Cutting Corners and Working Overtime: Quality Erosion in the Service Industry

@article{Oliva2001CuttingCA,
  title={Cutting Corners and Working Overtime: Quality Erosion in the Service Industry},
  author={Rogelio Oliva and J. Sterman},
  journal={Manag. Sci.},
  year={2001},
  volume={47},
  pages={894-914}
}
  • Rogelio Oliva, J. Sterman
  • Published 2001
  • Business, Computer Science
  • Manag. Sci.
  • The erosion of service quality throughout the economy is a frequent concern in the popular press. The American Customer Satisfaction Index for services fell in 2000 to 69.4%, down 5 percentage points from 1994. We hypothesize that the characteristics of services--inseparability, intangibility, and labor intensity--interact with management practices to bias service providers toward reducing the level of service they deliver, often locking entire industries into a vicious cycle of eroding service… CONTINUE READING
    431 Citations

    Figures, Tables, and Topics from this paper.

    The Effect of Labor on Profitability: The Role of Quality
    • 40
    • PDF
    Death Spirals and Virtuous Cycles
    • 17
    Death Spirals and Virtuous Cycles Human Resource Dynamics in Knowledge-Based Services
    • 24
    • PDF
    The Dynamics of a Judicial Service Supply Chain: A case study
    • 2
    • PDF

    References

    SHOWING 1-10 OF 78 REFERENCES
    A dynamic theory of service delivery : implications for managing service quality
    • 34
    • PDF
    Macroeconomics of Unbalanced Growth: Reply
    • 114
    A Behavioral Theory of the Firm.
    • 10,551
    Effects of scheduled overtime on labor productivity
    • 95
    Worker burnout: A dynamic model with implications for prevention and control
    • 77