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Article
Publication date: 12 March 2019

Jaewon Yoo and Yeonsung Jung

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…

Abstract

Purpose

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.

Design/methodology/approach

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.

Findings

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.

Research limitations/implications

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.

Practical implications

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.

Social implications

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.

Originality/value

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.

Details

International Journal of Bank Marketing, vol. 37 no. 2
Type: Research Article
ISSN: 0265-2323

Keywords

Content available
Article
Publication date: 7 August 2017

Jaewon Yoo and Jicheol Jeong

This paper aims to examine the effect of employees’ emotional labor on work engagement and boundary-spanner creativity based on the job demands-resources model from the…

Abstract

Purpose

This paper aims to examine the effect of employees’ emotional labor on work engagement and boundary-spanner creativity based on the job demands-resources model from the perspective of salespeople.

Design/methodology/approach

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.

Findings

The analysis results showed that deep acting has a positive effect on work engagement, whereas surface acting has a negative effect, indicating that work engagement of sales representatives is differently related to each factor of emotional labor. Second, work engagement of salespeople has a positive effect on boundary spanner creativity. Next, entrepreneurship has a moderate effect in the relationship between emotional labor and work engagement with customer stewardship and has a positive moderating effect in the relationship between work engagement and boundary spanner creativity.

Practical implications

Considering the positive effect of boundary spanner creativity on work engagement, it is important to maintain interaction with customers, including adaptive behaviors and customer orientation, as customers’ demand increases. The individual competence and capability of salespeople such as entrepreneurship are directly related to interaction with customers, so when the right strategy is defined for each type of entrepreneurship of salespeople, it will create a positive corporate culture and lead to performance improvement.

Originality/value

Compared with most studies, more direct factors of emotional labor were assessed to detect positive effects in this study. More specifically, when salespeople were forced to fake their feelings, they were more likely to recognize stress or burnout due to emotional dissonance between what they really felt and what they had to express to comply with organizational regulations.

Details

Asia Pacific Journal of Innovation and Entrepreneurship, vol. 11 no. 2
Type: Research Article
ISSN: 2071-1395

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Article
Publication date: 13 February 2017

Jaewon Yoo

This paper aims to develop a research model that proposes a relationship among customer power, psychological empowerment and voice behavior of frontline employees (FLEs)…

Abstract

Purpose

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.

Design/methodology/approach

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.

Findings

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.

Research limitations/implications

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.

Practical implications

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.

Originality/value

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).

Details

European Journal of Marketing, vol. 51 no. 1
Type: Research Article
ISSN: 0309-0566

Keywords

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Article
Publication date: 12 October 2020

Jaewon Yoo, Jing Chen and Gary L. Frankwick

To reduce costs, many banks have increased customer involvement during the creation and delivery of their products and services. Based on a job demands-resources (JD-R…

Abstract

Purpose

To reduce costs, many banks have increased customer involvement during the creation and delivery of their products and services. Based on a job demands-resources (JD-R) model, this study tests an inverted U-shaped curvilinear relationship between perceived customer participation and employee work engagement. Customer orientation (CO) and service employee perceived fit with customers (PCF) moderate this relationship, which eventually affect both the internal and external benefits of service-employee work engagement.

Design/methodology/approach

The authors collected survey data from 518 service employees in the South Korean banking and insurance industries and analyzed the data using structural equation modeling (SEM).

Findings

The results indicate that perceived customer participation (PCP) has a significant inverted U-shape effect on work engagement. Results also suggest that CO and PCF have positive relationships with work engagement. In addition, they moderate the inverted U-shaped relationship between service employee PCP and work engagement, while work engagement positively affects organizational citizenship, job satisfaction and commitment.

Research limitations/implications

The authors empirically identify a curvilinear effect of PCP on work engagement. In doing so, the authors introduce and operationalize the new construct: PCF and suggest PCF and CO as unique job resources for service employees. The authors also examine these constructs as predictors based on a motivational process and as moderators based on a strain (energetic) process.

Practical implications

From a managerial perspective, examining the curvilinear relationships of customer participation and work engagement suggests that front-line employees’ (FLEs’) PCP does not necessarily enhance the economic benefits of productivity gains by using customers as substitutes for portions of employee labor. Another finding with managerial relevance indicates that service employees, who have more CO and PCF, showed more tolerant attitudes toward unnecessary and excessive levels of customer participation and regarded it as a job resource.

Originality/value

This study explains that researchers must consider the positive and negative sides of customer participation simultaneously because frontline employee PCP can be changed depending on the level of participation provided by customers. This study also shows that CO can be assumed as a personal resource and PCF as an environmental resource in the work engagement process.

