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Abstract
Excellent service quality generates a competitive advantage for service organizations, but firms must implement a comprehensive system of quality management if they are to develop effective and reliable service quality. In contrast to manufacturing industries, most service industries lack a well-managed and comprehensive system of quality management. The present study develops a holistic quality-management system for service organizations – based on sound theoretical and pragmatic considerations. The feasibility and effectiveness of this quality-management system for service organizations is demonstrated by using the HP and IBM companies in Taiwan as case studies. In addition, the results of a separate empirical case study reveal that the insurance, hotel, and airline industries are well advanced in implementing quality management. However, other service industries need to make improvements in some aspects of quality management. These analytical results represent a useful benchmarking reference for those service organizations that have lower implementation levels in some quality-management practices. The present study thus presents an innovative and comprehensive quality-management system for service industries and demonstrates its theoretical and practical application in a number of service industries.