Considered Service-specific journals were Journal of Service Research, Journal of Service Management, Journal of Services Marketing, Journal of Service Theory and Practice, Service Industries Journal, Cornell Hospitality Quarterly, and Service Science.
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Jain, T. and J. Hazra (2019): Vendor’s Strategic Investments Under IT Outsourcing Competition, Service Science, 11(1), pp.16-39
The information technology (IT) outsourcing industry is worth several hundred billion dollars, spanning multiple verticals, such as banking, telecom, manufacturing, and retail. Because of fierce competition, billing rates are under intense pressure. Given this market condition, client firms select IT vendors through competitive bidding processes. In this paper, the authors analyze a scenario in which a client firm has uncertain IT service requirements and sources IT through a combination of long-term and short-term contracts, with long-term contracts sourced from a vendor selected through a bidding competition and short-term contracts sourced from an alternate market. The authors determine the optimal mix of these two types of contracts, finding that, when the mean demand is below a threshold value, an increase in demand variability suggests that the client firms increase the requirements sourced through competition. However, if the mean demand is above this threshold value, an increase in demand variability suggests a decrease in the requirements sourced through bidding. To participate in this bidding competition, vendors must invest in capacity, including reskilling the talent pool, hiring workforce, purchasing software licenses, establishing the onshore software development office, etc. The authors also derive several insights on the capacity investment decision of vendors participating in such capacity competitions.
Link: http://dx.doi.org/10.1287/serv.2018.0233 [Google]
Ma, J., Y. T. Leung and M. Kamath (2019): Service System Design Under Information Uncertainty: Insights from an M/G/1 Model, Service Science, 11(1), pp.40-56
Service providers must to decide on the capacity of their service systems based on limited available information, such as transaction arrival rate, service level required by the client, and fixed/variable costs. Often, input parameters to this capacity planning problem, such as transaction arrival rate, are uncertain at design time, and planning must rely on estimates. Nevertheless, service providers that violate service-level requirements during actual operation may incur a penalty. In this paper, the authors analyze this capacity planning problem using an M/G/1 queuing model to analytically derive the optimal capacity under the assumption that transaction arrival rate is only known to be within a range. They use the model solution to obtain some insights on how demand information uncertainty impacts such service businesses.
Link: http://dx.doi.org/10.1287/serv.2018.0234 [Google]
Paul, J. A., H. Ni and A. Bagchi (2019): A Study of the Effects of Certificate of Need Law on Inpatient Occupancy Rates, Service Science, 11(1), pp.1-15
Increasing healthcare costs and the deterioration of healthcare quality have always been major concerns to policy makers in the United States, and Certificate of Need (CON) law has been implemented as one way to curb wasteful healthcare resource use. From a theoretical standpoint, CON can lead to a reduction in the number of beds as well as in the number of inpatient days (possibly by shortening the length of patient stay). However, these two effects impact inpatient occupancy rate in opposite directions. We test empirically to find out which of these two effects dominate. In this study, we investigate the impact of CON and its stringency (which is different across states with CON laws) on the inpatient occupancy rate using panel data, and we find that, on average, CON legislation reduces occupancy rate in inpatient units. Our tests evaluating CON and its features for endogeneity fail to obtain statistical support.The online appendix is available at https://doi.org/10.1287/serv.2018.0228.
