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Service Ecosystems & Institutions 2

Tracks
Track 4
Friday, June 17, 2022
2:00 PM - 3:30 PM
Conference Room 2

Speaker

Dr. David Sörhammar
Associate Professor
Stockholm University

Actor affordance in service ecosystems

Abstract.

The socio-material dimension of the ‘man-machine’ relationship (Orlikowski & Scott 2008), implies that ‘things’ potentially have agency (Vargo 2018), which makes service ecosystems (Vargo & Lush 2016) equal to socio-technical systems (Geels 2020). This suggests that in service ecosystems, artifacts have human-like relational properties (Norman, 1988) which can affect the perceived value-in-context of various resource-integrating activities. Following this, we argue that all actors (human & non-human) that influence activities such as value cocreation or resource integration within a service ecosystem are to be seen as active operant resources (Lusch & Nambisan 2015), which can be given a functional identity (Röndell & Sörhammar 2010). This conceptual paper focuses on the relational duality of man-machine to clarify how and why actors’ (human & non-human) multidimensional affordance can help explain the self-adjustments of service ecosystems. The main goal is to explore how the concept of affordance (a noun) captures the evolving and emerging relationship between humans and artifacts (Norman 1988) to better understand the role of technology in service ecosystems.

By exploring affordance theory through an SD-logic lens, we develop a conceptual framework that clarifies how different forms of affordances that (human & non-human) actors draw on bring transformative power into the service ecosystem. Actors bring functions, goals, and potential adaptations (Simon 1996) that actualizes in the interactions with other actors. The ability of actors to cocreate value in relation to other actors can be explored through designed, improvised, and emergent affordance (van Osch & Mendelson 2011). Designed affordance emphasizes the intended use - whether it is the software developer or organization that has tried to specify the value-in-context due to a prevailing institutional logic. Improvised affordance is based on situational value-in-context where conflicting institutional arrangements can lead to unintended or unexpected use (Lusch and Nambisian 2015). Finally, emergent affordance is the affordance that evolutionary develops non-linearly in the service ecosystem, which can occur due to the two former forms of affordances, but often entail completely new affordances (i.e., a ‘more than the sum of its parts’ logic).

Building on the recent marketing interest in affordance (Luca et al. 2021) and the need to understand the complexity of the “sociotechnical process of applying digitizing techniques to broader social and institutional contexts” (Tilson, Lyytinen & Sorensen, 2010, p. 749) we propose a conceptual framework that clarifies the interplay between actor affordances and their effect on the adjustments of service ecosystems. Theoretically, we draw on combined insights from service ecosystems, with an especially attention to institutional arrangements, and the three forms of affordance. We further illustrate the framework through three illustrative cases. We contribute with an increased understanding of actors (human & non-human) as being ‘active’ and able to influence the self-adjustments in a service ecosystem. The paper complements prior studies of technologies in ecosystems and contributes to preparation for future market developments where robots, artificial intelligence, and other decision-making technologies are brought into the marketplace.
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Alessia Anzivino
Università Cattolica Del Sacro Cuore

Tensions and paradoxes in sustainable beauty industry

Abstract.

Purpose: In beauty industry sustainability issues are gaining momentum also in light of Sustainable Development Goals. Sustainability is being increasingly and constantly recognized as source of competitive advantage in terms of brand image and profit. Consumers, in particular Millennials and Gen Z are very interested in having a quality product with sustainable and bio characteristics, and are very sensitive to sustainable packaging (Švecová et al., 2020; PwC 2020; Cosmetica Italia, 2021).
Dealing with sustainability issues in beauty industry results in a complex and multi-actor ecosystem made up by different elements, behaviors, and interactions, so in this paper this industry has been considered, according to Service Dominant logic, as a service ecosystem in which actors interact at micro, meso and macro level and in which tensions could arise (Vargo and Lusch, 2017; Hahn et al., 2015; Smith and Lewis, 2011)
Considering sustainability in the beauty industry requires to address multiple environmental, economic and social goals at different levels of the services ecosystem (Elkington, 1997).
The aim of this paper is to recognize current tensions arising at the different levels of this service ecosystem when actors characterized by different worldviews interact and integrate resources and to address tensions and paradoxes between economic, environmental and social goals.
Design, methodology, approach: In order to achieve the aims of the paper and coherently with the complexity of the issue, the study adopts a qualitative methodology: the study has been conducted in a real context through face-to-face interviews with multi-level actors of the beauty industry. It consists of 29 semi-structured interviews with key informants at different levels of the service ecosystem. Interviews were carried out between April 2021 and November 2021.
Data from interviews have been triangulated with those deriving analysis of secondary data and with data deriving from participant observations (Eisenhardt, 1989; Yin, 2018)
Findings: Sustainability is driving the evolution of Italian beauty service ecosystem and findings highlight that resource integration and actors’ engagement and interactions are linked to the presence of shared worldviews. Data also show that when misalignments in worldviews generate tensions between the different actors that could be overcome trough a holistic vision of sustainability and trough the implementation of new innovative practices. The proposition of shared practices and KPIs for the managers could enhance the creation of new worldviews and institutions.
Discussion and conclusion: This paper contributes both at a theoretical and managerial level to a better understanding of the tensions and paradoxes linked to the sustainable transition of beauty industry. It identifies the main issues that researchers, managers and policy makers could address to support the sustainable evolution of beauty service ecosystem and to investigate existent tensions and how to manage them in a paradoxical way also in light of Sustainable Development Goals.








