Service Chains’ Operational Strategies: Standardization or Customization? Evidence from the Nursing Home Industry

Published Online:https://doi.org/10.1287/msom.2022.1111

References

  • Abbott KM, Sefcik JS, Van Haitsma K (2017) Measuring social integration among residents in a dementia special care unit vs. traditional nursing home: A pilot study. Dementia 16(3):388–403.CrossrefGoogle Scholar
  • Alter S (2008) Service system fundamentals: Work system, value chain, and life cycle. IBM Systems J. 47(1):71–85.CrossrefGoogle Scholar
  • Alzheimer’s Association (2021) Alzheimer’s disease facts and figures 2021. Alzheimers Dementia 17(3):327–406.CrossrefGoogle Scholar
  • Andritsos DA, Tang CS (2014) Linking process quality and resource usage: An empirical analysis. Production Oper. Management 23(12):2163–2177.CrossrefGoogle Scholar
  • Argote L, Ingram P (2000) Knowledge transfer: A basis for competitive advantage in firms. Organ. Behav. Human Decision Processes 82(1):150–169.CrossrefGoogle Scholar
  • Argote L, McEvily B, Reagans R (2003) Managing knowledge in organizations: An integrative framework and review of emerging themes. Management Sci. 49(4):571–582.LinkGoogle Scholar
  • Armistead C (1990) Service operations strategy: Framework for matching the service operations task and the service delivery system. Internat. J. Service Indust. Management 1(2):6–16.CrossrefGoogle Scholar
  • Banaszak-Holl J, Zinn JS, Mor V (1996) The impact of market and organizational characteristics on nursing care facility service innovation: A resource dependency perspective. Health Services Res. 31(1):97–117.Google Scholar
  • Banaszak-Holl J, Mitchell W, Baum JA, Berta WB (2006) Transfer learning in ongoing and newly acquired components of multiunit chains: US nursing homes, 1991–1997. Indust. Corporate Change 15(1):41–75.CrossrefGoogle Scholar
  • Banaszak-Holl J, Berta WB, Bowman DM, Baum JA, Mitchell W (2002) The rise of human service chains: Antecedents to acquisitions and their effects on the quality of care in us nursing homes. Management Decision Econom. 23(4–5):261–282.CrossrefGoogle Scholar
  • Banaszak-Holl J, Intrator O, Li J, Zheng Q, Stevenson DG, Grabowski DC, Hirth RA (2018) The impact of chain standardization on nursing home staffing. Medical Care 56(12):994–1000.CrossrefGoogle Scholar
  • Bellemare MF, Masaki T, Pepinsky TB (2017) Lagged explanatory variables and the estimation of causal effect. J. Politics 79(3):949–963.CrossrefGoogle Scholar
  • Buell RW, Campbell D, Frei FX (2021) The customer may not always be right: Customer compatibility and service performance. Management Sci. 67(3):1468–1488.LinkGoogle Scholar
  • Cadigan RO, Grabowski DC, Givens JL, Mitchell SL (2012) The quality of advanced dementia care in the nursing home: The role of special care units. Medical Care 50(10):856–862.CrossrefGoogle Scholar
  • Castle NG (2008) Special care units and their influence on nursing home occupancy characteristics. Health Care Management Rev. 33(1):79–81.CrossrefGoogle Scholar
  • Chandrasekaran A, Senot C, Boyer KK (2012) Process management impact on clinical and experiential quality: Managing tensions between safe and patient-centered healthcare. Manufacturing Service Oper. Management 14(4):548–566.LinkGoogle Scholar
  • Cichos KH, Linsky PL, Wei B, Minnich DJ, Cerfolio RJ (2017) Cost savings of standardization of thoracic surgical instruments: The process of lean. Ann. Thoracic Surgery 104(6):1889–1895.CrossrefGoogle Scholar
  • Coelho PS, Henseler J (2012) Creating customer loyalty through service customization. Eur. J. Marketing 46(3/4):331–356.CrossrefGoogle Scholar
  • Darr ED, Argote L, Epple D (1995) The acquisition, transfer, and depreciation of knowledge in service organizations: Productivity in franchises. Management Sci. 41(11):1750–1762.LinkGoogle Scholar
