Innovation, Entrepreneurship und Digitalisierung Sonja Christ-Brendemühl Digital Technology in Service Encounters Effects on Frontline Employees and Customer Responses Innovation, Entrepreneurship und Digitalisierung Reiheherausgegebenvon MarioSchaarschmidt,NorthumbriaUniversity,AmsterdamCampus,The Netherlands HaraldvonKorflesch,InstitutfürManagement,UniversitätKoblenz-Landau, Koblenz,Deutschland Kern dieser Schriftenreihe ist die empirische und praxisnahe Betrachtung des Zusammenspiels von Innovation, Entrepreneurship und Digitalisierung in ver- schiedenster Ausprägung. Dies beinhaltet Themen wie Geschäftsmodellinnova- tion, Soziale Medien, Technologiemanagement sowie neuere Themenblöcke wie beispielsweiseSharingEconomy.EinbesondererFokusliegtbeiderBearbeitung der Themen auf den Veränderungen, die durch Digitalisierung hervorgerufen wurden. Ziel dieser Reihe ist es, insbesondere innovative Forschungsergeb- nisse, welche zu neuen wissenschaftlichen Erkenntnissen führen, gebündelt dem geneigten Leser zu präsentieren. Publiziert werden nationale und internationale wissenschaftliche Arbeiten. Die Reihe Innovation, Entrepreneurship und Digitalisierung wird herausgegeben von Mario Schaarschmidt und Harald von Korflesch. Sonja Christ-Brendemühl Digital Technology in Service Encounters Effects on Frontline Employees and Customer Responses SonjaChrist-Brendemühl UniversitätKoblenz-Landau Koblenz,Germany UniversitätKoblenz-Landau,Dissertation,2021 VollständigerAbdruckdervomFachbereich4:InformatikderUniversitätKoblenz- LandaugenehmigtenDissertationmitdemTitel“TheEffectsofDigitalTechnologyon FrontlineEmployeesandCustomerResponsesinServiceEncounters.Evidencefrom FourEmpiricalStudies”. ISSN2524-5783 ISSN2524-5791 (electronic) Innovation,EntrepreneurshipundDigitalisierung ISBN978-3-658-37884-4 ISBN978-3-658-37885-1 (eBook) https://doi.org/10.1007/978-3-658-37885-1 ©TheEditor(s)(ifapplicable)andTheAuthor(s),underexclusivelicensetoSpringer FachmedienWiesbadenGmbH,partofSpringerNature2022 Thisworkissubjecttocopyright.AllrightsaresolelyandexclusivelylicensedbythePublisher, whetherthewholeorpartofthematerialisconcerned,specificallytherightsoftranslation,reprint- ing, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physicalway,andtransmissionorinformationstorageandretrieval,electronicadaptation,computer software,orbysimilarordissimilarmethodologynowknownorhereafterdeveloped. Theuseofgeneraldescriptivenames,registerednames,trademarks,servicemarks,etc.inthis publicationdoesnotimply,evenintheabsenceofaspecificstatement,thatsuchnamesareexempt fromtherelevantprotectivelawsandregulationsandthereforefreeforgeneraluse. Thepublisher,theauthors,andtheeditorsaresafetoassumethattheadviceandinformationinthis bookarebelievedtobetrueandaccurateatthedateofpublication.Neitherthepublishernorthe authorsortheeditorsgiveawarranty,expressedorimplied,withrespecttothematerialcontained hereinorforanyerrorsoromissionsthatmayhavebeenmade.Thepublisherremainsneutralwith regardtojurisdictionalclaimsinpublishedmapsandinstitutionalaffiliations. ResponsibleEditor:MarijaKojic This Springer Gabler imprint is published by the registered company Springer Fachmedien WiesbadenGmbH,partofSpringerNature. Theregisteredcompanyaddressis:Abraham-Lincoln-Str.46,65189Wiesbaden,Germany Thankyoutomyentirefamilyfortheir patienceandsupport,tomyfriendsand colleaguesfortheirencouragement,and tomysupervisorforgivingmethe opportunity tostudysuchanexciting topicanddiscussitwithservice researchersfromaroundtheworld. Abstract Digital technology is disrupting the prerequisites for most firms in the service industry and frequently forces them to adapt their strategy to the technological developments. Even service providers that traditionally put great emphasis on making personal customer contact are reassessing the ratio of human interaction and technology use for service encounters. To retain competitiveness, it seems mandatorytoincreaseserviceencounterefficiencybyembeddingtechnologyinto the existing processes. However, there is little empirical evidence on how such technological imple- mentations affect the sentiments, attitudes, and behaviors of frontline employees (FLEs). Likewise, research on interrelated customer responses is scarce. To address this matter, this thesis presents four distinct yet related studies to inves- tigate the impact of digital technology on frontline employees, customers, and ultimately service firms. Study A focuses on the factors that foster or hinder frontline employees’ technology-induced role ambiguity and process deviance when an online reser- vation system for restaurants is in use. The answers of 123 frontline employees participating in the online survey featured in this study are analyzed. Study B implements a qualitative approach to achieve a 360-degree view of technology deployment in full-service restaurants. For this purpose, 36 semi-structured interviews were conducted