Strategic alignment of manufacturing has been researched for more than four decades while research on service strategic alignment research is scarce. This paper is to explore attributes of strategic alignment in the service sector based on the manufacturing alignment literature modified for the service sector. Through a process of interviews of 14 senior managers in Indonesian banks I have identified new dimensions of service strategic alignment. A significant attribute to emerge which was most important in the context of Indonesian banking was standard operational procedures (SOPs), which ended up being the most important.
This study contributes in the existing literature about an understanding of which attributes of strategic alignment are required to enable a business to achieve world class standing in the service sector.
Adam, J.E.E. and P.M. Swamidass, 1989. Assessing operations management from a strategic perspective. Journal of Management, 15(2): 181.
Atkinson, A.A., J.H. Waterhouse and R.B. Wells, 1997. A stakeholder approach to strategic performance measurement. Sloan Management Review, 38(3): 25-37.
Auzair, S.M. and K. Langfield-Smith, 2005. The effect of service process type, business strategy and life cycle stage on bureaucratic MCS in service organizations. Management Accounting Research, 16(4): 399-421.
Bacon, C.J., 1992. The use of decision criteria in selecting information systems/technology investments. MIS Quarterly, 16(3): 335-353.
Bagchi-Sen, S. and L. Kuechler, 2000. Strategic and functional orientation of small and medium sized enterprises in professional services: An analysis of public accountancy. Service Industries Journal, 20(3): 117-146.
Bhimani, A. and K. Langfield-Smith, 2007. Structure, formality and the importance of financial and non-financial information in strategy development and implementation. Management Accounting Research, 18(1): 3-31.
Brady, M.K. and J.J.J. Cronin, 2001. Some new thoughts on conceptualizing perceived service quality: A hierarchical approach. Journal of Marketing, 65(3): 34-49.
Brown, S. and K. Blackmon, 2005. Aligning manufacturing strategy and business-level competitive strategy in new competitive environments: The case for strategic resonance. Journal of Management Studies, 42(4): 793-815.
Brown, S., B. Squaire and K. Blackmon, 2007. The contribution of manufacturing strategy involvement and alignment to world-class manufacturing performance. Internasional Journal of Operations & Production Management, 27(3): 282-302.
Browning, V., F. Edgar, B. Gray and T. Garrett, 2009. Realising competitive advantage through HRM in New Zealand service industries. Service Industries Journal, 29(6): 741-760.
Chao, C.-A. and A. Chandra, 2012. Impact of owner's knowledge of information technology (It) on strategic alignment and it adoption in us small firms. Journal of Small Business and Enterprise Development, 19(1): 114-131.
Chenhall, R.H., 2005. Integrative strategic performance measurement systems, strategic alignment of manufacturing, learning and strategic outcomes: An exploratory study. Accounting, Organizations and Society, 30(5): 395-422.
De Brentani, U., 1995. New industrial service development: Scenarios for success and failure. Journal of Business Research, 32(2): 93-103.
Decoene, V. and W. Bruggeman, 2006. Strategic alignment and middle-level managers' motivation in a balanced scorecard setting. International Journal of Operations & Production Management, 26(4): 429-448.
Dyer, J.H., P. Kale and H. Singh, 2001. How to make strategic alliances work. (Cover Story). MIT Sloan Management Review, 42(4): 37-43.
Ekinci, Y. and P.L. Dawes, 2009. Consumer perceptions of frontline service employee personality traits, interaction quality, and consumer satisfaction. Service Industries Journal, 29(4): 503-521.
Ekinci, Y., P.L. Dawes and G.R. Massey, 2008. An extended model of the antecedents and consequences of consumer satisfaction for hospitality services. European Journal of Marketing, 42(1/2): 35-68.
Flick, U., 2002. An introduction to qualitative research. 2nd Edn., London, Thousand Oaks, New Delhi: SAGE Publications.
Flynn, B.B., R.G. Schroeder and S. Sakakibara, 1994. A framework for quality management research and an associated measurement instrument. Journal of Operations Management, 11(4): 339-366.
Froehle, C.M., A.V. Roth, R.B. Chase and C.A. Voss, 2000. Antecedents of new service development effectiveness: An exploratory examination of strategic operations choices. Journal of Service Research, 3(1): 3-17.