  • Ding Y, Keh HT (2016) A re-examination of service standardization vs. customization from the consumer’s perspective. J. Services Marketing 30(1):16–28.CrossrefGoogle Scholar
  • Evanschitzky H, Wangenheim F, Wünderlich NV (2012) Perils of managing the service profit chain: The role of time lags and feedback loops. J. Retailing 88(3):356–366.CrossrefGoogle Scholar
  • Fitzsimmons JA, Fitzsimmons MJ, Bordoloi S (2008) Service Management: Operations, Strategy, and Information Technology (McGraw-Hill, New York).Google Scholar
  • Gawande A (2009) The Checklist Manifesto (Metropolitan Books, New York).Google Scholar
  • Greve H (1999) Branch systems and non-local learning in organizational populations. Adv. Strategic Management 16:57–80.Google Scholar
  • Greve HR, Baum JA (2001) Introduction: A multiunit, multimarket world. Baum NAC, Greve HR, Baum J, eds. Multiunit Organization and Multimarket Strategy (JAI Press, Greenwich, CT), 1–28.CrossrefGoogle Scholar
  • Gruneir A, Lapane KL, Miller SC, Mor V (2007) Long-term care market competition and nursing home dementia special care units. Medical Care 45(8):739–745.CrossrefGoogle Scholar
  • Gupta A, Hoopes DG, Knott AM (2015) Redesigning routines for replication. Strategic Management J. 36(6):851–871.CrossrefGoogle Scholar
  • Halaby CN (2004) Panel models in sociological research: Theory into practice. Annual Rev. Sociol. 30(1):507–544.CrossrefGoogle Scholar
  • Harrington C, Hauser C, Olney B, Rosenau PV (2011) Ownership, financing, and management strategies of the ten largest for-profit nursing home chains in the United States. Internat. J. Health Services 41(4):725–746.CrossrefGoogle Scholar
  • Harrington C, Olney B, Carrillo H, Kang T (2012) Nurse staffing and deficiencies in the largest for-profit nursing home chains and chains owned by private equity companies. Health Services Res. 47(1):106–128.CrossrefGoogle Scholar
  • Harrington C, Schnelle JF, McGregor M, Simmons SF (2016) The need for higher minimum staffing standards in U.S. nursing homes. Health Services Insights 9:13–19.CrossrefGoogle Scholar
  • Harrington C, Woolhandler S, Mullan J, Carrillo H, Himmelstein DU (2001) Does investor ownership of nursing homes compromise the quality of care? Amer. J. Public Health 91(9):1452–1455.CrossrefGoogle Scholar
  • Heizer J, Render B, Munson C, Sachan A (2017) Operations Management: Sustainability and Supply Chain Management (Pearson Education, Boston).Google Scholar
  • Hu K, Allon G, Bassamboo A (2022) Understanding customer retrials in call centers: Preferences for service quality and service speed. Manufacturing Service Oper. Management 24(2):1002–1020.LinkGoogle Scholar
  • Hu K, Chopra S, Chen Y (2021) The effect of tightening standards on automakers’ non-compliance. Production Oper. Management 30(9):3094–3115.CrossrefGoogle Scholar
  • Ingram P, Baum JA (2001) Interorganizational learning and the dynamics of chain relationships. Baum NAC, Greve HR, Baum J, eds. Multiunit Organization and Multimarket Strategy (JAI Press, Greenwich, CT), 109–139.CrossrefGoogle Scholar
  • Jensen RJ, Szulanski G (2007) Template use and the effectiveness of knowledge transfer. Management Sci. 53(11):1716–1730.LinkGoogle Scholar
  • Joint Commission (2010) Improving America’s Hospitals: The Joint Commission’s Annual Report on Quality and Safety (Joint Commission Center for Transforming Healthcare, Oakbrook Terrace, IL).Google Scholar
  • Joyce NR, McGuire TG, Bartels SJ, Mitchell SL, Grabowski DC (2018) The impact of dementia special care units on quality of care: An instrumental variables analysis. Health Services Res. 53(5):3657–3679.CrossrefGoogle Scholar
  • Kabadayi S, Hu K, Lee Y, Hanks L, Walsman M, Dobrzykowski D (2020) Fostering older adult care experiences to maximize well-being outcomes: A conceptual framework. J. Service Management 31(5):953–977.CrossrefGoogle Scholar
