STUDY OF FACTORS INFLUENCING THE PERFORMANCE OF SERVICE ORGANIZATIONS: A CASE OF TELECOM SERVICE PROVIDERS

Abstract

The service industry constitutes a major part of the economy for most of the countries in the world. The services have been integrated with the day-to-day requirements of the people and contribute significantly to the GDP (Gross Domestic Product). The service industry has invited significant foreign investments in India, contributed significantly to exports, and generated a great employment opportunity. The service sector covers a wide range of business activities such as trade, warehousing, transport, healthcare, Information Technology, communication technology, hotels and restaurants, real estate, insurance, banking and finance, social and personal services, and other transformative services. In this thesis, mainly three service sectors (telecom sector, banking sector, healthcare sector) are given more priority. Performance for any organization is a very important aspect. It is the result achieved by an individual, organization, team, or process. Performance measurement plays an important role in managing a business of service organizations. Performance measurement is the process of quantifying the efficiency and effectiveness of action and it provides the necessary information for decision-making and actions. In this research work all the major factors influencing the performance of service organizations are explored through the in-depth literature review. The interrelationship amongst these factors and their impact on service performance have been explored through the industrial survey. The data collected through the industrial survey are analysed through the structural equation modelling (PLS-SEM). Analytic Hierarchy Process and PROMETHEE, and Total Interpretative Structural Modelling (TISM). vii Using the PLS-SEM the extent of influence of various factors on overall performance of service organization and its sustainability has been observed. AHP and PROMETHEE has been used to ranks the performance of the telecom companies working in different circles in India considering the various operational factors. Total interpretive structural modelling is used to find the causal relationships among the various factors. It has been observed that the operational factors have highest influence on the service quality. The second important factor having the influence on service quality is Human resource related factors. Similarly, other factor influencing the service quality are market feedback related factors, information technology related factors, and financial factors. The sustainability of the service organization is influenced by service quality as well as overall performance of service organization. The sustainability includes environmental, social, and economical factors. Using AHP and PROMETHEE Reliance JIO is observed as the best telecom service performer and second best performer is Airtel. The other telecom organizations having performance raking in sequence are Idea, Vodafone, BSNL and MTNL. Using TISM, it is observed that Top Management support, Use of IT, e-commerce, respect for rule of law, and corporate social responsibility have high driving power whereas quality improvement, lead time reduction, cost minimization, customer retention, brand image, and performance of service organization have high dependence on other factors. The other factors like flexibility, transparency in customer dealing, employee empowerment, job security, employee participation, and retention, and responsiveness of service providers have medium range of driving power and dependence. viii Novelty of this research is to explore the multidimensional factors influencing the service performance and considering the three different industries having wide range of variations in service operations. In addition, the proposal of framework to compare the service performance and validation in telecom sector is the originality of the work.