Senge, Peter M. with Rogelio Oliva, "Developing Theory of Service Quality/Service Capacity Interaction", 1993

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Service quality cannot be measured and tested in as straight forward a manner as in manufacturing. This biases serve businesses to focusing on keeping measurable variables-typically, expenses and work flows-in control, while underinvesting in the intangibles of service capacity and service quality. In the long-term, results can be mediocre levels of service quality, poor customers satisfaction, high turnover of service personnel, and ultimately, higher total costs. In this paper we will present an emerging theory of interactions between Service Quality and Service Capacity, relate this theory to past research in both the System Dynamics and Total Quality Management traditions and outline ongoing empirical testing of the theory.

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  • 1993
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