Showing papers in "Service Industries Journal in 2014"

The evolution of service innovation research: a critical review and synthesis

Abstract: The number of service innovation articles has increased dramatically in the past 25 years. By reviewing 128 articles published between 1986 and 2010, primarily in leading marketing and innovation j ...

Servitisation of European manufacturing: evidence from a large scale database

Abstract: Manufacturing firms increasingly produce and provide services along with or instead of their traditional physical products. The goal of this paper is to provide new evidence for this servitisation of European manufacturing and test previous findings based on case studies with a large, firm-level data set. Empirical results indicate that service turnover of manufacturing firms is still small compared to the turnover with physical products. National differences play only a minor role in explaining the degree of servitisation. Firm size is of more relevance. Results reveal a U-shaped relationship between firm size and servitisation which points to advantages of both, small and large firms in servitisation. Moreover, servitisation is positively related to product complexity and the likelihood that the firm introduces product innovation.

Exports, foreign direct investments and productivity: are services firms different?

Abstract: This paper contributes to the literature on international firm activities by providing the first evidence on the link between productivity and both exports and foreign direct investment (FDI) in services firms from a highly developed country. It uses unique new data from Germany, one of the leading actors in the world market for services. Statistical tests and regression analyses indicate that the productivity pecking order found in numerous studies using data for firms from manufacturing industries – where the firms with the highest productivity engage in FDI while the least productive firms serve the home market only and the productivity of exporting firms is in between – does not exist among firms from services industries. There is evidence that firms with FDI are less productive than firms that export; this finding is in line with recent empirical results reported for software firms from India.

A comparative analysis of the entrepreneurial orientation/growth relationship in service firms and manufacturing firms

Abstract: This article builds on the recently increasingly mentioned notion that entrepreneurship in the service sector is a worthwhile, but clearly underresearched topic. Using a sample of 1,612 small- and medium-size enterprises from the four German-speaking countries Germany, Austria, Switzerland, and Liechtenstein, and using structural equation modeling, this article finds that service firms have a significantly higher entrepreneurial orientation (EO) than manufacturing firms – both on the overall level as well as for each of the three sub-categories proactiveness, innovativeness, and risk-taking. With regards to the positive relationship between a firm's EO and its growth aspirations, nevertheless, no significant differences could be identified. Accordingly, this study shows that EO is a strategic orientation of highest value for service firms as well, under the premise of growth-orientation.

Investigating the different approaches to importance–performance analysis

Abstract: Importance–performance analysis (IPA) is an analytic technique that generates a two-dimensional importance–performance grid, where the values of importance and performance across attributes are plotted against each other. This technique is used to assist service and other firms in prioritizing areas for service improvement when resources are limited. This study contributes to service theory by first performing a comprehensive literature review of four different and commonly used approaches to IPA. Survey data from the ports sector are then used to elucidate the value and the distinctiveness of these four different approaches, and it is also shown how the underlying theoretical assumptions led to somewhat varying, and contradictory interpretations. Subsequently, novel guidelines for integrating results from these four different approaches are proposed. The study advances service theory by detailing the integration of the different approaches to make sense of the importance and performance of diverse servic...

Effects of quality and corporate social responsibility on loyalty

Abstract: The purpose is to investigate the impact of corporate social responsibility perceptions on three aspects of customer loyalty for a new bank service (Travel Card) relative to a recognised major predictor in service quality. Surveys were completed by 204 bank consumers in Australia. Using a series of regression equations, two sets of socially responsible perceptions had significant effects on purchase intention and positive word of mouth. In both cases, new socially responsible information was twice as strong a predictor as service quality. However, for affective commitment, service quality was the dominant predictor. Furthermore, existing perceptions of socially responsible performance had a negative effect on purchase intentions. The study presents the first evidence that new socially responsible perceptions for a service firm can be a more powerful predictor than corporate abilities. The findings further illustrate the differential impacts of socially responsible information on different loyalty conceptu...