  • Kamimura A, Banaszak-Holl J, Berta W, Baum JA, Weigelt C, Mitchell W (2007) Do corporate chains affect quality of care in nursing homes? The role of corporate standardization. Health Care Management Rev. 32(2):168–178.CrossrefGoogle Scholar
  • Kane RA, Kling KC, Bershadsky B, Kane RL, Giles K, Degenholtz HB, Liu J, Cutler LJ (2003) Quality of life measures for nursing home residents. J. Gerontology A Biol. Sci. Med. Sci. 58(3):M240–M248.CrossrefGoogle Scholar
  • Kasiri LA, Cheng KTG, Sambasivan M, Sidin SM (2017) Integration of standardization and customization: Impact on service quality, customer satisfaction, and loyalty. J. Retailing Consumer Services 35:91–97.CrossrefGoogle Scholar
  • Ketokivi M (2006) Elaborating the contingency theory of organizations: The case of manufacturing flexibility strategies. Production Oper. Management 15(2):215–228.CrossrefGoogle Scholar
  • Kitchener M, O’Meara J, Brody A, Lee HY, Harrington C (2008) Shareholder value and the performance of a large nursing home chain. Health Services Res. 43(3):1062–1084.CrossrefGoogle Scholar
  • Kohn LT, Corrigan JM, Donaldson MS, eds. (2000) To Err Is Human: Building a Safer Health System (National Academies Press, Washington, DC).Google Scholar
  • Kong L, Hu K, Walsman M (2021) Caring for an aging population in a post-pandemic world: Emerging trends in the U.S. older adult care industry. Service Sci. 13(4):258–274.LinkGoogle Scholar
  • Leape LL (1994) Error in medicine. JAMA 272(23):1851–1857.CrossrefGoogle Scholar
  • Leszczensky L, Wolbring T (2019) How to deal with reverse causality using panel data? Recommendations for researchers based on a simulation study. Sociol. Methods Res., ePub ahead of print, November 14, https://doi.org/10.1177/0049124119882473.Google Scholar
  • Lu SF, Lu LX (2016) Do mandatory overtime laws improve quality? Staffing decisions and operational flexibility of nursing homes. Management Sci. 63(11):3566–3585.LinkGoogle Scholar
  • Lu SF, Wedig GJ (2013) Clustering, agency costs and operating efficiency: Evidence from nursing home chains. Management Sci. 59(3):677–694.LinkGoogle Scholar
  • MacDuffie JP, Sethuraman K, Fisher ML (1996) Product variety and manufacturing performance: Evidence from the international automotive assembly plant study. Management Sci. 42(3):350–369.LinkGoogle Scholar
  • Malik A, Bell CM, Stukel TA, Urbach DR (2016) Recurrence of inguinal hernias repaired in a large hernia surgical specialty hospital and general hospitals in Ontario, Canada. Canadian J. Surgery 59(1):19–25.CrossrefGoogle Scholar
  • McKay NL (1991) The effect of chain ownership on nursing home costs. Health Services Res. 26(1):109–124.Google Scholar
  • Merle A, Chandon JL, Roux E, Alizon F (2010) Perceived value of the mass-customized product and mass customization experience for individual consumers. Production Oper. Management 19(5):503–514.CrossrefGoogle Scholar
  • Mondschein SV, Weintraub GY (2003) Appointment policies in service operations: A critical analysis of the economic framework. Production Oper. Management 12(2):266–286.CrossrefGoogle Scholar
  • Moral-Benito E (2013) Likelihood-based estimation of dynamic panels with predetermined regressors. J. Bus. Econom. Statist. 31(4):451–472.CrossrefGoogle Scholar
  • Park J, Konetzka RT, Werner RM (2011) Performing well on nursing home report cards: Does it pay off? Health Services Res. 46(2):531–554.CrossrefGoogle Scholar
  • Reed WR (2015) On the practice of lagging variables to avoid simultaneity. Oxford Bull. Econom. Statist. 77(6):897–905.CrossrefGoogle Scholar
  • Rubin HR, Pronovost P, Diette GB (2001) The advantages and disadvantages of process-based measures of healthcare quality. Internat. J. Quality Health Care 13(6):469–474.CrossrefGoogle Scholar
  • Sandoff M (2005) Customization and standardization in hotels—A paradox or not? Internat. J. Contemporary Hospital Management 17(6):529–535.CrossrefGoogle Scholar
