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Co-creation of services (CCOS) is a collaborative strategy that emphasises customer involvement and their expertise to increase the value of the service experience. In the service ecosystem, artificial intelligence (AI) plays a key role in value co-creation. Therefore, this study is undertaken to empirically uncover how AI can empower CCOS.

The source data were collected from 305 service provider respondents and quantitative methodology was applied for data analysis.

New service development augmented with AI provides tangible value to service providers while also providing intangible value to supportive customers. With AI, service providers adapt to new innovations and enrich additional information, which eventually outperforms human-created services.

AI adoption for CCOS empowerment in service businesses brings “service-market fit”, which represents the significant benefits wherein customers contribute to creativity, intuition, and contextual awareness of services, and AI contributes to large-scale service-related analysis by handling volumes of data, service personalisation, and more time to focus on challenging problems of the market.

This study presents theoretical concepts on AI-empowered CCOS, AI technological innovativeness, customer participation in human-AI interaction, AI-powered customer expertise, and perceived benefits in CCOS, and subsequently discusses the CCOS empowerment framework. Then, it proposes a novel conceptual model based on the theoretical concepts and empirically measures and validates the intention to adopt AI for CCOS empowerment. Overall, the study contributes to novel insight on empowering service co-creation with AI.

The purpose of this paper is to investigate the relationship between service fairness and customer satisfaction, and test the mediation role of customer psychological empowerment in this relationship.

A cross-sectional empirical study is designed to test the research model. Customers of retail bank in South China are surveyed. Regression analysis and structural equation model analysis are done with SPSS 21.0 and LISREL 8.72 separately.

The results indicate that: first, service fairness increases customer satisfaction. Specifically, distributive fairness, procedural fairness and interactional fairness affect customer satisfaction positively and directly, while informational fairness affects customer satisfaction indirectly. Second, customer psychological empowerment fully mediates the relationship between informational fairness and customer satisfaction, while plays a partial mediating role between distributive fairness, procedural fairness, interactional fairness and customer satisfaction. Third, four kinds of service fairness have different influences on three dimensions of customer psychological empowerment.

The findings provide suggestions for managers to improve customer psychological empowerment by treating customer fairly, and to increase customer satisfaction through empowering customer in services, especially for state-owned banks.

It is recognized that service fairness leads to customer satisfaction in marketing literature; however, the empirical research studies about this are rare. This research not only contributes to service fairness theory, but also enriches our understanding of customer empowerment in service process.

The purpose of this paper is to explore the relationship between the customer-contact employees’ (CCE) empowerment and customer performance indicators, namely, perceived service quality (PSQ), customer satisfaction (CS), customer loyalty (CL) and word-of-mouth (WOM). The authors deepen the analysis by highlighting the mediating role of the dimensions of the customer relationship management (CRM) effectiveness in this link. The authors also investigate links between customer performance indicators.

An empirical study was carried out on the basis of a questionnaire administrated to a sample of 215 Tunisian bank CCE and 516 customers. Data analysis was performed using the structural equation modeling method.

Findings reveal that the CCE’ empowerment contributes to PSQ, CS and all the dimensions of CRM effectiveness which in turn are key factors of customer performance. This research also outlines the mediating role of two dimensions of the CRM effectiveness, namely, organizational commitment and customer experience between CCE’ empowerment and PSQ and CS, respectively. In addition, the study highlights that PSQ improves CS which is positively linked to CL. Finally, loyal customers tend to generate positive WOM.

Few studies have investigated the effects of the CCE’ empowerment on PSQ, CS, CL and positive WOM, especially in the banking sector. This research fills this gap by highlighting the mediating role of the dimensions of the CRM effectiveness in these links. This paper offers interesting insights to bankers by providing them with tools to improve their customers’ relationship. In this sense, banks must bet on the proximity of the CCE as a key asset that allows creating a real sense of closeness with customers and offers lighting to banks on how to create customized marketing approaches to ensure customer performance.

Burnout, which is caused by chronic stress, is common in the service professions and has a negative effect, both on the service provider's job performance and customer satisfaction. Empowerment is a potential buffer against the stress involved in service roles, but its advantages may depend on the service provider's desire to be empowered. The study examines several interactive effects of empowerment and seeking power on service provider burnout. In addition, the study examined the relationship between service providers' burnout and customers' reports of their satisfaction with the service.

Questionnaires were administered to 198 participants, comprising 99 service provider‐customer dyads coming from public service organizations, that is government offices, welfare services, health services, and education, and private services, that is banks and communication companies. The dyads selected for the study were engaged in a “service relationship,” that is, the customer has repeated contact with a particular provider.