Link: http://dx.doi.org/10.1287/serv.2018.0228 [Google]
Alhathal, F. T., P. Sharma and R. P. J. Kingshott (2018): Moderating effects of service separation on customer relationships with service firms: A social-exchange perspective, Journal of Service Theory and Practice, 29(1), pp.71-92
Purpose The purpose of this paper is to examine the impact of service separation on the ability of service firms to build and maintain customer relationships, by exploring the differences in the strength of interrelationships among key relational constructs between separated and unseparated service delivery modes. Design/methodology/approach A field survey was conducted with retail banking customers in Saudi Arabia (n=592) using a structured self-administered questionnaire consisting of well-established scales. Data were analyzed using AMOS 24. Findings Service separation negatively moderates (weakens) the ability of the service firms to leverage their social benefits, relational trust and affective commitment to increase customer loyalty and to strengthen overall customer relationships. Research limitations/implications This study uses retail banking customers in Saudi Arabia to test the impact of service separation in their relationship with the bank; hence, its findings may not be generalizable to other types of services and cultural settings. Practical implications Service firms using online and mobile technologies should be aware that trust and commitment remain key to building customer loyalty. Hence, the trade-off between the benefits of these technologies and their negative impact on customer relationship needs to be factored into managerial decision making. Originality/value The paper highlights the importance of maintaining face-to-face interactions with service customers to create robust relationships that yield loyalty, despite the growing popularity of online and mobile technologies.
Link: http://dx.doi.org/10.1108/JSTP-09-2017-0149 [Google]
Hongbo, L., M. Waqas and H. Tariq (2018): From victim to saboteur: Testing a moderated mediation model of perceived undermining, state hostility, and service sabotage, Journal of Service Theory and Practice, 29(1), pp.2-21
Purpose By integrating affective events theory and insights from the displaced aggression literature, the purpose of this paper is to highlight that state hostility can serve as an explanation for how perceived undermining by co-workers leads to antagonistic consequences. Distress tolerance and organizational identification are theorized to moderate the hypothesized relationships that are investigated in this study. Design/methodology/approach PROCESS macro developed by Hayes (2013) was used to test all the hypotheses by using time-lagged, multi-source data collected from 218 Chinese employees associated with the service industry. Findings The paper finds that state hostility seems to trigger unethical behavior on the part of employees resulting in service sabotage. It is concluded that perceptions of undermining are positively linked to employees? hostility, which in turn drive service sabotage behavior. Furthermore, employee distress tolerance weakens the effects of perceived undermining on employees? state hostility, while organizational identification alleviates the effect of employees? hostility on service sabotage behavior. Practical implications This study not only highlights the outcomes of perceived coworker undermining, the mechanism through which it occurs, and the moderating effects of given factors, but also provides insights to the organizations for managing service sector employees so that they can more effectively interact with customers. The findings suggest that employees with high organizational identification are less involved in service sabotage, thus, such measures are necessary to take which help employers to enhance employees? organizational identification. The authors also suggest managers to clearly communicate the adverse consequences which employees could have to face if they exhibit unethical behavior. Originality/value This study addresses the question: when and how perceived coworker undermining affects customers? services. To date, most of the existing literature considered customers? negative event and customers? mistreatment as an antecedent of employees? service sabotage. However, this study concluded that these are not the only reasons for employees? service sabotage, employees? interpersonal mistreatment which occurred beyond customers? interaction also causes service sabotage.
Link: http://dx.doi.org/10.1108/JSTP-02-2018-0030 [Google]
Keh, H. T., N. Hartley and D. Wang (2019): The differential effects of separated vs. unseparated services: The roles of performance risk and regulatory focus, Journal of Service Theory and Practice, 29(1), pp.93-118
Purpose The purpose of this paper is to examine the effects of service separation on perceived value and intention to enroll in the higher education context, as mediated by perceived performance risk and moderated by an individual?s regulatory focus. Design/methodology/approach Four experimental studies were conducted, a pilot study and three main studies. Participants evaluated higher education courses offered in either the unseparated (on-campus) or separated (online) mode. Findings Results show that: service separation influences perceived value; this effect is mediated by performance risk; and moderated by regulatory focus. Specifically, participants perceive higher education courses offered in the separated mode to have greater performance risk, which lowers their perceived value. This effect is enhanced for prevention-focused participants and mitigated for promotion-focused participants. Finally, service separation is found to influence intention to enroll in a course via performance risk and perceived value. Practical implications The findings suggest that higher education providers need to better understand students? regulatory focus. In particular, online education providers should target potential students who are promotion-focused and implement strategies to reduce performance risk, which would give students greater assurance that the online course will be delivered as promised. Originality/value The present research is the first to examine the effects of service separation in the context of higher education, which has received relatively little attention in the services marketing literature. In particular, the findings shed new insights on the mechanisms underlying consumer perceptions of separated vs unseparated service offerings, which contribute to research on services marketing and higher education.
