractiveness of alternatives, service recovery and retention in the mobile phone industry are perceived differently by customers in different age groups. However, counter to previous research in the retail banking industry, the research finds that younger customers in the mobile phone service industry are more likely to perceive relational benefits, the effort providers exert to recover a service and are less likely to switch to other providers than older customers. The research findings have implications to theory and practice.     

A cross-cultural study of switching barriers and propensity to stay with service providers

This study examines the important and often underestimated role that switching barriers play in the propensity to stay with service providers. Three service types (with different structural characteristics) were studied across two diverse cultures—Australia (Western, individualistic culture) and Thailand (Eastern, collectivist culture). Six potential switching barriers are examined: search costs; loss of social bonds; setup costs; functional risk; attractiveness of alternatives; and loss of special treatment benefits. The results from a series of multiple regression analyses show switching costs capture a substantial amount of the explained variance in the dependent variable, propensity to stay with a focal service provider. Furthermore we demonstrate using interaction terms that these switching costs appear to be universal across west-east cultures. However, significant variations were found across industries. Next, using a hierarchical regression procedure, we add a satisfaction variable into each model. The incremental gain in R² is significant in each industry. Nonetheless the significant impact of switching barriers gives rise to the identification of a new type of service loyalty, which we term “captive loyalty.”     

The online–offline balance: internationalization for Swedish online service providers

Online service providers (OSPs) are becoming increasingly important in the global economy and are undertaking internationalization at a remarkable speed. Since they depend on digital delivery over the internet, OSPs are portrayed as footloose in their geographical expansion and are often described as “born global.” However, on the basis of three case studies, the paper reveals the importance of the home market as a springboard, and of regional expansion in the early phase of internationalization. The paper emphasizes the balance in the internationalization process between an online and an offline presence in the new international market. The time gap between online and offline presence, the online-to-offline interval, seems to be a critical factor in the internationalization process. The speed of the internet industry and the technically complex nature of online services could explain why the case firms chose controlled modes of entry. The case firms thus skip sequential steps, following a pattern that is in contrast to the Uppsala model. Overall, the paper suggests that finding the right balance between the online and the offline presence is a challenge in the internationalization of these particular Swedish OSP firms.     

The performance implications of outsourcing customer support to service providers in emerging versus established economies

Recent discussions in the business press query the contribution of customer-support outsourcing to firm performance. Despite the controversy surrounding its performance implications, customer-support outsourcing is still on the rise, especially to emerging markets. Against this backdrop, we study under which conditions customer-support outsourcing to providers from emerging versus established economies is more versus less successful. Our performance measure is the stock-market reaction around the outsourcing announcement date. While the stock market reacts, on average, more favorably when customer-support is outsourced to providers located in emerging markets as opposed to established economies, approximately 50% of the outsourcing firms in our sample experience negative abnormal returns. We find that the shareholder-value implications of customer-support outsourcing to emerging versus established economies are contingent on the nature of the customer support that is being outsourced and on the nature of the outsourcing firm. Customer-support outsourcing to emerging markets is less beneficial for services that are characterized by personal customer contact and high knowledge embeddedness than for customer-support services that involve impersonal customer contact and are low on knowledge embeddedness. Firms higher in marketing resource intensity and larger firms benefit more from outsourcing customer-support services to emerging markets than firms lower in marketing resource intensity and smaller firms.