Co-creating value in hotels using mobile devices: A conceptual model with empirical validation

The service-dominant (S-D) logic paradigm is increasingly gaining ground within the scholarly literature and current hotel industry practice. The S-D logic purports that consumers are no longer passive receivers of firms’ value propositions, but rather interact with firms in service settings, thus co-creating value. Using data from a general population sample of hotel consumers from the U.S., this study developed and validated empirically a conceptual model that recognizes the central role of consumers’ degree of value co-creation in creating valuable service experiences using mobile devices in hotels. It was found that the mobile (m-)commerce habit influences the degree of consumer co-creation, which in turn influences the perceived value of co-creation behavior. In addition, the perceived value of co-creation was found to influence consumers’ perceived value of the hotel stay and intentions to stay in a hotel that facilitates co-creation via the mobile environment.     

Towards An Experience Innovation Canvas: A Framework for Measuring Innovation in the Hospitality and Tourism Industry

ABSTRACT

As organizations transition from a service to experience economy, they will need to reimagine their business performance “scorecards” to reflect practices that place the co-created guest experience at the heart of their innovation efforts. This article synthesizes innovation and experience economy literature to depict six theory-based propositions and a framework for measuring innovation in the hospitality and tourism industry. The propositions were investigated in 19 experience firms comprising lodging, dining, attractions, and events in Southern California. Data from executive interviews (n = 19) and follow up manager surveys (n = 202) showed strong support for front of the house innovation focused on guest offerings to enhance interactions, personalization and social spaces and back of the house innovation focused on connecting employees with the firm’s core purpose. Measures of memorable triggers and motivators of emotional value represent promising new frontiers. By identifying the current practices and measures of senior managers faced with leading innovation in their own business units, this study both informs this practice and presents a unique and updated perspective on experience innovation.     

Co-production versus co-creation: A process based continuum in the hotel service context

This paper reviews the theoretical underpinnings of co-production and co-creation and discusses these service production approaches in a hotel context. Based on a synthesis of the literature, we present a co-production to co-creation matrix and offer several propositions: (1) the co-production versus co-creation concepts create a continuum rather than a dichotomy; (2) service innovation and the customisation of service production are conceived as lying somewhere between co-production and cocreation on this continuum; and (3) the key factors that define a typology of service production types (co-production, service innovation, customisation, and co-creation) include the primary value-creation driver and customer involvement/dialogue type. We further discuss the benefits for hotels of moving from co-production to co-creation on this continuum. As one of the first papers to discuss co-creation in hospitality, it contributes to the field by providing specific theoretical and practical implications for how hotel companies can move from co-production to co-creation.     

Customer acceptance of four types of hospitality value propositions

Although how successful hospitality companies create value propositions has received some interest, how and why customers accept value propositions remains largely unknown. Grounded in theory of acceptance and service-dominant logic, this study examined consumers’ psychological mechanism of acceptance of value propositions at different points of exchange, and investigated the impact of value propositions acceptance on customers’ well-being and perceptions of service advantage. Online respondents (N = 180) assessed four hospitality value propositions: innovation, marketing, production, and recovery. Repeated-measures ANOVA and PROCESS Model analyses revealed that customers accepted value propositions cognitively, emotionally, normatively, and behaviorally, positively influencing subjective well-being and perceptions of firm’s service advantage. Service production and recovery value propositions had higher acceptance compared to innovation and marketing. This study is the first to empirically illustrate the complex process of customer value proposition acceptance and the effects on personal and organizational outcomes. Theoretical and practical implications are provided.     

MANAGING VALUE CO-CREATION IN THE TOURISM INDUSTRY

The continuing development and widespread adoption of information technology (IT) has deeply influenced the tourism industry. Despite recent attention, we lack a clear understanding of the process by which partners co-create and share IT-enabled value. Grounded in Service-Dominant logic (S-D logic), this study examines how IT enables value co-creation in tourism and why some players appear to appropriate the value co-created in the partnership more successfully compared to others. Our results suggest that operators that achieve superior performance in terms of appropriating value do so because of superior strategic fit with the objectives of the value co-creation initiative, synergy with other members of the network, and IT readiness to conduct business electronically.     

