Local contexts and organizational learning for innovation in an emerging economy: the case of two Malaysian firms in Indonesia

Organizational learning for innovation is critical for the success of multinationals. In this study, we examine two multinationals and their learning and innovation, when operating in Indonesia as the host country. As research on organizational learning has largely overlooked the influence of regional contexts, we examine the role of contextual conditions of the host country with regard to its economic, political and competitive conditions, and the changing customer demands, on organizational learning and innovation. We also consider organizational learning process, taking into account organizational factors that influence such process. The implications, contributions and limitations of the study are then discussed.     

Measurement of organizational investments in social capital: The service employee perspective

This paper describes the development and validation of a measure of organizational investments in social capital (OISC). The scale development process is carried out over three stages (item generation, scale purification, scale validation), with two separate data collection phases involving a total of 735 working adults from multiple and diverse service-related workplace settings. As such, the data provide evidence for the face, content, discriminant, convergent and nomological validity, dimensionality and reliability of the OISC measure. The OISC measure is a concise, unidimensional scale that has the potential for significant usage in the development and testing of theory, as well as practical application in retail and other service provision contexts.     

Operationalisation of service innovation: a systems thinking approach

This paper initialises an effort to explore the impact of an innovative systems thinking approach for service operations design on creating innovation. A qualitative exploratory case study approach in two of the UK’s service sector departments was conducted, using face-to-face semi-structured interviews, focus groups, and extractions from both observations and documents. The results identify that operationalising service innovation is positively linked with applying the Vanguard Method for service operations design. Twelve micro-determinants for service innovation operationalisation have been identified that reside at three different levels in the service organisation, namely employees level (i.e. Micro), the functional level (i.e. Meso), and corporate level (i.e. Macro). The value of this paper is the introduction of a step-by-step guidance on how to build service operations design to operationalise service innovation, the paper also theorises service innovation with systems thinking methodology that emphasises holistic, multi-disciplinary, and integrative characteristics of the service system.     

Interactional service failures in a pseudorelationship: The role of organizational attributions

The current research investigates customer responses to interactional service failures, such as a service provider who is rude or inattentive, or unfriendly. We study interactional failures within pseudorelationships, which exist when a customer interacts repeatedly with the same firm but encounters different employees across service occasions. Empirical results demonstrate that customers’ responses to these interactional failures distinguish between the offending employee and the organization. Dissatisfaction with the organization critically depends on the customer's attribution of globality—how widespread the interactional failure is throughout the organization. Globality attributions and dissatisfaction with the organization can be lowered by excellent past experience with the organization; however, that same positive experience increases dissatisfaction with the offending employee. Thus, customers’ discrimination of the organization and employee in a pseudorelationship can work in the organization's favor after an interactional failure, and managing customers’ attributions of globality should be a managerial priority.     

Inter-firm relational resources in cloud service adoption and their effect on service innovation

This study examines (1) inter-firm relational resources for cloud service adoption and (2) their effects on service innovation. A research model and the related hypotheses are developed based on resource-advantage (R-A) theory that combines inter-firm relational resources identified in theoretical and empirical research as important antecedents of cloud service adoption and its effect on service innovation. This study collects data from 165 managers from service firms in Taiwan. The results show that resources, including reliability, cost, and compatibility significantly affect a firm’s cloud service adoption. Furthermore, the adoption of cloud service significantly contributes to service innovation. The findings add to the current understanding of service innovation in two important ways. First, drawing on R-A theory, this study is among the first attempts to identify inter-firm relational resources (reliability, cost, compatibility, and customer orientation) for cloud service adoption and their effect on innovation performance. Second, this study introduces cloud services as effective technological platforms for a firm and its business partners to share, integrate, and reciprocate information, knowledge, and experience for service innovation.     

Advanced information technology: transforming service innovation and design

This research explores the role of advanced information technologies at the ‘fuzzy’ front-end of service innovation and design. Service researchers have been exploring the application of technology to services for a while, however there has been little attention paid to the use of technology at the front-end of service innovation and design. Research suggests that advanced information technologies should be useful in research and development for services; but how this may occur has not been explored. Bringing together design thinking and the technology–organization–environment framework for technology adoption this research develops propositions for research to expose how technology can advance and transform service innovation and design. Theoretical and practical research questions are offered to guide inquiry in this emerging research space.     

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.     

