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How does a new institution spread? Travel agencies' adoption of the service quality assurance programme

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  • Huei-Wen Pao
  • Hsueh-Liang Wu
  • Wei-Hwa Pan

Abstract

Despite the recognition of service quality as a major advantage in service industries, the travel agency sector in Taiwan has lacked any service quality certification regime that could optimize service provision or reduce customers' transaction costs. Since the introduction of such a quality-assurance programme in Taiwan in mid-2003, local travel agencies have responded differently. With a sample of 167 uncertified Taiwanese travel service operators, this study argues that firm responsiveness to a new institution depends on two distinct motives, rational and normative, and that such relationships are contingent upon CEO's background and market conditions. The results detail the varied responses as a result of rational and normative considerations and highlight the context-dependent nature of the motivation--behaviour relationships. This study yields important implications for quality credentialing bodies regarding how a new institution may diffuse in a field.

Suggested Citation

  • Huei-Wen Pao & Hsueh-Liang Wu & Wei-Hwa Pan, 2008. "How does a new institution spread? Travel agencies' adoption of the service quality assurance programme," The Service Industries Journal, Taylor & Francis Journals, vol. 30(7), pages 1047-1061, May.
    • Handle: RePEc:taf:servic:v:30:y:2008:i:7:p:1047-1061
    DOI: 10.1080/02642060802298350
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