Service embeddedness and its role in a firm’s internationalisation process

2015 ◽  
Vol 35 (3) ◽  
pp. 346-369 ◽  
Author(s):  
Robert Jack ◽  
Sharif As-Saber ◽  
Ron Edwards

Purpose – Perceived differences in the composition of goods and services forms the basis of a significant degree of analysis of the firm internationalisation process. In particular, product inseparability is highlighted as a distinguishing feature of service offerings and purports to explain the different approaches to internationalisation strategy adopted by service firms. The research, however, proposes that the division of goods and services into distinct products is outmoded. Rather, it is important to understand the extent of service components that embody, or are embedded in, a product offering. The authors argue that this “service embeddedness” influences the process by which a firm internationalises. The paper aims to discuss these issues. Design/methodology/approach – Based on ten case studies of Australian international firms, this paper examines the impact of service embeddedness on a firm’s internationalisation process. Findings – The research underlines that firms approach internationalisation with a view of ensuring that the various activities that combine to form their product offering are available to their international clients. Research limitations/implications – From an academic perspective, a dichotomous approach to products (good or service) underestimates the role that embedded services have on a firm’s internationalisation process. The research, therefore, has implications for researchers and practitioners as it highlights the importance of delivering products internationally that comprise of both good and embedded service components. Originality/value – The research develops a deeper understanding of the extent and nature of separability within individual product categories from international production and operations perspectives.

2019 ◽  
Vol 31 (1) ◽  
pp. 115-136 ◽  
Author(s):  
Magnus Soderlund ◽  
Hanna Berg

Purpose The purpose of this paper is to examine the impact of happiness expressed by service firm employees when they are depicted in marketing communications materials, such as printed ads and videos. Design/methodology/approach Two experiments were conducted in a fitness service setting, in which employee display of happiness was manipulated (low vs high). Findings Both experiments showed that expressions of high levels of happiness produced a more positive attitude toward the service employee than expressions of low levels of happiness. Moreover, the impact of the expression of happiness on the evaluation of the employee was mediated by several variables, which suggests that the influence of depicted employees’ emotional expressions can take several routes. Practical implications The results imply that service firms should not only be mindful about which specific employee they select for appearing in marketing communications materials, they should also pay attention to the emotional displays of selected employees. Originality/value The present study contributes to previous research by assessing a set of potential mediators to explain why displays of happiness influence consumers, and by examining these effects in a marketing communications setting in which the customer is exposed to still images or video-based representations of the employee. The present study also focuses explicitly on happiness rather than on smiles.


2020 ◽  
Vol 25 (50) ◽  
pp. 451-478
Author(s):  
Ahmed Bouteska ◽  
Boutheina Regaieg

Purpose The current study aims to investigate the impacts of two behavioral biases, namely, loss aversion and overconfidence on the performance of US companies. First, the impact of loss aversion on the economic performance of companies was assessed. Second, the impact of overconfidence on market performance was discussed. Design/methodology/approach This study used around 6,777 quarterly observations on the population of US-insured industrial and services companies over the 2006-2016 period. Ordinary least squares (OLS) regression in two panel data models were used to test the hypotheses formulated for the study. Findings It was documented that the loss-aversion bias negatively affects the economic performance of companies and this is achieved for both sectors. In contrast, the findings suggest that overconfidence positively affects market performance of industrial firms but negatively affects market performance in service firms. Further robust evidence was found that overconfidence bias seems to be dominant, and hence, investors may tend to be more overconfident rather than more loss-averse. Originality/value This research can be extended by focusing on the following question: What is the impact of the contradictory (positive and negative) effects of an investor's loss aversion and overconfidence on the US company performance in case of realization of a stock market crisis or stock market crash?


2019 ◽  
Vol 3 (1) ◽  
pp. 2-28 ◽  
Author(s):  
Garrett Lane Cohee ◽  
Jeff Barrows ◽  
Rob Handfield

Purpose Each year, the US defense industry outsources nearly $400 bn of domestic goods and services through competitive bids. These procurement activities are quite often complex and specialized in nature because of a highly regulated federal acquisition contracting environment. Ongoing calls to improve supplier management and drive innovation in the defense industry offers an opportunity to adopt Early Supplier Integration (ESI) initiatives that have proven successful in the private sector. This paper identifies critical ESI activities and acquisition practices that the defense industry should adopt to ensure enhanced effectiveness in new product development. Design/methodology/approach Leveraging a conceptual ESI model derived from the research, an in-depth case study of 12 product development projects from a major defense contractor was performed. In the context of project performance, critical ESI activities and moderating effects were assessed. Findings Three key ESI activities have the greatest impact on aggregate project performance: system design involvement, design adjustment opportunities and design for manufacturability/assembly/testability involvement. Use of formal supplier agreements also significantly impacts project performance during the development phase. In addition, project complexity and product team maturity were identified as environment moderators; higher complexity projects tended to negatively moderate the impact of ESI upon performance, and higher team maturity levels tended to positively moderate the impact of ESI upon performance. Originality/value The results provide a sound framework for empirical validation through future quantitative studies and defense industry analyses. In addition, insights and recommendations for interpretation and adaptation of federal acquisition regulations to allow increased utilization of ESI within the defense industry are substantiated.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Asier Minondo

