The Influence of Internal and External Codes on CSR Practice: The Case of Companies Operating in Serbia

In this article, our aim is to examine the difference between the corporate social responsibility (CSR) practice of the multinational companies (MNCs) and of the domestic companies operating in Serbia, as well as the influence of internal self-regulations such as statements of corporate values and codes of conduct, and external self-regulations such as the implementation of the ISO 9001 and ISO 14001 standards on CSR practice. The CSR practice is observed in five CSR areas: employee relations, customer relations, environmental practice, community and social involvement, and transparency in business activity. The findings indicate that the CSR practice of the MNCs is significantly different in comparison to domestic companies only in the area of employee relations. Furthermore, the overall results suggest that internal self-regulations have more influence on CSR practice than the implementation of generic management system standards. However, the existence of transparent corporate values, codes of conduct and implemented management systems according to ISO 9001 and ISO 14001 standards does not prove to be strong predictors of CSR performance.     

The future of standardised quality management in tourism: evidence from the Spanish tourist sector

As quality management has become more important in the tourist sector, the implementation of standardised quality management systems has become more common in this industry. A forerunner in this development has been the Spanish tourist sector, in which 17 specific quality management standards have been developed over several years in various tourist sub-sectors, including hotels, rural accommodation, restaurants, spas, and travel agencies. The present study, which is exploratory in nature, analyses the diffusion of these standards using a model that has been well attested in the specialised literature, together with a qualitative analysis of three practical cases. The study concludes that the standardisation of quality management in tourism will increase in coming years. The worldwide diffusion of ISO 9001 and ISO 14001 in many service sectors and the findings of the present study with respect to the increasing implementation of the Spanish standards provide an indication of what is likely to happen in the service sector as a whole in most countries.     

Faking ISO 9001 in China: An exploratory study

Over 1.5 million ISO 9001 certificates are in effect worldwide, 30 years after this quality management standard was launched. As the factory of the world, China is by far the leading country for ISO 9001, in terms of both absolute and relative numbers and growth. Nevertheless, practitioners have cast doubts on the reliability of adopting ISO third-party quality certification in this country. In-depth interviews with 40 senior quality managers, consultants, and auditors with broad field experience and other complementary methods paints a disturbing picture. The widespread prevalence of fake ISO 9001 certificates is indicated, together with an eroded credibility of the process of third-party certification. We discuss the profound implications of the study—including whether or not the phenomenon is restricted to China—and introduce suggestions for managers and other stakeholders, as well as avenues for further research.     

Internal brand commitment,a multi-dimensional construct? Case study evidence within a collaborative independent retail network context

Commitment and other relational constructs have predominantly been examined within the organisational studies literature, and in more recent times within the relationship marketing literature, but have been largely neglected within the retail and branding literatures. There is little empirical evidence of commitment as a multi-dimensional construct within the marketing domain. Brand commitment studies have largely adopted an external consumer-based perspective, with little attention afforded to internal brand commitment, and the dimensionality of the construct. This study addresses this deficit, and aims to explore the dimensionality of the internal brand commitment construct within the business-to-business context of a collaborative independent retail network. A qualitative case study methodology is adopted based primarily on interviews with owner-managers. The study provides empirical evidence of the multi-dimensionality of the internal brand commitment construct, with both attitudinal and behavioural dimensions. Although the importance of internal branding has been acknowledged for service sector organisations, this is the first empirical evidence to document the complexity of internal brand commitment in a retail context. The study concludes that while calculative commitment builds organisational commitment, internal brand commitment requires an affective dimension, which leads to what can be interpreted as brand citizenship behaviour and/or conceptualised as the formation of a brand community.     

E-service quality: an internal,multichannel and pure service perspective

This article contributes to the emerging e-service quality literature by adopting a different approach to the dominant focus in previous research. The work centres on the internal perspective of organisation, studies the pure service sector and subjects the personal sales channel and the Internet channel to joint examination. A new conceptual framework is proposed via an adaptation of the service pyramid model [Parasuraman, A. (1996). Understanding and leveraging the role of customer service in external interactive and internal marketing. Paper presented at the 1996 Frontiers in Services Conference, Nashville, TN], and employee-orientated internal marketing and technology-orientated internal marketing are analysed as integrated drivers of commercial performance, within the context of retail banking in Spain. The results suggest that both marketing activities constitute part of a coherent strategy that is geared towards making and meeting service promises, within a multichannel perspective, and is associated with high commercial performance.     

