Service innovation as a political process

Service innovation processes are driven by stakeholders in interaction and are understood and sketched as a value negotiation process that consists of an iterative process of securing potential value in service. While previous research has focused on service innovation as a harmonious closed system, our study explores service innovation as a political process in which stakeholders negotiate to create and secure future value. Data are collected through interviews and participant observations in four different case studies. Our study contributes to the field by illuminating service innovation as a political process and explaining how this is operationalized. The findings also contribute to an understanding of how stakeholder resources impact a chosen strategy; the resulting strategy’s impact on the service concept vis-à-vis its potential value; and how several involved stakeholders formulate, negotiate, and secure future potential value, which are the activities that drive a service innovation process.     

The influence of negative marketplace information on consumer attitudes toward a service establishment

Market information about service providers and retailers can significantly influence how customers view firms. Prior research indicates that the impact of such information (especially when it is counter to consumers’ initial views of a firm) is dependent upon the nature of the customers’ evaluations, as well as the nature of the information itself. The current study examines these issues in the context of attitudes toward, and negative reviews about, a service provider (a new restaurant chain). An experimental study partially supports prior research findings and suggests a new process using a validated measure distinguishing between hedonic and utilitarian dimensions of attitude. Implications of our results are provided for theory and practice.     

Understanding creative service: a qualitative study of the advertising problem delineation,communication and response (APDCR) process

The nature of advertising creativity is explored as a professional, applied creative service product, within a business-to-business context. Findings are reported from a series of extensive in-depth interviews with advertising managers in major client organisations. Analysis of these interviews generated a detailed conceptualisation of the advertising problem delineation, communication and response (APDCR) process, expressed in a flowchart. The data also suggest two variations in the pattern of agency-client relationships within which the APDCR process operates, and factors that may be responsible for these variations. A better understanding of the nature and dynamic operation of creative service may enable both agency and advertiser stakeholders to achieve greater satisfaction.     

Service Design in the NHS: Collaboration or Conflict?

Continuous new service design / redesign is a key contributor to organisational performance. The NSD literature, originally evolving from new product development studies, often emphasised a sequential, linear process. More recently, however, the role of culture, internal politics and social dynamics in the NSD process has been highlighted. The potential for an enhanced role for political behaviour and stakeholder conflict within public sector organisations is apparent. In view of the increasing importance of consumer opinion as both an input into, and evaluation of, the design of public sector services, the need to understand the process of new service formation and its impact on consumer perceived service quality is of major importance. This study examines the design process for three mental health resource centres. Through interviews with a range of stakeholders, the role of conflict within complex, multi-organisational decision making is highlighted and the impact on the final consumer is assessed.     

Evaluating the impact of service user involvement on research: a prospective case study

As service user involvement in health and social care research has become more firmly embedded in health policies, both in the UK and internationally, there is increasing interest in evaluating its potential benefits and outcomes. Impact studies have highlighted a range of different types of service user involvement, using diverse research methods, within various research topics and involving different stakeholders. Potential benefits to research, researchers and the service users actively involved in research have been identified, along with the possibility of some negative consequences. Many impact studies have been criticized for being based on informal retrospective accounts of researchers and service users working together. Few have been underpinned by conceptual models, and there is a paucity of detailed accounts of the process of involvement that would enable replication. This paper reports an account of a prospective, qualitative exploration of service user involvement within a study, where the aims of the evaluation were agreed beforehand. Reflective discussions about the process and progress of service user involvement at different stages of the study were recorded, transcribed and analysed. The qualitative analysis identified perceived benefits to research, researchers and service user researchers that endorsed previous findings. The analysis also highlighted subjective and interpersonal aspects of service user involvement that have seldom been reported. This evaluation demonstrates the benefits of allowing time for structured reflection and adds to the understanding of the process and meaning of service user involvement in research.     

Enhancing corporate social responsibility through market orientation practices in bottom of pyramid markets: with special reference to microcredit institutions

Market-oriented organizations are committed to understanding and serving customer needs. Customers become socially conscious, so market-oriented firms need to carry out ‘Corporate Social Responsibility’ (CSR) initiatives. The main aim of this study was to investigate the influence of market orientation on CSR among microcredit institutions. The findings of this study are useful for microcredit institutions and marketers operating in bottom of pyramid (BOP) market to enhance their CSR through market orientation practices. The sample comprised 250 managers of microcredit institutions operating in the rural areas of Sri Lanka. The surveys were administered for data collection. All the three components of market orientation, that is, customer orientation, competitor orientation, and inter-functional coordination significantly and positively influenced the CSR involvement. Adaptation to BOP Market Culture enhanced the positive influences of both customer orientation and inter-functional coordination, on CSR. From these findings, implications for theory and practice have been discussed.     

