Using asset-based criterion to implement quality management philosophy in service operations to enhance business performance

Purpose The purpose of this paper is to study the impact of successfully assessing basic resources of an organization, such as technology and human resources, needed to enhance performance of service businesses through the use of quality management ideals. Effective coordination of these two types of organizational assets is shown to impact both the design and the implementation of quality management practices, which than leads to enhanced organizational performance. Design/methodology/approach Retail banking firms were surveyed for this study to analyze empirical data related to technology and people-based assets. Results were corroborated on the basis of in-depth interviews with several banking managers to provide real-world verification of the findings. Findings This study identifies the significance of key assets in a banking service environment that can help the implementation of quality management philosophy. Paper discusses how managers can focus on the development of key assets as well as the use of these assets in the design of quality management processes to enhance business performance. Research limitations/implications This research focused on a specific sector of the service industry, the banking sector. Relatively small size of the study sample may have impacted the outcome of research applicability on a wide spectrum of businesses. Also, constantly changing financial regulations could not be incorporated in the study. On the positive side, strong managerial feedback provides guidance toward adopting the study results, and lays the foundation for future research suggesting an additional focus on corporate responsibility and sustainability issues while managing quality. Originality/value As today's rapidly evolving society pushes people out of service encounters, replacing them with efficient and cost-saving technology, roles of both the people and the technology in an organization must be fully understood. This paper shows that, despite the exponential growth of technological innovation, both people and technology are critical to enhancing organizational performance through successful adoption of quality management practices.