Is ICT good for employees? An analysis of its effects on sales agents’ perceptions of service cannibalization
Introduction
The utilization of ICT in organizational relations is an important knowledge-based innovation that is of great interest to both academia and industry practitioners (Shank, 2013). ICT is particularly powerful in certain segments of information-intensive industries, such as service industry, where cyberpower has steadily gained popularity during the past decades (Weber & Zink, 2014). As information is the essence of tourism, tourism organizations are not excluded from this knowledge revolution (Sigala & Chalkiti, 2015). Currently, ICT is recognized by tourism firms as a requirement for competitiveness and survival and something which can significantly contribute to their performance (Hallin and Marnburg, 2008, Yiu and Law, 2014). Tourism is also a dynamically changing and highly vulnerably industry that is continuously being influenced by numerous environmental factors.
Several studies have found that competitive pressures, caused by the introduction of the online channel in the industries, have pushed business model innovation and ICT adoption to the top of managers’ priorities (GE Global Innovation Barometer, 2013). Business model innovation involves the discovery and adoption of fundamentally different modes of value proposition, value capture and/or value creation in an existing business (Markides, 2006). Research has focused on innovation as the basis for transformation and change (Demil and Lecocq, 2010, Desyllas and Sako, 2013). For example, Johnson, Christensen, and Kagermann (2008) argue that successful business model transformation follows from a new understanding and redefinition of the customer value proposition. ICT adoption can be viewed as a way to introduce business model innovation. By adding ICT and Internet channels, companies increase overall performance, consolidate existing markets, and expand into new markets (Geyskens, Gielens, & Dekimpe, 2002).
Unfortunately, not everyone involved in these organizations views ICT and Internet adoption as a path to success (Hong et al., 2014, Mulki et al., 2009, Porter, 2001). For example, the Internet channel expansion might be motivationally detrimental to sales agents who work in retail travel organizations. Employees are fearful that the online channel and Internet-based competitors will cannibalize their role in the organization, and might make them outdated and feel insecure about their jobs (Sharma & Gassenheimer, 2009). Sales agents perceive both a reduction in their sales and an uncertainty regarding the continuation of their jobs when faced with the existence of the multiple channels available to the consumer. Sales agents’ perceptions of changes in their role and declining sales are conceptualized as perceptions of service cannibalization (Sharma & Gassenheimer, 2009).
While some studies have shown the transformative effects of business model on organizations, less is known about ICT adoption and its effects on sales agents’ perceptions of service cannibalization in the tourism industry. Consequently, the purpose of this study is to analyze the sales agents’ perceptions of service cannibalization as a result of ICT adoption and to identify different clusters of sales agents based on the sales agents’ perceptions of service cannibalization and ICT adoption in the tourism industry. To achieve this objective, this study has applied the latent class segmentation model to examine segments of sales agents who work in retail organizations.
The following section provides the theoretical framework and the research antecedents dealing with the main features of ICT adoption, ICT and tourism industry and sales agents’ perceptions of service cannibalization. The third section describes the methodology used to develop the analysis. Finally, authors explain the major findings, discuss the implications of the research, clarify the limitations of the study and suggest directions for further research.
Section snippets
ICT adoption
The adoption of innovation in the context of organizations is determined by the characteristics of the organization itself and the external variables and environmental factors, such as industry and customer pressure (Wu et al., 2003, Yoon and George, 2013). In the service industry, the technological environment favors the use of ICT in commercial relationships. In this industry, retail organizations face not only an increase in traditional competition but also the appearance of new forms of
Design and sample
Participants of the study were travel agents of Spain. Sales agents who voluntarily participated in the study completed the questionnaire in an interviewer’s presence. When necessary, the main researcher assisted the respondents. We confined our population to travel agencies that were located in six states. A cluster sampling technique was deemed most appropriate because our sampling frame was organized by city and travel agency type. This sampling procedure involved several steps. Within each
Construct validity
This study assesses the reliability and validity of the sales agents’ perceptions of service cannibalization construct through an overall confirmatory measurement model using EQS 6.1. software (Anderson & Gerbing, 1988). The reliability and validity statistics displayed in Table 1 demonstrates the high internal consistency of the construct. In the sales agents’ service cannibalization variable, the Cronbach’s alpha exceeds Nunnally and Bernstein’s (1994) recommended threshold of 0.70. Composite
Conclusion
The expansion of ICT and online channels allows consumers to choose from a wide range of options. However, this situation could lead to sales agents perceiving service cannibalization. The main objective of this study, therefore, was to analyze the sales agents’ perceptions of service cannibalization and to identify different clusters of sales agents based on the sales agents’ perceptions of service cannibalization and ICT adoption. To achieve this objective, this study has applied the latent
References (62)
- et al.
