The Impact of Service Improvisation Competence on Customer Satisfaction: Evidence from the Hospitality Industry

This study formally develops and empirically tests a new construct, termed service improvisation competence (Serv‐IC), that constitutes a novel way to improve customer experience in high‐contact service contexts. Serv‐IC is operationalized as the systemic ability of a service firm's employees to deviate from established service delivery processes and routines to respond in a timely manner to unforeseen events using available resources. Serv‐IC is a realized operational competence resulting from a deliberate set of service design choices consistent with a firm's service concept. The construct embodies a multidisciplinary perspective that explains, in part, how some firms can systemically use employee improvisation to align service processes and employee behaviors in the presence of customer‐induced uncertainty. As a first, theory‐building step we follow a rigorous, two‐stage approach to develop a reliable and valid multi‐item measurement scale for Serv‐IC, emphasizing discriminant validity with related concepts. We then introduce a set of experientially based service design choices that constitute a Serv‐IC deployment strategy. Finally, we investigate its effect on customer satisfaction. Our empirical results show that Serv‐IC can play an important role in satisfying customers within certain boundaries. Counter to conventional wisdom, Serv‐IC increases customer satisfaction in lower‐tier hotels more than in upscale ones.