Customers’ Perceptions of Employee Engagement: Fortifying the Service–Profit Chain

This study investigated the three dimensions of employee engagement: dedication, energy, and absorption from the customer’s perspective. The service–profit chain (SPC) and employee behavior that promotes customer satisfaction and loyalty were examined. The results revealed that certain aspects of employee engagement are more readily perceived by consumers and more likely to promote customer satisfaction and loyalty. Findings showed that energy and dedication combined were most likely to foster feelings of satisfaction and loyalty among hospitality patrons. From a theoretical perspective, the study contributes to the literature by enhancing the SPC, revealing new insight into employee engagement, and linking employee engagement to positive consumer outcomes. Hospitality industry professionals may find that employee engagement benefits the customers’ perceptions of the establishment, ultimately increasing profitability. This study utilizes the SPC in the hospitality context and proposes a new link in the chain: employee engagement.     

Nexus between CSR and DSIW: A PLS-SEM Approach

Various studies have acknowledged the significance of “Corporate Social Responsibility” (CSR) for enhancing organizational performance. However, less is known about it’s micro-level impact on employees’ working behavior, including employees’ “Desire to have a Significant Impact through Work” (DSIW) in the airline industry. Therefore, this study offers a new insight by testing a proposed parallel-sequential multiple mediator conceptual model, for assessing the nexus between CSR and employees’ DSIW in the airline industry. Proposed conceptual model is adapted from John et al.’s (2019, 2017) DSIW related models, for investigating the potential sequential and parallel multiple mediation of employee engagement, organizational pride and organizational identification, in the nexus between CSR and employees’ DSIW. Further, PLS-SEM approach was employed for analyzing the data, collected from 640 respondents, working in a well-reputed airline in Malaysia. Findings confirmed a partial mediation of employee engagement, organizational pride and organizational identification, for determining the nexus between CSR and employees’ DSIW, in the airline industry. Furthermore, findings of our post-hoc analysis have also revealed that, employees working on the non-managerial positions, are more influenced by organizational policies, towards CSR related initiatives in the airline industry. However, more similar studies should be conducted to further validate these outcomes, in the other sectors (e.g. food and beverages, lodging and recreation etc.) of the hospitality industry.     

EPU and financial performance in the hospitality and tourism industry: Moderating effect of CSR,institutional ownership and cash holding

The purpose of this study is to examine the effect of policy-related economic uncertainty (EPU) on the financial performance of hospitality and tourism companies. More precisely, the study aims at revealing how the performance of hospitality and tourism companies is affected at times of increasing EPU, and the role of corporate social responsibility (CSR) engagement, institutional ownership and cash holding to moderate this proposed relationship. The study’s sample includes a total of 113 companies from the hotel, restaurant and airline industries for the period 2001-2018. Hypotheses are tested via two-way fixed-effect regression. The study finds that increasing EPU is detrimental to firm performance presented in declining Tobin’s Q. However, the magnitude of this negative effect on firm performance becomes less pronounced as firms engage more in CSR, have larger fraction of institutional ownership and hold larger cash and cash equivalents     

Corporate social responsibility and work engagement: Evidence from the hotel industry

This study aims at testing a research model which explains how corporate social responsibility (CSR) affects work engagement. Relationships between variables were assessed using structural equation modeling (SEM). Research data were gathered from full-time hotel employees (N: 680) and managers (N: 325) in Antalya province of Turkey. SEM results indicate that perceived external prestige and organizational identification play a partially mediating role in CSR's effect on work engagement. The present research is the first study which examined the relationship mechanism between CSR and work engagement by focusing on CSR with a broader perspective (the stakeholder approach) in the hospitality literature. Furthermore, it contributes to hospitality literature through revealing on the basis of generalized reciprocity principle of social exchange theory that work engagement could be increased with the help of CSR.     

Codes of ethics,corporate philanthropy,and employee responses

Although ethical management would seem to be a must in today's business climate, research and practical applications in the services industry and in developing economies remain scarce. Hence, the purpose of this study is to investigate the effects of codes of ethics and corporate philanthropy on the Korean services industry. The results demonstrate that, overall, a code of ethics directly affects corporate philanthropy and organizational engagement. Corporate philanthropy, in turn, positively relates to employee engagement and turnover intention. Turnover intention is explained by job and organizational engagement. The strategic importance of ethics management and the following philanthropic activities in the hospitality services are illustrated from the findings of this research.     

