Overcompensation as a service recovery strategy: the financial aspect of customers’ extra effort

Service Business - Compensation is one of the most important elements of service. Companies often pursue a strategy of overcompensation; however, there are contradictory results in the literature...     

Unravelling the impact of psychological empowerment on customer service behaviours as a consequence of ‘Leader-Member Exchange’

This study aims to investigate the cognitive process by which perceived organizational justice and leader–member exchange (LMX) are channelized into role-prescribed and extra-role customer service behaviours. It proposes the mediating role of three forms of psychological empowerment (goal internalization, perceived competence, and perceived control) in the predictor–outcome relationship, and examines this relationship from a comparative view of the role-prescribed and extra-role behaviours. Valid and reliable self-report and supervisory evaluation measures were administered to 282 nurses in Korea. The results indicate that LMX had a significantly greater effect on extra-role behaviours than on role-prescribed behaviours, and that perceived control mediated the relationship between LMX and extra-role behaviours. In terms of justice perceptions, there was no significant comparative effect on customer service behaviours. Furthermore, perceived competence mediated the relationship only between distributive justice and role-prescribed behaviours.     

‘Impression management’ in Chinese corporations: a study of chairperson's statements from the most and least profitable Chinese companies

The purpose of this study is to investigate whether ‘impression management’ exists in Chinese corporate annual reports. Despite flourishing in the Western context, the literature regarding impression management has not yet received any significant development pertinent to China and its cultural norms. The following question is raised: do the most profitable Chinese listed companies disclose information in their chairmen's statements in a way that is significantly different from those of least profitable companies? The results indicate impression management motives do underlie chairman's statements in the Chinese context in a number of ways, as we suggest in this contribution.     

Measuring innovation in a ‘low-tech’ service industry: the case of the Dutch hospitality industry

This article presents the findings of a survey among 613 firms in the Dutch hospitality industry adopting a demarcation perspective. The paper illustrates that innovation in this service industry is much higher and more varied than regularly reported. It further indicates that innovation activities in ‘low-tech industries’ can be in place with less formalized forms of (service) innovation management. Finally, it is shown that a higher innovation intensity is associated with better firm performance. Based on this, some implications for managing innovation in the hospitality industry are discussed. Finally, some fundamental issues in the measurement of service innovation are raised.     

Syrian Refugees and their re-entry to ‘normality’: the role of service industries

The paper analyzes data derived from an exploratory study based on interviews with 26 Syrian Refugees, indicating how they used past experiences and qualifications to obtain employment in the UK and Germany. The paper also describes in outline a chronology of escape, reaching Europe, traveling through Europe, and finally accessing a new ‘normality’ through obtaining employment in the service industries or continuing past study. Their stories are used to further theoretical components of resilience and associated concepts of adaptability and overcoming vulnerability. Reference is made to the structure of resilience and the role of social networks made more accessible via the use of smartphones and social media.     

Institutional change and strategic choice: debating the ‘stage-model’ of strategy in emerging economies

The popular ‘stage-model’ of strategic choice amid institutional change is found unable to account for the diverse strategies in emerging economies, which, this essay argues, is due to the model’s misplaced search for standard strategies which are said to be (1) dictated by linear transition stages and (2) determining the performance of stylized ‘firm types’. Assuming historical inevitability and blind to human agency, the model is at odds with Knight’s notion of uncertainty, with North’s thesis of adaptive efficiency and with Schumpeter’s theorizing on entrepreneurship. Studies on strategy in emerging economies, such as in the case of contemporary China, are in urgent need of an actor-centred, process-oriented and uncertainty-sensitive reorientation. This step, we conclude, may emerge by learning from the ‘practice-turn’ in the social sciences, taking politics seriously, incorporating evolution/complexity insights and enriching the methodology toolkit.     

The ‘big data’ myth and the pitfalls of ‘thick data’ opportunism: on the need for a different ontology of markets and consumption

ABSTRACT

The twin pillars of big data and data analytics are rapidly transforming the institutional conditions that situate marketing research. In response, many proponents of culturalist paradigms have adopted the vernacular of ‘thick data’ to defend their vulnerable position in the marketing research field. However, thick data proselytising fails to challenge several outmoded ontological assumptions that are manifest in the big data myth and it situates socio-cultural modes of marketing thought in a counterproductive technocratic discourse. In building this argument, I first discuss the relevant historical continuities and discontinuities that have shaped the big data myth and the thick data opportunism. Next, I argue that culturally oriented marketing researchers should promote a different ontological frame— the analytics of marketplace assemblages—to address how big data, or more accurately its socio-technical infrastructure, produces new kinds of emergent and hybrid market structures, modes of social aggregation, consumption practices, and prosumptive capacities.     

