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Service operations efficiency and competitive orientations in the telecommunication industry: a data envelopment analysis approach
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A. J. Abiodun   , N. B. Amos-Fidelis , D. A. Oladejo , O. Solaja |
| Department of Business Administration College of Management Sciences Federal University of Agriculture, Abeokuta |
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Abstract: (1247 Views) |
Customers service centres have become a veritable tool for connecting with subscribers and projecting distinctive capabilities in competition in the telecommunication industry. Consequently, operational efficiency of these units is an essential variable in the design and adoption of cost leadership and differentiation strategies. This study is based on data obtained from twenty-five (25) customers service centres spread across four telecommunication service providers. Data envelopment analysis methodological approach was utilized to estimate efficiency of these service centres, types of scale and identify critical resources for improving performances. Results indicate an average technical efficiency scores range of 50.5%-80.2%, suggesting substantial waste of resources and weak capacity for pursuit of cost leadership strategy with scale efficiency scores range of 60.5%-86.4%. The study also found that 36% of these facilities are operating under increase returns to scale (IRS) regime, 40% (decreasing returns to scale, (DRS) and 24% under constant returns to scale regime. Furthermore, customers service personnel were identified as critical input variable to be given pre-emptive priority to change to enhance operations and capacity to strive for cost leadership, therefore, it is suggested that telecommunication firms invest more resources on technology to enhance capabilities of the service personnel for improved efficiency as well as for effective pursuit of cost leadership and differentiation strategies.
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| Keywords: Cost Leadership, Differentiation, Efficiency, Customers Service, Data Envelopment Analysis, Scale |
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Full-Text [PDF 509 kb]
(808 Downloads)
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Type of Study: Research |
Subject:
General
Received: 2023/02/19 | Accepted: 2023/06/20
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