Organizational intellectual capital and its relation to frontline service employee innovative behavior: consumer value co-creation behavior as a moderator

Frontline service employee innovative behavior is “the moment of truth” that significantly affects organizational performance. Yet, little research has investigated the effect of organizational intellectual capital on frontline service employee innovative behavior. This study used SPSS 24.0 and AMOS 20.0 to examine the structural model and the hypothetical effects of (1) different dimensions of organizational intellectual capital on frontline service employee innovative behavior and (2) consumer value co-creation on frontline service employee innovative behavior along the dimensions of organizational intellectual capital. A total of 282 valid questionnaires were collected from frontline service employees working at a travel agency located in Taipei, Taiwan. Human capital and customer capital were found to positively affect frontline service employee innovative behavior. The interactions between consumer value co-creation and human and customer capital had a significant moderating effect on frontline service employee innovative behavior.     

The Development of Tertiary Services in the Economy,Labour Market and Employment

The purpose of the present study is to examine the effects of selected antecedents on the service recovery performance of frontline employees using data from frontline bank employees in Turkey. The results of the path analysis indicate that trait competitiveness, intrinsic motivation, and role ambiguity are significant antecedents of frontline employees' service recovery performance. Results also suggest that the significant consequences of service recovery performance are job satisfaction and intention to leave. The results of the other hypothesised linkages demonstrate that intrinsic motivation, emotional exhaustion, and role ambiguity are significantly associated with frontline employees' job satisfaction. In addition, the current empirical findings provide support for the notion that role ambiguity and emotional exhaustion are significant predictors of intention to leave. Limitations of the study, managerial implications, and implications for future research are discussed.     

Between a rock and a hard place: Seizing the opportunity of demanding customers by means of frontline service behaviors

Service businesses are increasingly facing more demanding customers as a result of a shift in power from the service providers' side to the customers' side. Related literature predominantly examines the negative side of this ongoing trend, while overlooking the positive side. The major aim of this paper is to examine how frontline employees — investment account managers — deal with the ongoing increase in customer demandingness. To address this, we draw on adaptability performance theory to test the facilitating effect of frontline employees' post-transaction service behaviors (SBs) — diligence, inducements, information communication, sportsmanship, and empathy — as a means of adaptation to higher levels of customer demand. Findings indicate that frontline employees adapt most of their SBs' intensities to match customers' demands. The results show that some SBs actually increase the effectiveness and efficiency of frontline employees' service performance, leading to an increase in customer value and satisfaction. Customer value is found as a mediator in some of the relationships between SBs and customer satisfaction. Contrary to the conception of the negative outcomes of customer demandingness, service firms need to consider taking advantage of customer demandingness by stressing the role of frontline employees in adapting to customers’ demands.     

Climate perceptions and the customer orientation of frontline service employees

Satisfaction of customers' needs is particularly dependent upon the customer orientation of frontline employees. Understanding the drivers of such orientation is, therefore, a key issue in current research. Research relating perceptions of organisational values with the customer orientation of employees is rather sparse. This topic is approached by investigating the role of selected dimensions of psychological climate in promoting the customer orientation of frontline service employees. A structural equations model is developed and empirically tested, indicating that perceptions of customer, ethical, and innovation climates exert an indirect effect on the adoption of customer-oriented behaviours by frontline employees.     

Employee emotional response toward healthcare organization’s service recovery efforts and its influences on service recovery performance

