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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McColl-Kennedy, J. R., M. Zaki, F. Urmetzer, A. Neely and K. N. Lemon (2019): Gaining Customer Experience Insights That Matter, Journal of Service Research, 22(1), pp.8-26
Contextualized in postpurchase consumption in business-to-business settings, the authors contribute to customer experience (CX) management theory and practice in three important ways. First, by offering a novel CX conceptual framework that integrates prior CX research to better understand, manage, and improve CXs—comprised of value creation elements (resources, activities, context, interactions, and customer role), cognitive responses, and discrete emotions at touchpoints across the customer journey. Second, by demonstrating the usefulness of a longitudinal CX analytic based on the conceptual framework that combines quantitative and qualitative measures. Third, by providing a step-by-step guide for implementing the text mining approach in practice, thereby showing that CX analytics that apply big data techniques to the CX can offer significant insights that matter. The authors highlight six key insights practitioners need in order to manage their customers’ journey, through (1) taking a customer perspective, (2) identifying root causes, (3) uncovering at-risk segments, (4) capturing customers’ emotional and cognitive responses, (5) spotting and preventing decreasing sales, and (6) prioritizing actions to improve CX. The article concludes with directions for future research.
Link: http://dx.doi.org/10.1177/1094670518812182 [Google]
Lyons, P. and L. Brennan (2019): Assessing Value From Business-to-Business Services Relationships: Temporality, Tangibility, Temperament, and Trade-Offs, Journal of Service Research, 22(1), pp.27-43
Theoretical contributions exploring service value in business-to-business (B2B) settings have significantly lagged those that consider goods markets and business-to-consumer (B2C) contexts. To address this gap, this article focuses on the interfirm relationship as the fulcrum through which service value is created and exchanged. Specifically, we analyze how relationship value is assessed by actors and their organizations over the lifetimes of service engagements. Through in-depth interviews with 38 executives representing customer and provider firms, we study three cases with durations ranging between 9 and 11 years. We develop a model demonstrating value assessment to be a dynamic, socially constructed, and multilevel phenomenon, in which structured institutional bodies and unstructured collectives within firms display different priorities in their assessments. The model also demonstrates the critical role of relationship leaders in influencing these positions and negotiating consensus. Our analysis reveals value assessments to be both a sustenance for, and an output from, B2B service relationships. We contribute to knowledge and theory of relationship value and offer managerial actions to promote improvement in assessments of this value in B2B services settings.
Link: http://dx.doi.org/10.1177/1094670518805569 [Google]
Albrecht, A. K., G. Walsh, T. Schaefers and S. E. Beatty (2019): The Effect of Compensation Size on Recovery Satisfaction After Group Service Failures: The Role of Group Versus Individual Service Recovery, Journal of Service Research, 22(1), pp.60-74
Two experimental studies reveal that customers’ reactions to different levels of recovery compensation differ between a recovery that occurs at the group level (such that every customer knows that every other affected customer receives the same compensation) and one that occurs at the individual level (such that the individual does not know whether and how much compensation other affected customers receive). In both cases, recovery compensation exhibits diminishing returns on compensation size in terms of recovery satisfaction. However, at the group level, the rate at which the returns on compensation diminish is greater and satisfaction reaches a plateau at lower compensation levels than at the individual level. The salient social comparison made during a group service recovery (GSR), as evidenced by the mediating role of distributive justice, explains these effects. Finally, we note that at midrange compensation levels, GSR and individual service recovery did not lead to different levels of recovery satisfaction, suggesting a zone of tolerance or indifference at these levels. Further, our findings yield important managerial implications for the efficient allocation of service recovery resources after a group service failure.
Link: http://dx.doi.org/10.1177/1094670518802059 [Google]
Chandler, J. D., I. Danatzis, C. Wernicke, M. A. Akaka and D. Reynolds (2019): How Does Innovation Emerge in a Service Ecosystem?, Journal of Service Research, 22(1), pp.75-89
To advance the study of innovation in complex settings, this study integrates the innovation, institutional theory, philosophy, and service-dominant logic literatures. Exploring the emergence of innovation and service ecosystem dynamics, researchers take an abductive approach anchored in over 4 years of case study data regarding a high technology solution in an Internet-of-Things setting. By framing innovation as a systemic process, the study reveals that (1) institutional reconciliation is an overlooked phase of innovation, (2) ideas are refined by four types of institutional reconciliation pressures (tensions, divergences, expected value, and service), and (3) innovation is influenced by plasticity in four ways (recursivity, temporality, complementarity, and continuity). Based on these findings, the authors outline a research agenda regarding four principles of innovation as a systemic process. The findings suggest that managers should nurture norms, rules, and beliefs through a systemic process that facilitates the emergence of innovation.