  • Senot C, Chandrasekaran A, Ward PT (2016) Role of bottom-up decision processes in improving the quality of healthcare delivery: A contingency perspective. Production Oper. Management 25(3):458–476.CrossrefGoogle Scholar
  • Senot C, Chandrasekaran A, Ward PT, Tucker AL, Moffatt-Bruce SD(2015) The impact of combining conformance and experiential quality on hospitals’ readmissions and cost performance. Management Sci. 62(3):829–848.LinkGoogle Scholar
  • Shapiro C, Varian HR (1999) The art of standards wars. California Management Rev. 41(2):8–32.CrossrefGoogle Scholar
  • Siberski J, Siberski C (2018) Boomers in nursing homes: Ready or not, here they come. Today’s Geriatric Medicine 8(5):18.Google Scholar
  • Siebert WS, Zubanov N (2010) Management economics in a large retail company. Management Sci. 56(8):1398–1414.LinkGoogle Scholar
  • Smart J (1984) Ockham’s razor. Fetzer JH, ed. Principles of Philosophical Reasoning (Rowman and Allanheld, Lanham, MD), 118–128.Google Scholar
  • Squire B, Brown S, Readman J, Bessant J (2006) The impact of mass customisation on manufacturing trade-offs. Production Oper. Management 15(1):10–21.CrossrefGoogle Scholar
  • Tan TF, Netessine S (2014) When does the devil make work? An empirical study of the impact of workload on worker productivity. Management Sci. 60(6):1574–1593.LinkGoogle Scholar
  • Tucker AL, Nembhard IM, Edmondson AC (2007) Implementing new practices: An empirical study of organizational learning in hospital intensive care units. Management Sci. 53(6):894–907.LinkGoogle Scholar
  • Van de Ven AH, Ganco M, Hinings CR (2013) Returning to the frontier of contingency theory of organizational and institutional designs. Acad. Management Ann. 7(1):393–440.CrossrefGoogle Scholar
  • Victorino L, Verma R, Wardell DG (2013) Script usage in standardized and customized service encounters: Implications for perceived service quality. Production Oper. Management 22(3):518–534.CrossrefGoogle Scholar
  • Wang Y, Bellemare MF (2019) Lagged variables as instruments. Working paper, Department of Applied Economics, University of Minnesota, Minneapolis. http://marcfbellemare.com/wordpress/wp-content/uploads/2019/05/WangBellemareLaggedIVsMay2019. pdf.Google Scholar
  • Wang G, Wang J, Ma X, Qiu RG (2010) The effect of standardization and customization on service satisfaction. J. Service Sci. 2(1):1–23.CrossrefGoogle Scholar
  • Weaver A (2005) The McDonaldization thesis and cruise tourism. Ann. Tourism Res. 32(2):346–366.CrossrefGoogle Scholar
  • Weissert WG, Scanlon WJ (1985) Determinants of nursing home discharge status. Medical Care 23(4):333–343.CrossrefGoogle Scholar
  • WHO (2018) Global efforts in measuring quality of care. World Health Organization (February), https://apps.who.int/iris/bitstream/handle/10665/260544/WHO-HIS-SDS-2018.1-eng.pdf.Google Scholar
  • Williams C (2007) Transfer in context: Replication and adaptation in knowledge transfer relationships. Strategic Management J. 28(9):867–889.CrossrefGoogle Scholar
  • Winter SG, Szulanski G (2001) Replication as strategy. Organ. Sci. 12(6):730–743.LinkGoogle Scholar
  • Winter SG, Szulanski G, Ringov D, Jensen RJ (2012) Reproducing knowledge: Inaccurate replication and failure in franchise organizations. Organ. Sci. 23(3):672–685.LinkGoogle Scholar
  • Wooldridge JM (2010) Econometric Analysis of Cross Section and Panel Data (MIT Press, Cambridge, MA).Google Scholar
  • Yaniv E, Brock DM (2008) Replication strategies, knowledge and attention: A study of coffee chains. Internat. J. Service Indust. Management 19(3):379–399.CrossrefGoogle Scholar
INFORMS site uses cookies to store information on your computer. Some are essential to make our site work; Others help us improve the user experience. By using this site, you consent to the placement of these cookies. Please read our Privacy Statement to learn more.