Internal and external drivers for quality certification in the service industry: Do they have different impacts on success?

This paper presents the results of a study of hotels that are certified for quality management to identify the reasons for seeking quality certification. The authors analyse whether internal or external drivers for seeking certification have different impacts on benefits and the use of quality tools in the hotel industry. The analysis groups hotels according to the importance of their internal reasons for certification, and uses cluster analysis to identify the significant differences between groups of hotels. The findings for the 32 hotels analysed show that hotels that pursued certification for internal reasons develop better quality tools and have increased levels of benefits.     

Determining the antecedents and consequences of donor‐perceived relationship quality—A dimensional qualitative research approach

It is generally accepted that an understanding of quality conceptualizations is instrumental in the design and development of customer care programs. This study applies the dimensional qualitative research approach to develop a conceptual model, which demonstrates the antecedents and consequences of donor‐perceived relationship quality. This model shows that relationship benefits, service quality, trust, commitment, and satisfaction are the key antecedents of donor‐perceived relationship quality. Relationship benefits, service quality, and trust are also modeled as cognitive in nature, whereas commitment and satisfaction are modeled as affective variables. The model also highlights donor loyalty and positive word‐of‐mouth communications as the central consequences of donor‐perceived quality. The model gives rise to a useful research agenda for fund‐raising professionals. © 2007 Wiley Periodicals, Inc.     

A Typology for Evaluating Branch-Level Perceptions of Internal Customer Management Processes within the UK Clearing Banks

Since the late 1980, the UK Clearing Banks have faced growing criticism over the quality of their finanical services. Advantages may exist in using internal marketing to ensure closer integration of multiple functions across all departments. Although adoption of an internal marketing philosophy may improve the quality of services delivered to both internal and external customers, it appears that there are few paradigms available which can be used by bankers seeking to introduce the concept into their organisation. By applying a quasi-ethnographic approach, a qualitative internal customer management model was developed based on the Peters and Waterman 7s framework to describe the factors influencing internal customer relationship which exist between branches and other departments within a bank. To determine if the model could be used to evaluate branch-level perceptions of internal customer management practices, a survey was undertaken using a modifed version of the Parasuraman SERVQUAL model. The responses suggest that possible actions to establish a stronger internal customer orientation may include altering prevailing management styles, restructuring, redirecting operational strategies away from excessive emphasis on technical efficiency and improving understanding of internal customer needs. Although the study indicates that the SERVQUAL tool can be used to examine internal customer service processes within the financial services sector, there is still only anecdotal evidence that stronger internal customer chains will enhance organisational performance. Further research is needed to validate claims that there are favourable cost/benefit outcomes to be exploited by strengthing internal customer management practices. For bankers who are convinced that changing internal organisational processes may enhance the quality of services delivered to external customers, then a process flow model is presented of a possible approach for evaluating and implementing changes necessary to create a stronger internal customer orientation within their organisation.     

Organizational and Interorganizational Determinants of EDI Diffusion and Organizational Performance: A Causal Model

Electronic data interchange (EDI), a specific form of interorganizational systems, has the potential to significantly influence business operations and the exchange of business documents in a number of industries and to provide substantive tangible and intangible benefits to the participating firms. However, successful implementation and diffusion of these systems innovations requires the cooperation and commitment of all participating member firms. A number of interorganizational as well as internal, organization-specific factors can influence both the extent to which EDI is diffused and used and the level of subsequent benefits that accrue to the firms.

Research from sociopolitical process framework in marketing, organizational theory, innovation theory, use of information technology for competitive advantage, and information systems (IS) implementation was used to identify 3 interorganizational variables (customer support, customer expertise, competitive pressure) and 4 organizational variables (internal support, EDI's benefits potential, EDI compatibility, resource intensity). In this study, we develop a multidimensional measure for EDI diffusion to capture both external integration and internal integration. We then examine the influence of these 7 variables on the extent to which EDI adopter firms pursue diffusion and whether more diffusion leads to superior organizational-level outcomes.

Two senior executives (the chief executive officer and a senior manager responsible for the IS function or EDI) from 83 firms in the motor carrier industry participated in a field survey. The results from a structural equation model (SEM), developed using LISREL, provide quite a strong support for the hypothesized relations. All 4 organizational variables and 2 of the 3 interorganizational variables (customer support and competitive pressure) influence EDI diffusion. The results also indicate that external integration dimension of diffusion enables adopter firms to achieve improved operational and market-oriented performance, whereas internal integration contributes only to operational performance.     