Link: http://dx.doi.org/10.1177/1094670518797479 [Google]
Dechant, A., M. Spann and J. U. Becker (2019): Positive Customer Churn: An Application to Online Dating, Journal of Service Research, 22(1), pp.90-100
In the service literature, churn is primarily attributed to customers who are dissatisfied with a service. However, in several industries, such as health care, weight loss services, and online dating, satisfied customers also churn because the service delivers on its promise, for example, by providing a cure, facilitating weight loss, or creating the circumstances that allow a person to meet their partner. Considering these dual churn pathways, it is necessary for companies in these markets to create awareness of what drives positive and negative churn to address the corresponding challenges for managing customer relationships. This study defines and theoretically discusses the concept of positive churn and outlines its consequences for companies in the short- and long term. Based on an analysis of combined observational and survey data from 1,369 customers, we empirically demonstrate the necessity of accounting for positive and negative churn by analyzing this phenomenon in online dating. Furthermore, this article discusses opportunities for future research on positive churn.
Link: http://dx.doi.org/10.1177/1094670518795054 [Google]
Auh, S., B. Menguc, P. Imer and A. Uslu (2019): Frontline Employee Feedback-Seeking Behavior: How Is It Formed and When Does It Matter?, Journal of Service Research, 22(1), pp.44-59
This research comprises two studies that extend the literature on the proactive behavior of feedback seeking. Study 1 uses cross-sectional data from frontline employees across 51 apparel stores to examine how feedback seeking is formed and under what conditions. The results suggest that the development of feedback-seeking behavior is contingent on a feedback-seeking climate and the relationship between an employee and his or her supervisor. Study 2 uses longitudinal data collected across three time periods from multiple respondents (i.e., frontline employees and managers) not only to replicate the findings from Study 1 but also to explore when feedback seeking matters. The findings reveal that managers should target employees who are less (vs. more) satisfied with their jobs because such employees perceive more instrumental value from feedback as a means to improve customer service and sales performance. The findings from this research provide insights that managers can use to increase feedback-seeking behavior from employees and effectively identify and manage the conditions under which feedback seeking will occur to greater or lesser degrees.
Link: http://dx.doi.org/10.1177/1094670518779462 [Google]
Bridges, E. (2018): Executive ethical decisions initiating organizational culture and values, Journal of Service Theory and Practice, 28(5), pp.576-608
Purpose Ethical decisions determine which individuals and/or groups benefit, and which suffer. Such decisions by executives impact front-line providers directly and customers indirectly; they are important because repercussions in service interactions feel personal. The purpose of this paper is to fill an important gap in the service literature by exploring how high-level executives make ethical decisions, creating values and culture within an organization; the results include testable propositions. Design/methodology/approach The research used a grounded theory approach, wherein high-level executives in successful service organizations responded through in-depth interviews. Complete interview transcripts were analyzed using standard qualitative methodology, including open coding to better understand and categorize the data, axial coding to seek out crucial relationships between concepts, and selective coding to develop research propositions. Findings Data analysis revealed two groups of interviewees, one more outcome-oriented in decision making and the other more process-oriented. The organizations led by more outcome-oriented executives have strong family-like (or paternalistic) cultures, whereas the organizations led by more process-oriented executives value adaptability and diversity. Research limitations/implications The executives interviewed are quite successful; therefore, it is not possible to make inferences about unsuccessful executives or those leading poorly performing organizations. Propositions developed relate that process-oriented executives use both analytical measures and intuition in decision making, whereas outcome-oriented respondents rely more heavily on analytical measures. Practical implications Service executives apparently make ethical decisions while focusing either on processes or on outcomes; members of these two groups use different evaluative criteria to identify a successful decision. Decisions relating to people within the organization are perceived by the executives to be especially salient, apparently owing to interpersonal interaction in services. Social implications There are inherent social implications when ethical decisions are made, because these decisions determine which individuals or groups benefit, and which suffer. Originality/value This research is among the first to interview high-level service executives about their ethical decision making when their choices define culture and values within their organizations. Findings offer a new look at how differences between executives that focus on processes and those that focus on outcomes may shape organizational cultures and lead to consideration of different criteria in making and evaluating decisions.