Gender, age and income differences in internet usage among employees in organizations
Computers in Human Behavior
(2010) - et al.
The effect of ICT on relationship enhancement and performance in tourism channels
Tourism Management
(2015) - et al.
Progress in information technology and tourism management: 20 years on and 10 years after the Internet – The state of e-tourism research
Tourism Management
(2008) - et al.
Game theoretical perspectives on dual-channel supply channel competition with price discounts and pricing schemes
International Journal of Production Economics
(2009) - et al.
Business model evolution: In search of dynamic consistency
Long Range Planning
(2010) - et al.
Profiting from business model innovation: Evidence from Pay-As-You-Drive auto industry
Research Policy
(2013) - et al.
Knowledge management in the hospitality industry: A review of empirical research
Tourism Management
(2008) Progress in tourism management: A review of innovation research in tourism
Tourism Management
(2010)- et al.
Positive affect predicting worker phycological response to cyber-bullying in the high-tech industry in Northern Taiwan
Computers in Human Behavior
(2014) - et al.
Cannibalization or synergy? Consumers’ channel selection in online-offline multichannel systems
Journal of Retailing and Consumer Services
(2012)
The impact of forced use on customer adoption of self-service technologies
Computers in Human Behavior
Are the days of tourist information centers gone? Effects of the ubiquitous information environment
Tourism Management
Revisiting the substantiality criterion: From ethnic marketing to market segmentation
Journal of Business Research
Value co-creation and purchase intention in social network sites: The role of electronic Word-of-Mouth and trust-A theoretical analysis
Computers in Human Behavior
Are computers good or bad for business? How mediated customer–computer interaction alters emotions, impressions, and patronage toward organizations
Computers in Human Behavior
Investigating the exploitation of Web 2.0 for knowledge management in the Greek tourism industry: An utilisation-importance analysis
Computers in Human Behavior
Knowledge management, social media and employee creativity
International Journal of Hospitality Management
A hierarchical model of technology adoption for small owner-managed travel firms: An organizational decision-making and leadership perspective
Tourism Management
Information technology adoption and continuance: A longitudinal study of individuals’ behavioral intentions
Information & Management
Latent class models for classification
Computational Statistics & Data Analysis
Examining the role of information technology in cultivating firms’ dynamic marketing capabilities
Information & Management
Why aren’t organizations adopting virtual worlds?
Computers in Human Behavior
Age, gender, and Internet attitudes among employees in the business world
Computers in Human Behavior
Organizational factors affecting Internet technology adoption
Internet Research
Journal of Hospitality and Tourism Technology
Structural equation modelling in practice: A review and recommended two-step approach
Psychological Bulletin
Customer channel migration
Journal of Marketing Research
On the evaluation of structural equation models
Journal of the Academy of Marketing Science
Antecedents and consequences of e-business adoption for European retailers
Internet Research
Information provision for challenging markets: The case of the accessibility requiring market in the context of tourism
Information & Management
An improved segment-based approach: Case of Internet travel planners
Advances in Hospitality and Leisure
Cited by (7)
Internet Channel Cannibalization and its influence on salesperson performance outcomes in an emerging economy context
2018, Journal of Retailing and Consumer ServicesCitation Excerpt :The literature on SPC is at a nascent stage. Several researchers have expressed their concern about the ill effects of internet disintermediation (Cliquet and Voropanova, 2016; Díaz et al., 2015a, 2015b; Narayandas et al., 2002); a typical situation where extra internet channels are introduced (Alba et al., 1997; Brynjolfsson and Smith, 2000). Internet disintermediation can lead to the replacement of conventional channel partners with the internet platform (Narayandas et al., 2002), resulting in cannibalization of well-established channels (Sharma and Gassenheimer, 2009; Díaz et al., 2015a, 2015b, 2017).
Innovation in tourism distribution ecosystem: The roles of intermediaries and new agents
2023, Journal of Tourism AnalysisThe dark side of sales technologies: how technostress affects sales professionals
2020, Journal of Organizational EffectivenessTowards strategic business performance of the hospitality sector: Nexus of ICT, e-marketing and organizational readiness
2020, Sustainability (Switzerland)