Garengo, P., S. Biazzo and U.S. Bititci, 2005. Performance measurement systems in SMEs: A review for a research agenda. International Journal of Management Reviews, 7(1): 25-47.
Hansen, H., K. Sandvik and F. Selnes, 2003. Direct and indirect effects of commitment to a service employee on the intention to stay. Journal of Service Research, 5(4): 356-368.
Heskett, J.L., T.O. Jones, G.W. Loveman, J.W.E. Sasser and L.A. Schlesinger, 1994. Putting the service-profit chain to work. Harvard Business Review, 72(2): 164-170.
Hsieh, H.F. and S.E. Shannon, 2005. Three approaches to qualitative content analysis. Qual Health Res, 15(9): 1277-1288.
Hussain, M.M. and Z. Hoque, 2002. Understanding non-financial performance measurement practices in japanese banks: A new institutional sociology perspective. Accounting, Auditing & Accountability Journal, 15(2): 162-183.
Joshi, M.P., R. Kathuria and S.J. Porth, 2003. Alignment of strategic priorities and performance: An integration of operations and strategic management perspectives. Journal of Operations Management 21(3): 353-369.
Lovelock, C. and E. Gummesson, 2004. Whither services marketing? In search of a new paradigm and fresh perspectives. Journal of Service Research, 7(1): 20-41.
Meuter, M.L., A.L. Ostrom, R.I. Roundtree and M.J. Bitner, 2000. Self-service technologies: Understanding customer satisfaction with technology-based service encounters. Journal of Marketing, 64(3): 50-64.
Pugh, S.D., J. Dietz, J.W. Wiley and S.M. Brooks, 2002. Driving service effectiveness through employee-customer linkages. Academy of Management Executive, 16(4): 73-84.
Reichheld, F.F. and J.W.E. Sasser, 1990. Zero defections: Quality comes to services. Harvard Business Review, 68(5): 105-111.
Rhee, M. and S. Mehra, 2006. Aligning operations, marketing, and competitive strategies to enhance performance: An empirical test in the retail banking industry. Omega, 34(5): 505-515.
Rhodes, J., P. Walsh and P. Lok, 2008. Convergence and divergence issues in strategic management - Indonesia's experience with the balanced scorecard in HR management. The International Journal of Human Resource Management, 19(6): 1170-1185.
Roth, A.V. and M. Van Der Velde, 1991. Operations as marketing: A competitive service strategy. Journal of Operations Management, 10(3): 303-328.
Schneider, B., E.G. Godfrey, S.C. Hayes, M. Huang, B.C. Lim, L.H. Nishii, J.L. Raver and J.C. Ziegert, 2003. The human side of strategy: Employee experiences of strategic alignment in a service organization. Organizational Dynamics, 32(2): 122-141.
Skinner, W., 1969. Manufacturing-missing link in corporate strategy. Harvard Business Review: 136-145.
Smith, T.M. and J.S. Reece, 1999. The relationship of strategy, fit, productivity, and business performance in a services setting. Journal of Operations Management, 17(2): 145-161.
Stalk, G., P. Evans and L.E. Shulman, 1992. Competing on capabilities: The new rules of corporate strategy. Harvard Business Review, 70(2): 54-66.
Sun, H. and C. Hong, 2002. The alignment between manufacturing and business strategies: Its influence on business performance. Technovation, 22(11): 699-705.
Tallon, P.P., 2011. Value chain linkages and the spillover effects of strategic information technology alignment: A process-level view. Journal of Management Information Systems, 28(3): 9-44.
Thomas, D.R.E., 1978. Strategy is different in service businesses. Harvard Business Review, 56(4): 158-165.
Ward, P.T., J.K. McCreery and G. Anand, 2007. Business strategies and manufacturing decisions: An empirical examination of linkages. International Journal of Operations & Production Management, 27: 951-973.
Weijters, B., D. Rangarajan, T. Falk and N. Schillewaert, 2007. Determinants and outcomes of customers use of self-service technology in a retail setting. Journal of Service Research, 10(1): 3-21.
Wheelwright, S.C. and R.H. Hayes, 1985. Competing through manufacturing. Harvard Business Review, 63(1): 99-109.