with technology providers, restaurant managers, frontline employees, and customers. Study C uses dyadic data gathered from a field survey with 147 frontline employees and 373 customers of full-service restaurants. This study aims to investigatehowtechnologyinducesfrontlineemployeetechnostressandcustomer orientation and whether this affects customer satisfaction and delight with the frontline employee. vii viii Abstract Study D compares customer fairness perceptions and behavioral intentions aftermakingapurchasethateitherinvolvespurchaseadvisoryserviceinabranch store or a virtual try-on service in an online shop. This 2x2 between-subject experimental study includes 215 participants. To summarize, this thesis contributes to the research on digital technology in service encounters by revealing employee outcomes of using frontline service technology and interrelated customer responses. The derivation of implications provides meaningful insights for theory and practice. Contents 1 Introduction .................................................. 1 1.1 Motivation ............................................... 1 1.2 Research Question and Research Design .................... 4 1.3 Structure of the Thesis .................................... 12 2 TechnologyinServiceManagement ............................. 15 2.1 The Characteristics of Service ............................. 15 2.1.1 TheEvolutionofServiceManagementasaResearch Discipline ......................................... 17 2.1.2 The Role of Frontline Employees in Service Management ...................................... 23 2.1.3 The Contribution of Customers to Service ............. 27 2.2 The Technology-induced Transformation of Service Encounters ............................................... 33 2.2.1 The Changing Nature of Service Encounters ........... 34 2.2.2 Technology as an Enabler of Innovation in Service Encounters ........................................ 40 2.2.3 Augmented Reality as a Means to Enhance Service Encounters ........................................ 45 3 TheoreticalFoundations ....................................... 49 3.1 Theories on Stress and Strain in the Occupational Context ..... 49 3.1.1 Transactional Theory of Stress and Coping ............ 50 3.1.2 Conservation of Resources Theory .................... 54 3.1.3 Job Demands-Resources Model ...................... 57 3.2 Individual Predisposition and Appraisal of Technology ........ 61 3.2.1 Dispositional Resistance to Change ................... 62 ix x Contents 3.2.2 Technology Readiness .............................. 65 3.2.3 Technostress ....................................... 68 3.3 Formation of Customer Evaluations of Service Encounters ..... 73 3.3.1 Expectancy-Disconfirmation Paradigm ................ 74 3.3.2 Equity Theory ..................................... 77 3.3.3 Service Fairness .................................... 80 4 StudyA:TheImpactofTechnologyonFrontlineEmployees’ ProcessDeviance .............................................. 85 4.1 Context, Aim, and Design of Study A ....................... 85 4.2 Theoretical Framework .................................... 89 4.2.1 Conceptual Model .................................. 89 4.2.2 Main Effect Hypotheses ............................. 90 4.2.3 Moderating Effect Hypotheses ....................... 95 4.3 Methodology ............................................. 96 4.3.1 Data Collection and Sample ......................... 96 4.3.2 Measures .......................................... 98 4.3.3 Quantitative Data Analysis .......................... 100 4.4 Results .................................................. 102 4.4.1 Main Effects ....................................... 102 4.4.2 Moderating Effects ................................. 103 4.4.3 Alternative Models ................................. 104 4.5 Discussion ............................................... 106 4.5.1 Implications for Theory ............................. 107 4.5.2 Implications for Practice ............................ 108 4.5.3 Limitations and Avenues for Further Research ......... 109 5 StudyB:A360-DegreeViewofTechnologyDeployment .......... 111 5.1 Context, Aim, and Design of Study B ....................... 111 5.2 Theoretical Framework .................................... 114 5.2.1 Technology-Induced Job Demands and Resources ...... 114 5.2.2 Customer Expectations in Technology-Induced Service Encounters ................................. 115 5.3 Methodology ............................................. 116 5.3.1 Data Collection and Sample ......................... 116 5.3.2 Interview Guideline ................................. 119 5.3.3 Qualitative Data Analysis ............................ 121 5.4 Findings ................................................. 124 5.4.1 Benefits of Restaurant Technology .................... 125 5.4.2 Barriers to Technology Deployment .................. 126