Service providers with a high power motivation experience more burnout as a result of stressful relationships with customers than service providers with a low power motivation. This effect, however, is reversed when service providers are empowered. Furthermore, the negative relationship of burnout with customer satisfaction was found to be stronger with a high level of empowerment than with a low level of empowerment.

Practices of human resources such as selection and training should take into consideration the effect of service providers' predispositions on their willingness and ability to function under a high level of empowerment.

The study shows the negative relationship of service providers' burnout with customer satisfaction and contributes to the understanding of the factors that should be considered in regard to the empowerment of service providers, in order to minimize burnout and its negative effect on customer satisfaction.

Members of the Original Equipment Manufacturer Group (OMEG) at National Semiconductor Corporation (NSC) were used to help answer the question of whether empowerment programs, independent of quality improvement programs such as total quality management (TQM), create customer satisfaction. Results of a customer satisfaction survey, administered to a sample of NSC customers prior to implementing an empowerment program and then again one year into the program, provided affirmative support for our research question. Finally, a conceptual model suggesting a process by which empowerment programs create customer satisfaction is proposed to provide direction for future research.

The purpose of this paper is to test the effects of the service orientation on bank-employee behaviors; to empirically examine the moderating role of the productivity orientation in an effort to explain when and why the simultaneous pursuit of the service orientation and the productivity orientation negatively affect the financial service employee psychological empowerment; and to explore any contextual factors that can suppress or facilitate the bank–employee behaviors.

A single cross-sectional descriptive design was used for this study. Purposive sampling was used to identify the respondents who were bank employees in financial-service-sector organizations in South Korea. To analyze the data, a confirmatory-factor analysis (CFA) using LISREL 8.5 was employed. Conditional process modeling was performed to test the moderated mediation and the moderated-mediation hypotheses.

The results showed a significant relationship between the service orientation and the frontline-employee behaviors, thereby establishing the psychological empowerment as an intervening mechanism. The findings also suggest that the moderating role of the productivity orientation weakened the positive effect of the service orientation on the bank-employee psychological empowerment. This research identifies the positive interactive effect of the customer power upon the psychological empowerment of the employee extra-role behavior. The task interdependence enhanced the link between the psychological empowerment and the employee in-role behavior.

The specific service sector that was chosen is retail banking. The cross-sectional nature of the data is considered a limitation; furthermore, the self-reported nature of the completed questionnaires might have resulted in the common method bias. Further research should be conducted to collect longitudinal data from other service sectors to verify the hypothesized relationship. Extensions into other sectors that differ in terms of the customer power degree and the task interdependence level could lead to a contingency framework that shows if and how the hypothesized linkages can be changed according to the contextual factors.

For managers who want or need to pursue the strategic goals of the service orientation and the productivity orientation simultaneously, this study offers useful insights into the management of the strategic dilemmas that stem from service-setting multi-goal pursuits from an employee perspective. Second, the significant positive relationships that were observed between the values of the overt customer power and the extra-role behavior suggest that constraining and influential customer behaviors are likely to produce a structured working environment that encourages the bank-employee extra-role behavior. Third, the results also suggest that the task structure (task interdependence) may influence the employee in-role behavior. Thus, managers should encourage an organizational sense of belonging for their employees and an understanding of the essential nature of the employee work role in terms of a competitive organizational performance.

In banking circumstances, stickiness on product orientation by cutting cost will deteriorate the level of customer service and will then reduce customer revenues. In this case, disgruntled staff and unhappy customers perceive that their interests are being sacrificed in the pursuit of greater productivity. In this situation, revenues may fall faster than the reduction in costs. Thus, it may be proven that the cost of the dual demands from these two orientation types outweigh the benefit. Bank executives may perceive organizational productivity orientation as being an easier and more evident tool to use for reducing cost, especially with the existence of tough competition. Critically, in addition to poor service quality, this study indicates that there is a side effect of productivity orientation practice. Thus, managers should use caution in the concurrent employment of the two types.

This study identified the reason for the negative service outcomes that result from the simultaneous pursuits of the service orientation and the productivity orientation. From an employee perspective, it might be proven that the costs of the dual-service and production-orientation demands may outweigh the benefits. Thus, this proposed research model, in which the frontline autonomy acted as a key mediator and the customer power and the task interdependence were salient moderators, has been shown as crucial in the transmission of the impacts of the service and the quality orientation, and in the blunting of the service-productivity trade-offs that are due to the employee’s perceived multi-goal orientations.

This paper aims to develop a research model that proposes a relationship among customer power, psychological empowerment and voice behavior of frontline employees (FLEs). The model also suggests that managerial openness, as a result of the manager–employee interface, contributes by mediating the effect of customer power on psychological empowerment. As a result of the job characteristic–employee interface, task interdependence is suggested as a moderator in the relationship between psychological empowerment and voice behavior.

