The objective of this study is to examine a performance contingency effect between product competitive strategy and organization design using an archival approach. Specifically, this study examines a sample of 194 firms from 20 industries based on the data collected by Center for Advanced Purchasing Studies (CAPS) in its benchmarking surveys between 1989-1994 and links the benchmarking data to the COMPUSTAT (Standard & Poor's) financial data of these firms. The results of the study reveal a contingency relationship among product competitive strategies, purchasing design characteristics, and overall firm financial performance (return on assets). Specifically, the nature of this contingency relationship suggests that a firm's product competitive strategy must be enabled with a complementary design in purchasing management to promote firm performance. Given the growing practice of benchmarking at the functional level, this study also examines whether or not a firm achieving a congruency in product strategy and design will necessarily enjoy higher operational efficiency at the purchasing management level. The results show that this is true only under specific conditions. The implications of the preceding findings are discussed accordingly.contingency theory, supply chain, competitive strategies, benchmarking, firm performance
Despite immense investment by hotel operators in information technology, evidence of improved productivity is scant, leading to discussion of a "productivity paradox." Part of the problem with the analysis of productivity in the service sector as a whole and in hotels in particular is how to measure productivity. For this study, the authors established a number of possible productivity benchmarks, such as speed of check-ins, reservations per labor hour, and rooms cleaned per housekeeping hour. Just nine hotel chains responded to the survey, but those chains represent some 4,000 hotel properties. No single measurement or set of measurements was used by the nine respondents. The study also assessed the respondents' expectations for productivity improvements and whether those expectations were fulfilled. Ironically, respondents did not always expect productivity improvements from the technology installation and were sometimes pleasantly surprised. The authors suggest that productivity may not always be the motivating factor for installing information technology. Instead, hoteliers are installing technology to improve the guest experience.
Though the TCO of end-user workstations can always be reduced by sacrificing end-user service, careful planning can reduce the costs without the sacrifice.
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