Creating Shared Value Through Implementing Green Practices for Star Hotels

This study expands the concept of shared value through the value chain to include green practice innovation in star hotels in Taiwan. By employing the Delphi method, 44 green innovation indicators were established for star hotels to create an instrument to help address green practices’ implementation. Through creating shared value by using the top 18 indicators among eight dimensions, this study explores the preliminary green innovation framework to configure the value chain and to propose a conceptual model based on a shared value perspective. The findings contribute to the current literature by including green innovation processes into the shared value concept to complement the existing value chain design, and by addressing whether the green innovation indicators examined pertain to a value chain or process analysis. The results provide substantial contributions on how star hotels can efficiently implement green practices to simultaneously approach economic profits and environmental protection.     

Application of revenue management practices to the theme park industry

Revenue management (RM) has been an essential strategy to maximize revenue for many capacity-limited service industries. Considering the common industry characteristics of traditional RM industries, the nature of the theme park industry suggests potential for enhancing revenue by exercising a variety of RM techniques. This study suggests practices for theme park operators for successful RM application. In addition, this study examines how customers perceive RM practice in the theme park industry compared to a traditional RM industry, hotel industry. The findings indicate that customers seem to perceive RM practice in the theme park industry as relatively fair practices as similarly perceived for the hotel industry. The findings are encouraging for the theme park industry because a relatively similar level of its customers’ perceived fairness of the RM practice compared to the hotel industry suggests that adoption and implementation of the RM practice has great potential to become successful as it has been in traditional RM industries, such as hotels.     

Becoming an ambidextrous hotel: The role of customer orientation

Because competitive pressure in the hotel industry continues to increase, hotels have to develop service innovation (i.e., exploration) and service improvement (i.e., exploitation) capacities to become ambidextrous for continually creating customer value. In this study, a theory of the effect of customer orientation on service innovation and service improvement, which facilitates service quality and results in better market performance, was developed and investigated. By analyzing the data provided by senior executives and department managers from 126 hotels in Taiwan, both service innovation and service improvement were revealed to partially mediate the relationship between customer orientation and market performance. The results imply that customer orientation affects the market performance of a hotel through the development of service capabilities, and that customer orientation can transform a hotel into an ambidextrous hotel by concurrently developing service innovation and service improvement capacities.     

Critical issues affecting the service quality and professionalism of the tour guides in Hong Kong and Macau

This study examines the critical issues affecting the service quality and professionalism of the tour guiding professions in Hong Kong and Macau. In-depth interviews were conducted with industry representatives in the two regions. The issues identified are classified into six categories: unhealthy business practices of outbound travel agencies in China, immaturity of the Chinese tourism market, exploitative measures by inbound tour operators, human resource issues, role conflict, and service quality assurance mechanism. A conceptual model is proposed to explain the role conflict faced by the guiding professions. The implications of the findings and recommendations for practice and future research are discussed. Given the growing importance of the Chinese tourism market, the findings will be of significant value to Hong Kong and Macau, and to other destinations targeting the Chinese market.     

The Role of Effective Service Provider Communication Style in the Formation of Restaurant Patrons' Perceived Relational Benefits and Loyalty

The purposes of this study were to examine the optimal service provider communication style for maximizing patrons' perceived relational benefits, and to examine how perceived relational benefits influence relationship quality and loyalty within the luxury restaurant industry. A review of current communication literature was conducted, and three types of communication styles were derived. Based on the theoretical causal relationships between the proposed constructs in this study, 16 hypotheses were derived, thus creating a conceptual model. The proposed model was tested utilizing data collected from 527 luxury restaurant patrons. The results of data analysis revealed two major findings: (a) a task-orientation communication style enhances patrons' perceived confidence benefits and deepens relationship quality, thus creating patron loyalty; and (b) an interaction-orientation communication style induces rapport between service provider and patrons, thus helping to maximize patrons' perceived relational benefits. Finally, it leads to patron loyalty. Based on these findings, theoretical and managerial implications are discussed.     