A bricolage perspective on service innovation

Service innovation is often viewed as a process of accessing the necessary resources, (re)combining them, and converting them into new services. The current knowledge on success factors for service innovation, such as formalized new service development (NSD) processes, predominantly comes from studying large firms with a relatively stable resource base. However, this neglect situations in which organizations face severe resource constraints. This paper argues that under such constraints, a formalized new service development process could be counter-productive and a bricolage perspective might better explain service innovation in resource-constrained environments. In this conceptual paper, we propose that four critical bricolage capabilities (addressing resource scarcity actively, making do with what is available, improvising when recombining resources, and networking with external partners) influence service innovation outcomes. Empirical illustrations from five organizations substantiate our conceptual development. Our discussion leads to a framework and four testable propositions that can guide further service research.     

Spilling the social capital beans: a comparative case study of coffee service enterprises within Asia-Pacific

Abstract

Despite the importance of social capital to organizational performance, there is scant insight within service contexts. Accordingly, this research explores social capital in two Asia-Pacific service enterprise cases – a Thai coffee franchise and a Coffee Roasters Guild in Australia. In the Thai case, social capital in the service experience emerged from norms common in Thai society and manifested via social enterprise initiatives. Findings from Australia indicate social capital helps form a strong organizational identity leading to better economic and social outcomes and an enhanced service experience, benefiting numerous stakeholders. The study demonstrates varying patterns of social capital in Asia-Pacific service enterprises, contributing to theory and practice.     

Task‐Relationship‐Self: A Framework for Understanding Service Encounter Behaviors

Research conducted over past decades has investigated selected service encounter behaviors from either a customer or service provider perspective. However, a comprehensive, dual‐perspective framework is lacking. Such a framework is needed to organize knowledge of these behaviors, and thereby provide structure, clarity, and parsimony to the field. This paper describes a three‐tier framework of service encounter behavior that was developed by applying grounded theory principles to interviews with customers, service employees, and other stakeholders. These informants described many ways in which they behave when executing service exchanges, dealing with service difficulties, and managing themselves in the process. Using an iterative inductive approach, a conceptual framework was developed in which specific (Tier 1) behaviors were placed within broader (Tier 2) categories, and these lower classification levels were, in turn, interpreted within a conceptual space defined by the (Tier 3) dimensions of task, relationship, and self. This framework was then elaborated and refined by reference to the psychology and marketing literature, a set of 157 audio‐recorded service interactions, and an expert panel study. The paper includes comparisons between the framework and those previously proposed, propositions regarding service encounter processes and outcomes, and implications for future research and practice.     

Value Co-Creation in Health Care: A Phenomenological Examination of the Doctor-Patient Encounter

Considering the increasing conceptualization of value co-creation, this study seeks to empirically understand the value co-creation process through a phenomenological approach to further understand the doctor-patient encounter process leading to value outcomes in a public healthcare context. Three key thematic areas of the co-creation process were identified: the encounter process, consumption experience, and value outcomes. The findings reveal the importance of trust, role clarity, and actor experiences in clinical encounters. Both actors placed emphasis on the emotional, cognitive, social, and behavioral responses in encounters that consequently affect their value outcomes that include receiving treatment, getting well, improved well-being, improved compliance, reduced visits to health facilities, and enhanced service engagement between the actors. This study contributes to these dyadic interactions to gain comprehensive knowledge of how these encounter processes and experiences are perceived by the actors to influence the effectiveness of public and professional services.     

From employee engagement to customer engagement: A multilevel dual-path model of engagement spillover effects in service ecosystems

Researchers have acknowledged that focusing only on single-actor engagement is insufficient to address the nature of multi-actor, value co-creation within a service ecosystem. This study aims to understand how multi-actor service ecosystems work. Given the spillover effects of multi-actor engagement, this study proposes a multilevel, dual-path model, through which employee job and organizational engagement influence customer engagement. Mplus 7.31 was adopted to analyze the multilevel model. The results identified two subtle influencing mechanisms from employee engagement to customer engagement, which demonstrated the existence of engagement spillover from employees to customers. The finding provides preliminarily confirmation of the value of using a beyond transaction path focus to improve service-profit chain outcomes. From a management perspective, the study offers insight into how firms can operate more effectively by integrating key actors in a collaborative manner.     