Effects of CSR on affective organizational commitment via organizational justice and organization-based self-esteem

This study examined how employee perceptions of corporate social responsibility (CSR) influenced their affective organizational commitment (AOC) via procedural justice and organization-based self-esteem (OBSE). Using survey data collected from 203 employees working for a hospitality company, hypotheses were tested using structural equation modeling. The results showed that economic and philanthropic CSR did not have significant effects on procedural justice, but had significant direct effects on AOC. The findings also showed that procedural justice had a significant effect on OBSE, and both procedural justice and OBSE had significant effects on AOC. In addition, the results suggested that ethical CSR programs can have a positive impact on employees’ AOC via their procedural justice and OBSE. This study contributed to the literature by developing a CSR-procedural justice-OBSE-AOC model, guided by social exchange and self-consistency theories, and empirically testing it within a hospitality context.     

Extra-role service under pressure in the hospitality industry: The role of mindfulness

Extra-role service is currently the keystone that supports hotels' ability to compete. At the same time, extra-role service depends on the discretionary behavior of some employees who perform their duties in a context of stress. Our study investigates the effect of a stressor such as performance pressure on extra-role service, using employee engagement as a mediator and mindfulness level as a moderating variable. Through structural equation modeling, we analyze data from 300 frontline hospitality employees. The results show a negative effect of increases in performance pressure on employees extra-role service behavior through their engagement. We therefore suggest that performance pressure can turn into a threatening stressor in hospitality work environment. We also confirm that the employee's mindfulness level moderates this relationship, compensating for nearly the entire negative effect of this specific stressor on employee engagement. Managers will find key insights that help them to stimulate high-quality service in hospitality organizations.     

Can corporate social responsibility protect firm value during the COVID-19 pandemic?

The novel coronavirus (COVID-19) pandemic has caused a significant decline in the stock market worldwide, and hospitality companies are experiencing serious financial problems. Protecting and preserving firm value is a critical way of helping hospitality companies survive the crisis. The influence of corporate social responsibility (CSR) on firm value has been widely investigated. However, little is known about the stock price movement following CSR activity adoption during an industrial crisis. Using event study and difference-in-difference method, this study reveals that engaging in CSR activities can increase the stock returns and stakeholder attention of hospitality firms during the pandemic. Community-related CSR has a stronger and more immediate effect on stock returns than customer- and employee-related CSR. Results also indicate that hospitality firms that pursue improved stock market performance during a pandemic can invest in CSR to protect communities, customers, and employees for attracting further stakeholder attention.     

Drivers of work engagement: An examination of core self-evaluations and psychological climate among hotel employees

Many practitioners consider employee engagement a new human resource practice through which business can cope with uncertain and turbulent industry conditions. However, the hospitality academic community is still in need of finding predictors of employee engagement. The purpose of this study was to provide theory-based empirical evidence on whether employee evaluations of self (i.e., core self-evaluations) and perceptions of organizational work environment (i.e., psychological climate) affect employee engagement. Kahn's theory of three psychological conditions and Demerouti and her associates’ job demands–resources model were used for theoretical frameworks. Data were collected from 394 hotel line-employees and managers in the United States. Results of hierarchical multiple regression analyses revealed that core self-evaluations and four components of psychological climate (i.e., customer orientation of the management, managerial support for service, internal service, and information-sharing communication) were positively associated with employee engagement. Managerial implications for human resource practice and future research directions are provided.     

Abusive supervision and emotional labour on a daily basis: The role of employee mindfulness

This study examined the relationships between abusive supervision, subordinates' work engagement and their emotional labour on a daily basis. Based on an experience sampling study of 95 frontline hospitality employees over 10 working days, the results revealed the complex consequences of abusive supervision on subordinates in the hospitality industry. The results showed that daily abusive supervision was positively related to employees' daily surface acting through their daily work engagement, but it was not significantly related to daily deep acting. In addition, subordinates' mindfulness moderated the relationship between daily abusive supervision and subordinates' daily work engagement. These findings reveal employees’ daily responses to abusive supervision and can help tourism and hospitality managers develop relevant training programmes and policies to reduce the negative impact of abusive supervision and thus protect employee well-being.     