The service triad: modelling dialectic tensions in service encounters

Models of service encounters are often fraught with reductionism, describing business relationships as mathematical combinations of dyadic constellations. Metaphors of ideal social relationships (marriages or friendships) are highlighted to stress normative aspects of equal, balanced and long-term business partnerships. However, these approaches are limited in their analytical sensitivity, as they cannot address the complexity of multipart relationships, where meanings, roles and relationships are continuously constructed and reconstructed. In order to understand the ambivalent quality of business interactions, this article analyses the corporate travel market by applying Simmel's depiction of the triad as a specific social form. Triadic constellations and more complex service networks involve dialectic tensions, simultaneously exhibiting loyalty and disloyalty, trust and distrust, empowerment and disempowerment. It is argued that a qualitative methodology is a more adequate approach to grasp such dynamic and contextual social realities, because (opposed to a quantitative approach) it is not confined to operate with mutually exclusive analytical categories.     

The evolution of service innovation research: a critical review and synthesis

The number of service innovation articles has increased dramatically in the past 25 years. By reviewing 128 articles published between 1986 and 2010, primarily in leading marketing and innovation journals, this study analyzes the progression of service innovation research according to topicality and perspective. The authors summarize prior research by clustering it into three evolutional phases and drawing parallels with the evolution of the wider services marketing field. Overall, the view of service innovation has evolved, from a complement of traditional product innovation to a multidimensional, all-encompassing notion that entails several functions, both within and outside the firm.     

The multiple effects of service innovation and quality on transitional and electronic word-of-mouth in predicting customer behaviour

In the service industry, word of mouth (WOM) has become an important indicator for influencing customer behaviour and developing marketing strategies. The current study develops a new theoretical model to analyse the moderating mechanism of electronic WOM, and further considers a multiple mediation analysis of how service innovation may influence in-person word of mouth (WOM) through service quality and brand loyalty. The results show that managers need to focus on WOM to improve customer service quality perception and encourage revisits. A study of 939 customers of a famous hotpot restaurant provides supporting evidence for this moderated mediation analysis. This study also discusses how this intriguing design of moderated mediation could be clarified using regulatory focus theory and further literature.     

战术面向服务架构概念及相关技术

战术面向服务架构（TSOA）是实现战术云平台服务基础设施的重要支撑概念。由于战术环境的复杂性,目前对TSOA实施过程中面临问题和相关实现技术的总结还较少。为此,开展了针对TSOA的概念以及相关技术的研究。首先,从战术环境下的TSOA架构需求背景出发,介绍了TSOA架构的组成以及适应性特征;然后,通过分析战术环境下设备和网络等多方面存在的限制性因素,明确实施TSOA架构所面临的挑战以及需要解决的关键问题,并对实现过程中涉及的服务发现、消息传输机制、网络状态自适应等相关技术进行归纳;最后,对国内外的相关研究工作进行总结,期望对推动TSOA架构的具体实施提供一定参考。     

The employee-organization relationship, organizational citizenship behaviors, and superior service quality

This study proposes a model of customer-contact service employee management that examines organizational citizenship behaviors as critical links between aspects of the employee-organization relationship (perceived organizational support, organizational identification) and customers’ perceptions of service quality. In addition, it investigates the role of job autonomy in providing the necessary behavioral discretion for employees to be able to perform citizenship behaviors. The hypothesized model was partially supported. Theoretical and managerial implications are explored.     

Exploring service design in the context of architecture

Development of services is a demanding task and requires new perspectives as well as appropriate tools and techniques. This paper forms an overview of the concept of service design, which has recently gained ground. This concept is applied to an empirical study, which explores how professional designers develop services. The main method of the study is participant observation taking place in an architect's office. As a result, the study describes in detail how services are designed in the context of architecture. The study suggests that professional designers apply several methods, which could increase our understanding of service design and service development.     

A framework for innovative service design

Drawing on research from design science, marketing, and service science, our paper provides an integrated framework for evaluating and directing innovative service design. The main goal of our review is to highlight the strengths of existing frameworks and to suggest how they can be enhanced in combination with design science principles. Based on our review, we propose a new framework for the design of innovative services that integrates several key paradigmatic approaches and identifies fundamental open research questions. Our approach is unique as it combines three service disciplines, namely services marketing, service science, and design science, and provides a new framework that describes step by step the procedure that needs to be taken and the conditions that need to be met for developing innovative services. We believe that providing such a framework is a valuable addition to the literature.     

