Global Strategic Management in the Service Industry: A Perspective of the New Era

Cover of Global Strategic Management in the Service Industry: A Perspective of the New Era


Table of contents

(12 chapters)

This chapter offers a preliminary investigation into the impact of the COVID-19 pandemic on consumer purchasing behaviour within the grocery retail industry and supports evidence that since the pandemic began at the end of 2019, there have been changes in the demands and behaviours of consumers (Donthu & Gustafsson, 2020). Previous research has reported that the pandemic resulted in retail consumers spending less and saving more (Jorda, Singh, & Taylor, 2020), as well as panic buying (Nazir, 2021), both of which initially contributed to the limited availability of goods. This preliminary study reports upon survey data collected from retail consumers and answers the question ‘What were the changes in consumer behaviour in the grocery sector as a result of the COVID-19 pandemic?’ Findings reveal that an increase in online shopping occurred more distinctly during the first of the UK’s lockdowns, which waned over time. Findings also reveal a lower shopping frequency, but higher shopping spends during lockdown, and that social distancing and discipline were key drivers of this behaviour change. Findings also reveal an intention to maintain a combination of new and old shopping behaviours and habits after lockdown, giving rise to the continuing importance of meeting consumers’ grocery needs online as well as in-store. This chapter further discusses the implications arising from the reported findings.


This chapter aims to (1) examine the effect of full-time employees’ STARA awareness on innovative work behavioural intentions in US casual dining restaurants; (2) investigate the mediating roles of employees’ challenge–hindrance appraisals of STARA awareness on the relationship between their STARA awareness and innovative work behavioural intentions; (3) compare the group differences between management employees and non-management employees; and (4) provide recommendations for the casual dining restaurants.

This chapter employed an online survey to collect data from 609 full-time employees in US casual dining restaurants, including 306 management employees and 303 non-management employees. Partial least squares–structural equation modelling was applied for data analysis. The results reveal that the high levels of employees’ STARA awareness raise innovative work behavioural intentions through the mediations of challenge appraisal of STARA awareness.

The proposed conceptual framework and empirical findings in this chapter enrich the literature of cognitive appraisal theory, transactional model and stress, two-dimensional stressor framework, and person-environment fit theory. Employees’ challenge appraisal of STARA awareness makes the job insecurity stressor to drive innovative work behavioural intentions. As STARA adoption deepens in casual dining restaurants, managers need to be aware of full-time employees’ stress and psychological responses towards STARA adoption. Restaurants are suggested to provide employees with adequate resources and support to help employees’ professional competency growth. The capable employees will appraise the job insecurity stressor induced by STARA adoption as an opportunity and be motivated to perform innovatively in the workplace. The casual dining restaurants may enjoy a competitive advantage in the market through value-added innovative activities.


This chapter explores the strategic motives behind the decision of hotels to internationalize. It approaches the subject from the perspective of the soft-service sector and aims to develop an understanding of this phenomenon. The literature covers several different factors that stimulate the decision to expand operations abroad. The process requires a trigger that will initiate the process and control the assignment until completion. Eight semi-structured interviews were conducted with international hotel chains to develop an understanding of the process. The findings reveal factors that can be distinguished between proactive and reactive and also be categorized under the four major motives behind internationalization: seeking natural resources, markets, efficiency and strategic assets or capabilities. The international strategy of hotel chains provides a roadmap for expansion and often acts as a trigger. The findings also reveal the significant role of vice presidents (VPs) of international development, development directors, agents and networks in initiating the process of internationalization and stimulating the chains towards specific parts of the world. One of the main differences between manufacturing and soft services is the wide variety of entry modes that are at the disposal of services. The findings are consistent with the literature published and provide an insight into the initial steps towards internationalization by hotel chains, in the post-COVID era.

Research question: What are the strategic motives behind the decision of hotels to internationalize?