Customer orientation, engagement, and developing positive emotional labor

Abstract: Frontline employees must deal on a daily basis with emotionally demanding customer interactions. Such interactions, when coupled with organizational directives to focus upon exemplary customer service, can prompt employees to express feelings and emotions that are not genuine. Such ‘surface acting' has been found to create stress in frontline personnel, but an understanding of how this negative aspect of emotional labor may be minimized is lacking in the services literature. How a frontline employee's individual attributes might interact with a service work context to build deep, as opposed to surface, acting is the current focus. Applying job demands–resources theory, this study investigates how a frontline employee's customer orientation helps to develop positive work engagement, even in the face of contextual demands. Engagement is then linked positively to the beneficial behavior of deep acting which, in contrast to surface acting, has been identified as a less stressful form of emotional labor.

Improving customer website involvement through experiential marketing

Abstract: This study outlines some of the important positive outcomes of enhancing e-retailing services through adding experiential benefits. It investigates how provision of experiential values by an online store improves involvement of customers in the e-retailer's website. This paper also looks at the impacts of experiential values on the recently developed construct of perceived e-retailer's assistive intent and investigates whether this variable contributes to the enhancement of website involvement. Collecting data from 431 North American students through a survey on actual shopping experiences supports the overall model and the majority of the hypotheses. Findings confirm that esthetics, service excellence, and customer return on investment are effective experiential values in terms of improving e-retailer's assistive image and enhancing customers' involvement in the website.

Recovering service failure through resource integration

Abstract: Customers and employees can co-create a resolution following a service failure through integrating their resources. Their activities and interactions during resource-integration shape the customers' service recovery experiences. Prior research overlooks resource integration between all involved actors in a co-created service recovery process. This research details the process with two empirical studies. Study 1 is a qualitative analysis of narratives of service recovery experiences; Study 2 is a quantitative assessment of scenario-based survey data. The results show that a favourable service recovery experience is resulted from integrating all involved actors' resources in a mutually beneficial manner. Three key resources are financial compensation, service skills including communication and timing. Our findings indicate that co-created service recovery fails in the absence of just one resource or mismatches in their integration. The combined studies reveal that customers use their justice perceptions to ...

Productivity, efficiency and its determinant factors in hotels

Abstract: This study assesses the total factor productivity, efficiency and its determinants in the hotel sector in the period 1999–2007, with the objective to analyze the management implications of these outcomes. The results show improvements in productivity due to innovation, with significant differences due to the geographic location, and a decrease in efficiency explained in terms of adaptation to supply. There are several factors determining the efficient leading hotels. First, the concentration market share to achieve efficiency gains. Second, a curvilinear (U) shape between efficiency and size of the hotel. Third, a higher degree of organizational autonomy is positively related to efficiency, but negatively related to the commitment to quality.

Value co-creation via information and communications technology

Abstract: The aims of the present work centre on determining whether co-created value constitutes a competitive advantage for firms, and whether it is capable of influencing consumer behaviour. Applying the service-dominant logic perspective, the work examines the firm's capabilities in the context of its business-to-customer (B2C) interactions, focusing on information and communications technology (ICT) as a particular driver of value co-creation. Taking this B2C perspective, ICT is measured, from the firm's point of view, and customer perceptions are analysed, using the variables ‘value co-creation’, ‘perceived value’ and ‘loyalty’. The sample consists of 100 service firms and 572 of their customers. The findings indicate that ICT capabilities have a direct effect on value co-creation, as does value co-creation on perceived value and loyalty.

Franchising: the dilemma between standardisation and flexibility

Abstract: Both standardisation and flexibility are naturally linked to franchising and the balance between them has become an important research issue. Literature states that cost minimisation, brand image and innovation are the main reasons that push towards standardisation, while flexibility is claimed (for those that advocate for it) in order to achieve a higher adaptation to local markets and enhance franchisees’ entrepreneurial attitudes. This research will focus on the computer retail sector to find out how franchise networks in services settle this dilemma. Here, franchisors have decided to focus on economies of scale and strong common corporate image as key goals and thus allow franchisees to be flexible with any other variables that do not affect their main objectives, mainly by adding a complementary product and services portfolio. Results suggest that those resources and capabilities which sustain a competitive advantage are more susceptible to being standardised in franchising, opening an interesting re...