Purpose This paper aims to analyze the impact of COVID-19 on the trade of goods and services in Spain. Design/methodology/approach This paper uses monthly trade data at the product, region and firm level. Findings The COVID-19 crisis has led to the sharpest collapse in the Spanish trade of goods and services in recent decades. The containment measures adopted to arrest the spread of the virus have caused an especially intense fall of trade in services. The large share of transport equipment, capital goods, products that are consumed outdoors (i.e., outdoor goods) and tourism in Spanish exports has made the COVID-19 trade crisis more intense in Spain than in the rest of the European Union. Practical implications The nature of the collapse suggests that trade in goods can recover swiftly when the health crisis ends. However, COVID-19 may have a long-term negative impact on the trade of services that rely on the movement of people. Originality/value It contributes to understand how COVID-19 has affected the trade in goods and services in Spain.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sarah Mady ◽  
John B. Ford ◽  
Tarek Mady

Purpose This paper aims to examine the effect of intercultural accommodation efforts on service quality perceptions among ethnic minority consumers. Specifically, the paper postulates that during an intercultural service encounter, the impact of the service provider’s language and ethnicity on the consumer’s service quality perceptions is moderated by the level of service involvement, consumer acculturation and perceived discrimination, which, in turn, influence purchase intent. Design/methodology/approach A 2 × 2 between-subjects experimental design with an online nationwide consumer panel of Hispanic consumers was conducted where 377 participants were randomly assigned to a series of service encounter scenarios in the banking service context to manipulate accommodation efforts (yes vs no) and the level of involvement with the service (high vs low). Findings When such language and ethnicity accommodations were offered, highly acculturated minority consumers regarded the service encounter less favorably than low acculturated minority consumers. Moreover, during low-involvement service encounters, intercultural accommodations positively impacted consumer’s service quality perceptions compared to situations involving high-involvement services. Also, minority consumers with perceptions of past discrimination had less favorable evaluations of the service quality than when such perceptions were nonexistent when intercultural accommodation efforts were made by the service provider. Research limitations/implications The findings add to the sparse literature that examines the effectiveness of intercultural accommodation and focuses on the combined use of service provider’s language and ethnicity as a means to enhance service quality. Practical implications The study delivers cautions for service firms not to generalize the receptivity of intercultural accommodation efforts. Given the increasingly sizable segments of minority customers, this study offers insights for service providers to develop suitable recruitment strategies and training programs when devising effective ethnic targeting strategies. Originality/value This research is among the first to explain why the effect of target marketing is not homogenous by expanding the research on intercultural accommodations toward a new context considering service involvement levels among varied minority consumer groups.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
P.K. Kannan ◽  
Gauri Kulkarni

PurposeThe Covid-19 pandemic and the related closures and lockdowns have changed how consumers shop for products and how they consume them. In this paper, the authors focus on how customers' journeys from the awareness stage down to purchase and loyalty stages have been impacted by the pandemic across different product categories and markets and how they affect the same post-pandemic. The authors propose directions for future research based on our analysis.Design/methodology/approachAnalyzing the components of customer utility, the authors provide the basis for the rapid shift towards online and digital touchpoints and the nature of emerging interactions between firms and consumers. The authors highlight those areas where changes could be permanent.FindingsThe authors show why some of the changes due to the Covid-19 pandemic could be permanent and irrevocable and what this implies for firms' strategies to acquire, retain, and grow their business with their customers.Originality/valueThe authors highlight why omnichannel strategies are the way for firms to thrive in the post-pandemic marketplace, and outline areas for future research that will allow researchers to examine how customer journeys will evolve post-pandemic.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Shu-Mei Tseng

Purpose The purpose of this study is to examine the impact of the relationship quality on customer loyalty. The moderating role played by online service recovery in this study is further discussed. Design/methodology/approach A quantitative Web-based survey study was conducted to statistically test these relationships among relationship quality, service recovery and customer loyalty. Data collected from 183 respondents were taken for analysis through partial least squares. Findings The findings reveal that relationship quality has significant influence on customer loyalty, whereas service recovery has moderated effect on the relationship between relationship quality and customer loyalty. Research limitations/implications The respondents of this study were recruited from online panels; thus, a purposive sample could be a biased indication of the characteristics of the actual population. Therefore, it is suggested that future researchers enroll subjects from a statistical population that accurately represents the entire population and, in addition, that they collect more responses to increase the generalizability of the findings. Practical implications Because failures in service delivery are inevitable, recovery of such encounters thus represents a significant challenge for service firms. Hence, this study proposes concrete suggestions for firms to manage and operate e-commerce websites, as well as to enhance relationship quality and customer loyalty. Originality/value Service failures have been the bane of e-commerce, compelling customers to either abandon transactions entirely or switch to a physical competitor. Many firms have realized the importance of maintaining strong relationships with customers to enhance their loyalty. However, previous literature has a few studies conducted on the relationships among service recovery, relationship quality and customer loyalty in the e-commerce context. Therefore, it is meaningful to identify these relationships.