Link: http://dx.doi.org/10.1108/JSTP-04-2018-0097 [Google]
Moon, T. W., W.-M. Hur and Y. J. Choi (2018): How leaders’ perceived emotional labor leads to followers’ job performance: A serial mediation model, Journal of Service Theory and Practice, 29(1), pp.22-44
Purpose Previous research has focused mainly on the antecedents and consequences of service employees? emotional labor during the enactment of service roles, with little attention having been paid to how perceptions of leaders? emotional labor are related to followers? job outcomes. The purpose of this paper is to propose a model in which followers? perceptions of the uses of emotional labor by leaders toward customers influence followers? job performance in their service encounters. Design/methodology/approach Working with a sample of 268 medical service employees in South Korea, structural equation modeling was employed to test the research hypotheses. Findings The results indicate that perceptions of leaders? deep acting toward customers are positively related to followers? perceptions of authentic leadership. Second, followers? perceptions of authentic leadership are positively associated with their identification with and trust in their leaders. Finally, followers? identification with and trust in their leaders is positively related to their job performance. Research limitations/implications The research shows that leaders? use of deep acting toward customers has a positive effect on followers? job outcomes. Thus, service firms should consider training programs, mindfulness and policy changes regarding display rules at the organizational level so that service employees are encouraged to use deep acting with customers by empathizing with the customers? needs, while regulating their inner feelings. Originality/value The current study broadens the conceptual work and empirical studies in the emotional labor literature related to the service sector by presenting a fundamental mechanism for the effect of perceptions of leaders? use of emotional labor toward customers on service employees? job performance. This study is the first to provide an empirical test of how leaders? emotional labor is related to followers? job performance.
Link: http://dx.doi.org/10.1108/JSTP-11-2017-0201 [Google]
Tuominen, T. and M. Martinsuo (2018): Employees’ agency in the formalisation of knowledge-intensive business service processes: A cross-case comparison, Journal of Service Theory and Practice, 29(1), pp.45-70
Purpose The purpose of this paper is to identify and explain how different kinds of knowledge-intensive business service processes (KIBS processes) can be formalised without excessively limiting employees? agency, and thus flexibility in value creation. Previous research acknowledges the need to balance flexibility and formalisation but does not investigate how employees achieve this balance in various types of KIBS processes. Design/methodology/approach This paper employs a qualitative multiple-case study approach to compare employees? agency in six successful formalisation projects targeting different types of KIBS processes in three firms. Through a systematic mapping of employees? agency across the cases, this study reveals alternative patterns of formalisation that enable agency. Findings The findings reveal notable differences in employees? agency in the studied cases. When KIBS processes were scale intensive and/or the culture-favoured conformity, formalisation projects were centrally organised, and employees obeyed codified process templates, even though some agency remained. When KIBS processes were smaller scale and/or the culture-favoured freedom, employees conducted formalisation projects autonomously and retained higher levels of agency in formalised KIBS processes. Practical implications Firms and business units providing KIBS should choose their formalisation approaches locally based on the scalability of the KIBS process, their employees? skill levels, knowledge bases and culture. Choosing the right approach enables flexibility while striving for efficient processes. Originality/value Previous studies suggest that formalisation benefits only some KIBS, but this comparative approach shows that a variety of KIBS processes benefit from formalisation if the formalisation approach is tailored to the context. Alternative patterns of formalisation are revealed to guide further empirical research on the topic.
Link: http://dx.doi.org/10.1108/JSTP-10-2017-0184 [Google]
