Service Quality, Productivity, and Innovation | Weatherhead

Service Quality, Productivity, and Innovation

Posted 1.2.2010

Service Quality, Productivity, and Innovation

While the U.S. economy has been dominated by services for many decades, understanding issues of service provision has lagged traditional goods-based research (e.g. Brown and Bitner 2006). Issues including service productivity, new service design and innovation, customer participation and B2B service coordination remain underexplored areas that are critical to managing service businesses. Additionally, as healthcare business issues are increasingly garnering attention in the popular press, these issues have become exposed as critical to improving service design, delivery and management. Dr. Gallan’s research aims to address issues in service research, often within the context of the delivery of healthcare. This combination of theoretically interesting and contextually informative research is the basis for Andrew’s projects.

Weatherhead marketing professor Andrew Gallan’s research focuses specifically on issues including the relationship between service quality and productivity, especially as it is impacted by interorganizational coordination of customer information and customers’ contributions to their own service experiences. Additionally, Dr. Gallan’s research evaluates the impact of new service developments on customers, staff, and operating resources. His almost two decades of business experience prior to his doctoral work, including sales management and marketing, has provided him with interests and insights into the business of service provision in the healthcare industry.

Dr. Gallan’s published work includes a novel perspective on innovation, one that includes a more robust view of the effects on customers (Michel, Brown, and Gallan 2008a). This work argues that that discontinuous innovation can arise by changing any of the customers’ roles of users, buyers and payers on the first dimension. On the second dimension, the firm changes its value creation by embedding operant resources into objects, by changing the integrators of resources, and by reconfiguring value constellations. Additional published work provides specific managerially-relevant recommendations through overcoming “an artificial distinction between product and service innovations. Furthermore, [this work] facilitates a more customer-centric view of innovation rather than the traditional and limiting product-centric view” (Michel, Brown, and Gallan 2008b, p. 63).

Professor Gallan’s dissertation work, completed through the Center for Service Leadership at Arizona State University, evaluated the effects of interorganizational service coordination and customer participation on service excellence and productivity. With the support of the Mayo Clinic of Arizona, Dr. Gallan assessed the impact of physician-to-physician information flows on patient perceptions of service quality, satisfaction, and physician perceptions of work productivity. Findings include a significant impact of provider coordination on patient perceptions of the quality of care they receive, patient levels of satisfaction, and providers’ assessment of work productivity. Additionally, Andrew’s research showed that patient participation and positive affect in a healthcare experience combine to substantially effect patient perceptions of their healthcare experience. Specifically, when patients participated more and maintained a more positive demeanor, despite having significant concerns about the risk of their situation, they believed their providers delivered higher levels of medical care, service quality, and were overall more satisfied with their service experience (Gallan 2008).

Most recently, Dr. Gallan is the principal investigator of a longitudinal research project evaluating the customer, employee, financial, and operating resources impacts from a new service development. Through his involvement with the Neurological Outcomes Center housed at University Hospital/CWRU School of Medicine, the research team (including Drs. Jagdip Singh [CWRU] and Stephen Tax [U of Victoria]) is modeling the financial considerations, balanced with a view of patient outcomes, satisfaction, and system productivity measures, of a new neurological intermediate care unit. Central to this investigation is the impact of organizational learning that is achieved by the nursing staff over time.

Additionally, some of Andrew’s research projects include (1) an evaluation of the critical dynamic capabilities that emerging firms possess in order to succeed and maximize the financial value of their first product. Utilizing archival data in the biotechnology industry, this project follows specific patents through approval and commercialization; (2) an investigation of the impact of various stages of an extended service delivery on customers’ evaluations of their experience (with Mary Jo Bitner [Arizona State University and Lisa Brüggen [University of Maastricht]); and, (3) the dysfunctional implications of counterfactual thinking in marketing managers’ post-project reviews (with Cheryl Jarvis [Southern Illinois University]).

Brown, Stephen W. and Mary Jo Bitner (2006), "Mandating a Services Revolution for Marketing," in The Service Dominant Logic of Marketing: Dialog, Debate, and Directions, Robert F. Lusch and Stephen L. Vargo, eds., New York: M.E. Sharpe. 393-405.

Gallan, Andrew S. (2008), "Effects of Interorganizational Coordination and Customer Participation on Service Excellence: Evidence from the Healthcare Sector," Dissertation, Arizona State University.

Michel, Stefan, Stephen W. Brown, and Andrew S. Gallan (2008a), "An Expanded and Strategic View of Discontinuous Innovations: Deploying a Service-Dominant Logic," Journal of the Academy of Marketing Science, 36 (1), 54-66.

2008b), "Service-Logic Innovations: How to Innovate Customers, Not Products," California Management Review, 50 (3), 49-65.

Interested in learning more about Weatherhead programs? Request more information or apply now, or register for one of over 70 open enrollment courses through Executive Education.

Weatherhead School of Management at Case Western Reserve University cultivates creativity, innovation, and purpose-driven leadership to design a better world.