Wine tourism literature still falls behind other streams of research in its ability to assess phenomena associated with the implementation of digital practices to address strategic challenges. Moreover, studies on social media in tourism and hospitality prioritize the relationship between tourists’ behavioural aspects and technology. Relationships, experiences and timely responses on the digital environment are particularly important, taken the ‘new normal’ which COVID-19 necessitates. Within this framework, the present case study explores the role of social media (Facebook in specific) in the effort of Cretan wineries to respond to new encounters, as well as the importance, if any, of collaborative practices for developing online strategies of individual businesses. Findings help us identify (a) the role of the winescape studies in exploring the digital environment and (b) the main communication priorities of wineries as expressed through social media during the pandemic crisis.


Although the issues related to the motivation of entrepreneurs have been widely studied, there is a less study focussing on the immigrant women’s entrepreneurial motivation under challenging environment such as COVID-19. Existing studies on entrepreneurs’ motivations mainly adapt the concepts that have often been developed in male-dominated paradigm. According to Shmailan (2016), male entrepreneurs focus on making sure costs are under control and are more profit driven. Women seek to make social contributions and want to ensure their quality. Some of the literature suggests that men are inclined to start businesses because of financial considerations and are more likely to be pulled into entrepreneurship. Conversely, women are likely to start business because of lifestyle issues and are more likely to be pushed into self-employment (Clain, 2000; Georgellis & Wall, 2005; Takahashi, Lourenço, Sander, & Souza, 2014).

This chapter focuses on the motivation of immigrant females in developed economies and what makes them continue especially during difficult times such as recent crisis ‘new normal’, COVID-19 pandemic. The study explores the challenges ethnic female entrepreneurs are facing and what motivated them to continue. The study also seeks their responds and strategies during challenging time such as the pandemic. The findings indicate that women often pursuit business opportunities to satisfy social needs, rather than focussing on traditional business outcomes such as growth or profit. The study found a stronger desire to contribute to a society, community and family’s needs among female founders in the UK . The immigrant female entrepreneurs have shown strong resilience during the COVID-19 pandemic crisis.


The COVID-19 pandemic has substantially affected China’s tourism industry. Tourism small- and medium-sized enterprises (SMEs), with limited crisis response ability, might be difficult to recover after the pandemic. Regarding the impacts of the pandemic on rural tourism, income for rural attraction sites was almost zero; sightseeing, agri-tourism activities were ceased; and large amount of rural bed-and-breakfasts (B&Bs) faced business closure. However, through three cases, our study found that through either content innovation or process innovation, some B&Bs are able to recover speedily from the pandemic and develop sustainably. These innovations are important for their business strategy adjustment. Innovation creates more value for tourists and stakeholders by developing new service products or adjusting existing products. This chapter discusses the linkages between innovation and leadership. Through the investigation and analysis of three cases, the researchers found that the advantages of transformational leadership were reflected in the post-crisis management in different ways and effectively improved the innovation ability and sustainable development of post-crisis organizations. This study has enriched the literature on transformational leadership and post-crisis recovery of small tourism enterprises and has practical reference value for managers of small rural tourism companies.


This chapter sets out to analyze the impact of the Covid-19 virus on the holidays provided by UK group tour operators (GTOs) and the implications for overtourism. With tourism arrivals expected to fall by up to 30% in 2020 and a slow return to pre-Covid-19 levels for 2021 and beyond, the industry is possibly suffering the loss of up to 100 million travel-related jobs (World Travel and Tourism Council, 2020). GTOs will need to assess and possibly change the way they do business to initially survive and subsequently build up tourism numbers in the coming years.

This chapter identifies how GTOs could alter their holiday proposition to reassure travellers including the challenges of operating international tours when airlines have reduced capacity, the need to consider alternative age demographics who are more likely to travel and assessing existing itineraries to visit rural or small town locations rather than cities where numerous itineraries travel to now.