User acceptance of ‘near field communication’ mobile phone service: an investigation based on the ‘unified theory of acceptance and use of technology’ model

Near-field communication (NFC) is a technology with service applications that include location-based service, mobile payment, peer gaming, and targeted advertising. Using the unified theory of acceptance and use of technology model, this study explores the factors that affect consumer acceptance of mobile phones with built-in NFC capability. The results indicate that Effort Expectancy has a positive effect on Performance Expectancy. Also, Performance Expectancy and Social Influence have a positive effect on Attitude Toward Use of Technology, but Anxiety has a negative effect on it. Finally, Attitude Toward Use of Technology is more significant than Facilitating Conditions in affecting Behavioral Intention.     

Corporate social responsibility as cultural meaning management: a critique of the marketing of ‘ethical’ bottled water

To date, the primary focus of research in the field of corporate social responsibility (CSR) has been on the strategic implications of CSR for corporations and less on an evaluation of CSR from a wider political, economic and social perspective. In this paper, we aim to address this gap by critically engaging with marketing campaigns of so-called ‘ethical’ bottled water. We especially focus on a major CSR strategy of a range of different companies that promise to provide drinking water for (what they name as) ‘poor African people’ by way of Western consumers purchasing bottled water. Following Fairclough's approach, we unfold a three-step critical discourse analysis of the marketing campaigns of 10 such ‘ethical’ brands. Our results show that bottled water companies try to influence consumers' tastes through the management of the cultural meaning of bottled water, producing a more ‘ethical’ and ‘socially responsible’ perception of their products/brands. Theoretically, we base our analysis on McCracken's model of the cultural meaning of consumer goods, which, we argue, offers a critical perspective of the recent emergence of CSR and business ethics initiatives. We discuss how these marketing campaigns can be framed as historical struggles associated with neo-liberal ideology and hegemony. Our analysis demonstrates how such CSR strategies are part of a general process of the reproduction of capitalist modes of accumulation and legitimation through the usage of cultural categories.     

Broadening the concept of international entrepreneurship: ‘Consumers as International Entrepreneurs’

We integrate theories from international business, entrepreneurship, innovation, marketing and network economics to develop a four-part typology of ‘consumers as international entrepreneurs’. This broadens the concept of international entrepreneurship and complements the firm-level focus customary in research on international new ventures and entrepreneurs within those ventures. We develop our arguments in the context of the new economy and discuss areas for investigation in this emerging area of inquiry.     

Ethnomethodology and the production of history: studying ‘history-in-action’

According to Lynch, in his article Ethnomethodology and History, ethnomethodology offers a rich and valuable resource for studying the in situ production of history. In this article, we seek to lay out a research agenda for a ‘new business history’ that uses ethnomethodology to study ‘history-in-action’. Our aim is to show how an ethnomethodological history can be used to study the practical work of those tasked with ‘making history’. We discuss the value of ethnomethodology for core business history methods, including the production and use of historical archives and written records, the treatment of witness memories, (auto)-biographies and testimonies, and the production of official versions of past events from diverse historical sources of evidence. We conclude by outlining the potential of ethnomethodology as a distinct paradigm of enquiry, which marks it out from conventional social scientific approaches to the relationship between empirical evidence and theory-building, by discussing: (1) the value of studying the practical reasoning procedures used for generating and interpreting historical evidence; and (2) the value of opening up new forms of reflective practice for practitioners within the field.     

Roles of ‘small- and medium-sized enterprises’ in service industry innovation: a case study on leisure agriculture service in tourism regional innovation

This study combines service-dominant logic (SDL) with industry cluster theory to analyze the evolution of leisure agriculture service in Taiwan. The result shows that cooperation among small- and medium-sized enterprises (SMEs) can increase customer willingness to participate in value co-creation. Customer-driven cooperation among SMEs drives SMEs to increase their competitiveness and thus overcome their disadvantages in resources and capabilities. Additionally, the four-stage evolution of leisure agriculture service is identified to help tourism SMEs understand their positions and suggest appropriate strategies for achieving sustainable development and it also reveals a shifting paradigm from goods-dominant logic to SDL in tourism industry.     

Frontline service employees’ customer-related social stressors, emotional exhaustion, and service recovery performance: customer orientation as a moderator

This study investigates the structural relationships among customer-related social stressors (disproportionate customer expectation, ambiguous customer expectation, disliked customers, and customers?? verbal aggression), emotional exhaustion, and service recovery performance, with customer orientation (CO) serving as a moderator between customer-related social stressors and emotional exhaustion as well as emotional exhaustion and service recovery performance. The study uses data collected from a survey of 1,014 frontline service employees in Korea??s tourism service sectors. The results indicate that customer-related social stressors positively influence emotional exhaustion; emotional exhaustion negatively influences service recovery performance; and CO acts as a moderator. CO moderates both the effects of customer-related social stressors on emotional exhaustion and those of emotional exhaustion on service recovery performance, by weakening the effects for higher CO employees. This study contributes to both theory and practice by combining the four constructs of customer-related social stressors, emotional exhaustion, service recovery performance, and CO in addition to examining their relationships while focusing on customer-related factors.     