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Dr. Jennifer Chandler
Department Chair & Associate Professor
California State University Fullerton

Creepiness in Service Interactions: Institutional Dissonance and Service Ecosystems

Abstract.

“Creepiness in Service Interactions: Institutional Dissonance and Service Ecosystems”
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Relevance of the phenomenon being studied
Service interactions among customers and service employees lie at the heart of many service processes. Service firms today possess a wealth of information on how customers think, feel, behave, and interact with firm offerings and how they respond to specific campaigns and communication styles. This information is especially valuable for service providers and their staff as it allows them to not only tailor their products to individual customer needs and preferences but also to adjust the way they communicate with customers – both online and offline – in a much more personalized fashion. However, while previous literature has primarily focused on the positive consequences associated with more personalized service interactions, they have also led to service providers being questioned, reprimanded and sometimes abandoned because of interactions that are perceived to be “creepy”. In short, service organizations today seem to be walking a line of creepiness when it comes to utilizing customer insights to personalize the way they interact with customers. Such perceptions of creepiness might further be exacerbated when service firms collaborate with other third-party service providers to offer a more seamless service experience within a service ecosystem.
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Potential contributions to the field
Thus, the purpose of this research is to explore, from a service ecosystems perspective, the nature of creepiness in service interactions and the potentially negative impact of customers’ creepiness perceptions on service organizations. To date, the service literature lacks a framework for exploring how dissonant institutions can inhibit service interactions among ecosystem actors through the generation of tensions and friction that, in turn, may give rise to negative emotions such as creepiness perceptions.
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Research question
This research seeks to answer the following research question: Why are some service interactions perceived to be creepy and how do creepiness perceptions impact customer behavior and service outcomes?
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Theoretical foundations and Conceptual framework
More specifically, we investigate how customer perceptions of “creepiness” of organizations and service employees arise by drawing on Institutional Theory and Service-Dominant Logic. Drawing on the concept of institutional dissonance, we propose that perceptions of creepiness emerge during periods of institutional change as prevalent institutional logics within a service ecosystem emerge and evolve. Creepiness can become systemic or associated with specific actors in a service ecosystem when perceptions of prevalent institutions (i.e., norms, rules, and beliefs) clash, for example, surrounding the use of customer data for personalization purposes.
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Discussion and conclusion:
This exploration invokes a deep and fundamental discussion of how emergent institutional logics are legitimized and delegitimized in a service ecosystem and how organizational actions that are neither transparent to nor controllable by other actors in the service ecosystem can foster negative emotions and spur dysfunctional service encounters.
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Dr. Karin Teichmann
University of Innsbruck

Service Encounter Satisfaction and Loyalty Formation across Cultures: An Ecosystems Perspective

Abstract.

Consumer responses to service encounters and their consequences for loyalty formation vary across cultures (e.g., Ueltschy, Laroche, Tamilia, & Yannopoulos, 2004). At the core of company-customer relationships lie social, reciprocal exchanges (Henderson, Beck, & Palmatier, 2011). If a company offers rewards to the customer (e.g., favorable treatment during the service encounter), the customer likely repays that positive treatment with loyalty towards that company (De Wulf, Odekerken-Schröder, & Iacobucci, 2001). This process can depend on culture (Cropanzano & Mitchell, 2005) and personality (Kaltcheva & Parasuraman, 2009). For instance, individuals from collectivistic cultures tend to reciprocate more positively than individuals from individualistic cultures (Jung et al., 2014). Or, individuals with greater extraversion tend to show stronger positive reactions when receiving rewards (Gray, 1981). Yet, the interplay between culture and personality traits has not been well understood leading to the following research question: How do cultural and customer personality interact on service encounter satisfaction leading to customer loyalty towards a global retailer? Customers of a global retailer from two cultures (opposites in terms of Hofstede’s collectivism/individualism dimension; 1981) participated in the field study (nJapan = 324; nUSA = 316). The results reveal differential effects of a culture-specific, individual trait (i.e., extraversion) in potentially accelerating a culture effect (i.e., collectivism) on the customer’s loyalty formation process: in collectivistic cultures, the positive effect of service encounter satisfaction on customer loyalty is stronger than in more individualistic cultures. While a personality trait atypical to a certain culture (i.e., extraversion in collectivistic cultures) does not affect that positive effect, a personality trait typical to a certain culture (i.e., extraversion in individualistic cultures) can accelerate the positive effect of service encounter satisfaction on customer loyalty. Our study demonstrates that the system of values and norms in which a customer is embedded together with his/her personality shape customer response, thereby shedding light on the contingencies of cultural influences for consumer evaluation models. Our research ties in with recent research taking an ecosystems perspective of consumer evaluation models. Assuming that consumers envision a multitude of factors influencing their experience, modeling such a complex system allows to more deeply understand the interplay of these factors (Bolton et al., 2021; Tax et al., 2013). In our research, we investigate consumer, cultural, and store factors. We unveil the process by which personality and culture interact on loyalty formation in various ecosystems. Our study satisfies calls in the literature to recognize that different forces outside the firm shape how consumers experience and respond to products or services (Tax et al., 2013). From a managerial perspective, we find that customers’ loyalty towards a global retailer is affected by amenities of the service encounter contingent on the customer’s cultural background and a/typical personality trait.
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