Modularizing Services Based Upon an Actor-Oriented Logic

Abstract

The present research investigates how actor-oriented service modularity (here, decomposing services in packages delivered by single versus multiple service providing entities) impacts the formation of customer experiences in relation to the focal service provider (i.e., the service provider engaged in modularizing services). To test our hypotheses in the context of cancer care, patient observations (n=640) and a patient survey (n=377) were used to gather respectively service package and customer experience data. These data were analyzed using hierarchical Bayes models. Our results show that customer experiences with the focal service provider are shaped by waiting time, interactional and environmental quality in case of single service provider packages. Multiple service provider packages, in turn, divert customers’ attention from waiting time and interactional quality with the focal service provider, but not from environmental quality. A notable exception involves multiple service provider packages with high time and location proximity, since none of the experience drivers affect customer experiences with the focal service provider. By proposing a new logic for service modularity (i.e., actor-oriented logic) and investigating its implications for the customer experience formation in relation to the focal service provider, this research contributes to the service design and modularity literature.