Service delivery system design for risk management in sharing-based product service systems: a customer-oriented approach

Hazée, Simon;Van Vaerenbergh, Yves;Delcourt, Cécile;Kabadayi, Sertan
(2020) International Journal of Operations and Production Management — Vol. 40, n° 4, p. 459-479 (2020)

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Authors
  • Hazée, SimonUCLouvain
    Author
  • Van Vaerenbergh, YvesKU Leuven
    Author
  • Delcourt, CécileHEC Liège - Management School of the University of Liège
    Author
  • Kabadayi, SertanGabelli School of Business, Fordham University
    Author
Abstract
Purpose: Organizations increasingly develop and offer sharing services enabled by means of product-service systems (PSS). However, organizations offering sharing-based PSS face a unique set of design challenges and operational risks. This paper provides researchers and practitioners with customer-based insights into service delivery system design and risk management for sharing-based PSS operational success. Design/methodology/approach: This qualitative study combines in-depth interviews with supplementary, multidisciplinary literature and secondary firm data. In total, the authors conducted 56 semi-structured interviews with diverse customers across different B2C PSS settings. Findings: First, the authors develop an integrative conceptual framework that reveals what structural and infrastructural design choices customer expect organizations to make for mitigating risks and enhancing customer-perceived value in the sharing economy. These design choices may influence customers’ trust and control perceptions in all actors involved in the service delivery system. Second, the results suggest that sharing value proposition, customer- perceived level of consequentiality, and level of customer-supplied resources are contingency factors that need to be considered when making design decisions for risk management in the sharing economy. Originality/value: This study extends Sampson’s Unified Service Theory by proposing that, with sharing-based PSS, production flows from customers to customers. This situation creates unique challenges for operations management. This paper extends current understanding of the role, characteristics, and contingencies of service delivery system design for risk management in the sharing economy. In doing so, the authors challenge common wisdom and suggest understanding both the organizational and customers’ individual contexts is critical for (contingency) theory and practice.
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Citations

Hazée, S., Van Vaerenbergh, Y., Delcourt, C., & Kabadayi, S. (2020). Service delivery system design for risk management in sharing-based product service systems: a customer-oriented approach. International Journal of Operations and Production Management, 40(4), 459-479. https://doi.org/10.1108/ijopm-08-2019-0581 (Original work published 2020)