Increasing a brand’s competitive clout: the role of market share,consumer preference,and price sensitivity

The market power (or ‘competitive clout’) of a brand is an increasingly important component of modern marketing strategies. However, the factors that enhance a brand’s competitive clout (BCC) are poorly understood. This study therefore suggests an integrated model of BCC and three factors that are proposed to play a role in its formation: (i) consumer price sensitivity; (ii) brand market share; and (iii) consumer brand preferences. These variables are examined both individually and simultaneously to demonstrate the direct effect of each on BCC and how their inter-relationships contribute to BCC. In doing so, a two-step empirical analysis is conducted. First, two multinomial logit models provide an own- and a cross-price response matrix for a chosen set of competitive brands. Secondly, BCC is regressed against the variables of market share, intrinsic preferences, and price sensitivity using an interaction effects regression model. The results of the analysis show that market share is not the only way to increase BCC; in particular, consumer preferences, and especially pricing decisions, are shown to play a key role in developing a strong brand.     

Implementation of interorganizational cost management and its infrastructure: the case of a Korean ‘Chaebol’ firm

In this paper, purchasing innovation in the case of a distribution company is analysed from an interorganizational cost management (IOCM) perspective. In this company, purchasing costs play an important strategic role. This study suggests that a new practice of IOCM is necessary that is suitable for Korea's economic circumstances, including the family-controlled conglomerates (Chaebols) that dominate the entire economic system. The strong need to reduce purchasing costs within Chaebols and the Korean government policy that promotes joint growth of large and small firms are crucial factors in the successful implementation of IOCM practices. We also discuss the infrastructure that enables effective IOCM in the long term, thereby adding new findings to academic research in the area, and practical implications of this benchmark case for other companies planning purchasing innovations.     

Social Entrepreneurs as Responsible Leaders: ‘Fundación Paraguaya’ and the Case of Martin Burt

A country known for its longstanding struggle with corruption and dubious governments may not be the obvious venue for a socio-economic revolution that is expected to play an important role in the elimination of global poverty. However, Paraguay, an ??island without shores??, as the writer Augusto Roa Bastos once described it, is home to one of the world??s most innovative social enterprises??the Fundación Paraguaya. While its achievements and success are the result of a team effort, its remarkable development can be largely attributed to Martín Burt, the founder and chief executive. We study the case of Fundación Paraguaya??the first and longest-running non-governmental organisation in Paraguay??with two primary research objectives: (1) to analyse the organisation??s pioneering way of solving social problems under difficult socioeconomic circumstances and its increasingly global outreach to eradicate poverty; (2) and to analyse the responsible leadership of Martín Burt.     

Dimensions of service quality and satisfaction in healthcare: a patient’s satisfaction index

The assessment of patients’ satisfaction levels, and the knowledge of what factors influence satisfaction are very important for healthcare managers as it influences healthcare results and healthcare institutions financial results. The objective of this research is to analyse patients’ satisfaction levels in a set of four Portuguese primary Healthcare Centres, through the estimation of a satisfaction index, which simultaneously explains which dimensions of healthcare quality influence that satisfaction the most. For that, a conceptual model of patients’ satisfaction in primary healthcare was tested using data from a sample of 414 patients. Partial Least Squares path modelling (PLS) was the technique chosen to evaluate the proposed model. The results show that patients’ satisfaction is 60.887 in a scale from 1 to 100, revealing only a medium level of satisfaction. It is also possible to conclude that the most important positive effects on satisfaction are the ones linked to the patient/doctor relationship, the quality of facilities and the interaction with administrative staff, by this order.     

Commitment,satisfaction, and customer loyalty: a theoretical explanation of the ‘satisfaction trap’

This paper examines the relationship between satisfaction and customer loyalty and the moderating effects of affective and calculative commitment. The results suggest that while customer loyalty increases monotonically with the enhancement of satisfaction, the marginal effect of satisfaction on customer loyalty actually decreases. Calculative commitment positively moderates the curvilinear relationship of satisfaction and customer loyalty, i.e. enhancing calculative commitment could intensify the relationship between satisfaction and customer loyalty. Affective commitment has no significant moderating effect on the relationship of satisfaction and customer loyalty, but it can directly enhance the customer loyalty. The research findings can help us to explain the phenomenon of the ‘satisfaction trap’.     

‘Information communication technology’ innovation in a non-high technology sector: achieving competitive advantage in the shipping industry

The global marketplace is resulting in an ever-increasing networked and digitalised landscape where organisations compete as integrated supply chains. This paper explores the impact that the digital networked environment has on the traditional shipping services industry. The research contribution has four aspects: (1) most research efforts focus on high technology sectors; this research emphasises the need for information communication technology (ICT) adoption in a non-high technology sector; (2) the research highlights the importance of ICT in achieving competitive advantage in the complex environment of shipping; (3) complexity principles are applied to the discussion on ICT; and (4) the link between ICT and the development of dynamic capabilities is created.