Customer value co-creation and new service evaluation: the moderating role of outcome quality

2018 ◽  
Vol 30 (4) ◽  
pp. 2020-2036 ◽  
Author(s):  
Hong Xu ◽  
Yuqing Liu ◽  
Xingyang Lyu
Keyword(s):  
Customer Value ◽  
Service Innovation ◽  
Service Evaluation ◽  
Customer Engagement ◽  
Outcome Quality ◽  
Quality Outcomes ◽  
Content Type ◽  
Positive Effects ◽  
Slope Test ◽  
Self Reporting Questionnaire

Purpose This study aims to examine how the degree of value co-creation affects Chinese customers’ evaluations of new tourism and hospitality services, and how the outcome quality moderates this relationship under different conditions. Design/methodology/approach The proposed hypotheses are tested using a self-reporting questionnaire-based survey and two experimental designs. Data analysis entailed hierarchical multiple regression analysis, a simple slope test and a two-way ANOVA. Findings Three component studies assessed boundary conditions for the positive effects of the degree of value co-creation on customers’ evaluations of new services. Studies 1 and 2 indicated that unequivocal high-quality outcomes amplified positive effects, which were reversed by unequivocal low-quality outcomes. Study 3 demonstrated that in Chinese contexts of ambiguous outcomes, the relationship between the degree of co-creation and new service evaluation was positively mediated by self-integration in private contexts and negatively mediated by loss of face in public contexts. Practical implications This study identifies critical factors influencing successful service innovation in China within different contexts. Its finding of context-dependent customer engagement in value co-creation has managerial implications for facilitating favorable new service evaluations. Originality/value This exploratory study addresses a research gap regarding service innovation, offering insights into positive and negative influences of customer value co-creation on new service evaluation, under different outcome quality conditions in the domestic Chinese hospitality and tourism sector.

Learning from socially driven service innovation in emerging economies

2015 ◽  
Vol 26 (1) ◽  
pp. 156-176 ◽  
Author(s):  
Javier Reynoso ◽  
Jay Kandampully ◽  
Xiucheng Fan ◽  
Hanna Paulose
Keyword(s):  
Emerging Economies ◽  
Low Income ◽  
Business Models ◽  
Service Innovation ◽  
Well Being ◽  
Social Contexts ◽  
Customer Engagement ◽  
Sustainable Business ◽  
Content Type ◽  
Service Relationships

Purpose – The purpose of this paper is to provide insights into indigenous, solution-based business models and their relevance for inclusive service innovation within specific social contexts in emerging economies, with particular emphasis on the role of culture and technology. Design/methodology/approach – A proposed framework illustrates four factors that nurture socially driven service innovation in emerging economies: solution, inclusion, culture, and technology. Extant literature from studies in India, Latin America, and China illustrates distinct indigenous innovations and service relationships that exist at the base of the pyramid (BoP), which provides a foundation for a better understanding of socially inclusive service innovations. Findings – A conceptual model of inclusive service innovation reflects an integrated, virtuous cycle, composed of service relationships that stem from the BoP at various levels of analysis across different income segments. These findings suggest notable research directions. Practical implications – This study reinforces the importance of a solution orientation as a competitive business model to gain customer engagement. Social implications – Researchers and practitioners in emerging and advanced economies can use the approach suggested by this paper in their efforts to build sustainable business cultures and improve the well-being of society. Originality/value – Previous research has not addressed the social or communal roles of service innovation; this study proposes an innovative switch from a traditional strategy of selling services toward a proactive approach that involves low-income customers as active resources to co-create social and business value.

scholarly journals How do innovators stay innovative? A longitudinal case analysis

2018 ◽  
Vol 32 (1) ◽  
pp. 34-45 ◽  
Author(s):  
Sven Tuzovic ◽  
Jochen Wirtz ◽  
Loizos Heracleous
Keyword(s):  
Customer Value ◽  
Dynamic Capabilities ◽  
Knowledge Integration ◽  
Academic Research ◽  
Service Innovation ◽  
Annual Reports ◽  
Longitudinal Case Study ◽  
Cross Sectional ◽  
Content Type ◽  
Institutional Foundations