Leadership,Innovation Outputs,and Business Performance: A Mixed Methods Study of Senior Managers in the Attractions Industry

ABSTRACT

This mixed-methods study responds to the need for empirical studies of innovation in the experience industry context. A multisource approach was used to gather data from 189 attractions across the United States. The relationships between strategic leadership practices and various innovation output dimensions were examined at the organization level. Qualitative data in the form of innovation output examples complemented the quantitative results. Findings provide a snapshot of innovation in the attractions industry and reveal some of the “tensions” of leading innovation in organizations whose main economic offering is an experience. A list of context-specific leadership practices and innovation activities provide a starting point for self-assessment and integration of experience-economy concepts at the business unit level.     

The Twin Landscapes of Waitomo: Tourism Network and Sustainability through the Landcare Group

This paper examines the management and coordination of a tourism destination stakeholder group, the Waitomo Caves Landcare Group. The Waitomo Caves destination context is unique in that its images and attractions occur underground and yet its long-term sustainability depends upon the aboveground land practices that occur within the broader catchment area. The Waitomo Caves Landcare Group was formed to protect and conserve this critical resource upon which the community is economically dependent. This paper illustrates network theory, offering an alternative perspective for understanding interdependent stakeholder groups. It focuses specifically on the informal coordination mechanisms that structure networks. The structure of the network, relational connections, and structural embeddedness are illustrated as key propositions that contribute to this process.     

Asynchronous video interviews in the hospitality industry: Considerations for virtual employee selection

Hospitality organizations utilize a variety of selection tools to hire the best candidates. Traditionally, hospitality recruiters have relied on face-to-face interviews for choosing the most qualified candidates to represent the firm. While real-time Internet-based interviewing platforms are increasingly utilized among hospitality organizations, a cutting edge technology-based interviewing phenomenon has emerged: the use of asynchronous video interviews (AVIs). In order to conduct this modality of interviews, employers send text-based questions electronically and the candidate records his or her responses using a webcam via various proprietary software platforms. Following the promise of reduced costs and increased efficiencies, many organizations have adopted this modality of interviews; however, little research has been conducted regarding their effectiveness among both providers and users. Additionally, the appropriateness and alignment of AVI in the hospitality industry for the use of selecting service representatives should be investigated. In light of this, the present research examines the literature on interviewing modalities, predictive validity of selection tools, and electronic Human Resources and presents several propositions as well as an agenda for future research. Furthermore, the present research presents a conceptual model for AVI using the literature on electronic Human Resources as a backdrop.     

Relationships between external knowledge,internal innovation,firms’ open innovation performance,service innovation and business performance in the Pakistani hotel industry

The purpose of this study is to test the relationships between external knowledge, internal innovation, firms’ open innovation performance, service innovation and business performance in the Pakistani hotel industry. A simple random sample of 285 managerial staff in the Pearl-Continental Hotels & Resorts of Pakistan was surveyed. The findings show that firms’ open innovation performance has a positive influence on service innovation and business performance. They also reveal that external knowledge and internal innovation positively influence firms’ open innovation performance and that further leads to service innovation and business performance respectively. This study provides practitioners with firms’ open innovation performance as a tool to enhance business performance while adopting the strategy.     

