Purpose: The study examined the effect of strategic resource allocation on the
operational efficiency of service firms in Jamaica. Specifically, it
investigated how financial, human, and technology and infrastructure resources
contribute to service delivery performance.
Methodology/Design: A quantitative research approach was adopted. Data were collected from
380 managers and supervisors in selected service firms using structured
questionnaires. Reliability and validity were confirmed through Cronbach’s
alpha, factor loadings, composite reliability, and average variance extracted.
Structural Equation Modeling (SEM) was employed to test the hypothesized
relationships between strategic resource allocation and operational efficiency.
Findings: The results revealed that financial resource allocation, human resource
allocation, and technology and infrastructure allocation all had significant
positive effects on operational efficiency. Among these, financial resources
had the strongest influence, followed by human resources and technological
resources. These findings were consistent with the Resource-Based View,
Contingency, and Systems theories.
Implications: The study highlights the importance of strategically managing
financial, human, and technological resources to improve service delivery
efficiency. Managers are encouraged to align resources with operational needs,
integrate systems effectively, and prioritize investment in critical areas.
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