Service quality as a competitive opportunity

Abstract

Quality has progressed from a rough conceptualization of a tactical problem to a viable competitive opportunity that should be maximized strategically. We discuss the viability of quality as a sustainable competitive advantage. Based on a longitudinal study of general service hospitals, we provide results indicating that quality not only has a temporal effect on organizational performance, but also translates into long‐term benefits. The findings of this study reinforce anecdotal claims of the efficacy of quality‐based strategies in improving organizational performance.