Does employee satisfaction influence customer satisfaction? Assessing coffee shops through the service profit chain model

This study examines the interrelations between service climate, organizational identification, employee job satisfaction, and customer perceived value and satisfaction. To achieve this, we apply the service profit chain model to South Korea’s coffee shop industry. Data were collected from 263 employees and 973 customers in Daegu. The hypotheses were tested by conducting a path analysis to investigate the relationship between the variables. Organizational identification and job satisfaction were found to be positively correlated with each other. Additionally, job satisfaction was correlated with customer perceived value, which, in turn, was correlated with customer satisfaction. The findings suggest that a good work environment and service-related training can create a positive service climate for employees, which can subsequently improve customer satisfaction. This study is unique in its application of the service profit chain model on the coffee shop industry in Korea.     

Augmented reality in the tourism industry: A multi-stakeholder analysis of museums

In places of tourist interest and attractions, such as museums, Augmented Reality (AR) is an emerging technology that enhances (through additional digital contents) and leverages visitor experience creating opportunities for an array of immediate and peripheral stakeholders. However, to achieve this, both researchers and managers need to better understand how to effectively co-create value through the involvement of different stakeholders and their interconnected relationships. Thus, we analysed three interrelated streams of literature (digital innovation, tourism management and stakeholder theory) and we developed a conceptual paper that sheds light on AR in museums. An in-depth analysis of the topic allowed us to develop theoretical propositions and applications on the subject, in particular from a multi-stakeholder perspective. Finally, our research proposes a preliminary conceptual model that highlights the need for the identification of the roles and interactions of museum's stakeholders towards a more digitalised museum experience through AR.     

Crisis-management practices in the restaurant industry

This study examines crisis-management practices in the Israeli restaurant industry. The study uses a questionnaire for evaluating the importance and usage of different practices for crisis management. The findings show that managers are generally consistent in crisis management and that they generally use the most important practices. The findings illustrate the significance of government support in external crises and suggest that improved competitiveness and cost-cutting activities are significant for combating business hardships. The paper concludes with recommendations for future research and management of crises.     

How collaborative routines improve dynamic innovation capability and performance in tourism industry? A path-dependent learning model

Current results of direct relationships between collaboration and innovation capability on performance in tourism contexts are inconsistent. This research is to uncover roles of collaborative routines on promoting relationships between internal and service innovation capabilities as two distinct mechanisms, and performance. The study also examines the contingent effect of knowledge search on performance. Survey data from 181 samples from the Thai tourism industry are gathered for analyses. Findings demonstrate that knowledge search and internal innovation capability have a direct impact on performance, whereas the effect of service innovation capability on performance is significant only in the presence of collaborative routines.     

Pay for performance and work attitudes: The mediating role of employee–organization service value congruence

This study examined the mediating effects of employee–organization service value congruence on pay for performance and work attitudes. Using a sample drawn from the hotel industry, we found that when employees perceived a high PFP link they tended to exhibit more positive work attitudes. We also found that the relationship between PFP link and work attitudes was mediated by P–O fit. These findings offer new insights into the important role that reward practices such as PFP play in the alignment of employer–organization service quality values. In doing so, they also pave the way for future contributions in this novel and important area of service value congruence.     

Effect of experiential value on customer satisfaction with service encounters in luxury-hotel restaurants

Exactly how the restaurant industry creates good quality service experiences has attracted the attention of scholars and practitioners. Some scholars advocate creating high quality service encounters to enhance customer satisfaction. However, recent research has not examined hotel restaurant service, and a detailed understanding of its potential effects on the customer meal experience and customer satisfaction is needed. Consequently, this study of service encounters and restaurant consumer behavior constructed a comprehensive framework via a literature review. Empirical data were collected by a questionnaire distributed to luxury-hotel restaurant customers. The empirical results indicated that restaurant environmental factors and interactions with service employees and other consumers positively influence the consumer experiential value. Additionally, only interactive relationships with service employees directly and positively affect consumer satisfaction. Restaurant environment factors and interactions with other consumers indirectly and positively influence consumer satisfaction through experiential value. Finally, with respect to marketing and development initiatives, the results of this study can help improve the physical attractiveness of the examined luxury-hotel restaurants.