The dark side of the sharing economy: Balancing value co-creation and value co-destruction

The sharing economy disrupts the marketplace and brings both benefits and disadvantages into service ecosystems. We discuss principles of the S-D logic and transformative service research and explore the processes of value co-creation and co-destruction of well-being within the ecosystem of the accommodation sharing economy. Following a brief period of euphoria, the dark side of the sharing economy emerges, defined as the socially, environmentally, or economically undesirable effects introduced by the sharing economy. Airbnb introduced new realities for visitors, neighborhoods, the accommodation industry, and city councils, whereby some stakeholders are frequently found to maximize their own value at the expense of others. Value co-destruction prevails often due to uncontrolled and rapid expansion. We seek to promote a more balanced process, and the optimization of value co-creation, while seeking to prevent value co-destruction. Using a literature review, netnography, and a case study, we investigate co-creation and co-destruction, as expressed by different stakeholders, and focus on the socio-psychological implications in the use of sharing platforms that affect the well-being of individuals and community. A conceptual framework is proposed to manage future research addressing well-being, value co-creation and co-destruction in complex ecosystem service networks.     

Two-step Influence Tactics: Exploring How Coercive Power is Exercised in Channel Triads

ABSTRACT

Purpose – Most research on the power issue has taken a dyadic view, implicitly assuming that power is employed directly and successfully on one target via a single route without stakeholders. When such a direct approach is unsuccessful or impractical, however, power holders may influence their targets via third parties. This study, from a triadic point of view, details how the coercive power is exercised through two-step maneuvers, and what differences are between power exercise in the dyads and that in the triads. Methodology/Approach – In-depth interviews were conducted with four suppliers in different industry settings.

Findings – Four types of two-step influence tactics are identified on the basis of strategic nature (covert/overt) and the pathways of influence (single/multiple). Differing from the power usage in a dyad without stakeholders, the power usage with the stakeholders in a triad was found to (1) reduce the levels of dependence on the target firm; (2) alleviate the conflicts and retaliation; (3) alter the power direction and influence strength; and (4) add more rooms for the power holder to manipulate the influence tactics. Research implications – The findings of this study expand the understanding of an under-researched dimension of coercive power usage and leverage by connecting the different stakeholders in the channel triads. The four coercive power tactics and their drivers show how the shift of power source from a dyad to a triad impacts on the target firm’s behavior and overall network performance. Practical implications – The findings also provide some guidance for practitioners, so that they may use the two-step coercive influence tactics more appropriately based on the different strategic nature and pathways of influence in the marketing channels. Originality/Value – This study contributes to the literature by providing a conceptual framework and variables for analyzing the two-step power tactics in the channel triads.     

Corporate Social Responsibility: Exploring Stakeholder Relationships and Programme Reporting across Leading FTSE Companies

Although it is now widely recognised by business leaders that their companies need to accept a broader responsibility than short-term profits, recent research suggests that as corporate social responsibility (CSR) and social reporting become more widespread, there is little empirical evidence of the range of stakeholders addressed through their CSR programmes and how such programmes are reported. Through a CSR framework which was developed in an exploratory study, we explore the nature of stakeholder relationships reported across leading FTSE companies and the importance they attach to communicating both social and business outcomes. It is evident from the hypotheses tested that the bigger FTSE companies, particularly extraction companies and telecoms, are more adept at identifying and prioritising their stakeholders, and linking CSR programmes to business and social outcomes. However, we draw the general conclusion that building stronger stakeholder relationships through CSR programmes – other than with customers – is not currently a priority for most companies. We also conclude that a limited sophistication in managing multiple stakeholders may compromise the impact of CSR upon business and social results. Finally, the managerial implications and the contribution of our study are discussed before closing with an acknowledgement of the limitations of this work and suggestions for further research.     

The Role of Individualism/Collectivism in Critical Classroom Encounters

Abstract

Internationalization raises the issue of whether, and to what extent, the inherent culture of a country may have particular influence on the nature of service interactions, and on education (i.e., student-professor interactions) specifically. Thus the service encounter in the classroom becomes a subject of increasing importance and interest with respect to satisfactory and unsatisfactory outcomes, and also with respect to related behavioral outcomes such as word-of-mouth and repatronage. This paper investigates these issues in classrooms of higher education by utilizing the Individualism-Collectivism dimension of culture in four different samples: China, New Zealand, Poland, and the United States. Differences are identified with respect to the types of critical incidents reported, nature of the outcome, and behavioral responses to those encounters.     

