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Many important constructs of business and social sciences are conceptualized as composites of common factors, i.e. as second-order constructs composed of reflectively measured first-order constructs. Current approaches to model this type of second-order construct provide inconsistent estimates and lack a model test that helps assess the existence and/or usefulness of a second-order construct. The purpose of this paper is to present a novel three-stage approach to model, estimate, and test second-order constructs composed of reflectively measured first-order constructs.

The authors compare the efficacy of the proposed three-stage approach with that of the dominant extant approaches, i.e. the repeated indicator approach, the two-stage approach, and the hybrid approach by means of simulated data whose underlying population model is known. Moreover, the authors apply the three-stage approach to a real research setting in business research.

The study based on simulated data illustrates that the three-stage approach is Fisher-consistent, whereas the dominant extant approaches are not. The study based on real data shows that the three-stage approach is meaningfully applicable in typical research settings of business research. Its results can differ substantially from those of the extant approaches.

Analysts aiming at modeling composites of common factors should apply the proposed procedure in order to test the existence and/or usefulness of a second-order construct and to obtain consistent estimates.

The three-stage approach is the only consistent approach for modeling, estimating, and testing composite second-order constructs made up of reflectively measured first-order constructs.

Building on the multi-divisional business model (M-model), the purpose of this paper is to develop a better understanding of triadic business models – T-models – and how they create value for their three categories of stakeholders, i.e., the suppliers, the platform firm and the buyers. The research question that guides the present study is twofold: How is value created individually and collectively in triadic business models and what might challenge their sustainability?

Anchored in extant literature and a process of conceptual modeling with empirical examples from Uber, a new business model archetype was developed for two-sided markets mediated by a middleman.

The paper provides a theoretically and conceptually derived roadmap for sustainable business in a triadic business model, i.e., for the buyers, sellers and the platform firm. This model is coined the T-model. A number of propositions are derived that argue the relationship between key constructs. Finally, the future beyond the T-model is explored.

The paper identifies, illustrates and discusses the ways in which value is created in sustainable T-models. First, value is created from a number of sources, not only from lower transaction costs. Second, it is proposed that it is not about a choice of either M-model or T-model but rather a continuum. Toward 2050, technology in general and Blockchain specifically may for some transactions or services, eliminate the need for middlemen. The main conclusion is that despite this development, there will, for most organizations, be elements of the M-model in all or most T-model businesses. In short: middlemen will have elements of the M-model embedded in the T-model when co creating value with buyers and sellers.

While two-sided T-models are not new to the business area, surprisingly no papers have systematically investigated, illustrated, and discussed how value is created among and between the three stakeholder categories of the T-model. With this insight, more sustainable T-models can be created.

Customers often experience negative emotions during service experiences. The ways that employees manage customers’ emotions and impressions about whether the service provider is concerned for them in such emotionally charged service encounters (ECSEs) is crucial, considering the criticality of the encounter. Drawing on cognitive appraisal theory, this study proposes that two key competencies – employee emotional competence (EEC) and employee technical competence (ETC) – affect negative customer emotions and customer satisfaction with employee response in ECSEs.

This study relies on a video-based experiment that depicts a customer involved in an ECSE as a service provider delivers bad news to him. The hypothesis tests use a two-way independent analysis of covariance.

Both emotional and technical competencies must be displayed to improve the customer experience in an ECSE. When EEC is low, ETC does not decrease negative customer emotions or increase customer satisfaction with employee response. When EEC is high, ETC instead has a significant impact on both customer outcomes.

Managers must train employees to develop both technical and emotional competencies. Employees who demonstrate only one type cannot temper customers’ emotions or enhance their perceptions of the employees’ response as well as can those strong in both competencies.

Using a video-based experiment, this study examines the moderating role of EEC in the relationship between ETC and two key aspects of the customers’ experience in an ECSE (negative customer emotions and customer satisfaction with employee responses) following the delivery of bad news.

This paper introduces the special issue on service innovation management.

Provides a brief review of the papers within the issue.

Compares and contextualizes the contributions, finding that the papers use state of the art methodologies and each furthers knowledge of service innovation management – a recently emerged academic discipline.

The perspectives considered represents a small sample of the diversity that exists within this area.

Patients, when using healthcare services, (co)create value by integrating their own resources with those of a range of stakeholders. These resource integration activities, however, require different types of skills and effort from the patients, and different types of interactions with stakeholders, while also having different effects on patients' well-being. The purpose of the present study is to develop a better understanding of why some patients are better able or willing to perform resource integration activities that impact their well-being. To reach this objective, barriers and facilitators of these activities in their interactions with various stakeholders were identified.

The study uses a multiple case study design. Individual patients having received a lung transplant, together with their entourage (family, medical professionals, other patients) each represent a case. In-depth interviews were conducted with the patients and with various categories of stakeholders in their service delivery network who were relevant to their experience and with whom they integrated their resources.

The study identifies three levels on which barriers and facilitators of the resource integration process occur: the individual, relational and systemic level. Factors on these levels affect different aspects of the process.

This study takes a systems perspective and investigates how various systemic factors and stakeholders conduce or inhibit healthcare service users to perform resource integration activities, especially focusing on those activities that strongly affect their well-being.

This study aims to develop a better understanding of how online health community (OHC) members with different health literacy (HL) levels benefit from their participation, through the analysis and comparison of their resource integration (RI) processes. It investigates through a RI lens how the vulnerability of community members – captured as their level of HL – affects the benefits they derive from participation.

Quantitative and qualitative methods were used to investigate the effects of healthcare service users’ vulnerability. Data were collected about their profiles and levels of HL. Furthermore, 15 in-depth interviews were conducted.

