Purpose Service firms have the crucial responsibility of enabling value co-creation for their own and their customers' benefit. Therefore, it is imperative to gain a deeper understanding of how the organizational capabilities instilled in service interactions relate to the co-created value outcomes. Design/methodology/approach Grounded in configurational theory, organizational capabilities and value co-creation literature, this study aims to explain the complex relationships between interactional capabilities – a specific type of organizational capability that supports service interactions and contributes to a higher-level value co-creation capability – and key relational co-created value outcomes in two high-interaction service contexts. Relying on the service-dominant orientation model (SDO), the authors combine partial least squares structural equation modeling (PLS-SEM), finite mixture partial least squares (FIMIX-PLS) analysis and fuzzy set qualitative comparative analysis (fsQCA). Findings The PLS-SEM results establish the higher-level value co-creation capability construct and its positive relationship with the value outcomes. The FIMIX-PLS results indicate unobserved heterogeneity in the structural model, suggesting equifinality. The fsQCA results reveal how interactional capabilities, at a lower level, assemble in various configurations, resulting in both value co-creation and value no-creation. Originality/value Offering substantial theoretical and empirical reasoning with practical implications for service management, this study demonstrates how conjunction, equifinality and causal asymmetry characterize the relationships between interactional capabilities and value outcomes. In doing so, the paper expands knowledge about the value co-creation process in relation to value realization. The results also contribute to a more detailed understanding of the concept of value no-creation, as the absence of value realization.

Purpose This paper examines the role of cyber-attackers as a critical social force within the cybersecurity service ecosystem. We propose a conceptual framework that integrates attackers into the traditional service triad, reframing them as attackers who influence value co-creation and service dynamics within the cybersecurity industry, particularly in the context of Cybersecurity-as-a-Service (CSaaS). We conclude that cyber-attackers represent agents of “value sabotage,” a novel concept that captures how threat actors reshape service dynamics. Design/methodology/approach The study draws on a review of service management and cybersecurity literature, complemented by case studies of notable cyber-attacks. Building on service-dominant logic and ecosystem theory, a conceptual framework is developed, positioning attackers as influential disruptors within the CSaaS ecosystem. Findings The findings reveal attackers as adversarial social forces driving innovation and adaptation in the CSaaS ecosystem. An analysis of their motivations and strategies reveals how their actions compel organizations and service providers to prioritize resilience and defensive value co-creation. In turn, attackers' actions “sabotage” the value co-creation process. Our proposed framework demonstrates a transition from dyadic to triadic service interactions, incorporating attackers as critical agents. Research limitations/implications Future research could explore the generalizability of this framework across other industries and more specific comparisons between value sabotage and value co-destruction. Additional social forces could also be considered, such as regulators and end-customers (pentadic model). Practical implications The findings underscore the need for organizations to adopt adaptive service strategies that prioritize resilience, threat anticipation and collaboration to counter cyber-attacks. Originality/value This paper uniquely positions attackers as active contributors to the service ecosystem, extending service theory and challenging conventional notions of value co-creation in service management through the novel concept of “value sabotage.” Framing attackers as malicious orchestrators of disruption, our work offers a new lens to understand how threat actors shape service design, resilience and co-creation strategies in digitally mediated service environments.

Purpose Voice commerce is emerging as a promising new form of electronic commerce (e-commerce) where consumers’ service encounters are mediated through tools like voice assistants. While prior research has underscored the role of the attributes of these voice assistants in affecting various aspects of consumer behavior, including purchase intention, satisfaction and loyalty, there is limited understanding of how other attributes—such as those relating to the service, the service provider and the consumer—influence this behavior. Therefore, this study seeks to explore these attributes in greater detail through the service perspective. Design/methodology/approach Leveraging an inductive approach based on interviews with 15 e-commerce business developers and 18 shoppers, this study shines a light from the service perspective on the range of attributes that influence consumers’ purchase intention in voice commerce. Findings Key findings reveal that service attributes like service complexity and service consumption phase, along with service provider attributes such as brand familiarity and multichannel integration, emerge as crucial determinants of consumers’ purchase intention in voice commerce. Moreover, consumer attributes involving the perception of relative advantage and privacy risk, along with familiarity and susceptibility to social influence and normative pressures, significantly impact their purchase intention in voice commerce. Originality/value This study not only enriches understanding of the diversity of attributes driving purchase intention in voice commerce but also offers a conceptual framework that emphasizes the importance of the service perspective in voice commerce.

