The Effect of Frontline Employee Co-creation on Service Innovation: Comparison of Manufacturing and Service Industries

Published on Jun 1, 2016in Procedia - Social and Behavioral Sciences
· DOI :10.1016/j.sbspro.2016.05.488
Jung-Kuei Hsieh1
Estimated H-index: 1
(NTPU: National Taipei University)
Abstract The involvement of frontline employees is critical to successful service innovation. Frontline employees often know what their customers need as well as what types of services their firms offer. Service deliver is highly dependent on the actions of frontline employees, who are the focus of the current research. However, the understanding on the influences of co-creation with frontline employees on service innovation performance is insufficient. Therefore, the research model based on service-dominant logic and empowerment perspective was developed to investigate the effect of co-creation with frontline employees on the performance of service innovation. The results drawn from a survey of 149 IT firms and 103 finance firms suggest the followings. First, the frontline employee co-creation by two-way communication can facilitate frontline employees’ sentiment (i.e., motivation, commitment and satisfaction) for the implementation of new services in both the IT and financial industries. Second, for the IT industry, the frontline employees’ sentiment positively affects the financial performance and non-financial performance, except for the links of motivation–financial performance and commitment–non-financial performance. For the financial industry, the frontline employees’ sentiment positively affects the financial performance and non-financial performance, except for the commitment–financial performance. Third, the effects of satisfaction on financial and non-financial performance are stronger in the IT industry than the financial industry. The links of motivation–financial performance and commitment–non-financial performance are stronger in the financial industry than the IT industry. Finally, we offer some managerial and research implications for service innovation and frontline employee co-creation.
Figures & Tables
  • References (37)
  • Citations (4)
📖 Papers frequently viewed together
1 Citations
5 Citations
1 Author (Melissa Zammit)
78% of Scinapse members use related papers. After signing in, all features are FREE.
#1Susana Navarro (UEM: European University of Madrid)H-Index: 1
#2Luisa Andreu (University of Valencia)H-Index: 24
Last. Amparo Cervera Taulet (University of Valencia)H-Index: 11
view all 3 authors...
This study examines how service supplier and buyer value co-creation influences buyers' attitudes toward service providers. Service-dominant logic is a prevalent concept in the services industry, providing an important marketing theory in which intangible resources, co-creation of value, and relationships are the keys to determining marketing exchanges. This research describes a model for analyzing value co-creation management in the hotel industry, focusing on the specific market segment of dis...
30 CitationsSource
#1Alexander E. Ellinger (UA: University of Alabama)H-Index: 36
#2Carolyn Findley Musgrove (Indiana University Southeast)H-Index: 7
Last. Yu-Lin Wang (NCKU: National Cheng Kung University)H-Index: 9
view all 6 authors...
Improving customers' service experiences by identifying ways to develop organizational cultures that better motivate and engage service employees is an important issue for service organizations and a top priority in services research. However, extant services research focuses far more on managing customer relationships than on the dynamics of effectively supporting and developing the service personnel who interact with customers. This study assesses the influence of an organizational human resou...
43 CitationsSource
This article attempts to provide deeper insights into the link between the innovativeness of a company’s offered goods/services and customer satisfaction. This study proposes an inverted U-shaped relationship between the innovativeness of the offered goods and customer satisfaction. For the innovativeness of services, information economics and services marketing literature indicate an inverted S-shaped relationship. Two separate studies conducted for goods and services confirm the proposed nonmo...
64 CitationsSource
#1Sergio Fernandez (IU: Indiana University)H-Index: 24
#2David W. Pitts (AU: American University)H-Index: 19
In a period of ongoing public sector reform in the United States (US), federal government agencies have been pushed to find new ways of performing their public functions more effectively and efficiently. Frontline public sector employees are a particularly vital source of innovations in organisational function and form. This study seeks to identify factors that motivate front line employees in the US federal bureaucracy to engage in innovative behaviour. The empirical analysis is based on data f...
39 CitationsSource
#1Ali Turkyilmaz (Fatih University)H-Index: 11
#2Gülşen Akman (Kocaeli University)H-Index: 6
Last. Zbigniew Pastuszak (UMCS: Maria Curie-Skłodowska University)H-Index: 5
view all 4 authors...
Purpose – The purpose of this paper is to identify the factors which determine the level of public employees' job satisfaction and as result help to have effective and efficient management system in the public sector, in developing countries such as Turkey.Design/methodology/approach – Based on theoretical considerations, a model was proposed linking the employee satisfaction and loyalty (ESL) constructs. The paper exhibits the findings of a satisfaction and loyalty survey of employment factors ...
