Developing and validating the qualitative labour productivity measurement in service industry

Abstract

Over the past two centuries, labour productivity (LP) measured has long been synonymous with productivity measured in manufacturing quantitative features reflecting to its economic dominance. While manufacturing continues to be critical for economic growth, the world has evolved into a service-based economy that is more customer-focused, labourintensive, and interactive in nature. The dominance of quantitative LP measure is not comprehensive enough to capture soft service factors in the service industry, as it is not solely concerned with quantity but relies heavily on labour quality. Unfortunately, the qualitative LP measure is still under-researched. Therefore, this paper aims at developing measurement scales for a conceptual model of qualitative LP measurement (QLPM) and its strategic outcomes. To validate the model, exploratory factor analysis (EFA) and confirmatory factor analysis (CFA) were performed. This paper offers the authenticity of qualitative LP, which shifts away from the dependency on quantitative LP measure into a more comprehensive measurement that captured the importance of qualitative factors of LP in the service industry.

Productivity Management: A Systematic Review of Approaches, Trends and Future Research Agendas

“…Many developing countries made signi cant strides in economic development in the 1990s, accompanied by a shift in labor allocation from agriculture to industry in developing countries and from industry to services in high-income countries, as indicated in the studies by Kinfemichael (2019). However, it is noteworthy that, despite the world evolving into a service-based economy (Amirul et al, 2021), there is still a focus on studies addressing productivity in the manufacturing sector, as seen in the works of Khanna and Sharma (2018a), Zondo (2018) and Singh and Sharma (2020).…”

“…However, the last two centuries have shown that the world has evolved into a service-based economy focused on the customer (Amirul et al, 2021). Even though manufacturing remains critical for economic growth, there is a clear need to investigate productivity in a scenario with intangible production, where the value of a service depends directly on customer experience (Günter & Gopp, 2021;Oeij et al, 2011).…”

“…In a scenario where knowledge workers gain increasing prominence, there is a growing interest in exploring the productivity of workers in the organizational environment, considering that human resources constitute the largest share of both costs and revenues (Bortoluzzi et al, 2018). Considering also that the nature of work has changed in the last century (Amirul et al, 2021;Haynes, 2007), productivity is not well understood where the service sector is relevant in the global economy (Khanna & Sharma, 2018b).…”

Labour Productivity as a Factor of Tangible Investment in Companies Producing Wind Energy Components and Its Impacts: Case of Lithuania

“…The results revealed that that more investment should be directed to education and training. Numerous scholars [45][46][47] have emphasised that the health of an employee is related to productivity, i.e., healthy people are more productive. Therefore, the impact of investments in improving health on LP is direct.…”

Economic Drivers of Consumer Price Growth in the EU–27 Service Industry during the Post‑pandemic Period

“…At the end of the pandemic, household spending returned to its pre-pandemic level, together with growing income and correspondingly high levels of household debts. However, the productivity of the service industry (as the efficiency), turning inputs into outputs (Amirul et al 2022(Amirul et al , p. 2854, grew insufficiently.…”