The role of commitment on the customer benefits–loyalty relationship in mobile service industry

The purpose of this study is to identify appropriate combinations between various types of commitment and benefit, to induce and enhance loyalty behaviours, such as customer retention, cross-selling, and customers' positive word-of-mouth, in a matured service market. The results show that functional and economic benefits have significant effects on customer retention through calculative commitment, while experiential and symbolic benefits significantly affect cross-selling and positive word-of-mouth via affective commitment. Normative commitment mediates the relationship between affective commitment and customer retention. The implications of these findings for loyalty management strategy related with service benefits and type of commitment are discussed. Limitations and recommendations for future research are also presented.     

External sources for innovation in public organisations

This article's objective is twofold: First, to provide a framework for understanding the role of external information sources in service innovation, with particular attention to innovation in public organisations. The second part of the article's objective is to test the proposed framework. Method of analysis is based on data at European level from the 2010 Innobarometer Survey on Public Innovation. Data is used for estimating a bivariate probit with sample selection, where the selection variable indicates whether or not organisations have recently implemented service innovations and the estimated variable indicates whether organisations have introduced services that are new to the whole public sector. Results indicate a significant relation between the use of both internal and external sources of information and the implementation of innovations by public organisations. External sources are shown to be more relevant for the implementation of services that are new to the public sector.     

Nonprofit Board Members’ Reasons to Join and Continue Serving on a Volunteer Board of Directors

By expanding understanding of individuals’ reasons to serve on nonprofit boards, practitioners will be able to improve recruitment and retention of quality board members. This study explores board members’ reasons for joining and continuing to serve on a volunteer nonprofit board of directors. A survey of nonprofit board members shows similarities in reasons for initially serving and continuing to serve on a board, but analysis of group means reveals significant differences on 20 of 27 dimensions examined. Organizational-level reasons are reported as more important as a result of board service, whereas individual- and community-level items decline in importance after board service. Latent factors that appear to be important for both joining and continuing to serve on a nonprofit board include organizational commitment, personal growth, recognition, and socialness.     

What Drives Substantive Versus Symbolic Implementation of ISO 14001 in a Time of Economic Crisis? Insights from Greek Manufacturing Companies

This paper analyses the role of external pressures, internal motivations and their interplay, with the intention of identifying whether they drive substantive or instead symbolic implementation of ISO 14001. The context is one of economic crisis. We focus on Greece, where the economic crisis has weakened the country’s institutional environment, and analyse qualitatively new interview data from 45 ISO 14001 certified firms. Our findings show that (a) weak external pressures can lead to a symbolic implementation of ISO 14001, as firms can defend their legitimacy without incurring the costs of internalization in the local market; (b) weak external pressures can lead to substantive implementation of ISO 14001 when firms have strong internal motivations seeking to strategically differentiate from competitors in international markets. Firms internalize ISO 14001 so as to restore their legitimacy and reputation in foreign markets and stimulate their competitiveness; and (c) strong internal motivations pave the way for companies to stimulate their competitiveness by enhancing their efficiency, as some companies might strengthen their position in the local market by implementing ISO 14001 substantively. The contribution of this paper to the literature on ISO 14001 internalization lies in refining existing theory on the importance of internal motivations for the substantive implementation of ISO 14001 in the context of economic crisis. In addition, this paper extends current theory by challenging studies that dismiss the importance of external pressures. We argue that the intensity of external pressures influences the internalization of ISO 14001, but propose that this relationship might not be linear.     

Idea generation leveraged from value co-creation process enhances new service development performance

This study examines the relationship between value co-creation process, idea generation and new service development performance from the perspective of telecommunication companies. Two dimensions of idea generation tested in this framework are internal and external idea generation, and the probable relationship between these two dimensions is further investigated. The data were collected from 78 marketing managers and were statistically analyzed. The findings show that value co-creation crucially influences both external idea generation and internal idea generation, however, the new service development performance can be enhanced through internal idea generation. Nonetheless, the results show that the external idea generation is vital to influence internal idea generation. This study extends theoretical understanding of how to leverage the value co-creation process for idea generation happenings, while the practical contribution of the research is to realize that new service development performance demands internal idea generation, which is supported with external resources of idea generation.     