Link: http://dx.doi.org/10.1108/JSTP-07-2017-0106 [Google]
Canina, L. and G. Potter (2019): Determinants of Earnings Persistence and Predictability for Lodging Properties, Cornell Hospitality Quarterly, 60(1), pp.40-51
Accounting earnings are used extensively in the lodging industry for the purposes of incentive contracting, credit assessment, and valuation but we know little about the attributes of lodging properties’ accounting earnings and their determinants. Two important attributes of accounting earnings are persistence and predictability, which have been identified as key components of sustainable earnings. In this study, we examine a sample for lodging properties over a lengthy time-period to investigate the property-specific determinants of the persistence and predictability of lodging properties’ earnings. We find that barriers to entry, measured by the relative amount of marketing expenditures, have a positive impact on these earnings attributes. We also find that revenue diversification has a positive effect on these attributes, presumably through its impact on earnings stability. Finally, we find that resource rigidity, as measured by operating leverage and labor intensity, have a consistent dampening impact on persistence and predictability.
Link: http://dx.doi.org/10.1177/1938965518791729 [Google]
Dogru, T. and A. Upneja (2019): The Implications of Investment–Cash Flow Sensitivities for Franchising Firms: Theory and Evidence From the Restaurant Industry, Cornell Hospitality Quarterly, 60(1), pp.77-91
Expansion through franchising could help restaurant firms solve financial constraints, but it could also make overinvestment easier for misaligned CEOs. Whereas the former topic has been extensively examined, the latter has received scant attention from researchers. The purpose of this study is to investigate whether franchising alleviates financial constraints or leads to overinvestment problems in restaurant firms. For this purpose, we analyzed and compared investment–cash flow sensitivities between constrained and unconstrained; franchising and nonfranchising; constrained, franchising and unconstrained, franchising; and constrained, nonfranchising and unconstrained, nonfranchising restaurant firms. The results show that unlike other industries, unconstrained restaurant firms depend more on cash flows for investment than constrained restaurant firms do. Although investment–cash flow sensitivity in nonfranchising restaurant firms was similar to that of firms in other industries, unconstrained restaurant firms that expand through franchising rely more on cash flows. These findings suggest that restaurant firms’ expansion through franchising is likely to increase overinvestment problems. Franchising could serve as a long-term method of financing for financially constrained firms as well as a short-term financing tool. However, unconstrained, franchising firms should distribute their excess cash flows to shareholders. Theoretical implications are discussed within the realms of the franchising, pecking order, and free cash flow theories.
Link: http://dx.doi.org/10.1177/1938965518783167 [Google]
Turner, M. J. and J. W. Hesford (2019): The Impact of Renovation Capital Expenditure on Hotel Property Performance, Cornell Hospitality Quarterly, 60(1), pp.25-39
This study investigates the impact of renovation capital expenditure on multiple measures of hotel property performance. We conduct analyses in two time periods: for a 3-year period immediately following renovation (short-term impact), and 3 to 6 years following renovation (long-term impact). The study is based on proprietary project, operational and financial data obtained for 305 renovation capital expenditure projects of individual properties within a single budget hospitality chain. We find renovation capital expenditures offer significant short-term beneficial impact in terms of increased revenue, profitability gains, higher customer satisfaction, and decreased repair and maintenance expense. Altogether, these outcomes should be advantageous to hotel property performance. In the long-term, a significant decline is apparent in revenue and profitability. Surprisingly, customer satisfaction does not decline, and repair and maintenance expense does not increase, which are both favorable.
Link: http://dx.doi.org/10.1177/1938965518779538 [Google]
Kim, M. and Y. Kim (2019): CSR and Shareholder Value in the Restaurant Industry: The Roles of CSR Communication Through Annual Reports, Cornell Hospitality Quarterly, 60(1), pp.69-76
Studies on the effects of corporate social responsibility (CSR) on shareholder value identified that CSR communication through marketing channels is a key mechanism necessary to translate CSR into shareholder value. In this study, annual reports are considered the primary information source used by a firm’s financial stakeholders (e.g., investors and analysts) in their valuation of the firm. Specifically, this study examined whether the extent to which restaurant firms communicate CSR through their annual reports influences the effect of CSR on shareholder value in returns (i.e., Tobin’s Q) and risks (i.e., equity-holder risk). CSR was disaggregated into two distinct types for primary and nonprimary stakeholders. Results corroborate that communicating CSR for nonprimary stakeholders through annual reports helps the nonprimary-stakeholder CSR to increase shareholder value by reducing equity-holder risk, whereas communicating CSR for primary stakeholders does not affect the value relevance of the primary-stakeholder CSR through a change of either Tobin’s Q or equity-holder risk.
