Abstract

Labor-intensive industries face challenges when designing innovative, customer-oriented service strategies at the employee level, since service is mainly produced and delivered to customers not by technology or machines but by human resources. In other words, the role of frontline employees is particularly critical in customers’ belief formation of whether a service company is innovative or not. Therefore, this study was conducted to formulate and investigate the psychological process of frontline employees’ innovative behaviors. To achieve the purpose, this study collected data from frontline employees in Seoul and Gyeonggi-do, South Korea. This study contributes to the motivation literature in human resources management by adapting and considering a marketing approach based on three aspects of motivation: global, contextual, and situational. This study also examined whether motivation factors may increase knowledge-management capabilities and subsequently stimulate innovative behaviors, which are critical to the successful implementation of service improvements among frontline employees.

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