Purpose How can some companies be the innovation leader in their industry over prolonged periods of time, whereas others cannot? The purpose of this study is to understand a firm’s capability to be a successful serial innovator and to generate a constant stream of industry-leading innovations. Design/methodology/approach The paper uses a longitudinal case study approach to gain an understanding of what and how Singapore Airlines sustained service innovation for over 30 years. The study uses triangulation, whereby the core data from in-depth interviews with senior and middle management and frontline employees were complemented with academic research, case studies, annual reports, observations and archival documents. In total, 240 single-spaced pages of interview transcripts with over 130,000 words were analyzed and coded using MAXQDA for identifying repeated patterns of meaning. Findings The authors identified three key institutional foundations for service innovation: innovation climate (i.e. leadership and service culture), human capital (i.e. recruitment, training and development and engagement and incentives) and resource configurations (i.e. systems, structure and processes). These foundations enabled the organization to build the following four service innovation-related dynamic capabilities: embrace ambidexterity, institutionalize learning and knowledge integration, orchestrate collaboration and reinvent customer value. Interestingly, these institutional foundations and capabilities remained largely stable across 30 years; what changed were the contexts and specifics, not the foundations and capabilities. Research limitations/implications Data were collected only from one company. Because of the method of thematic analysis, the generalizability of the findings needs further investigation. Originality/value This study is the first to investigate the drivers of industry-leading sustained service innovation over a prolonged period of time. The proposed framework provides a fuller and more integrated picture of sustained service innovation than past cross-sectional studies.

Digital communication, value co-creation and customer engagement in business networks: a conceptual matrix and propositions

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
C.M. Sashi
Keyword(s):  
Customer Value ◽  
Digital Communication ◽  
Customer Engagement ◽  
Business Networks ◽  
Relational Exchange ◽  
Initial Attempt ◽  
Business Markets ◽  
Content Type ◽  
Organizational Engagement ◽  
The Impact

Purpose Technological innovations that resulted in the emergence and widespread adoption of digital communication in recent years have led to a surge of academic and practitioner interest in its implications for the co-creation of value and customer engagement. However, in comparison to the attention given to the study of customer engagement in consumer markets, few studies have examined its key role in business markets. This paper aims to examine the impact of digital communication on value co-creation and customer engagement in inter-organizational relationships in business networks. Design/methodology/approach Co-creation of value and customer engagement in business networks occurs among interconnected organizations that are partners in intermediate transactions. The paper develops a matrix of inter-organizational engagement among partners in business networks and propositions linking digital communication to value co-creation and inter-organizational engagement. Findings The relationships among network organizations may be characterized by the extent of relational exchange and inter-organizational bonds among them. Four types of inter-organizational engagement emerge: transactional partners, loyal partners, trusted partners and engaged partners. The partners co-create value to better satisfy customers. Research limitations/implications The paper is an initial attempt to develop a conceptual understanding of customer engagement in business markets and formulate propositions that can be further investigated. Networks of partner organizations co-create value, altering their input and output markets, value addition and products, permitting greater flexibility and customization in satisfying the needs of customers. Practical implications The ability afforded by digital communication for real-time interactive communication enables individuals from multiple departments and hierarchical positions within multiple organizations dispersed across geographic locations and industries to maintain contact, quickly and easily communicate task information, build trust and commitment in long-term relationships with network partners and provide superior customer value. Originality/value The paper represents a unique attempt to understand the nature of customer engagement in business markets. It discusses how digital communication alters market transactions among partner organizations in a network by facilitating changes in their make/buy decisions. It develops a matrix of inter-organizational engagement in business networks and propositions that improve understanding of the customer engagement concept and provide the foundation for strategies to better satisfy customers.