To analyze the data, a confirmatory factor analysis and structural equation modeling procedure using LISREL 8.5 were used. Next, the conditional process modeling was fitted to test the moderated mediation hypotheses. In this stage, the mediating role of psychological empowerment and the moderating effect of task interdependence voice behavior were tested with bootstrapping methods.

The results showed a significant relationship between customer power and FLEs’ voice behavior, establishing psychological empowerment as an intervening mechanism. Thus, customer power can be a signal of appreciation for passive and job uncontrollability to service employees. The findings also suggested the mediating role of managerial openness, which delivered a negative effect of customer power on the FLEs’ psychological empowerment. Task interdependence enhanced the link between psychological empowerment and voice behavior.

The specific service sector chosen for this study was retail banks. Furthermore, the study was undertaken among the FLEs of banks in South Korea. Having FLEs self-report on managerial openness raises a general concern that those employees with little experience may not have fully understood whether a manager’s current behaviors are open-minded and empowering. Lastly, the perceptions of customer power, psychological empowerment, managerial openness, task interdependence and voice behavior that all came from FLEs naturally raises concerns about the influence of method bias in these results.

The significant negative and indirect relationship observed between the perception of customer power and employees’ voice through managerial openness and employees’ psychological empowerment suggested that the double deviation effect of customer power on employees’ psychological empowerment through the interface between customer and employee (customer power) and manager and employee (managerial openness). This study provides insight into the management of service customer–employee and manager–employee interactions to encourage employee psychological empowerment.

The main emphasis of the model is on the so-called voice behaviors that FLEs exhibit as an overall consequence of various service employee interfaces. The management of FLEs has been extensively discussed in the services marketing literature. However, few research studies have attempted to link and combine the effect of various interfaces to which employees are exposed on employees’ voice behavior. In this study, three interfaces that the FLEs are always exposed to were examined simultaneously: that of the employee and the customer (perceived customer power), the interface of the employee and the manager (managerial openness) and that of the employee and his or her job characteristic (task interdependence).

Data from 517 service workers in 14 retail banks show positive and significant association between four empowerment antecedents (including trust, incentives, information and knowledge) and empowerment of customer‐contact employees. Particularly, the findings in this research suggest that trust, communication, knowledge and skills of customer‐contact employees may have a direct and strong impact on the empowerment of service employees. Empowerment antecedents (trust, incentives, communication, and knowledge) of customer‐contact employees accounted for significant variation in the levels of empowerment among customer‐contact employees in the banking industry. Implications for future research and for management practice are discussed.

The goal of this paper is to investigate how market sensing (market orientation) and customer linking capabilities (service branding and customer empowerment capabilities) enable firms to achieve superiority in customer satisfaction.

To achieve this goal, a conceptual model was developed, specifying the mediating role of branding and customer empowerment capabilities in the relationship between market orientation and customer satisfaction. The model was tested using partial least squares, on 266 responses obtained via an online survey conducted amongst executives of services firms in Australia.

The findings show that possessing a strong service branding capability and co‐opting customer involvement through customer empowerment in the marketing effort is essential for services firms to realize the potential value of market orientation. This is important if the firm wants to translate the understanding gained from market intelligence (via market orientation as the “know‐what” capability) into superior customer satisfaction.

Through interaction activities that centre on utilizing market intelligence and shared sense of brand meaning, customer empowerment practices help institutionalize market orientation and service firms branding capability.

This study offers a greater understanding of the underlying processes (i.e. service branding and customer empowerment capabilities) which market orientation works through to contribute to customer satisfaction.

This study analyzes how omnichannel integration influences customer patronage intention, highlighting the moderation effect of consumer service experience consciousness. Additionally, it also examines the sequential mediating role of consumer empowerment and satisfaction.

This study uses a survey method to collect data from 336 young Indian consumers, having experienced omnichannel retailing. Data were analyzed using SPSS PROCESS macro to examine both the mediating and moderated relationships.

The results confirm that a customers' perceived online–offline channel integration increases their patronage intention directly and through the mediating role of consumer empowerment and satisfaction. Additionally, as a moderator, consumer service experience consciousness does not necessarily impact consumer patronage interest through the mediating role of consumer empowerment. Nevertheless, it does have a negative impact through the mediating role of consumer satisfaction.

This study provides insights into designing online–offline retailing integration, based upon which, proposes several recommendations for increasing customer satisfaction and patronage intention.

To the best of the authors' knowledge, this is among the first studies to highlight the theory of consumer empowerment in the context of omnichannel retailing. Thus, it contributes to the extant literature on omnichannel retailing while investigating the moderating role of consumer service experience consciousness.