PurposeDespite the increasing trend of integrating artificial intelligence (AI) into organizational workforces, there remains a lack of understanding regarding how employee–AI interaction shapes employee service performance. The objective of this study is to investigate the impacts of employee–AI interaction fluency on in-role and out-of-role employee service performance in different delivery service (smart helmet services vs in-vehicle AI services) contexts.Design/methodology/approachDrawing on mind perception theory and self-efficacy theory, a research model that reflected the impacts of employee–AI interaction fluency on employee service performance was developed. This research model was then tested through two empirical studies using data collected from frontline employees in the delivery service industry.FindingsThe present study found that employee–AI interaction fluency acts both directly on employee service performance as well as indirectly via mind perceptions. Specifically, in the smart helmet service context, employee–AI interaction fluency affects in-role employee service performance via both perceived empathy and competence. By contrast, this impact shifts to out-of-role employee service performance in the in-vehicle AI service context, where perceived competence fully mediates the relationship between interaction fluency and service performance. In addition, the impact of employee–AI interaction fluency on perceived competence will be diminished among frontline employees with high levels of self-efficacy.Practical implicationsThis study offers valuable insights for AI device developers and managers aiming to improve both in-role and extra-role employee service performance through the lens of employee–AI interactions. In contexts with a high degree of employee–AI collaboration, such as smart helmet services, it is crucial to emphasize the empathy and competence of AI to boost in-role employee service performance. In contrast, in contexts with a lower level of employee–AI partnership, like in-vehicle AI services, the focus should be primarily on enhancing the competence of AI.Originality/valueThe present paper reveals the critical role of employee–AI interaction fluency in shaping both in-role and out-of-role employee service performance in the smart helmet and in-vehicle AI service contexts. Moreover, this study also validated the significant negative moderating role of self-efficacy in the relationship between interaction fluency and employee service performance.

PurposeExecutives and managers often seek to understand the financial impact of their decisions on the firm. However, most service research relies on perceptual and behavioral metrics, such as customer and employee satisfaction, engagement and purchase behavior, as outcome measures. Studies that examine the financial consequences of service management decisions are rare. This paper aims to promote the event study methodology in the service research community to better understand the impact of service management decisions on firm value.Design/methodology/approachThis paper reports key literature on event studies in various fields. Moreover, this paper reports the results of a preregistered systematic literature review to identify existing event studies in the field of service management.FindingsTo date, the use of event studies in service research is limited, which is surprising given their great potential. To stimulate the use of event studies, we provide a roadmap for incorporating event studies into service research and conclude with a discussion on promising areas for future event study research.Originality/valueThis paper provides service researchers with a foundation for understanding how to demonstrate the short-term financial impact of service management decisions on firms using the event study methodology. We hope to encourage more service researchers to conduct event studies, as this methodology offers a relatively straightforward approach to illustrating the financial consequences of service management decisions and practices.