69 CitationsSource
#1Andrea Ordanini (Bocconi University)H-Index: 20
#2Ananthanarayanan Parasuraman (UM: University of Miami)H-Index: 64
Research to date on service innovation is rooted primarily in traditional new product development focusing on tangible goods. In this article, the authors invoke insights from the emerging service-dominant logic (SDL) perspective and propose a conceptual framework for investigating the antecedents and consequences of service innovation. They then develop a set of hypotheses pertaining to potential predictors of two distinct facets of service innovation (volume and radicalness) and the impact of ...
355 CitationsSource
#1Henry ChesbroughH-Index: 43
#2Alberto Di MininH-Index: 16
Il primo libro di Henry Chesbrough, "Open Innovation," era riuscito a definire un nuovo paradigma per il management del 21 secolo; con "Open Services Innovation, "che appare ora tradotto in italiano, l autore ci spiega come l Innovazione Aperta, associata a una rivalutazione del ruolo dei servizi, puo portare le imprese a scoprire nuove opportunita in un economia sempre piu dominata dal terziario.Chesbrough illustra come le aziende in tanti settori diversi possono differenziarsi e innovare passa...
127 CitationsSource
#1Henry ChesbroughH-Index: 43
"The father of Open Innovation is back, this time with his most expansive, most significant book yet. Open Innovation described a new paradigm for the management of industrial innovation in the 21st century: How useful industrial knowledge today is widely distributed around the world and firms must open up to work with external partners to commercialize internal innovations, and allow unused internal ideas to be taken to market by others externally. Chesbrough's forthcoming Open Services Innovat...
336 Citations
Service firms recognize the key role that product and process innovation play in building and sustaining competitive advantage in the marketplace. This empirical study tests a model of new service development (NSD) that enhances performance outcomes by prescribing specific roles for customers and frontline employees in the NSD process. Findings are based on in-depth managerial interviews and survey data collected from 160 organizations across a variety of service sectors. The results support hyp...
157 CitationsSource
#1Wan-Jing April Chang (UEW: University of Education, Winneba)H-Index: 2
#2Tung Chun HuangH-Index: 5
This study examined the impact of human resource (HR) capabilities on internal customer satisfaction and organisational effectiveness. It drew on data from HR managers and line managers; a total of 238 valid matches was obtained. Structural equation modelling was employed to examine the proposed model. The results showed that some HR capabilities appear to be linked to internal customer satisfaction and organisational effectiveness. The implications for practitioners were to modify and emphasise...
16 CitationsSource
Cited By4
#1Lan LiH-Index: 1
#2Gang LiH-Index: 1
Last. Shui F. ChanH-Index: 1
view all 3 authors...
The purpose of this paper is to examine, within a context of manufacturing transformation, whether corporate responsibility for employees (CRE) promotes the service innovation performance (SIP) of the firm; whether this effect is mediated by employee innovative behavior (EIB), and how two control mechanisms (process-control (PC) and outcome-control mechanism) moderate the relationship.,Drawing on social exchange and control mechanism theory, this paper establishes a conceptual model and adopts a...
1 CitationsSource
#1Michael Vössing (KIT: Karlsruhe Institute of Technology)H-Index: 1
#2Jörg Siegel (KIT: Karlsruhe Institute of Technology)
Last. Carina Benz (KIT: Karlsruhe Institute of Technology)H-Index: 1
view all 5 authors...
Servitization has received significant attention from scholars and practitioners over the last decade. However, despite substantial research contributions in the fields of new service development and service innovation, product-focused small and medium-sized enterprises struggle to develop sophisticated service offerings. This paper attempts to better understand this discrepancy and suggests ways to overcome it. We have conducted a case study with a medium-sized manufacturing company that curren...
#1Sascha Alavi (RUB: Ruhr University Bochum)H-Index: 7
#2Jan Wieseke (RUB: Ruhr University Bochum)H-Index: 22
Last. Meryem Bayrak (RUB: Ruhr University Bochum)
view all 4 authors...
This paper empirically examines the relationship between sales-service cooperation quality and annual total salesperson profit. Moreover, this paper investigates the moderating role of salesperson’s attitude towards service engineers. Based on qualitative interviews, the authors developed a conceptual model. To test the proposed model, the authors analyzed survey data from almost 300 salespeople of a solution provider in the construction industry.
In the recent years, Nigeria has recorded an economic growth but with a trajectory which offers both positive and negative lessons regarding the innovation of business faced by many countries in Africa and elsewhere in the developing world. This study sought to test the relationship between innovation, the financial performance of company and firm’s competitive advantage. This was done through correlation and regression analysis. Data were analyzed using descriptive and inferential statistics. H...
2 CitationsSource