Previous studies on service recovery performance of frontline employees have focused primarily on the direct relationship with the organizational efforts for service recovery. However, based on the reformulation of attitude theory (appraisal-emotional response-behaviour), we believe that the emotional responses (work engagement and burnout) toward organizational efforts for service recovery of frontline employees mediate the relationship. Thus, the purpose of this study is to examine how healthcare frontline employees show their emotional response toward the organizational efforts for service recovery and it influence on actual recovery performance. This study uses two conflicting emotional responses, burnout and work engagement, to examine how employees react toward organizational efforts, helping better understand employees?? evaluations of the efforts. Research model and hypothesis were tested using a sample of frontline employees who perform none-clinical activities in hospitals. The results showed that teamwork and empowerment have positive effects on work engagement. In addition, customer complaint management, empowerment, and teamwork influenced negatively on burnout. Lastly, work engagement and burnout showed statistically significant impact of service recovery performance of frontline employees. Among the organizational efforts for service recovery, teamwork was the most important factor in improving frontline employees?? work engagement and lessened their burnout, respectively. Interestingly, customer service training had a negative effect on burnout. Besides, by comparing our research model to two alternative models, we confirmed the validity of the research model.     

Factors affecting employee willingness to report customer feedback

Effectively capturing consumer feedback can help organizations swiftly react and improve the quality of their service processes and delivery systems. In most organizations, frontline employees are a vital source of customer feedback as they interact with customers frequently and intimately. Thus, the current paper seeks to understand the factors influencing employee willingness to report customer feedback up the organizational channels of communication. The conceptual model was tested empirically using data collected from major chain restaurants in Taiwan involving 332 frontline employees. A hierarchical regression analysis was used to test the hypothesized model. The obtained results demonstrate the impact of service climate, perceived organizational support, and internal locus of control on frontline employees’ willingness to report customer feedback.     

Unravelling agency relations inside the MNC: The roles of socialization,goal conflicts and second principals in headquarters-subsidiary relationships

Prior research has advanced classical agency theory to account for various characteristics of headquarters (HQ)-subsidiary relations in the multinational corporation (MNC). In an attempt to contribute to this line of research, in this paper, we propose and test an agency model for HQ-subsidiary relations inside the MNC. Drawing on classical agency assumptions, we develop a baseline hypothesis that links informal controls (i.e., socialization), HQ-subsidiary goal conflicts, and the HQ’s use of formal controls (i.e., behavioral controls). We subsequently introduce an important boundary condition, which reflects subsidiaries’ internal agency relations with subsidiary CEOs as second principals. More specifically, we argue that the baseline relationship only holds under low levels of second principal power. To test our model, we employed a unique study design with three parallel surveys addressing the agents and the two principals involved in 131 agency relations within one MNC.     

The Language Backfire Effect: How Frontline Employees Decrease Customer Satisfaction through Language Use

Extant marketing research holds that customers prefer frontline personnel to speak the customers’ first language. Furthermore, current managerial practices instruct frontline employees to either use the customers’ first language or, in international settings, to use English. Through five studies in different retail and service contexts, we identify situations where the opposite is true. The results of the first two studies suggest that if customers initiate contact in a second language, the frontline employee’s switch to the customer’s first language constitutes an identity threat leading customers to feel less satisfied; an effect we term the language backfire effect. Our third study extends these results to a domestic context to test for the impact of linguistic acculturation on how immigrant customers perceive frontline employees’ language switch. The fourth study replicates the findings in a real-life retail context. These results present a paradox for marketing research: although frontline employees switch to customers’ first language to accommodate them, these actions might not have the desired consequences. Having identified and described the problem of the language backfire effect, our final study introduces and verifies a managerially actionable solution: combining the language switch with a language proficiency compliment offsets the language backfire effect.     

When customers want to become frontline employees: an exploratory study of decision factors and motivation types

Labor shortages have long been an issue in the service industry. One pool of potential dedicated and skilled employees that has remained untapped is customers. This study explores the customer to frontline employee (CtFE) phenomenon: customers becoming frontline employees after consumption experience. Through one-on-one, in-depth interviews, we identify factors related to job choice and service experience influencing customers’ CtFE decisions. We also develop propositions and a conceptual framework to describe CtFE choices. Finally, we categorize potential CtFEs as idealist, dream-catcher, approval-seeker, and pragmatist. Our findings suggest that CtFEs can be a critical labor source in the service sector.     