Habitus as a value lens to link customer engagement and value cocreation

2020 ◽  
Vol 30 (1) ◽  
pp. 57-77
Author(s):  
Benjamin Piers William Ellway ◽  
Alison Dean
Keyword(s):  
Customer Value ◽  
Practice Theory ◽  
Theoretical Research ◽  
Customer Engagement ◽  
Future Research ◽  
Content Type ◽  
A Value ◽  
Bridging Concept ◽  
Value Cocreation ◽  
Theoretical Mechanism

PurposeThis paper uses practice theory to strengthen the theoretical relationship between customer engagement (CE) and value cocreation (VCC), thereby demonstrating how customers may become engaged and remain engaged through VCC practices.Design/methodology/approachThe study adopts a problematization approach to identify shared assumptions evident in service-dominant logic (SDL) and CE research. Practice theory, as a higher-order perspective, is used to integrate the iterative and cyclical processes of VCC and CE, specifically through the theoretical mechanism of habitus.FindingsHabitus acts as a customer value lens and provides a bridging concept to demonstrate how VCC and CE are joined via sensemaking processes. These processes determine how customers perceive, assess, and evaluate value, how they become engaged through VCC, and how their experience of engagement may lead to further VCC practice. The temporally bound experiences, states, and episodes are accumulated and aggregated through an enduring customer value lens comprised of habituated dispositions, interests, and attitudes.Research limitations/implicationsThis work responds to calls for research to strengthen the theoretical link between VCC and CE and to take account of customers' lived realities and their contextualized experiences. A key suggestion for future research is the use of a rope metaphor to stimulate thinking about the complex, temporally unfolding, and interrelated processes of VCC and CE.Practical implicationsThe customer value lens and CE rope are introduced to simplify the complex, abstract, theoretical research on VCC and CE for a nonacademic audience. To understand how customers' value lenses are formed and change, and how a CE rope is strengthened, firms, service designers, and practitioners need to understand sensemaking processes through customer narratives and to use platforms and feedback to support and trigger sensemaking.Originality/valueThis paper provides a theoretical mechanism to explain the iterative and cyclical nature of VCC and CE processes and how accumulation and aggregation occur in these processes. In doing so, it demonstrates that CE occurs by virtue of, and is typified by, sensemaking processes that reproduce and shape a customer's habituated value lens, which perceives, assesses, and determines VCC and thus provides a basis for further customer engagement.

Should we engage variety seeking customers?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ashish Gupta ◽  
Shivendra Pandey
Keyword(s):  
Customer Satisfaction ◽  
Customer Value ◽  
Structural Equation ◽  
Customer Engagement ◽  
Variety Seeking ◽  
Content Type ◽  
Moderation Effect ◽  
The Relationship ◽  
Moderating Role

Purpose The study aims to examine the moderating role of variety-seeking behaviour between customer engagement and its antecedents (customer satisfaction and customer value). Further, this study also tests the existence of the value-satisfaction-engagement behaviour chain. Design/methodology/approach The perception of 262 respondents was used to examine the hypothesis using the structural equation modelling approach. Findings The moderation effect of variety-seeking behaviour between customer satisfaction and customer engagement was found to be significant. Also, customer satisfaction fully mediated the relationship between perceived value and customer engagement, hence, empirically validating the value-satisfaction-engagement model in the retailing context. Research limitations/implications The findings draw managers' attention towards the segment of consumers who are more likely to be engaged, thus helping managers develop a more efficient and focussed strategy to achieve customer engagement. The result also suggests that variety-seeking buyers may not get engaged even after satisfaction. Originality/value This paper is among the first to empirically test the moderating role of variety-seeking behaviour to achieve customer engagement.

scholarly journals Epilogue – service innovation actor engagement: an integrative model

2018 ◽  
Vol 32 (1) ◽  
pp. 95-100 ◽  
Author(s):  
Linda D. Hollebeek ◽  
Tor W. Andreassen ◽  
Dale L.G. Smith ◽  
Daniel Grönquist ◽  
Amela Karahasanovic ◽  
...  
Keyword(s):  
Conceptual Model ◽  
Employee Engagement ◽  
Service Innovation ◽  
Structuration Theory ◽  
Integrative Model ◽  
Customer Engagement ◽  
Content Type ◽  
Theoretical Entity ◽  
Structure And Agency ◽  
Cell Matrix