Interactive effects of supervisor support,diversity climate,and employee cynicism on work adjustment and performance

This study examined the interactive effects of perceived supervisor support (PSS), diversity climate, and employee cynicism on the work adjustment and performance of temporary migrant workers in the UAE’s hospitality industry. Drawing on the conservation of resources and trait activation theories, we hypothesized a three-way interaction effect of PSS, diversity climate, and employee cynicism on work adjustment. An effect of work adjustment on employees’ in-role performance was also proposed. Using two waves of data collected from 239 hospitality frontline employees and their direct supervisors, we found that PSS impacts more positively on the adjustment of employees with high cynicism when diversity climate is also positive. Employees with low cynicism display high adjustment with PSS even in less positive diversity climates. The indirect effect of PSS on in-role performance (via workplace adjustment) is also significant in inclusive climates for highly cynical employees.     

Socially responsible human resource management and hotel employee organizational citizenship behavior for the environment: A social cognitive perspective

Drawing on the social cognitive theory, this study intends to discuss the concept of socially responsible human resource management (SRHRM) and empirically examine the impact of SRHRM on hospitality employee’s organizational citizenship behavior for the environment (OCBE). By a two-stage survey of 270 responses from one chain hotel group in Shanghai, China, our findings indicated that SRHRM had a positive impact on OCBE; moral reflectiveness fully mediated the relationship between SRHRM and OCBE. Moreover, the effect of SRHRM on moral reflectiveness and the indirect impact of SRHRM on OCBE via moral reflectiveness were stronger with lower rather than higher levels of responsible leadership. These results extend the macro-level factors in influencing hospitality employee’s environmental-behavioral intentions and provide significant insights into why and how SRHRM affects hospitality employee OCBE. Finally, we outline the results, theoretical and empirical significance, and propose future research directions.     

The English public house as a 21st century socially responsible community institution

The changing nature of the British public house (pub) attracts much attention in the academic and popular literature. This paper reports on an ethnographic study of the pubs located in a single suburban village. The concepts of community, hospitality, corporate social responsibility (CSR) and third place are utilised to develop a theoretical perspective from which to explore publican and customer views of the pub's role in the twenty-first century. The relationship between community and CSR is not always clear but the notion of the pub as a place to meet friends and acquaintances was expressed strongly by the customers of establishments that retain aspects of the ‘traditional pub’. The hospitality of publicans was seen as a key element of the pub's philanthropic responsibility despite a tendency for organisational reporting to focus more on charitable activities in financial terms.     

Do consumers care about CSR in their online reviews? An empirical analysis

This research investigates how consumers assess hotels’ corporate social responsibility (CSR) practices when writing online reviews. The study explores the CSR discourse in online reviews over a 10-year period, highlighting how CSR’s social and environmental dimensions relate to the main hospitality topics (experience, amenities, location, transactions, value). Based on a longitudinal automated text analysis covering 480,000 reviews across six European cities, the findings reveal that hotel customers have gradually begun paying more attention to CSR factors, particularly to social and environmental ones. However, the aggregate results suggest that the overall CSR consumer discourse is still very limited, although it does have important implications in terms of consumer emotions and hospitality dimensions.     

Corporate social responsibility signaling,evaluation, identification,and revisit intention among cruise customers

Abstract

Improvements in customer knowledge and interest in cruise tourism have facilitated the growth of the cruise industry. However, the cruise industry has limited research attention from tourism and hospitality scholars. Furthermore, in the cruise setting, although a large number of corporate social responsibility (CSR) messages are sent to customers, it seems reasonable to suspect that not all CSR activities are effective to achieve the sustainable growth of the company. Therefore, this study aims to expand the existing knowledge of cruise CSR by examining the impact of customers’ perceived value of socially responsible consumption behavior on brand-related outcomes. Data from 292 cruise customers in the United States are collected through online surveys. Findings support the evidence that CSR signaling influences customers’ positive evaluation and identification with a cruise brand, but no direct impact on their behavioral intention is observed. Also, the mediating role of evaluation and identification in the relationship between CSR signaling and revisit intention is examined. In this study, the signaling and social identity theories are supported by an empirical study to addresses the importance of customers’ socially responsible consumption trait in sustainable growth.     