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Article
Publication date: 3 October 2016

Jaewon Yoo

The purpose of this paper is to examine how service employee’s perceived customer participation influences beneficial deep acting behaviors among service personnel while…

Abstract

Purpose

The purpose of this paper is to examine how service employee’s perceived customer participation influences beneficial deep acting behaviors among service personnel while dampening the development of the less-beneficial surface acting, which subsequently affects service employees’ work engagement. Specifically, the current research explores how the personal factors of customer orientation (CO) and employee-customer fit interact with the customer participation to ultimately develop either surface – or deep-acting behaviors.

Design/methodology/approach

Data for the study were collected from a cross-sectional sample of retail bank and insurance companies in South Korea. Questionnaires were distributed to 750 frontline employees of several banks and insurance companies. Of these, 518 questionnaires were used for further analysis.

Findings

The results indicate that perceived customer participation exhibits the predicted negative influence on surface acting as well as the positive effect on deep acting. Using the hierarchical moderated regression approach, the interaction effect of customer participation and CO on the service employees’ surface acting was found. Finally, the positive moderating effect of employee’s perceived fit with customers in the relationship between perceived customer participation and employees’ deep acting was supported.

Research limitations/implications

First, the specific service sectors chosen for this study are retail banking and insurance. Furthermore, the study was conducted among the frontline employees of banks and insurance companies in South Korea. Second, the study used single-source data, which are prone to common method variance. While the survey instrument was structured carefully with this in mind and the results suggested that method bias may not have been an issue in this study, this problem can best be avoided by collecting data from multiple sources. Third, this study is limited by its cross-sectional approach. The cross-sectional nature of the present study does not allow causal inferences.

Practical implications

This study provides a practical implication for managers to understand the importance of customer participation for relieving the negative effects of employee emotional labor. From a practitioner standpoint, examining the relationship between customer participation and emotional labor is of great importance given the benefits and costs associated with managing customer participation. Thus, managers should magnify the positive effect of perceived customer participation on emotional labor by increasing frontline employees’ understanding of customer participation. Second, the finding that CO plays a more critical role in the reduction of surface acting has important managerial implications. The recruitment and selection of frontline employees should incorporate an assessment of the level of CO. The results of this study strongly suggest that service organizations can greatly benefit from hiring individuals with a higher CO for frontline positions because CO signals a better job-person fit.

Originality/value

The present study is the first to link employees’ perceived customer participation with their attempts at emotional labor at work and to study how those attempts lead to work engagement. This research also shows that understanding how service employees’ CO moderates the effects of customer participation on beneficial deep acting and on destructive surface acting is important in that emotional labor is a potential driver of customers’ emotional states and subsequent assessments of service interaction. A third contribution of this study is the use of a new concept, which will be called person-customer fit (PCF), to reflect employees’ perceived fit with customers. Although many researchers have investigated the relationship between customers and frontline employees, the research has primarily focussed on the employees’ perceived fit with their organization and members of the organization and overlooked the importance of PCF.

Details

International Journal of Bank Marketing, vol. 34 no. 7
Type: Research Article
ISSN: 0265-2323

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Article
Publication date: 8 April 2019

Jaewon Yoo and Todd Arnold

Frontline employee authenticity has been investigated in relation to both potentially positive and negative outcomes, but largely from the employee perspective. The…

Abstract

Purpose

Frontline employee authenticity has been investigated in relation to both potentially positive and negative outcomes, but largely from the employee perspective. The current paper aims to investigate frontline authenticity in a sales/service context from the customer perspective, specifically examining the influence of adaptive selling in relation to a customer’s perception of salesperson authenticity. Effects on customer’s perceptions of final benefits and value are examined.

Design/methodology/approach

Survey data collected from customers of an insurance firm in South Korea were used to investigate the proposed model. Customer perceptions of salesperson adaptive selling, authenticity, key benefits delivered and organizational value provision were all captured.

Findings

The results suggest that authenticity does indeed positively influence perceptions of beneficial outcomes related to a transaction with a salesperson. These benefits then fully mediate the linkage from adaptive selling to a customer’s perceived value, gained from the salesperson’s organization.

Research limitations/implications

The collection of data from only the customer’s perspective is both a strength and a weakness. Although all of the key variables investigated are important to evaluate via the lens of the customer, such a data collection always introduces the potential problem of common method bias.

Practical implications

Managers should be aware of the importance of a salesperson behaving in an authentic manner. Although many frontline contexts have desired and scripted narratives for interacting with customers, deriving key benefits through the customers’ eyes may come more strongly by allowing the frontline employee to act naturally.

