The Impact of Service Improvisation Competence on Customer Satisfaction: Evidence from the Hospitality Industry

Production and Operations Management · 2019 · Volume 28 · Issue 6

Abstract

This study formally develops and empirically tests a new construct, termed service improvisation competence (Serv-IC), that constitutes a novel way to improve customer experience in high-contact service contexts. Serv-IC is operationalized as the systemic ability of a service firm's employees to deviate from established service delivery processes and routines to respond in a timely manner to unforeseen events using available resources. Serv-IC is a realized operational competence resulting from a deliberate set of service design choices consistent with a firm's service concept. The construct embodies a multidisciplinary perspective that explains, in part, how some firms can systemically use employee improvisation to align service processes and employee behaviors in the presence of customer-induced uncertainty. As a first, theory-building step we follow a rigorous, two-stage approach to develop a reliable and valid multi-item measurement scale for Serv-IC, emphasizing discriminant validity with related concepts. We then introduce a set of experientially based service design choices that constitute a Serv-IC deployment strategy. Finally, we investigate its effect on customer satisfaction. Our empirical results show that Serv-IC can play an important role in satisfying customers within certain boundaries. Counter to conventional wisdom, Serv-IC increases customer satisfaction in lower-tier hotels more than in upscale ones.

Keywords

service delivery system, service design, process flexibility, service operations strategy

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