Motivational drivers that fuel employees to champion the hospitality brand

Many hospitality organizations have recognized the significance of having strong brands in the marketplace. Given that customers’ brand experiences are greatly affected by frontline service employees, it is crucial that service employees are capable and motivated to transform brand promises into brand realities. This study seeks to build on the emerging Internal Brand Management (IBM) research, by examining employees’ internal drive to go above and beyond their formal job requirement to benefit the brand. Based on motivation theories and the empirical data from 202 hotel employees, we examined the impact of employees’ pro-brand motivation (an internal motivation that is engendered from extrinsic stimuli) and their intrinsic motivation to work on their brand performance. In particular, we identified two significant motivational drivers for employees’ pro-brand motivation namely, employee perceived brand meaningfulness and employee perceived brand value fit. Based on the synergy between employee pro-brand motivation and intrinsic motivation to work, we further proposed an Employee Brand Motivation Matrix reflecting four types of employee motivation that underpins the rationale for employee brand performance. Organizations can use this matrix as a diagnostic tool to segment their workforce, gaining a true appreciation for the extent to which their workforce is willing and able to champion the brand.     

Effect of CSR contribution timing during COVID-19 pandemic on consumers’ prepayment purchase intentions: Evidence from hospitality industry in China

Corporate social responsibility (CSR) contributions are essential for hospitality companies during the COVID-19 pandemic. However, little is known about how CSR contribution timing during the pandemic might affect consumers’ prepayment purchase intentions. This paper takes a hospitality company as an example, using two experiments to explore (a) the effect of CSR contribution timing on consumers’ prepayment purchase intentions and (b) the potential roles of psychological contracts and distance to the COVID-19 risk center. Study 1 demonstrated that CSR contributions during the COVID-19 outbreak (vs. after its peak) led consumers to have higher prepayment purchase intentions, revealing the impact of CSR contribution timing. This effect was also driven by psychological contracts between consumers and the hospitality company. Study 2 showed that, when participants were in the peripheral area of a COVID-19 outbreak, CSR contributions during the outbreak (vs. after its peak) increased prepayment purchase intentions whereas the opposite effect occurred when consumers were in the risk center.     

Impacts of positive and negative corporate social responsibility activities on company performance in the hospitality industry

In spite of growing concern for corporate social responsibility (CSR) in various industries including the hospitality industry, the relationship between CSR activities and financial performance is a rarely examined subject in the hospitality context. Especially, research measuring the separate impacts of positive and negative CSR activities on companies’ financial performances remains, as yet, unconsidered. Thus, this study examines different impacts of positive and negative CSR activities on financial performance of hotel, casino, restaurant and airline companies, theoretically based on positivity and negativity effects. Findings suggest mixed results across different industries and will contribute to companies’ appropriate strategic decision-making for CSR activities by providing more precise information regarding the impacts of each directional CSR activity on financial performance.     

Hospitality employees promotional attitude: Findings from graduates of a twelve-month management training program

Mentoring is considered an important human resources training program but is seldom discussed as an internal marketing tool in the hospitality management literature. This study, using a major hotel company’s formal mentoring program, empirically tested mentoring’s influence on employee’s promotional attitude. Employee psychological contract theory provided the theoretical foundation for the study. The proposed research model was tested using Partial Least Squares (PLS) SEM. The results showed that mentor functions (i.e., career development and psychosocial support) were antecedents of employee promotional attitude. In addition, employee’s psychological contract breach and employee’s affective organizational commitment were mediators between mentor functions and promotional attitude, with affective organizational commitment showing a full mediation effect. These results provide both theoretical and managerial implications and offer opportunities for future research.     

Employee turnover dynamics in the hospitality industry vs. the overall economy

High employee turnover is a widely known reality for the hospitality industry. However, the extent to which employee turnover in the hospitality industry depends on overall economic activities or idiosyncratic characteristics of the hospitality industry is not clear. The purpose of this study is to examine the extent to which the employee turnover rate in the hospitality industry is sensitive to the overall US economy. Also, the COVID-19-pandemic has further exacerbated an already convoluted issue of employee turnover for hospitality businesses. Therefore, we further investigate the extent to which employee turnover rate in the hospitality industry are sensitive to the overall US economy during the pandemic period. The results show that employee turnover in the hospitality industry has the highest sensitivity to the economy. However, employee turnover in the hospitality industry decreases the most in the overall US economy when economy-wide turnover increases. The theoretical and practical implications are extensively discussed.