Originality/value

Authenticity has been investigated in managerial and brand contexts, but an understanding of its importance in a frontline context is in its early stages. Similarly, the importance of understanding conditions that moderate the effectiveness of adaptive selling is consistent with calls in the literature.

Details

European Journal of Marketing, vol. 53 no. 11
Type: Research Article
ISSN: 0309-0566

Keywords

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Article
Publication date: 7 October 2013

Jaewon Yoo

This study aims to investigate the effect of social undermining on the service employees' boundary-spanning behavior though perceived fit with job (P-J fit). This study…

Abstract

Purpose

This study aims to investigate the effect of social undermining on the service employees' boundary-spanning behavior though perceived fit with job (P-J fit). This study also aims to examine the moderating role of ethical climate in the relationship between service employees' perceived fit with job (P-J fit) and boundary-spanning behavior.

Design/methodology/approach

Using a sample of 469 Korean bank and insurance employees, research model and hypotheses were tested. Data analysis was performed using structural equation modeling and the hierarchical regression model.

Findings

The results showed that supervisor and co-worker undermining have detrimental influences on the service employee's perceived fit with job. P-J fit has a positive effect on employees' boundary-spanning behavior and this relationship was positively moderated by the employee's prevailing perception of organizational practices and procedures that have ethical content.

Research limitations/implications

This research should be evaluated in light of limitations, one of which is the reliance on cross-sectional data. The generalizability of this research model across settings and across outcome variables is still an open question. The measures of social undermining were based on participant perceptions, and in each case, participants make judgments about their negative behaviors retrospectively. Furthermore, the data were collected in Korea, so generalizing the hypothesized model beyond this setting is limited. Since Korea represents a distinct cultural and economic context, future research could examine the model in different countries.

Practical implications

The findings of this study confirm the crucial role of managers in creating an ethical climate where decisions are based on formally stated ethical guidelines. Such guidelines help service employees solve the ethical dilemmas that are common to their positions. These research findings demonstrate that creating an ethical climate is not only the right thing to do but also has significant benefits for both the service employees and the organization.

Originality/value

Considering the boundary-spanning role of the service employee, not only the organizational side (supervisor and co-worker undermining), but also the customer is specified as a major source of social undermining.

Details

Journal of Services Marketing, vol. 27 no. 7
Type: Research Article
ISSN: 0887-6045

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Article
Publication date: 2 September 2014

Jaewon (Jay) Yoo, Todd J. Arnold and Gary L. Frankwick

The purpose of this model is to explain how person – organization fit (P – O fit) and competitive intensity, conceptualized as a job resource and a job demand…

Abstract

Purpose

The purpose of this model is to explain how person – organization fit (P – O fit) and competitive intensity, conceptualized as a job resource and a job demand, respectively, ultimately affect the development of frontline employee boundary-spanning behavior (BSB).

Design/methodology/approach

A survey methodology was used in collecting data from a sample of bank employees in South Korea. To analyze the data, a structural equation model procedure using LISREL 8.5 was used (Jöreskog and Sörbom, 1996).

Findings

Results suggest that a frontline employee’s P – O fit decreases emotional exhaustion and increases achievement-striving motivation. Competitive intensity significantly reduces achievement-striving motivation. Results also show that competitive intensity significantly attenuates the positive relationship between P – O fit and employee achievement-striving motivation, highlighting the importance of contextual industry stressors upon internal organizational behaviors. Both emotional exhaustion and achievement-striving motivation are found to ultimately affect BSBs except for the link between emotional exhaustion and service delivery.

Originality/value

The current study applies the job-demands resources model to demonstrate how both an externally initiated job demand (competitive intensity) and an internally oriented job resource (person – organization fit) influence employee experience of emotional exhaustion and achievement-striving motivation. Interaction effects of P – O fit and competitive intensity on employee’s psychological states (emotional exhaustion and achievement-striving motivation) are also examined. Further, it is demonstrated that both emotional exhaustion and achievement-striving motivation will directly influence service employee boundary-spanning behaviors, but in differential manners. This highlights the importance of exhaustion and motivation as mediators for the ultimate effect of a job resource (P – O fit), answering a call for such understanding of the developmental process for BSBs (Podsakoff et al., 2000). This is the first empirical study to link both internal and external elements to illuminate the process for developing job demands and resources, as well as boundary spanning behaviors.

Details

European Journal of Marketing, vol. 48 no. 9/10
Type: Research Article
ISSN: 0309-0566

Keywords

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