Customer orientation,engagement, and developing positive emotional labor

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.     

When can interaction orientation create more service value? The moderating role of frontline employees' trust in managers and employee deep acting

Despite the well-recognized importance of interaction orientation, limited studies have investigated its boundary conditions from the frontline employees' perspective. To address this issue, this study investigates the effect of interaction orientation in service value creation and identifies hierarchical trust and deep acting of frontline employees as two moderators. This study conducts a moderated regression analysis for hypotheses testing using a triadic data set of 2090 responses from managers, frontline employees, and customers of 209 firms. The findings show that interaction orientation has no effect on service value. Rather, interaction orientation contributes to perceived service value only when frontline employees have higher trust in their managers or when employee deep acting is high. The value of this study is in revealing the contingencies of interaction orientation on service value. It offers managerial implications that firms should build high trust in managers and encourage deep acting among frontline employees when implementing an interaction orientation strategy.     

Building the bottom line by developing the frontline: Career development for service employees

Service firms must remember that the way they treat their employees is exactly how those employees will, in turn, treat customers. As such, taking good care of frontline personnel should be a top management concern. One way that service employees can be shown they are valued members of the organization entails the implementation of thoughtful and organized career development programs, initiatives which help increase employees’ job satisfaction and feelings of empowerment in their customer-facing roles. Before they can become enthusiastic about meeting the needs of their customers, employees have to feel that their own needs are being met within the organization. In this regard, firm investment in frontline employee career development programs will be money well spent: they are capable of reducing employee turnover and increasing customer satisfaction, loyalty, and profitability. This article provides a conceptual model of career development which should prove useful to service managers in evaluating their own career development efforts. Also presented herein is a framework for tying together many disparate areas of career development that have heretofore been handled separately in the services literature.     

The complementarity effect of exporting,importing and R&D on the productivity of Ukrainian MNEs

After two decades of research on Emerging Market Multinational Enterprises (EMNE), the debate still concerns the antecedents and strategies of their foreign expansion. However, much less has been said on the effects of international participation on their productivity. Building on insights from the Resource-Based View of the firm and agency theory, we develop hypotheses on the presence of complementarities among export, import and R&D and their impact on productivity. Our empirical analyses on a panel of 23,000 time-year observations of Ukrainian MNEs over the period 2000–2006, confirm that: (i) EMNEs benefit from complementarities stemming from the assimilation and integration of knowledge from international external sources (import and export) with internal knowledge (own R&D investment); (ii) the effect is more pronounced for private-owned enterprises (POEs) rather than state-owned enterprises (SOEs), and (iii) especially when they trade with partners in/from advanced markets.     

Service climate and employee service performance: exploring the moderating role of job stress and organizational identification

Drawing on a sample of 368 frontline employees and 45 managers from five Chinese banks, this study examined the relationship between service climate and frontline employee service performance, including in-role and extra-role performance, and the difference of this relationship considering the moderating role of employee's emotional experience (job stress and organizational identification). Empirical results indicated the positive effect of service climate on service performance as hypothesized. Moreover, job stress negatively moderated the relationship between service climate and extra-role performance, while organizational identification positively moderated the climate–performance relationship.     

Contextual Factors and the Creativity of Frontline Employees: The Mediating Effects of Role Stress and Intrinsic Motivation

Creative frontline service employees may be crucial in ensuring organizational performance. However, scant research has investigated the antecedents of service employee creativity. This research applies Role Theory to enlighten this issue. The findings reveal that: role conflict and role ambiguity have opposing effects on creativity; Role Theory complements Cognitive Evaluation Theory as a mediational mechanism for the influence of contextual factors on creativity; and, against current thinking, contextual factors also affect creativity directly. The results underscore the need to reconceptualize the mechanisms by which contextual factors influence creativity, and suggest how managers can promote creativity through the work environment.     

