International Journal of Services, Economics and Management (11 papers in press)
Does Tourism Growth Create a Trickle-down Effect in Rural Areas?
by Ghozali Maski, Faishal Fadli
Abstract: This research looks at the economic growth of the tourism sector as its growth point. In Indonesia, only Batu City has implemented the tourism sector as a growth point and has succeeded in creating very rapid economic growth and within a relatively short time. By using the Error Correction Model, the results show that there is a positive 2-way relationship between income inequality and economic growth and a negative 2-way relationship between income inequality and the unemployment rate in both the long and short term. The economic growth of the tourism sector has resulted in a profound change in the people of Batu City from farmers to entrepreneurs (informal sector). While people who work in the informal sector are included in the figures for unemployment rate, evenly distributed income can occur because the informal sector can create jobs and absorb employment. As a result, a trickle-down effect occurred in Batu City.
Keywords: trickle-down effect; tourism; economic growth; economic development; unemployment; income inequality; rural areas; Indonesia.
The Impact of Country of Origin on Relationship Marketing Outcomes in a Market with a Large Migrant Population
by Richard A. Heiens, Larry Pleshko
Abstract: The purpose of this study was to investigate the effects of brand origin on a variety of relationship marketing outcome measures in the food services industry of Kuwait. The results demonstrate that foreign brands have more current users, higher preference rankings and larger customer shares than domestic brands. No differences were found between foreign brands and domestic brands on customer retention or satisfaction. Overall, it appears that, despite their inability to achieve higher satisfaction or retention scores, foreign brands have been able to achieve superior share performance due to their higher preference scores. Because satisfaction and retention each require a great deal of marketing effort to achieve, it appears that foreign firms have a built in advantage. Rather than suffering from the well-known liability of foreignness reported in other markets, foreign brands may have an inherent preference-based advantage in a market with a majority of foreign born consumers.
Keywords: Country of Origin; Food Services Industry; Relationship Marketing; Kuwait.
Identifying the Antecedents of Internal Integrations in Improving Green Product Innovation
by Zuoming Liu
Abstract: Business managers have been investing more and more on green product innovation to deal with the increasing concerns regarding the potential negative environmental impacts of various business activities. Green product innovation has been extensively studied in the literature theoretically and empirically. Given limited empirical research exists in exploring underlying mechanisms and related drivers that contribute green product innovation. This study investigates the critical role of internal integration in improving green product innovation and identify the antecedents of internal integration. Based on an organizational learning perspective, this study proposes a conceptual framework that specifies the relationship regarding the antecedents of internal integration and its impact on green product innovation. Using survey data from 231 companies in China, this study empirically tests the relationships specified in the conceptual framework. Managerial implications can be drawn from this study on the ways to increase green production innovation indirectly through learning orientation, open-mindedness, vision sharing.
Keywords: Green production innovation; internal integration; learning orientation; open-mindedness; vision sharing.
What determines customers loyalty towards telecommunication service? Mediating roles of satisfaction and trust
by Hiram Ting, Kim-Lim Tan, Xin-Jean Lim, Jun-Hwa Cheah, Qian-Hui Ting, Hui-Bun Ting
Abstract: The purpose of this study is to: 1) examine the effects of corporate image, pricing, service quality and network quality on customer loyalty in the Malaysian mobile telecommunications sector; 2) to determine the mediating effects of customer satisfaction and trust. The studys hypotheses were tested using partial least squares structural equation modelling (PLS-SEM). In total, 388 respondents participated in this study. Our findings revealed that network quality and corporate image exert a positive effect on customers satisfaction and trust which in turn influence customers loyalty. In addition, the mediation results showed that both trust and satisfaction mediate the relationship between network quality and loyalty as well as between corporate image and loyalty. Thus, it is recommended that telecommunications service providers in Malaysia should further improve on their network coverage and corporate image to effectively address the needs of their customer base and ultimately retain its loyalty.
Keywords: loyalty; trust; telecommunications; satisfaction; S-O-R model; Malaysia.
Sustainability Practices in Tourism Supply Chain using Confirmatory Factor Analysis
by Deepak Babu, Arshinder Kaur
Abstract: The purpose of the research paper is to provide insight to the Indian hotel administrators by identifying key sustainability practices that can be jointly adopted with their supply chain members and will effectively contribute to the management of hospitality operations. A comprehensive framework is developed and a confirmatory factor analysis is used to test the relationship between the observed indicators and their factors. A set of reliable and valid measurements of sustainability practices in tourism supply chain that aims at the betterment of hospitality management methods is an outcome of the paper. The identified sustainability practices are used for conceptualization of the model which can be logically used by the practicing managers in tourism supply chain and gain competitive advantage. The findings clearly suggest that sustainability practices need to be looked from the supply chain perspective than as individually.
Keywords: Tourism supply chain; Hospitality sector; Sustainability practices; Confirmatory factor analysis; Tourism destination.
Examining Customers Perception of Electronic Shopping Malls E-Service Quality
by Li XinTong, Abdul Rahman, Zahir Osman, Gan Connie
Abstract: This paper aims to examine consumers perception of shopping malls e-service quality. The phenomenal growth of e-commerce and the gap in the current e-service quality literature has necessitated this study. The growth of many large-scale online shopping platforms such as Amazon.com, T-mall and JD.com has contribute immensely to the economic growth globally. This study has utilized a quantitative approach via structural equation modelling (SEM) to analyses its findings. Efficiency, trust, reliability, and privacy are key dimensions of e-service quality model. Theoretical and managerial implications are discussed with future research directions.
