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Purpose

The purpose of this paper is twofold: first, to study the environmental and competitive factors in the service organizations and second, to investigate the extent of effective implementation of quality improvement initiatives in different operational settings.

Design/methodology/approach

In this paper factor analysis is used to determine the underlying factors associated with the changes in the competitive environment. Proportional measures are used to study the implementation of quality improvement initiatives.

Findings

The paper finds that quality improvement initiatives are not implemented uniformly by all the service industries. Organizations implementing quality improvement initiatives face varying degrees of effectiveness. Positive operational and strategic outcomes have been observed by organizations implementing the quality improvement initiatives.

Practical implications

The results of this paper show that implementation of different types of quality improvement initiatives has a positive impact on operational and strategic aspects of service organizations.

Originality/value

The empirical investigation in this paper shows the practical and theoretical value of issues related to the performance of service organizations.

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