Purchased business services influence downstream supply chain members

Abstract

Purpose -Supply chain management and business networks have gained increased attention in services settings. The purpose of this research is to investigate the impact of external purchased services by a service provider on the satisfaction of downstream supply chain members, i.e. end-users. The focus is on transaction-specific satisfaction as it provides in-depth information on specific satisfaction elements. Design/methodology/approach -To test the propositions, one business service provider purchasing a service from an external supplier is selected. Data are collected by sending a web survey to the business service provider's customers. partial least squares (PLS) is used to analyze the data as transaction-specific satisfaction is considered as a formative construct. Findings -PLS analyses indicate that the elements determining satisfaction with the external supplier and those determining satisfaction with the business service provider differ. Moreover, transaction-specific satisfaction of end-users with the external supplier's service is positively related to transaction-specific satisfaction of end-users with the service provider's service. Furthermore, the strength of that relationship is influenced by the importance attached to the external supplier's service by the end-users. Research limitations/implications -First, the position of the customer in the supply chain influences how the service delivery is evaluated. Second, the relevance of service supply chains and business networks are confirmed. The relationship between supplier and provider and between provider and end-user are interconnected. The strength of that relationship interconnectedness is influenced by importance attached to the purchased service. Future research is needed to extend the findings of this study to other services settings. Originality/value -The results of the paper indicate that service providers should pay more attention to services purchased from external suppliers and to those suppliers' selection and evaluation, even when these services are considered less strategically valuable.

Supply Chain Management and Its Effect on Health Care Service Quality: Quantitative Evidence from Jordanian Private Hospitals

“…Although a number of studies have attempted to apply principles and frameworks from the manufacturing sector to the service sector such as (Vandaele and Gemmel, 2007), a significant number of other research has emphasized the uniqueness of the service supply chain and called for more studies which account for these factors.…”

A practical perspective on the classification of service innovations

“…Through information provided by this system, the company could precisely control material replenishments and offer information about production processes and shipping to customers. Although the supply chain concept originally emerged in manufacturing contexts, to describe how upstream suppliers add to products before passing them on to downstream links, it can shift slightly and become a service supply chain in service industries (Vandaele and Gemmel, 2007). An innovative, improved supply chain thus refers broadly to activities that increase the efficiency, quality, and cost demands for upstream and downstream migration in the service delivery chain.…”

“…Although the supply chain concept has been adopted by some service researchers (e.g. Vandaele and Gemmel, 2007), few studies link it to service processes or innovations. Our finding thus suggests that practitioners have begun changing the activities of their supply chains to attain service innovations.…”

Service Supply Chains: Introducing the Special Topic Forum

“…Baltacioglu, Ada, Kaplan, Yurt and Kaplan () developed a model in which a “service provider” firm sources services from service suppliers on behalf of customers. Vandaele and Gemmel () studied the impact of services sourcing on downstream customers by surveying those downstream customers. Van Der Valk and Rozemeijer () recounted a survey of Dutch purchasing managers involved in service sourcing, with the results emphasizing the importance of clear specification of the required service delivery.…”