Idle resources : towards a conceptual framework

The concept and importance of idle capacity has undergone significant changes since the beginning of twentieth century. Idle capacity as a measure of productive inefficiency, the notion which dominated the field for six decades, has given way to notions of idle capacity as a measure of sales and marketing inefficiency. Renewed interest in the subject is the result of turbulent times associated with globalization processes, which are prompting managers to eliminate non-value added activities. This paper reviews emerging conceptions of idle capacity in providing goods and services, and develops a conceptual framework to focus on generalizable contributors to idle capacity. Following on, the paper also explores the strategic role that idle capacity can play to build customer relationships and loyalty.