Service convergence and service integration in medical tourism
| Published date | 05 August 2014 |
| Pages | 1094-1106 |
| DOI | https://doi.org/10.1108/IMDS-04-2014-0115 |
| Date | 05 August 2014 |
| Author | Christian Wernz,Pooja Thakur Wernz,Kongkiti Phusavat |
| Subject Matter | Information & knowledge management,Information systems,Data management systems |
Service convergence and service
integration in medical tourism
Christian Wernz
Grado Department of Industrial and Systems Engineering,
Virginia Polytechnic Institute and State University, Blacksburg, Virginia, USA
Pooja Thakur Wernz
Department of Management, Virginia Polytechnic Institute and State University,
Blacksburg, Virginia, USA, and
Kongkiti Phusavat
Department of Industrial Engineering, Kasetsart University,
Bangkok, Thailand
Abstract
Purpose – The purpose of this paper is to introduce and discuss the conce pts of service convergence
and service integration, illustrate them in the context of the medical tourism industry, and link them to
factors that contributed to the success of a medical tourism firm.
Design/methodology/approach – The basis for the conceptual development of service convergence
and service integration is an in-depth case study of Bumrungrad International Hospital (BIH) in
Thailand. Based on semi-structured interviews and archival data, BIH’s business model is analyzed
and factors are identified that led to its success in the industry.
Findings – BIH’s success can be attributed to nine key initiatives that enhanced customer focus,
operational efficiency, and service quality. These initiatives supported BIH’s twofold business model of
product differentiation and globally competitive prices. The firm’s activities led to the integration of
medicaland hospitality servicesresulting in a new, enhanced product. Competitorsadopted BIH’sservice
integration approach, which started the service convergence trendin the medical tourism industry.
Research limitations/implications – The conceptual foundations for service convergence and
service integration are laid in this paper and can serve as the basis for future research.
Practical implications – Insights from BIH’s business model can guide firms in medical tourism
and related industries on how to innovate and how to successfully implement their service products.
Originality/value – This paper introduces the term service convergence and discusses its mechanisms.
Furthermore, it identifies success factors of a leading fir m in the medical tourism industry and links them
to service integration.
Keywords Service innovation, Service quality, Service integration, Medical tourism industry,
Service convergence
Paper type Case study
1. Introduction
Innovation drives the evolution of products. One type of innovation is the combination
or integration of previously separate products into a new and enhanced product
(Gallouj and Weinstein, 1997). As the new, integrated product becomes increasingly
popular, it replaces the previous products and thereby affects the related industries. For
products that combine principles or technologies from different industries, industr y
boundaries can start to vanish and a convergence takes place.
The current issue and full text archive of this journal is available at
www.emeraldinsight.com/0263-5577.htm
Received 15 April 2014
Revised 1 July 2014
Accepted 1 July 2014
Industrial Management & Data
Systems
Vol. 114 No.7, 2014
pp. 1094-1106
rEmeraldGroup PublishingLimited
0263-5577
DOI 10.1108/IMDS-04-2014-0115
This research has been funded in part by the Virginia Tech Institute of Critical Technology and
Applied Science (ICTAS) grant JFC-11-130.
1094
IMDS
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