Purpose While (customer) engagement has been proposed as a volitional concept, our structuration theory/S-D logic-informed analyses of actors’ (e.g. employees’) engagement in service innovation reveal engagement as a boundedly volitional theoretical entity, which arises from actors’ structural and agency-based characteristics and constraints. In line with this observation, the purpose of this paper is to develop a conceptual model of actor (i.e. customer, firm, employee) engagement with service innovation. Design/methodology/approach Based on the observed gap, the authors propose an integrative S-D logic/structuration theoretical model that outlines three particular service innovation actors’ (i.e. customers’, the firm’s and employees’) engagement, which comprises institution-driven (i.e. fixed) and agency-driven (i.e. variable) engagement facets. In addition, the authors integrate the key expected characteristics of positively (vs negatively) valenced service innovation engagement for each of these actor groups in the analyses. Findings The authors develop a 12-cell matrix (conceptual model) that outlines particular service innovation actors’ institution-driven and agency-driven engagement facets and outline their expected impact on actors’ ensuing positively and negatively valenced engagement. Research limitations/implications The authors discuss key theoretical implications arising from the analyses. Originality/value Outlining service innovation actors’ structure- and agency-driven engagement facets, the authors’ model can be used to explain or predict customers’, the firm’s or employees’ service innovation engagement-based activities.

Differentiating customer engaging behavior by targeted benefits – an empirical study

2016 ◽  
Vol 33 (7) ◽  
pp. 528-538 ◽  
Author(s):  
Corina Braun ◽  
Verena Batt ◽  
Manfred Bruhn ◽  
Karsten Hadwich
Keyword(s):  
Customer Value ◽  
Business Performance ◽  
Empirical Studies ◽  
Research Field ◽  
Customer Engagement ◽  
Content Type ◽  
Customer Interaction ◽  
Behavior Types ◽  
The Relationship ◽  
A Company

Purpose Relationship marketing scholars and managers have recognized the potential of customer engagement to enhance business performance and customer value. Therefore, the purpose of this paper is to examine the effects that different types of customer engagement behaviors have on their perceived benefits. Design/methodology/approach The authors conducted two empirical studies. In the first step, 69 in-depth interviews were held to identify important customer engagement behaviors and targeted benefits. Then, in the second step, a quantitative study with 255 participants was used to match the identified customer engagement behaviors with the targeted benefits. Findings The results reveal that there are three aggregated types of customer engagement behaviors (“value creation-focused customer engagement”, “online-focused customer engagement” and “customer-to-customer interaction-focused customer engagement”). These types of customer engagement behaviors lead to different targeted benefits (social, relationship, autonomous, economic, altruistic and self-fulfillment benefits). Research limitations/implications A consideration of the influencing factors of the different customer-engagement-behavior types, including customers’ motives for their engagement with a company, would potentially enhance the findings. Furthermore, a closer investigation of the relationship between socio-demographic characteristics and customer engagement types can also provide deeper insights into the reasons for engaging with a certain firm or brand. Practical implications The findings provide managers with information on how to segment customers according to their customer engagement type and associated benefits and thereby enable them to manage customer engagement behaviors more profitably. Originality/value The results make a key contribution to the emerging research field of customer engagement by gaining deeper insights into the benefits associated with different customer engagement behaviors. It becomes clear that different customer engagement types aim at receiving various benefits.

An extended model of employees’ service innovation behavior in the airline industry

2016 ◽  
Vol 28 (8) ◽  
pp. 1622-1648 ◽  
Author(s):  
Kwang-Ho Lee ◽  
Sunghyup Sean Hyun
Keyword(s):  
Conflict Management ◽  
Airline Industry ◽  
Service Innovation ◽  
Self Esteem ◽  
Extended Model ◽  
Content Type ◽  
Positive Effects ◽  
Perceived Insider Status ◽  
Relational Experience ◽  
Innovation Behavior