Relational benefits, their consequences, and customer membership types

Abstract: The purpose of this research is to develop and test a theoretical model in which customer satisfaction mediates the relationship between a firm's relational benefits efforts (i.e. psychological, social, and special treatment benefits) and customer voluntary performance behaviors. Through a review of literature, a conceptual model was developed and then tested utilizing data collected from 522 hotel restaurant patrons. The results indicated that customer relational benefits influence customer voluntary behaviors, the impact of which is mediated by customer satisfaction. More importantly, it was found that the relationships among relational benefits, customer satisfaction, and customer voluntary performance differ depending on whether the surveyed customers had paid or free memberships with the companies in question. The managerial implications of these findings are discussed in the latter part of this article.

Human resource involvement in developing intellectual capital

Abstract: This study examined the extent of a strategic approach to human resource (HR) management in small and medium professional service firms, and if it is used to develop intellectual capital (IC). Data were collected from 165 Australian professional service firms. Path analysis showed that HR involvement and the adoption of a collective set of strategic HR practices contributed positively to IC levels (particularly human, social and organizational capital). IC acts as a mediator between HR practices and firm performance. HR practices alone did not increase the performance of the firms studied. The findings are unique in the context of studies on small- and medium-sized professional service firms in that a holistic approach to assessing both HR practices and all IC components was taken rather than examining the individual construct relationships. In the context studied, HR influence is critical to increasing IC.

Tourists' purchase intentions: impact of franchise brand awareness.

Abstract: This study examines how an intention on the part of tourists to purchase items for daily use is determined by their awareness of franchise-branded stores, the image of those brands, and the perceived risk of purchase from non-franchised stores within Taiwan. In that country franchised chains are an important component of the retail mix, and their presence in tourist destinations can influence shopping patterns. The results indicate that positive relationships exist between intentions to purchase items from franchise convenience stores and perceived risk of buying from unfamiliar retail outlets. Equally familiarity with the destination acts as a moderating variable, and this variable facilitates higher patronage of non-franchised stores by tourists. The results indicate a general preference for purchases from well-established franchised outlets than locally independent owned stores. Managerial implications for both types of stores in tourist zones are discussed.

Spatial competition and agglomeration in the visitor attraction sector

Abstract: This paper provides a theoretical and empirical contribution to understanding spatial competition by examining visitor attractions in two contrasting clusters of lower and higher levels of agglomeration of businesses in Cornwall, the UK. The study found that competition is mainly for customers and labour and is related differently to the levels of agglomeration, spatial proximity and thematic product similarity between visitor attractions at the local compared to the regional scale. Location can be used differently for employing ‘weak’ and ‘strong’ competitive strategies. The study contributes to the knowledge on the spatiality of competition and the locational strategies of service businesses.

Key drivers of services website loyalty

Abstract: The ease of website comparison and strong price competition encourage users to constantly switch tourism service providers. The present work analyses how satisfaction, trust, and commitment can help to strengthen loyalty towards websites selling accommodation services. Moreover, special attention is paid here to evaluate the moderating effects of gender on the relationships between these variables. Structural equation models were used to test the hypotheses on a sample of 230 Mexican Internet users, online purchasers of tourist accommodation services. The results show significant differences between men and women's post-purchase behaviour with a higher influence in women of trust on commitment and of commitment on loyalty towards accommodation services websites. Managerial implications for accommodation websites are provided.

Online service failure and propensity to suspend offline consumption

Abstract: Many retailers have expanded their businesses by adding Internet sales channels. There are many advantages of such multi-channel business operation, however, these may be offset by an overlooked negative consequence of cross-channel shopper activity – poor service online may lead customers to suspend consumption in a company's offline channels. Support is found for this proposition, and an investigation into the influence of purchaser characteristics and purchase criticality on propensity to engage in such behavior is conducted. The study makes contributions to understanding cross-channel customer behavior and developing implications for future research as well as management practice.