The study demonstrates how low levels of HL act as a barrier to the integration of available online health resources. Participation in OHCs appears less beneficial for vulnerable users. Three types of benefits were identified at the individual level, namely, psychological quality-of-life, physical quality-of-life and learning. Benefits identified at the community level were: content generation and participation in the development of the community.

This study has implications for the understanding of how service users’ activities affect their own outcomes and how the vulnerability of users could be anticipated and considered in the design of the community.

While innovative service systems may create substantial value for certain stakeholders, they often destroy value for others. This value paradox frequently leads to unsustainable service systems. The purpose of this paper is to explore the use of multiple theories to pinpoint and explain these value paradoxes, build a framework allowing potentially more sustainable value configuration of service systems and develop an agenda for future research. The framework is illustrated with examples from the hospitality industry.

The paper draws on prevalent theories and approaches, including service-dominant logic, business modeling, transaction cost economics, stakeholder theory, configuration theory and set theory, to develop a value configuration framework.

In a service system, the configuration of resources and relationships between these resources (i.e. the set of value propositions for various stakeholders of the system) determines which stakeholders will gain and which will lose and to what extent. For that reason, insight into the range of possible service configurations – or business models – will help decision makers consider the effects on various stakeholders, and, where possible, set their priorities right and make their businesses more sustainable. The research produces a rich research agenda.

Examples from hospitality allow an in-depth examination of a range of dynamic configurational and technological innovations, but some idiosyncratic characteristics of the context may impede the wider applicability of the conceptual framework. Future research could complement this work by studying other service sectors.

The paper aims to provide decision makers in the service industry with a conceptual tool to explore, diagnose and, if needed, adjust the value configuration of their service operations. In practice, this tool may help explicate the service system configuration, thus helping managers determine their organizations’ desired positioning in terms of value creation and destruction, and to choose strategic directions by adapting configurations.

Legislation and regulations are being adapted to various new service configurations. This paper attempts to – at least conceptually – distinguish different service configurations, allowing policy makers to identify the value trade-offs between stakeholders, including society at large.

Previous research focused primarily on value creation by innovative services and business models. Value creation for one stakeholder, however, could lead to value destruction for another. Taking this paradox into consideration may result in more open service ecosystems that explicitly consider sustainability and value implications in multiple dimensions and for a broader group of stakeholders.

The purpose of this paper is to investigate how the service constellation perspective affects innovation strategies and potentially contributes to the innovation literature, proposing a research agenda.

By analyzing the notion of a service constellation, the authors provide an overview of major implications for service innovation research and practice.

Firms and service innovation researchers need to focus on the perceived consumer value of the constellation rather than on individual services. The authors illustrate how service innovation from the constellation perspective requires coordination and synchronization between projects and different approaches to portfolio management and screening.

Adoption of the service constellation perspective creates new opportunities.

This article explores value-based motivations to adopt ecological entrepreneurship (ecopreneurship) practices and investigates how intersections of social identities such as gender, religion and ethnicity influence these motivations.

The study uses primary data from field observations, social media analysis and semistructured in-depth interviews with 16 owner-managers of small and medium enterprises (SMEs) in the Indonesian craft sector.

The findings show that self-enhancement, conservation and self-transcendence values motivated the entrepreneurs to adopt ecopreneurship practices. Furthermore, the intersections of identities also tended to influence the entrepreneurs' motivations to adopt ecopreneurship practices.

The sample was limited to the Indonesian craft sector. However, the study has furthered one’s understanding of how values motivate ecopreneurship behavior. Conservation values were added to the values known to influence proenvironmental behavior. Furthermore, Schwartz's value theory, strongly associated with Western, individualistic, culture is suggested to be adapted. In Asian – collectivist – cultures, the values driving the entrepreneur are often more community-oriented than individualistic.

This study recommends policymakers to create more inclusive policies to foster the acceleration of sustainable development by equitably including both genders and encourages them to promote local culture, which motivates entrepreneurs in the craft sector to adopt ecopreneurship practices.

The study contributes to the entrepreneurship literature, particularly to the fields of gender and ecopreneurship, by considering the intersections of identities of the ecopreneurs. A research agenda for ecological entrepreneurship and family business researchers is provided.

Gamification introduces game-like properties into routine service processes to make them more engaging for service employees and users alike. The purpose of this paper is to investigate the effects of gamification mechanics, or game design principles, on user engagement in gamified healthcare services.

Through observations, interviews and the study of desk materials, two cases of gamified healthcare services, each using different game mechanics, are analyzed.

Gamification mechanics produce four distinct experiential outcomes in patients: challenge, entertainment, social dynamics, and escapism. Patient engagement can be stimulated through these outcomes. However, to fully enjoy the benefits of gamified services, users are often expected to acquire and use new skills. The relative absence of these skills (or difficulties in acquiring them), depending on users’ medical predispositions and age, may defer or negatively moderate the positive effects of gamification on engagement. In the case of progressively decreasing capabilities (e.g. in the case of aging users or users with degenerative diseases, whose physical or mental disabilities may be emphasized by the mechanics), it is recommended that health professionals adapt the mechanics accordingly or search for alternative options to increase patient well-being.

The study was conducted in healthcare, and caution must be exercised in generalizing the findings to other domains. However, the finding that gamified service users’ disabilities - or the lack of required abilities – may negatively impact the encouraging or engaging effects of the use of gamification appears to be relatively universal.

This study contributes to service research, specifically in the healthcare domain, by providing insight into employees’ and users’ motivations for using gamified service processes, the experiential impact of gamification mechanics, the individual factors that influence users’ gamified experience and multiple forms of cognitive, emotional and behavioral engagement outcomes. A research agenda is developed.