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VOL. 1, ISSUE 3 (2025)
Examining the effect of strategic resource allocation on operational efficiency of service firms in Jamaica: A structural equation modeling approach
Authors
Sejae Burey
Abstract

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.

Originality/Value: The study provides empirical evidence from a developing country context, bridging gaps in the literature on resource allocation and operational efficiency in service firms, and offers practical guidance for Jamaican service sector managers.
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Pages:107-114
How to cite this article:
Sejae Burey "Examining the effect of strategic resource allocation on operational efficiency of service firms in Jamaica: A structural equation modeling approach". International Journal of Research in All Subject, Vol 1, Issue 3, 2025, Pages 107-114
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