Finally, this chapter discusses and describes the significance of the findings with insights about possible opportunities based upon the approaches taken by various countries to target potential holidaymakers and the need to create a ‘crisis management plan’ for current and future countries. This may result in operational adjustments to meet these new requirements including the changing outlook of potential customers and the possibility of offering domestic tours to meet the current demand.


Cafés are becoming a key aspect in the renaissance of urban living. They are often the key element in the gentrification of urban neighbourhoods, and their role as the ‘third place’ is becoming fundamental to many people’s lives. They are where people go to socialize, sip coffee and watch the world go by. Several studies have considered this phenomenon, often linking the renaissance of café culture to their former role, in their perceived ‘heyday’, as locations of development of political and philosophical ideas. In this chapter, we explore the growth of the small, independent cafés which are becoming the homes of micro-communities and where a range of social interchange take place, as well as the consumption of food and beverage.

From our research, adopting the role of flaneurs to observe and experience the atmosphere of a number of independent cafés, we identify and classify some of these micro-communities by identifying the bonds that hold them together. The essential feature underlying the success of these independent cafés is much more than the food and beverage, it is also the environment, a place where customers feel comfortable socializing in an active or, in many cases, passive, way – for example, drinking coffee and reading the paper in a comfortable environment.

We also observe that many independent cafés have a loyal following which compose their regular customers. We have referred to these micro-communities as ‘tribes’. From our observations, it appears that they are growing and that for many in society they are becoming an important part of daily life.


In the last few decades, the obesity rate has increased along with the increasing of away-from-home food consumption at restaurants (Wei & Miao, 2013), especially the food consumption at quick-service restaurants (QSRs). Previous research stated that the main factors that influence the customers’ food selection are found. Price and quality of food are the most significant things that mostly concerned customers when they are in decision-making process. There is a controversial argument between several studies that identified calorie labelling on menu influences consumers on food choice, while others said vice versa. However, several studies argued that calorie information does not have as much impact on customers’ food purchasing as other factors such as food’s quality, ranges of food, price of food, restaurant’s atmosphere, and speed of food service (Carey & Genevive, 1995). The aim of this chapter is to examine the importance of representing calorie information on menu and its effects on customer decision-making especially at QSRs. Therefore, the following questions have been addressed in this chapter:

What are the factors that influence consumer choice at QSRs?

Does calorie labelling on menus impact customer purchasing at QSRs?

This chapter starts with the introduction of the topic and reviewing previous research on menu labelling and calorie information at QSRs. This chapter aims to provide a better understanding of customer decision-making when ordering a food with regard to calorie information on the menu and the customer preference.


Many industries have witnessed a shift from traditional features and benefits marketing towards creating experiences for their customers (Pathak, 2014), but perhaps none more so than the service industry. The concept of experiences and experiential marketing has garnered much attention in recent years and has evolved to where it now has become more strategic and encompasses

the process of identifying and satisfying customer needs and aspirations profitably, engaging them through authentic two-way communications that bring brand personalities to life and add value to the target audience. (Smilansky, 2018, p. 12)

Despite its popular usage however, experiential marketing has had to contend with a lack of acceptance that was – at least in part – justifiable given its emergent nature and poor measurability properties. Its theoretical underpinnings have been explored but are less codified than many other areas of marketing. Nonetheless, it is an established part of a marketer’s armoury, is innovative in its use of technology such as virtual reality (VR) and augmented reality (AR) and, interestingly, has paved the way for a move to a focus on overall business experience. Where customer experience was limited to the marketing domain, business experience is a priority of the CEO, where customer-centricity becomes the driving force throughout the entire company. In this way, the role of experience is central to the ways that companies will grow and achieve better performance in a fast-changing global market. This is of particular relevance to the service industry, which perhaps has experienced the most upheaval of all, throughout the global Covid pandemic. To succeed in a post-Covid world, this chapter will establish how service companies must examine every aspect of their business to create meaningful experiences for customers, that will in turn translate into brand differentiation, ongoing customer satisfaction and business growth.

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