Customer orientation of frontline employees and organizational commitment

Abstract: This study investigates the effect of alignment between employee and firm customer orientation (FCO) on the organizational commitment of frontline service employees. Furthermore, the study examines how the size and nature of the discrepancy between employee customer orientation (ECO) and FCO affects organizational commitment. The results suggest that organizational commitment is stronger when employee and FCO are matched than when they are not. Furthermore, organizational commitment is slightly stronger when ECO exceeds FCO than when the reverse is the case. The results suggest that efforts expended by firms in hiring and retaining customer-oriented service workers will be unlikely to yield optimal commitment benefits without simultaneous investments to improve firm-level customer orientation.

A resource-advantage perspective on the orchestration of ambidexterity

Abstract: Strategic resources are key inputs to strategy that can form the basis of superior service performance, yet there is scarce research on the strategic resources used by managers to realise ambidexterity: the simultaneous pursuit of alignment and adaptability. In this article, we draw on a qualitative case study of a leading European airline and examine the resource bundles used by managers in their orchestration of ambidexterity. Adopting a resource-advantage perspective, the study illustrates elements of human, organisational, and informational capital that are mobilised by managers in their incorporation of alignment-oriented and adaptability-oriented activities. By moving beyond a linear association between strategic resources and ambidextrous organisations, we argue that managers' orchestration of ambidexterity is central to how service organisations manage their strategic resources and enhance competitiveness. Overall, we highlight the micro managerial level as an important point of observation to ext...

Measuring innovation in services: the role of surveys

Abstract: The main aim of this paper was to analyse the role of European innovation surveys in measuring innovation in services. The various community innovation surveys (CISs) are analysed in the light of the three main theoretical approaches to innovation in services, namely assimilation, service-oriented and integrative. The analysis performed shows a gradual change in the way in which European surveys have been structured over time, highlighting a partial shift from the assimilation approach towards the integrative one. Furthermore, the paper provides a systematic assessment of the CIS experience and of the lessons to be drawn from it.

Measuring customer pre-purchase satisfaction in a retail setting

Abstract: Previous studies have addressed customer satisfaction as a post-purchase phenomenon. However, examining solely post-purchase satisfaction when investigating consumer satisfaction is incomplete because multiple stages are involved in the purchase decision making process. Thus, the purpose of this study was to develop an instrument to assess customer satisfaction in the pre-purchase stage using procedures for developing a reliable and valid scale, as proposed by Churchill [1979. A paradigm of developing better measures of marketing constructs. Journal of Marketing Research, 16(1), 64–73.] and DeVellis [2003. Scale development: Theory and applications (2nd ed.). Thousand Oaks, CA: Sage.]. Two sets of data were collected to carry out two stages of scale purification – 98 subjects participated in the first stage and 443 subjects participated in the second stage. The factor structures, reliability, and construct validity were tested to assess the properties of the final scale. Findings revealed a 21-item, 6-dim...

Extra- and intra-organizational drivers of workplace deviance

Abstract: Workplace deviance is an employee behavior with detrimental effects on the organizational bottom line, which makes it of great interest for services management research. The author develops and estimates a model for understanding the relationship between extra- and intra-organizational antecedents and job satisfaction, which relates to workplace deviance. The model is tested using a sample of more than 270 occupationally diverse service employees. Results show that perceived customer unfriendliness, role ambiguity and service climate predict job satisfaction, which negatively affects workplace deviance. These results suggest implications for service management research and practice.

Impact of fit, involvement, and tenure on job satisfaction and turnover intention

Abstract: This study examined the interactive effects of need–supplies fit, job involvement, and job tenure on service sector employees' job satisfaction and turnover intention in Turkey. Survey data collected from 252 employees who worked in three different banks and one logistics company operating in Istanbul, Turkey, confirm the three-way interaction in predicting employees' turnover intention. In particular, the effect of needs–supplies fit on turnover intention was found to be more strongly positive for longer tenured, highly involved employees. Results also reveal that while the three-way interaction does not predict job satisfaction, the two-way interaction between needs–supplies fit and job involvement is significant. Specifically, needs–supplies fit had a stronger effect on the job satisfaction of highly job-involved employees than those with lower levels of involvement. Certain implications of these results, as well as avenues for future research, are discussed.