The battle for commercial hearts and minds and the internal brand within a charity shop network in Ireland

ABSTRACT

Charities are increasingly adopting commercial branding strategies to capture consumer hearts and minds for competitive gain, with little attention on the internal organisational battle for hearts and minds within a not-for-profit context. This paper explores the internal brand of a charity that currently operates 227 charity shops on the island of Ireland, using Hankinson’s 2004 framework that focuses on functional, symbolic, behavioural and experiential components. An exploratory case study was developed based on a survey of organisational members (n = 138), interviews with six regional shop managers, observation in retail stores and supplemented by organisation documentation. Findings indicate a clarity of perception on mission, purpose and core values for the charity, but more ambiguity around perception of the charity shop brand and identified issues relating to communication of policies and procedures, managerial practice and the workplace environment. The study also reveals a gap between the charity’s organisational identity and the brand identity for the charity store network, a clarity in the perception of core values that does not underwrite the store brand and resistance to the implementation of commercial practice within a volunteer-led charity. Trust may be the key in the internal battle for hearts and minds within the charity and may be crucial for the charity to realise its’ potential and successfully meet its’ mission for maximum societal gain.     

Customer-oriented boundary-spanning behaviors: Test of a social exchange model of antecedents

Using a sample of 281 frontline service employees of a national retail bank, we test a social exchange model of antecedents of three dimensions of customer-oriented boundary-spanning behaviors suggested by prior boundary-spanning and services marketing/management literatures: external representation, internal influence, and service delivery. In support of our hypotheses, we identify fully mediated relationships from procedural, interactional, and distributive justice to external representation and internal influence via job satisfaction and organizational commitment. Our results generally support our expectation that the indirect effects of procedural justice on external representation and internal influence are stronger than the indirect effects of distributive or interactional justice on these behaviors. Also, our results reveal no significant indirect effects of procedural and distributive justice on service delivery behaviors. However, we find an unexpected direct positive path from interactional justice to service delivery behaviors. We interpret this latter finding in light of the normative value of interactional justice as a source of role modeling or managerial legitimacy.     

The Ethics of Advising on Regulatory Compliance: Autonomy or Interdependence?

Many companies are now implementing ethics and regulatory compliance programs. The growth of employment of both lawyers and specialist "compliance professionals" to advise on and facilitate implementation of these programs has expanded concomitantly. This paper examines the ethical role that should be played by these advisors. Traditional ways of conceptualising corporate lawyers' ethics are shown to be inadequate because they see the legal advisor as an autonomous adversarial advocate or an independent and aloof counsellor. Instead interviews with compliance practitioners are used to show that a superior conceptualisation of the compliance advisor's role is emerging. Compliance practitioners identify explicitly with business and, at the same time, identify with a broader ethical community of other compliance professionals, regulators and stakeholders in order to play a transformative role within the organisation. This conception recognises the interdependence between compliance advisor and corporate client.     

Customer demotion in hierarchical loyalty programmes

Hierarchical loyalty programmes are popular in many service industries, as a means to tie customers to the company and improve customer relationships. In these programmes, customers obtain more benefits if they spent more but are demoted if they spent less. This study focuses on demotion and suggests that customer demotion can have an asymmetrical negative effect on customers' trust, commitment, and loyalty. The effect appears strongest for demoted customers with an external locus of causality. An experimental study also shows that customer loyalty is lower for demoted customers than for customers who were never elevated.     

Customer orientation of frontline employees and organizational commitment

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.     

Unpicking antecedents of CRM adoption: a two-stage model

Most CRM work focuses on consumer applications. This paper addresses the operational adoption issues facing the organisation deploying CRM practices. There are a plethora of challenges facing organisations when adopting CRM. Previous research is limited to either examining the CRM adoption process at an individual/employees level or an organisational level. Hence, in this paper the myriad of organisational, marketing and technical antecedents that seem to impinge upon employee perceptions and organisational implementation of CRM are structured in a two-stage model. Using a stratified sample of 10 organisations across 4 sectors, 7 hypotheses are tested on data collected from 301 practitioners. A two-stage model is analysed using structural equation modelling. Findings reveal that CRM implementation relates to employee perceptions of CRM. This paper deepens our understanding of organisational practices to adopt CRM, so as an organisation properly profits from the expected benefits of CRM.