The role played by human aspects inside the fi rm, in creating an environment conducive to production excellence and improved performance, is widely recognised as being a critical determinant of both success and sustained competitive advantage. This focuses on the sources of competitive advantage, from within the fi rm implicitly a resource-based view of the fi rm, as discussed by Barney.
ABSTRACT The aim of this article is to assess the performance of business units in a businessto-business (B2B) environment, by presenting a framework including tangible (hard) and intangible(soft) elements. The intangible part encapsulates internal service quality and job satisfaction, whereas the tangible part includes quantifi able elements. In this study, the dimensionality of the INTSERVQUAL instrument is tested in a B2B environment through Confi rmatory Factor Analysis (CFA) , and its ability to explain job satisfaction is explored with regression analysis, both in isolation and together with other tangible elements. An optimisation framework is then proposed, with respect to the satisfaction -internal-service quality -performance triad in a B2B environment, based on a two-phase data-envelopment analysis model. ' Interactive ' and ' physical ' quality, as extracted from INTSERVQUAL, assesses internal service quality (ISQ) suffi ciently and appropriately in a B2B environment. In addition, the results suggest that internal customers ' job satisfaction, which depends on the soft (interactive and physical) ISQ dimensions, as well as the ' hard ' ISQ dimensions, succeeds in accounting for measurable effects on the outcomes (performance) of the businesses. Managers of service fi rms should focus on both soft and hard dimensions of internal service quality, as they infl uence job satisfaction and, as a consequence, business performance. Moreover, the benchmark method (DEA) provides useful information about the effi ciency of the set of decision-making units.