Development of a service continance model with IT service antecedents

This study make provides service marketers, particularly those delivering information technology (IT) related service, with insight to the factors that consumers use when evaluating IT services. We develop a service continuance model that includes the antecedents of the consumer׳s decision to continue using information technology (IT) related services in a B2C service environment. Using data from the smart phone service consumers, a covariance-based structural equation modeling analysis is used to test the research model. Results from our empirical study suggest that the association between service usefulness and service continuation intention is fully mediated by service satisfaction. Though both system-service quality and customer-service quality are positively associated with service satisfaction, consumers of IT related services attach greater importance to system-service quality than to custom service quality. Likewise, the indirect path to service continuation intention is stronger in system-service quality than in customer-service quality. Our findings have practical implication for growing market share in IT related services by recognizing the importance of system-service quality in technology service delivery.     

The impact of service innovation on firm performance

This study empirically examines the impact of service innovation on performance in developing countries such as China. We construct a more integrative model linking service innovation, service quality and performance and collect 277 samples in the Chinese tourism sector. The findings are: First, service innovation affects firm performance through direct and indirect paths where service quality plays a positive mediating role, and the direct impact is larger than the indirect one; Secondly, the innovation mode is cost-reductive, which focuses on eliminating internal cost rather than improving service quality; Third, the assessment of service quality emphasizes the dimensions of assurance and reliability.     

Development of a service blueprint for the online-to-offline integration in service

Online-to-offline (O2O) integration refers to the incorporation of separate online and offline service processes into a single service delivery. Advances in mobile devices and information and communication technology enable the O2O integration, which has been applied to many services. This study proposes a new service blueprint, called the O2O Service Blueprint (O2O SB), which is specialized in visualizing and analyzing the service processes of the O2O integration. A comprehensive literature review and text mining analysis are conducted on massive quantities of literature, articles, and application introductions to understand characteristics of the O2O integration and extract keywords relevant to the O2O integration. Comparisons of the O2O SB with the conventional Service Blueprint and Information Service Blueprint validate that the O2O SB can address the limitations of existing service blueprints. An evaluation through expert interviews confirms the completeness, utility, and versatility of the O2O SB. The proposed O2O SB presents a complete picture of the entire service delivery process, whether online or offline. This SB helps users systematically understand the processes and formulate strategies for service improvement.     

The impact of service innovation on firm-level financial performance

This article empirically investigates if firms focusing on service innovation perform better financially than firms not focusing on service innovation. Analysis of the financial performance of 3575 Norwegian firms in the manufacturing industries supports the proposition that firms focusing on service innovation have significantly higher growth of operating results than firms not focusing on service innovation. However, this proposition is not supported in a corresponding analysis of 1132 Norwegian firms in the service industries. We elaborate on these results by investigating a variety of performance measures and by comparing the effects of service innovation between manufacturing and service industries. The article contributes to the service innovation measurement literature and to a better general understanding of the determinants of service innovation performance effects.     

Service sabotage: The dark side of service dynamics

While many aspects of services research assume that employees are largely compliant to management prescribed service standards, a number of recent studies have highlighted the deliberate sabotage by service workers as a key issue. We contend that service sabotage is important not simply because of the pervasiveness of such behaviors, but also because of the impact that such acts can have on firm growth and profitability. Consequently, we seek to achieve three inter-linked objectives in this article. First, we highlight how service saboteurs harm customers’ service experiences and negatively affect the performance of the firm. Second, in order to assist managers in recognizing these behaviors, we identify the most common types of service saboteurs and forms of sabotage. Specifically, we classify and describe four main types of service saboteurs: Thrill Seekers, Apathetics, Customer Revengers, and Money Grabbers. Finally, and most importantly, we provide a series of suggestions regarding how managers might effectively address service sabotage in their firms. These include gathering information and exploiting existing data to establish the extent and nature of sabotage, recruiting the right quality of service staff, training and rewarding employees, enriching and empowering employees, developing a service culture, and initiating better monitoring systems and procedures.     

The golden mean: Research on the mechanism of customer participation in employee service innovation

Service innovation is of importance in achieving business success. This study aims to understand how customer participation affects employees' service innovation through zhongyong thinking and verify the moderating role of leadership empowerment in the service section. Data were collected through a paired questionnaire survey with 352 valid frontline employees and their superiors in the starred hotel industry. Multiple linear regressions and bootstrap analysis were performed to examine the hypotheses. The results indicate that customer participation is positively related to zhongyong thinking and service innovation, and zhongyong thinking partially mediates the main effect. In addition, service innovation is more substantial when leadership empowerment is high, and customer participation has a weaker impact on zhongyong thinking when leadership empowerment is low. This study contributes to the employee service innovation literature by confirming that customer participation and employees' zhongyong thinking play vital roles in the Chinese service context. This study also helps service managers understand that empowering their subordinates can facilitate employees' service innovation.