Link: http://dx.doi.org/10.1177/1938965518777969 [Google]
Valentin, M. and J. W. O’Neill (2019): The Value of Location for Urban Hotels, Cornell Hospitality Quarterly, 60(1), pp.5-24
This study finds that hotel location significantly contributes to the property market value. With a sample of more than 600 hotel sales transactions within the Chicago Metropolitan Statistical Area (MSA), the theory that properties located closer to the city center, that is, the Loop, carry market value premiums is tested and supported by the data. Despite being the predominant spatial value driver for hotels, the effect of proximity to the city center is found to be heterogeneous. An additional mile away from the Loop decreases property value by 13% on average when the hotel is located within the 10 miles from the Loop. However, value decreases at a much lower pace when hotels are located outside this 10-mile buffer. Other spatial variables, such as access to transportation systems and neighborhood dimensions, show that accessibility and environment play a lesser but decisive role in hotel market value. Practitioners and researchers may benefit from these findings mostly when comparing and analyzing hotel market values in a context similar to the urban structure of Chicago.
Link: http://dx.doi.org/10.1177/1938965518777725 [Google]
Singh, A. (2019): Predicting the Likelihood of Lodging CMBS Loan Default, Cornell Hospitality Quarterly, 60(1), pp.52-68
This study investigates whether the traditional underwriting loan metrics, loan-to-value (LTV), debt coverage ratio (DSCR), and debt yield (DY) ratio, can predict lodging commercial mortgage-backed securities (CMBS) loan defaults. Using a data set of 5,266 fixed-rate lodging whole loans that were securitized into CMBS between 1996 and 2015, the results of the study provide evidence of significant relationships between all three metrics and the likelihood of default. The LTV varies positively with default, while the DSCR and DY are negatively related to default. These results hold for a subsample analysis of loans originated prior to the global financial crisis (GFC). Finally, the results show the DY spreads to be adequate proxies for the DY ratio.
Link: http://dx.doi.org/10.1177/1938965518777222 [Google]
Ittamalla, R. and D. V. Srinivas Kumar (2019): The impact of social cues on passengers’ travel experience, Service Industries Journal, 39(0), pp.299-318
Despite the importance of social cues in service experience environments, little is known about the role of other customer perceptions (OCP) in the formation of passengers’ travel experience (PTE) and loyalty in public transportation. This study examines the impact of OCP on PTE and loyalty in public transportation and also investigates the moderating role of face-consciousness between OCP and PTE. Results revealed that all three dimensions of OCP have a positive effect on PTE, which consequently influences loyalty. More importantly, face-consciousness moderated the relationship between suitable behavior and PTE. Transport managers can benefit from these findings by considering the social environment as they design their services.
Link: http://dx.doi.org/10.1080/02642069.2018.1521389 [Google]
Olugbade, O. A. and O. M. Karatepe (2019): Stressors, work engagement and their effects on hotel employee outcomes, Service Industries Journal, 39(0), pp.279-298
Our study aims to revisit the challenge-hindrance stressor framework among customer-contact employees. Specifically, our study links challenge and hindrance stressors to four critical employee outcomes via work engagement (WE). These outcomes are quitting intentions, service recovery performance, creative performance, and job performance. Data came from hotel employees in customer-contact positions in three waves and their direct supervisors in Nigeria. As hypothesised, WE fosters service recovery, creative, and job performances, while it mitigates quitting intentions. Inconsistent with our predictions, hindrance stressors boost WE and challenge stressors exert detrimental effects on WE. Although WE links challenge and hindrance stressors to the aforementioned outcomes, the signs of the mediating effects are not congruent with what is hypothesised in the study. These unexpected findings agree with Bakker and Sanz-Vergel’s [2013] proposition that categorisation of job demands as challenge or hindrance stressors may not always be straightforward.
