Service Networks: A Framework to Match Customer Needs, Service Offer, and Operational Activities

ABSTRACT In the evolving and competitive global marketplace, hospitality firms have to seek new business models to enable them to customize their offer and to fulfil the specific needs of customers. Such needs are varied and complex, and it is often beyond the capacity of a single firm to fulfil them all. It has therefore become imperative that hospitality firms seek partnering firms to assist them in fulfilling the requirements of their customers. Through service-network partnerships with other firms, hospitality firms can effectively provide customers with end-to-end services from the initial contact through the entire cycle of the service experience. Hospitality firms are therefore increasingly using networks and outsourcing to assist them to serve customers whose requirements are outside a single firm's competency. However, in seeking guidance on how this can be managed effectively, existing theoretical knowledge in hospitality management has proved to be of limited use. The present paper proposes a conceptual framework for managing vertical networks for the purpose of value enhancement. This conceptual study examines how hospitality firms can strategically use service-network partners to outsource non-core services with a view enhancing the value of their service offer and gain a competitive advantage in the market.