Relative importance and combined effects of attributes on customer satisfaction

Abstract: Customer satisfaction with a service experience is often determined by several critical attributes. Prior studies have suggested that food, physical environment, and employee service impose an important effect on diners' satisfaction with restaurant services. Although much research has looked at the direct effect of these attributes individually, little is known about them when they are considered together. This study investigates the relative importance and combined effects of the determinants of customer satisfaction in China's hospitality industry. The results show that food taste, employee service, and physical environment (in that order) all significantly contribute to diners' satisfaction, and that one attribute may substitute for another attribute in the satisfaction formation process. Generally, humanic attributes (employee service) can effectively substitute for less humanic attributes (physical environment).

Quality and productivity: role conflict in the service context

Abstract: This article presents a qualitative study exploring service employees’ experiences of quality–productivity tensions in the workplace, and how they cope with such conflicts. Semi-structured interviews were conducted with 50 service employees. Content analysis suggests that organization-level conflict derives from the different channels that service organizations use to convey the importance of quality (e.g. training) and of productivity (e.g. rewards) to employees. During service interactions, employees experience conflict when standardization is violated and productivity is threatened. Our results demonstrate and explain employees' strategies for coping with the conflict between productivity and quality and with the ‘double message' they receive about these two goals. Many of these strategies are intended to ensure quality while maintaining productivity. We discuss the study's contribution to service science, and explain existing organizational mechanisms and processes for communicating the importance of ...

‘Hollow from the start’? Professional associations and the professionalisation of tourism

Abstract: Occupations as diverse as nursing, journalism and marketing have strengthened their claim to professional status and current research suggests that professional associations played a critical part in the process of professionalisation. Following a review of three conceptual approaches to understanding contemporary professionalisation strategies, this paper examines the case of British tourism. It traces the historical development and assesses the current practice of the two main professional associations in the sector. The analysis shows that the ‘professionalisation project’ has largely failed and argues that contemporary frameworks for understanding professionalisation strategies are somewhat deficient when applied to tourism.

Simultaneous measurement of quality in different online services

Abstract: The purpose of our study is to propose a measurement model, based on two separate scales, to simultaneously test the quality of three services: online travel reservations, accommodation reservations and online ticketing. A scale to measure electronic service quality consists of four dimensions: design, functionality, privacy and information/reliability. The second scale used to measure recovery electronic service quality consists of two dimensions: access/contact and responsiveness. The findings indicate that our scales are reliable, valid and consistent among different contexts. To complete the validity assessment of the proposed scales, we test the nomological validity comparing different competing models.

Designing loyalty programs that matter to customers

Abstract: This study explores a model proposing a customer loyalty program as an identity marketing tool that evokes customer's identity salience (one's perception that a loyalty program membership is important to his/her identity). The results of a Web-based experiment indicate that identity salience is heightened by (1) the uniqueness and exclusiveness of a loyalty program (distinctiveness), and (2) by the fit between the function of the program's rewards and the customer's identity goal (identity congruence). The heightened identity salience, in turn, positively influences the customer's attitude toward the retailer, satisfaction with the loyalty program and the perceived quality of his/her relationship with the retailer.

Marketing to the mature learner: exploring the role of web communications

Abstract: At a time of great change within the higher education sector, this paper focuses on the challenges facing marketers in the UK's higher education industry Specifically, the research identifies the extent to which university marketing managers are conscious of the importance of market segmentation particularly with regard to the growing mature learner segment, and to what extent such marketers are using the web to engage and influence this older segment The evidence presented in this study suggests that the sample universities display an inadequate state of readiness to respond to the marketing challenges arising in the changing environment and that the opportunity to influence the growing and affluent mature learner market through online communication remains largely unexploited A general lack of a marketing orientation within the sector prevails