Link: http://dx.doi.org/10.1080/02642069.2018.1520842 [Google]
Antwi, C. O., C.-j. Fan, M. O. Aboagye, P. Brobbey, Y. Jababu, E. Affum-Osei and P. Avornyo (2019): Job demand stressors and employees’ creativity: a within-person approach to dealing with hindrance and challenge stressors at the airport environment, Service Industries Journal, 39(0), pp.250-278
Given the competitiveness of twenty-first-century airport landscape, catalyzed by airports’ evolution toward multi-service, and market-driven firms, a thorough investigation into employees’ creativity and its antecedents at the airport environment is warranted. Adopting the two-dimensional job demand stressors – outcome relationships framework and the cognitive-relational theory of stress, the current study interrogated the challenge (i.e. workload and time pressure)/ hindrance (i.e. role conflict and role ambiguity) stressors – creativity curvilinear relationships, and the buffering effects of within-person resources – dispositional mindfulness, and core self-evaluation. Using multi-sourced, cross-sectional data from employees in three airports in Ghana, the research findings showed creativity to have a U-shaped relationship with role ambiguity and role conflict, but with time pressure the relationship was an inverted U-shape. Employees’ workload showed a near-linear relationship with creativity, flattening at high levels of workload. Core self-evaluation displayed itself as an effective buffering component on role ambiguity – and time pressure – creativity relations but not role conflict and workload. Dispositional mindfulness interacted with role ambiguity, role conflict and time pressure – creativity relations, but not workload. To optimize employees’ creative performance, the study findings make a strong case for attending to individual-level factors necessary for stressors management. Further implications and recommendations are discussed.
Link: http://dx.doi.org/10.1080/02642069.2018.1520220 [Google]
Lee, M., M. Kang and J. Kang (2019): Cultural influences on B2B service quality-satisfaction-loyalty, Service Industries Journal, 39(0), pp.229-249
The link between service quality, customer satisfaction, and customer loyalty has drawn the attention of both academic researchers and practitioners. They are also focusing on the effect of cultural differences on customer attitudes and behaviour in the global service industry. This paper examines the relationships between service quality, customer satisfaction, and loyalty as well as the moderating effect of cultural differences on the above relationships in the industrial business-to-business (B2B) service sector. The paper presents an empirical study using datasets collected from 7652 industrial customers across 55 countries and uses structural equation modeling (SEM) to test the hypotheses. The application of Net Promoter Score (NPS) as a customer loyalty metric based on customer experience management (CEM) is studied in relation to customer satisfaction. The study results demonstrate the positive relationship of service quality, satisfaction, and loyalty. In terms of the effect of cultural differences, the study finds that cultural dimensions of uncertainty avoidance negatively moderate the relationship between service quality and satisfaction, while individualism positively moderates the relationship between service quality and satisfaction. However, cultural differences do not impact on the relationship between satisfaction and loyalty.
Link: http://dx.doi.org/10.1080/02642069.2018.1495710 [Google]
Bagiran Ozseker, D. (2019): Towards a model of destination innovation process: an integrative review, Service Industries Journal, 39(0), pp.206-228
The goal of the present paper is to integrate five types of literature related to the innovation process (i.e. cluster theory, innovation systems, network relations, knowledge management, and innovation types) and apply them to the local tourism destination to build a destination innovation process model with macro and micro perspectives. The suggested models intend to broaden the thinking on destination innovation process for tourism-related agents at the local and national level. The paper undertakes a careful review of the relevant literature before creating the conceptual models. The paper’s novelty and uniqueness lies in suggesting a new conceptual model of addressing how innovation competence of tourism destinations can be developed, and offering insight for tourism-related agents at the local and national level into how to effectively create and manage innovations. Future research should undertake empirical studies to test the integrated models presented in this conceptual paper.
Link: http://dx.doi.org/10.1080/02642069.2018.1491970 [Google]
Araslı, H. and H. E. Arıcı (2019): The art of retaining seasonal employees: three industry-specific leadership styles, Service Industries Journal, 39(0), pp.175-205
The majority of leadership studies have centered on various leadership approaches, but there is limited research that has focused on seasonal employee leadership (SEL) in the hospitality literature. Hence, there is a need to develop a new leadership model which could help to understand how to retain seasonal employees in the hospitality industry. This study divided seasonal employees into three types by using semi-structured interviews and document analysis. These are suspended employees (Type-A), seasonal trainee (Type-B), and spoon-feeding employees (Type-C). Three different leadership styles were developed according to each type of seasonal employees; suspending leadership for type A, mentor leadership for type B, and spoon-feeding leadership for type C. The study makes an important contribution to the leadership literature by aligning employee types with different leadership styles in the hospitality industry.
Link: http://dx.doi.org/10.1080/02642069.2018.1478412 [Google]