Purpose This study aims to examine the relationships between three styles of conflict management [cooperative conflict management (COP), competitive conflict management (COM) and avoidance conflict management (AVO)], the subjective relational experience, perceived insider status, organization-based self-esteem and employees’ service innovation behavior in the airline industry. Design/methodology/approach Through both offline and online survey methods, a total of 304 Korean employees of eight airline firms in Asia were asked to complete the questionnaire. A structural equation modeling analysis was conducted to test the proposed hypotheses. Findings COP and AVO had significant positive effects on the subjective relational experience, and COM had a significant negative effect on the subjective relational experience. In the subsequent process, the subjective relational experience had a significant positive effect on the perceived insider status but not on organization-based self-esteem and employees’ service innovation behavior. Finally, the perceived insider status and organization-based self-esteem had significant positive effects on employees’ service innovation behavior. Social implications The results have important practical implications for developing human resource management (HRM) practices in airline firms. More specifically, airline firms should provide management training courses that encourage team leaders to create environments in which employees can form an attitude of “we are in it together”, collect conflict issues from employees in a unanimous manner and then resolve them smoothly without further problems and avoid treating conflicts as win-lose contests. These guidelines may help employees unwind from conflict situations and maintain positive relationships with their colleagues. Originality/value Previous studies have paid little attention to effects of conflict management styles on employees’ service innovation behavior through positive psychological experiences based on a holistic model. The results offer new insights into the extended model and have valuable implications for HRM practices in the airline industry.

scholarly journals User participation, knowledge management capability and service innovation: e-commerce enterprises in the digital age

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Xiaohua Xin ◽  
Xiaoming Miao ◽  
Qian Chen ◽  
Tiantian Shang
Keyword(s):  
Knowledge Management ◽  
Service Innovation ◽  
Digital Age ◽  
User Participation ◽  
Content Type ◽  
Positive Effects ◽  
Management Capability ◽  
Knowledge Management Capability ◽  
The Relationship

PurposeDespite the fact that user participation (UP) has been highlighted as an important aspect in innovation, previous findings on its relationship with service innovation performance (SIP) are inconsistent. This study aims to investigate the relationships among UP, knowledge management capability (KMC) and SIP, especially in the digital age, inspired by the theories of knowledge-based and absorptive capacity.Design/methodology/approachBased on a sample of 252 Chinese e-commerce enterprises, this study adopts a hierarchical regression analysis and bootstrap method to test the theoretical framework and research hypotheses.FindingsUP and KMC have positive effects on SIP, respectively. KMC plays a mediating role in the effect of UP on SIP. Furthermore, the intermediary role of KMC varies in different sub-paths between UP and SIP.Originality/valueFirst, this study provides some explanations for inconsistent arguments on the relationship between UP and service innovation. Second, with the consideration of specific dimensions of UP and SIP, the mediation role of KMC varies in different sub-paths has been recognized, which provides a deeper understanding of the relationship between UP and SIP. Third, this study opens the discussion about how to realize SIP more effectively in the digital age, advancing theoretical and practical developments on service innovation.

Congruence in career calling and employees’ innovation performance: work passion as a mediator

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Zhengqiao Liu ◽  
Yongzhong Jiang ◽  
Zhu Yao ◽  
Xiliang Liu ◽  
Li Zhao ◽  
...  
Keyword(s):  
Polynomial Regression ◽  
Innovation Performance ◽  
Mediating Effect ◽  
Content Type ◽  
Positive Effects ◽  
Slope Test ◽  
Helping Others ◽  
Career Calling ◽  
The Impact ◽  
Work Passion

Purpose Based on self-consistency theory and conservation of resource theory, this study aims to discuss the impact of career calling congruence on employees’ innovation performance (IP) and analyzes the mediating effect of work passion [harmonious passion (HP) and obsessive passion (OP)]. Design/methodology/approach To avoid serious common method biases, data in this paper were collected at three-wave. This paper investigated 381 employees to assess their career calling in time 1, measured their work passion in time 2 and assessed the IP of these employees in time 3. This paper also conducts confirmatory factor analysis, polynomial regression, response surface analysis, bootstrapping test and simple slope test to verify the research hypothesis in this paper. Findings In the career calling congruence case, employees’ HP, OP and IP are higher when both levels of serving oneself career calling and helping others career calling are high than when both are low; In the career calling incongruence case, employees’ HP, OP and IP are higher in the “low serving oneself and high helping others” case than in the “high serving oneself and low helping others” case; The more congruent the “serving oneself” and “helping others” career calling are, the higher the employees’ HP, OP and IP will be; and HP and OP mediate the relationship between career calling congruence and IP. Originality/value This study further clarifies the structure of career calling and find the positive effects of career calling on IP. The results present a deeper understanding of career calling and are universal applicable to the eastern culture context.

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