Purpose Despite extensive research on the design and adoption of service robots, their efficiency—specifically, the impact on costs, revenues and profitability—has received limited attention. This essay seeks to stimulate a scholarly conversation on this topic by surveying the emerging literature on empirical insights on cost–benefit analyses and then highlighting key components of cost-benefit analyses for service robots. Next, grounded in “service profit logic,” this essay empirically examines consumer willingness-to-pay (WTP) vis-à-vis human-robot (cobotic) teams as a crucial marketing variable in the context of cost–benefit analyses for service robots. Design/methodology/approach This research combines a review of empirical findings from the literature on cost–benefit analysis and consumer WTP in the context of service robots with the first exploratory experimental study investigating consumer WTP for a cobotic service team. Findings This essay offers an illustrative process for cost–benefit analyses of service robots, outlining key cost drivers and benefits and reviewing empirical evidence. The findings highlight the situational profitability of robots, with economic feasibility influenced by context and usage frequency. Consumer WTP is shaped, among others, by perceived usefulness, emotional engagement and anthropomorphic features of service robots. An exploratory study on cobotic teams in healthcare reveals they can increase WTP for human-only teams, especially when robots are in leadership roles. The essay concludes with proposed directions for future research. Originality/value Building on existing literature, this essay expands the understanding of cost–benefit analysis of service robots. Further, it offers novel initial empirical insights into consumer WTP for cobotic service teams.

PurposeTechnological innovations are rapidly transforming service frontlines, resulting in increasingly complex service touchpoints. These touchpoints place greater demands on frontline employees (FLEs) to deliver a positive customer experience. Despite the considerable extant body of knowledge on FLE competencies, the literature on frameworks for managing the complexity of contemporary frontlines from the FLE’s perspective is sparse. This paper aims to fill this critical gap by developing a framework that enables FLEs to deliver positive moments of truth (MOTs) while ensuring the well-being of all actors involved.Design/methodology/approachThis paper uses a conceptual approach rooted in the organizational mindfulness and individual mindfulness literature as the theoretical lens. This is complemented by a comprehensive review of the FLE skills literature supported by marketplace examples to illustrate the optimal use of the said skills.FindingsThis paper proposes a conceptual framework of mindfulness orientation which delineates how FLE competencies underpinned by a set of key skills can deliver positive MOTs and actor well-being.Research limitations/implicationsThe research is conceptual in nature and does not contain validation through empirical data.Practical implicationsThis comprehensive skill set provides a clear roadmap for firms in both recruitment and developing training for their FLEs, thus contributing to practice.Originality/valueFirstly, we present a conceptual framework of mindfulness, combining organizational mindfulness and individual mindfulness that will enable employees to help facilitate the creation of positive MOTs. Secondly, we develop a comprehensive set of employee skills that underpin the mindfulness orientation framework.

PurposeLanguage styles of online reviews are becoming increasingly important in consumers’ purchase decisions. However, there are inconsistencies in research on the effects of literal and figurative language styles in online reviews on service consumption. Drawing upon construal level theory, this research explores the effects of literal and figurative online reviews on consumers’ word-of-mouth recommendations and their internal mechanisms in the context of service consumption. In addition, this research identifies service types (experience vs credence services) as boundary conditions under which online review language styles play a role.Design/methodology/approachThree studies are designed to verify the effect of language style in online reviews on consumer word-of-mouth recommendations. Study 1 (N = 195) tests the interaction between construal level and (literal vs figurative) language style on consumers’ word-of-mouth recommendations. Study 2 (N = 191) identifies the depth of information processing as an underlying mechanism. Study 3 (N = 466) examines the boundary condition due to service type. The main methods used are independent sample t-test, ANOVA and bootstrapping.FindingsThe results illustrate that (1) consumers at different construal levels prefer online reviews with different language styles, and this can influence their word-of-mouth recommendations: consumers with a low construal level prefer online reviews with a literal language style, while those with a high construal level prefer online reviews with a figurative language style; (2) the depth of information processing plays a mediating role in the above interaction effect and (3) service type serves as a boundary condition such that the preference for literal (vs figurative) language style among low- (vs high-) construal-level consumers holds only for experience services; for credence services, online reviews with a literal language style enhance word-of-mouth recommendations, regardless of consumers’ construal level. The findings shed light on the drivers of word-of-mouth recommendations and provide insights to promote more effective word-of-mouth recommendations.Originality/valueDrawing upon the construal level theory, this research explores the factors that influence online review language styles on consumer word-of-mouth recommendations and their underlying mechanisms and discusses the moderating effects of different service types (i.e. experience services and trust services). It not only sheds light on the contradictions in the previous literature but also provides new insights for academics and business managers to deepen their understanding of facilitating word-of-mouth recommendations.

