Service Innovation in Customer Value Co-Creation: The Mediating Role of Customer Engagement in the Hospitality Industry – A Case Study

Document Type : Research Paper

Authors

1 PhD Candidate, Department of Management, Torbat Heydariye Branch, Islamic Azad University, Torbat Heydariye, Iran.

2 Assistant Prof., Department of Management, Torbat Heydariye Branch, Islamic Azad University, Torbat Heydariye, Iran.

3 Assistant Prof., Department of Business Management, Tabaran Institute of Higher Education, Mashhad, Iran. Assistant Prof., Department of Management, Torbat Heydariye Branch, Islamic Azad University, Torbat Heydariye, Iran.

Abstract

Objective
As competition intensifies in the tourism sector, hotel operators and managers recognize the significance of fostering innovation for gaining a competitive advantage. Hotels must welcome ideas and look for knowledge outside of the organization to be able to create value for hotels. Accordingly, it would be better for hotels to experience the process of cooperation and engagement with customers in innovative environments to be able to improve the customer value co-creation process. The present research is aimed at explaining the role of service innovation in customer value co-creation behaviors with customer engagement as the mediator.
 
Methodology
This study is applied in its approach, characterized by a descriptive-survey methodology. The population of the research includes all customers of three, four and five-star hotels in Mashhad. The sample size, 384 individuals, was determined using Krejcie and Morgan Table, using the convenience non-probability sampling method. The questionnaires were gathered through an online survey, and their validity and reliability were duly confirmed. The descriptive data were analyzed by SPSS Software ver.16 and the research's model was analyzed by LISREL Software ver.8.5 that was based on Structural Equations Modeling (SEM).
 
Findings
The descriptive findings revealed that most participants were in the age range of 20 to 29 years (46.5%), followed by 30-39 years old (21%), <20 years old (14.5%), 40-49 years old (9%), and >50 years old (9%). The majority of surveyed individuals held Bachelor's and Master's degrees (64.5%), followed by those with associate's degrees and high school diplomas (29%), and individuals with a PhD degree (6.5%). The inferential findings showed that innovation significantly and positively affects the customer participation, customer engagement and customer citizenship behavior. Customer engagement positively and significantly affects customer participation and customer citizenship behavior. In addition, the indirect role of the mediator variable, i.e. customer engagement, was confirmed among service innovation and dimensions of customer value co-creation behaviors (customer participation and customer citizenship behavior).
 
Conclusion
All of the hypotheses were supported. First, the results of the research showed the importance of service innovation to improve customer engagement in hospitality industry. Hence, hotel managers should continue developing innovative strategies to attract customers and drive customer engagement. Second, the results indicated that innovation is an essential factor affecting the customer value co-creation behaviors. Therefore, hotel managers should always provide innovative service for customers to promote customer value co-creation opportunities. Third, the results showed that innovation positively affects the customer engagement; thus, it promotes the customer value co-creation behaviors. So, hotel managers are recommended to provide value added innovative service or products to improve the customers' experiences and their desire to participate in value co-creation.

Keywords

Main Subjects

References

 
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Journal of Business Management
Volume 16, Issue 1
2024
Pages 167-193

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