Involving Stakeholders in Developing Corporate Brands: the Communication Dimension

Those involved in corporate branding recognise that interactions with stakeholders are crucial. Surprisingly therefore, the author found that there is relatively little in the literature or in the study of practice that indicates how the range of stakeholders can be actively engaged in developing the corporate brand. Stakeholders are usually regarded as targets rather than partners in its development. This is reflected in the planning models, which, although often denoting stakeholders as integral to the process, are not explicit about how or to what extent they should be involved.

In this paper a process describing the contribution that stakeholders can make based on the concept of a 'negotiated brand' is proposed. The author then goes on to outline four different practical communication strategies that can be used to involve stakeholders in corporate brand development depending on the nature of their relationship with the organisation.     

The Influence of Decision Frames and Vision Priming on Decision Outcomes in Work Groups: Motivating Stakeholder Considerations

Organizational leaders are increasingly emphasizing a stakeholder perspective in order to address concerns about business ethics. This study examined the choices of 94 groups in the context of a business decision-making simulation to determine how specific actions and communications can facilitate the consideration of different stakeholder perspectives. In particular, we examined whether generally framing the business situation as one involving diverse stakeholders versus a primarily profit-driven operation (referred to as framing), and whether specific suggestions that participants consider the concerns of stakeholders versus stockholders in maximizing the value of the firm (referred to as vision priming), would influence group choices and decision outcomes. We tested four experimental conditions against a control in a 2 × 2 experimental design to determine the effects that group choices had on decision outcomes when groups were exposed to stakeholder versus stockholder decision framing and stakeholder versus stockholder vision priming. The results revealed that the consistent conditions outperformed the control condition and that vision priming has a greater impact on decision outcomes than decision framing.     

Investigating the service brand: A customer value perspective

Despite considerable interest in the nature and role of marketing using a service perspective [Vargo S., Lusch R. Evolving to a new dominant logic for marketing. J Mark 2004; 68 (1): 1-17] there is limited research about branding. Research to date tends to be qualitative [e.g., Berry L. Cultivating service brand equity. J Acad Mark Sci 2000; 28: 128-137; de Chernatony L., Segal-Horn S. The criteria for successful services brands. Eur J Mark 2003; 37 (7/8): 1095-1118] rather than quantitative. This research closes this gap by developing and testing a theory of the influence of the service brand on the customer value-loyalty process. The model includes the traditional influence of brand image plus three additional influences that more fully reflect the broader service perspective (company image, employee trust, and company trust). Using survey data of a sample of 552 airline customers, the analysis shows there is a direct influence of all the aspects of the brand on customers' perceptions of value. In addition brand image, company image and employee trust have a mediated influence on customer value through customers' perceptions of service quality. Finally the analysis shows that a service brand does not have a direct influence on customer loyalty but rather its influence is mediated through customer value. This paper concludes with a discussion of the managerial and research implications.     

新服务开发的利益相关者权利分析:中华保险财产险案例

服务产品与利益相关者之间的联系比有形产品更密切更复杂,有效地管理和整合利益相关者对新服务开发的成败至关重要。本文基于对中华保险浙江分公司的多次调研,识别了财产险开发的内外部利益相关者,并深入剖析了保险新服务开发过程中内外部利益相关者的利益和权力,为正确认识新服务开发过程中的利益相关者和对其进行有效的管理和整合奠定了基础。     

Increasing the Number of Women on Boards: The Role of Actors and Processes

In this article, we offer an approach of how participative stakeholder innovation can be evaluated in complex multistakeholder settings that address wicked issues. Based on the principle of mutual value creation, we present an evaluation framework that accounts for the social interaction process during which stakeholders integrate their resources and capabilities to develop innovative products and services. To assess this evaluation framework, we collected multiple data from the case study of the Swiss Cardiovascular Network, which represents a multistakeholder setting related to the prevention of cardiovascular disease. Our findings indicate that the evaluation dimensions of the stakeholders’ mindsets, the process and context of the stakeholder interactions, as well as the outcomes are useful concepts to account for a cooperative process of innovation in a multistakeholder setting. We discuss both the theoretical and practical insights of our analysis for participative stakeholder innovation.