Keywords: Service Quality; Online Shopping; China; Customer Satisfaction; Purchasing; Structural Equation Modelling.
Service Innovation and Firm Performance: Operational Experiences in Uncertain Environments
by Morteza Akbari, Hossein Mokhtari, Afsaneh Moradi, Afsaneh Pourjam, Ala Khosravani
Abstract: Innovation is one of the main factors affecting the firms performance; however, it is less investigated in service firms. This study aims to assess the effect of service innovation on firms performance in uncertain environments when the market orientation capabilities can help firms to operate more efficiently. Data was collected from travel agency managers in Iran. The results revealed that in stable environments, service innovation affects firm performance indirectly via quality of service and customer satisfaction. But having considered environmental uncertainties, service innovation showed a direct effect on firm performance in addition to indirect effects. Moreover, market sensing and customer linking capabilities are moderating the relationship between service innovation and firm performance in uncertain environments.
Keywords: Service Innovation; Firm Performance; Environmental Uncertainty; Tourism Industry.
The Lost Money: Study of Indias Inward Foreign Remittances and its Related Factors - A Panel Data Approach
by Muskan Kaur, Kanchan Sehrawat, Madhu Vij
Abstract: Remittance serves as a very important component of income in GDP levels of many countries. As per the latest World Bank report on remittances, India is the largest recipient of foreign remittance. Although there are many remittance service providers (RSPs) operating in the market yet a lot of remittance amount is lost in transaction owing to various costs associated with transferring such amount. The current study is an attempt to understand the competitive landscape of the remittance marketplace operating in the various migrant origin countries selected for analysis and compare their cost of sending money to India over a period of time (2014-Q1 to 2018-Q2). The study also identifies major cost transfer determinants using panel data analysis. The study has major policy implications.
Keywords: India; Remittance cost; Research Service Provider (RSP’s); Panel Data Analysis; Fixed and Random Effect.
International entrepreneurial culture, innovation differentiation strategy and early internationalization: Evidence from Indian born globals
by Dominic Buccieri
Abstract: This study examines the phenomenon of early internationalization in born globals from emerging markets. While the domain has gained attention in recent years, the literature is still in its infancy as to how born globals from emerging markets compete in high technology sectors. This study draws on the dynamic capabilities view (DCV) to empirically examine how international entrepreneurial culture (IEC) shapes innovation differentiation strategy, and how each drive early internationalization under varying levels of market turbulence. AMOS is used to conduct a confirmatory factor analysis and estimate a structural model, using a sample of 286 high technology born globals from India. The findings indicate that IEC supports innovation differentiation and early internationalization. The findings also confirm the usefulness of IEC toward early internationalization when entering turbulent markets. These findings offer meaningful implications for the dynamic capabilities literature as born globals harness an IEC to accelerate their internationalization activities.
Keywords: International entrepreneurial culture; innovation differentiation strategy; early internationalization; international market turbulence; born globals.
Fostering Chinas expanding trade in services
by Xuedong Li, Michael D. Clemes, Baiding Hu
Abstract: The expansion of Chinas trade in services has enhanced Chinas status in the international trade arena (Tang et al., 2013). The importance of the trade in services in Chinas economic development has been recognised and emphasised in Chinas Twelfth Five-Year Plan (20112015) (Chen and Whalley, 2014). We use structural modelling to analyse the impact of five key determinates on Chinas trade in services: foreign direct investment (FDI), tertiary education, employment in the services sector, the inflation rate and internet diffusion between 1983 and 2014. The findings in this study provide an improved understanding of the important linkage between the key determinates and trade in services in China. The empirical results reveal that tertiary education is the most significant determinant that impacts on the development of both Chinas services exports and services imports. Internet diffusion has the least impact on Chinas service exports, while, employment in the service sector has the least impact on Chinas services imports.
Keywords: China; key determinates; service exports; service imports.
Socio-economic inequality and economic growth in BRICS countries: relationships and policy options
by Olawumi D. Awolusi, Josue Mbonigaba
Abstract: This paper assesses the influence of economic growth on socioeconomic inequality in the Brazil, Russia, India, China, and South Africa (BRICS) countries, using a yearly dataset from 1980 to 2017. The long-run equilibrium relationships were established via Pesaran et al.s autoregressive distributed lag (ARDL) cointegration technique, as well as, Toda and Yamamotos granger no-causality approach in a two-variable vector
autoregression model. The outcome of the estimated causality test detected both unidirectionally and bidirectionally causal effects in the short-run for all the variables. Our study, therefore, concluded that the long-run equilibrium relationships between economic growth and socio-economic inequalities in the BRICS countries vary from one country to another, but were largely insignificant in the models of Russia and China during the study period. This is tacit support for the Kuznets hypothesis in both China and Russia. All robustness checks validated our main findings. Varied policy options and recommendations are highlighted.
Keywords: socio-economic inequality; economic growth; autoregressive distributed lag cointegration test; Toda-Yamamoto causality test; BRICS countries.