Creating reciprocal value through operational transparency
By: Ryan W. Buell, Tami Kim, Chia-Jung Tsay
Contributors: Kim, Tami, author; Tsay, Chia-Jung, author; Harvard Business School
Series: Working paper / Harvard Business School -- 14-115; Working paper (Harvard Business School) -- 14-115.
Publisher: Harvard Business School
Published: 2014
Place of publication: Boston]
Language: eng
Number of pages: 18
Description: We investigate whether organizations can create value by introducing visual transparency between consumers and producers. Although existing theory posits that increased contact between the two parties can diminish work performance, we conducted two field and two laboratory experiments in food service contexts that suggest that the introduction of operational transparency improves service quality and efficiency. The introduction of reciprocal operational transparency contributed to a 22.5% increase in customer-reported quality and reduced throughput times to 67.5% of standard. Customers who observed employees engaged in labor perceived greater effort, appreciated that effort, and valued the service more. Employees who observed customers felt more appreciated, and in turn, were more satisfied with their work and exerted increased levels of effort. We find that transparency, by visually revealing operating processes to both producers and consumers, generates a positive feedback loop through which value is created for both parties.
Notes: "May 2014" -- Publisher's website.

Includes bibliographical references (pages 15-18).