The service concept – a missing link in lean for services

This paper aims to contribute to the empirical literature on lean implementation for services by examining how the relation between lean implementation and operational performance improvement is moderated by the degree of service concept diffusion. The effect of explicit service concept diffusion on the outcome of lean implementation processes is tested by a sample of 153 respondents from Dutch service organizations. By means of hierarchical regression analysis this research shows that lean implementation in service organizations with an explicit and widely disseminated service concept positively affects organizational performance. Additionally, it is found that the moderating influence of service concept diffusion on performance improvement is especially apparent in case of explicit presence and a clearly disseminated service concept or an explicitly absent and unclear service concept. These results are corroborated by the finding that lean implementation in service environments without the moderating influence of service concept diffusion does not result in enhanced organizational performance. Finally, the positive sole effect of a disseminated service concept on organizational performance is empirically corroborated. These findings show the importance of clarity on what is expected of employee- and improvement specialist’s involvement in terms of goals, roles, responsibilities and activities with respect to the service concept in service-based organizations. Having such clarity enhances their ability to make a meaningful contribution to improvement initiatives in lean implementations. Thereby, this research is the first to provide empirical evidence for explaining how employee involvement in service-based organizations can yield better lean implementation results.