2019 ◽  
Vol 36 (5) ◽  
pp. 565-581
Author(s):  
Gilles Séré de Lanauze ◽  
Béatrice Siadou-Martin

Purpose Many western consumers have become sensitive to the negative effects of their consumption levels in many product categories and those new attitudes are challenging their habitual consumption behaviors. How do dissonant attitudes influence the process toward behavioral change? How does external information reinforce those conflicting attitudes with new dissonant cognitions and foster intentions to modify behavior? This study aims to propose a conceptual model, based on cognitive dissonance theory, which introduces psychological discomfort as an important mediator toward behavioral change intentions. Design/methodology/approach Two studies are conducted. Using structural equation modeling under Amos, hypotheses are tested and validated in the field of meat consumption on a sample of 501 French consumers. A second study investigates the impact of the nature of the stimulus on consumers’ responses. Findings The results show that psychological discomfort is increased by the contact with dissonant external information and that consumers may at the same time minimize the effects of additional cognition by implementing informational strategies such as trivialization or decredibilization to defend their consumption behavior. Research limitations/implications Future researchers could consider the various objections to meat consumption separately and further explore the dynamics between external information, consumer cognitions and consumer consumption behavior in diverse consumption contexts. Practical implications The authors advise meat marketers to reduce consumer psychological discomfort by promoting the hedonic perceived value and by presenting credible counterarguments to defend the benefits of their products. Social implications The study may encourage advocates of lower meat consumption to provide credible information about the detrimental effects of meat consumption to influence behavioral change intentions. Originality/value As responsible consumption becomes a key trend in western societies, new attitudes, fostered by external critical information, are influencing consumption behavior in many product categories. This research contributes to a better understanding of the attitude–behavior gap in a context of emerging criticism toward highly consumed and traditional products.


2020 ◽  
Vol 27 (3) ◽  
pp. 245-265
Author(s):  
Zaleha Othman ◽  
Mohd Fareez Fahmy Nordin ◽  
Muhammad Sadiq

PurposeThis study provides in-depth explanation of Goods and Services Tax (GST) fraud prevention towards sustainability business.Design/methodology/approachThis study applies a qualitative research method, i.e. case study, to address the specific research objective.FindingsThe finding revealed a GST prevention model towards sustainable business. The finding shows that it is pertinent for the government to set preventive strategies in order to retain sustainable income for the government. Two essential dimensions emerged in the findings to support preventive strategies, namely macro- and micro-level measures.Practical implicationsThe findings of this study provide managers, investors and policymakers with evidence to what extent GST fraud could be minimize in order to safeguard government source of revenue and retain sustainable business in a country. As GST is an important source of revenue for the government, it is thus crucial to prevent fraud from occurring.Originality/valuePast studies have primarily focused on GST implementation from the perspective of service tax effectiveness and efficiency. However, this study examined the impact of GST fraud to determine measures that could ensure service tax sustainability using preventive strategies, in turn, introducing to the existing literature on indirect tax.


2017 ◽  
Vol 18 (7) ◽  
pp. 1142-1156 ◽  
Author(s):  
Matthew Lambert ◽  
Katherine Kao Cushing

Purpose The purpose of this paper is to describe the impacts of an ecological footprint (EF) reduction campaign on the pro-environmental behavior of university students, faculty and staff. The campaign emphasized educating participants on specific actions that reduce resource use and the relative environmental benefit of each action. Design/methodology/approach This investigation used a pre-test–post-test design. At the beginning of an academic year, participants were invited to measure their baseline EF and take part in a footprint reduction campaign. At the end of the campaign, participants measured their EF again to see if they were able to reduce it by 10 per cent. Findings Participants in the footprint reduction campaign decreased their EF by 10 per cent. Students changed behaviors related to goods and services the most, resulting in a 16 per cent decrease in footprint for this behavior category. The most significant behavior change for faculty and staff was in the housing category with footprint reductions of 12 and 11 per cent, respectively. The most common behavioral changes in students were low- and no-cost options. Research limitations/implications Because of the general nature of the EF tool, estimates of resource use reduction are approximate. Data describing pro-environmental behaviors were self-reported by participants, making accuracy dependent on participant recollections. Originality/value This paper illustrates how providing quantitative, personalized and university-specific knowledge on the impact of personal lifestyles on natural resources can facilitate significant, measurable pro-environmental behavioral change for the entire campus community. It also provides direction on how to develop targeted sustainability campaigns for different audiences.


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