Effects of face masks and photo tags on nonverbal communication in service encounters

Facial expressions convey critical information for customers to evaluate a service encounter. Widespread mask-wearing since the pandemic began has brought challenges in decoding individuals' facial expressions. This study investigates the effects of face masks on customers' interpretations of frontline employees’ facial expressions across retailing and healthcare service contexts. The findings show that mask-wearing improves customer perception of service employees and behavioral intention when the employees display neutral or negative emotions. Photo tags, as an additional nonverbal signal, can enhance the positive perceptions of masked employees. This research suggests that service companies could incorporate face masks and photo tags as a cost-effective practice to improve service encounters beyond the current pandemic.     

关于农村会计代理记账服务工作的探讨

所谓代理记账是指单位的委托相关的会计咨询、服务机构及其他经批准的第三方中介机构,采用手工或电脑记账方式,代理其办理会计业务的一种社会性会计中介服务活动.目前,我国农村也开始采用会计代理记账服务,但是这一措施的实施还存在很多问题,本文我们将简要分析农村会计代理记账服务中所存在的问题,并提出解决对策,以期能为其发展做出应有的贡献.     

THE EMPOWERMENT OF FRONTLINE SERVICE STAFF IN 3PL COMPANIES

Research on third‐party logistics (3PL) service providers has focused more on managing customer relationships than on managing the frontline personnel who interact with customers on a daily basis. Thus, even though the overall need for 3PL's to be market‐oriented is well‐recognized, relatively little is known about how 3PL companies support and develop frontline service staff to provide better service. This study draws on 3PL company site managers' responses to a postal survey that examines the influences of internal communication, customer service training and managerial coaching for customer contact employees on the relationship between market orientation and frontline service recovery empowerment.     

Employee involvement in ideation and healthcare service innovation quality

ABSTRACT

This study hypothesizes and empirically tests the influence of involvement of (1) frontline employees and (2) top managers in ideation process on healthcare service innovation quality. Based on data from 168 service innovation projects in Dutch healthcare organizations, the empirical results indicate that frontline employee involvement and top management involvement in, respectively, idea generation and idea application both improve the quality of healthcare service innovation. We find that the positive effect of frontline employee involvement is stronger under the condition of higher service innovativeness. In the direct relationship of top management involvement and healthcare service innovation quality, our data do not show such a moderating effect. The key and general managerial implication of the findings is that healthcare organizations are inspired to involve frontline employees in the idea generation processes and involve top managers in the idea application processes of service innovation projects, in order to improve innovation quality.     

Salesforce Compensation: An Analytical and Empirical Examination of the Agency Theoretic Approach

Since the papers of Basu et al. (1985) and Lal and Srinivasan (1993), marketing academics have been interested in the design and implementation of optimal compensation plans. The literature has focused on agency theory as a foundation to help describe and understand this process. Although there has been much theoretical work on this topic, empirical evidence to support this theory remains sparse. Studies by Coughlan and Narasimhan (1992) and John and Weitz (1988, 1989) have found some early evidence that supports agency theory.In this paper we revisit the issue of salesforce compensation on both theoretical and empirical fronts. On the theory side we build a game theoretic model of salesforce compensation that accounts for risk aversion on the part of both the principal and the agent. We further show that accounting for the firm size within the analytical framework yields new insights into the nature of compensation design.The results obtained from our model, while substantiating past findings, offer some new insights into the compensation design process. In particular we find that firm demographics play an important role in the design of the optimal compensation scheme. We then use two datasets collected ten years apart by the Dartnell Corporation to investigate and test hypotheses generated by our model and the extant literature. Our results show that the basic tenets of agency theory continue to hold over time and that our new theoretical hypotheses are consistent with the data. Using the two datasets we also find that inter-temporal changes in salesforce compensation coincide with the advent and adoption of new technologies. Our research thus adds to our substantive knowledge of the drivers of salesforce compensation, while adding to the theoretical structure through taking account of the possibility of principal risk aversion.