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The purpose of this paper is to explore the relationship between service quality and firms’ global competitiveness in the service industry. A set of moderating effects is formulated to further reveal how the relationship varies under different situations.Design/methodology/approachThis paper tests the model with data collected from multiple sources such as World’s Most Admired Companies and COMPUSTAT. Two types of robust regressions for panel data are employed in the empirical model estimation.FindingsService quality is found to significantly drive global competitiveness. Specifically, its impact is stronger for large service firms and when the global environment is characterized as low munificence, high dynamism, or high complexity.Practical implicationsThe paper provides a set of implications for managers of service firms regarding global expansion and quality management. It generates useful guidelines of maximizing the power of service quality when a firm’s global competitive advantage is considered.Originality/valueThis paper takes the first attempt to formulate service quality’s influence on firm’s global competitiveness with a consideration of specific situational factors.
Journal of Service Theory and Practice – Emerald Publishing
Published: Oct 26, 2017
Keywords: Service quality; Firm size; Firm age; Global competitiveness; Global environmental factors; Service firms
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