The Effects of Organizational Values on the Performance of Organizations: Evidence from the Utilities Sector

Abstract

The research studies to what extent different phases of the service process that do not involve similar training, know-how, managerial practices and resources (such as customer care, service management and administration, and technical maintenance) may be inter-linked. We assess whether different departments that are involved in the service supply chain across the organization may differ in their service standard or follow similar patterns in their service provision. The service standard of each organizational unit be orchestrated, or may vary, due to the service culture and values of the organization. Major differences between the organizational departments and the separation between them may affect not only the final service level provided to customers, but also the heterogeneity in service provision standards within the organization.The paper analyzes the provision of service fault maintenance in a large utilities company in Israel. The process begins when customers call to the company’s customer care center to inform it about termination of services in their area. The company evaluates the characteristics of the fault and a maintenance team is sent to renew the provision of services. Findings suggest that despite the inherent differences in practices and tasks between the organizational units, they are correlated in their service provision, hence indicating effects of the organization’s level of service culture on different parts within it.