To investigate the relationship between service practices, service performance, business performance and information technology (IT) sophistication.
A conceptual framework is developed, incorporating dimensions of services practice and service performance and structural equation modeling is used to test the model with data from 231 companies.
This paper extends the basic service practice‐service performance relationship by incorporating the interaction effects of IT sophistication in a contingency framework. Previous studies found mixed support for the direct effects of IT sophistication on service performance.
Using single informants leads to common methods bias.
Companies need to identify how IT contributes to service effectiveness from a customer perspective.
This study adds to the emerging literature of the relationship between services management and information technology.
