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The budget hotel sector in the United Kingdom was established in 1985 and is now experiencing accelerated growth. If this sector simulates some of the developments that have occurred in the US and French budget/economy hotel sectors, then traditionally‐minded operators in the country will have to reconsider some of their original long‐term strategies. The growth and success of the US and French budget/economy hotel are reviewed, and parallels with the emerging growth and success of the UK budget hotel are drawn. In summary the authors consider that the concept of service quality will provide the best foundation for successful strategies in the next decade.

This paper aims to explore the role of ethical climate as an antecedent of polychronicity, then in turn the effect of polychronicity on frontline employees’ service innovative behaviours (SIBE) and error strain and the moderating role of organization mission fulfilment in these relationships in a hotel job context in Penang, Malaysia.

In the current study, the data were collected from 312 frontline employees in the survey premises. A partial least square approach of the structural equation modelling technique (PLS-SEM) was used to test the associations among study variables.

The study findings reveal that ethical climate had positive impact on polychronicity. Significantly, polychronicity made positive influence on SIBEs and negative influence on error strain. Organization mission fulfilment was found to boost the influence of ethical climate on polychronicity. Finally, while organization mission fulfilment was found to boost the positive influence of polychronicity on SIBEs, on the other hand, buffers the negative impact of polychronicity on error strain.

The present study procures implications for practitioners in terms of establishing ethical climate in work environment and maximizing the frontline employees’ SIBEs while minimizing error strain. In addition, this research procures valuable implications to apply efficient managerial tools and improve job results in the lodging industry context of Peninsular Malaysia.

This study by investigating the untested associations such as the influence of polychronicity on frontline employees’ SIBEs and error strain contributes to the related literature.