Home bitter home: How labor protection influences firm offshoring

Drawing on the home country literature, we argue that firms headquartered or located in countries with strong labor protection may face challenges in their domestic operations. These firms are likely to initiate offshoring to enhance operational efficiency. Building on this argument, we also examine the boundary conditions moderating this proposed effect including labor productivity and employee stock ownership. Results based on a sample of information technology firms operating within five developed countries during 1990–2010 provide support for these arguments. These findings suggest that offshoring can be a partial exit strategy for firms to address the institutional challenges in their home country.     

The effect of increasing employee compensation on firm performance: Evidence from the restaurant industry

This study examined the effect of employee compensation on restaurant performance from both short-term and long-term perspectives. The results of this study showed that increasing employee compensation immediately enhances (decreases) restaurant revenue growth (profitability) but decreases (improves) restaurant revenue growth (profitability) after one year. The results suggested that restaurant firms can utilize employee compensation as a management tool to enhance performance in terms of both short-term revenue growth and long-term profitability gains. The results further implied that restaurant firms could consider making small but continuous increases in employee compensation to maintain higher performance outcomes. However, such increases should be implemented with appropriate initiatives to reduce shirking behaviors by overpaid employees.     

Measuring performance during crises and beyond: The Performance Promoter Score

Many organizations are curtailing or even abandoning performance management because of difficulties measuring performance and disruptions in performance-based pay due to the COVID-19 crisis. Contrary to this growing and troubling trend, we argue that it is especially important during the crisis to not only continue but also strengthen performance management to communicate a firm’s strategic direction, collect valuable business data, provide critical feedback to individuals and workgroups, protect organizations from legal risks, and retain top talent. To do so, we offer a solution to overcome the challenges associated with measuring performance during a crisis. Specifically, we extend and expand upon the well-established Net Promoter Score measure in marketing and introduce the Performance Promoter Score (PPS) to measure performance. We offer evidence-based recommendations for collecting PPS information for individuals, workgroups, and other collectives, computing a Net Performance Promoter Score (NPPS); using multiple sources of performance data, and using PPS for administrative and developmental purposes as well as to provide more frequent performance check-ins. PPS is a convenient, practical, relevant, and useful performance measure during a crisis such as the COVID-19 pandemic, but it is also an innovation that will be useful long after the pandemic is over.     

The consequences of customer-oriented constructive deviance in luxury-hotel restaurants

Prior research has illustrated the antecedents of customer-oriented constructive deviance. However, research on their consequences has been limited. To clarify the relationship between customer-oriented constructive deviance and its outcome, the present study is based on affective event theory and posits that customer-oriented constructive deviance predicts customer gratitude and employee guilt, which in turn lead to customer and employee satisfaction and loyalty, respectively. This research also investigates how service and ethical climates moderate these relationships. Based on a dataset comprising 223 matched employee–customer pairs collected from luxury hotel restaurants, we found that customer-oriented constructive deviance is positively related to customer loyalty, but negatively related to employee loyalty. Furthermore, service and ethical climates are found to have disparate impacts on these relationships. Our findings call attention to a potential risk that managers should be aware of when they manage customer-oriented constructive deviance to achieve greater customer service.     

Employee work status,mental health,substance use,and career turnover intentions: An examination of restaurant employees during COVID-19

The COVID-19 pandemic has negatively impacted the restaurant industry and employees in the worst possible way. This empirical study aims to examine the relationships between employees’ work status (working, furloughed, or laid-off), mental health (psychological well-being and psychological distress), substance use (drug and alcohol use), and career turnover intentions during the pandemic. Analyzing the responses of 585 restaurant employees using structural equation modelling (SEM), findings revealed that working employees experienced higher levels of psychological distress, drug and alcohol use than furloughed employees. Moreover, psychological distress increased drug and alcohol use, as well as career turnover intentions. Lastly, all employees, regardless of their mental health, increased their substance use and indicated a desire to seek future employment in alternate industries during the pandemic. Practical and theoretical implications are discussed in detail.     

Disentangling organizational commitment in hospitality industry: The roles of empowerment,enrichment, satisfaction and gender

This Paper identifies how the motivational strategies of empowerment and enrichment affect on the organizational commitment of hotel staff, and how the job satisfaction mediates in these relationships. We applied a Structural Equations Modeling to a sample of 257 front line hotel employees from Madrid, of which 144 were men and 113 were women. Our results provide evidence about several contributions: first, employees empowerment significantly grows job enrichment and organizational commitment; second, job enrichment increase workers’ satisfaction and commitment; third, job satisfaction enhances organizational commitment; fourth, job enrichment plays a mediating role between empowerment and both satisfaction and organizational commitment; fifth, satisfaction mediates between enrichment and commitment; finally, gender moderates the relationship between enrichment and commitment.     

The option to quit: The effect of employee stock options on turnover

We show that in the years following a large broad-based employee stock option (BBSO) grant, employee turnover falls at the granting firm. We find evidence consistent with a causal relation by exploiting unexpected changes in the value of unvested options. A large fraction of the reduction in turnover appears to be temporary with turnover increasing in the third year following the year of the adoption of the BBSO plan. The increase three years post-grant is equal in magnitude to the cumulative decrease in turnover over the three prior years, suggesting that long-vesting BBSO plans delay, instead of prevent, turnover.     

Development and validation of standard hotel corporate social responsibility (CSR) scale from the employee perspective

The prevalent trends of sustainability and responsible management have promoted corporate social responsibility (CSR) to attract considerable research and business interest. However, despite its importance, few efforts have been exerted to develop a standardized CSR scale in the hotel industry. This study aims to develop and validate a multidimensional scale of hotel CSR measurement as perceived by hotel staff who understands CSR. Results of running factor analyses generate a five-factor structure. The overall measurement model demonstrates a satisfactory level of goodness-of-fit and supports convergent validity, discriminate validity, nomological validity, and predictive validity. The legal domain received the highest mean score among the five hotel CSR domains, followed by ethical, financial/economic, environmental, and social/philanthropic domains. The value on employee attitude toward the CSR-implementing hotel, employee satisfaction with the CSR-implementing hotel, and organizational commitment toward the CSR-implementing hotel varied between front-of-house and back-of-house employees. This validated measurement scale is recommended for future studies to explore the effect of hotel CSR in various countries or regions.     

It takes two to tango: The role of customer empathy and resources to improve the efficacy of frontline employee empathy

This study investigates the link between employee empathy and customer satisfaction. Building on social exchange theory, we develop a model of employee-customer empathy. We focus on the central role of customer-oriented behaviour in explaining the empathy-satisfaction relationship, predicting that employee empathy positively influences customer-oriented behaviour, which in turn enhances customer-satisfaction. We also examine the moderating roles of customer empathy, as well as of customer resources. Results of a dyadic-survey study of 211 pairs of frontline employees and their customers support the proposed moderated -mediation model. Theoretical and practical implications are discussed.