PurposeThe relationship between frontline employee work engagement and customer service evaluations is a major theme in service research. Recent studies have called for further exploration and validation of this relationship. This paper conceptually replicates the work engagement-customer service evaluations link within the context of technology-mediated voice-to-voice encounters. Moreover, we extend prior work by examining how work engagement influences customer service evaluations depending on the outcome of the service encounter (positive or negative).Design/methodology/approachThe authors conducted a multilevel, multi-source study involving data from 4,198 customer interactions and 346 employees at a major European telecom operator. The data were analyzed using a linear mixed effects model.FindingsThe study could not replicate the relationship between work engagement and customer service evaluations in technology-mediated voice-to-voice encounters. The findings reveal that customers who interacted with a highly engaged employee but received a negative service outcome evaluated the interaction more negatively than those who interacted with a less engaged employee. Conversely, when the service outcome was positive, work engagement was not significantly related to customer service evaluations.Originality/valueIn voice-to-voice encounters, employee engagement appears to have little impact on customer service evaluations and can even be detrimental when the service outcome is negative. This study is among the first to empirically demonstrate a negative effect of work engagement on customer service evaluations. Future replication studies are needed to validate these findings.

PurposeThis paper aims to explore practice innovation and organizational resiliency during exogenous service ecosystem disruptions. This inquiry focuses on the extreme disruption caused by the COVID-19 pandemic, which required service firms to recodify long-established service scripts, adapt digital and physical material elements of the service encounter and ultimately reconfigure a system of practices. The specific context is forced practice innovation in Starbucks servicescape (kiosks and coffeehouses). Starbucks is best known for its custom beverages and third-place strategy. Their strict adherence to a complex service script and unique ordering practices altered during pandemic stay-home disease prevention mandates.Design/methodology/approachThematic coding consistent with prior research on practice innovation and diffusion and a grounded theory methodology was conducted. Data were triangulated and analyzed within and across a variety of sources. These include field notes from direct observation, interviews, focus groups, firm-authored collateral in the form of marketing communications and third-party authored secondary sources such as news, social media, blogs and forums.FindingsData reveal how practice innovation occurs through the reconfiguration of a system of practices, which support organizational resiliency and can force brand evolution, in prolonged exogenous service ecosystem disruptions. The COVID-19 pandemic required service industries to adapt and recodify service scripts and alter physical and digital elements of service encounters. While the pandemic affected all firms in the sector, we argue that Starbucks' established scripts and third-place strategies, which characterized the brand experience, were particularly vulnerable. We find that practice innovation occurs through the reconfiguration of practice elements – competences, meanings and materiality – and restructures the service encounter. Practice codification, transposition, adaptation and stabilization support organizational resiliency and brand evolution. We find that Starbucks' brand experience emphasis on the third place is reconceptualized from an in-person community-based retailscape to a platform-based strategy necessitating script recodification and practice adaptation. Our analysis of Starbucks' kiosks and coffeehouses illuminates how a distinctly branded service encounter is constituted by a system of practices that can be reconfigured and diffused anew in the face of disruption.Originality/valueThe conceptualization of practice innovation as systems reconfiguration establishes a novel approach to understanding innovation in service ecosystems. The COVID-19 pandemic is a unique context to study a sector-wide exogenous extended service disruption. We focus on a firm with an elaborate pre-pandemic service script and commitment to a third-place brand experience guiding its system of practices. We reveal unique insights on practice innovation within service ecosystems during exogenous prolonged disruptions in which brands evolve through the recodification of service scripts and sustained reconfiguration of systems of practice.