Download as pdf or txt
Download as pdf or txt
You are on page 1of 12

Factors on green service industry: Case study

at AirAsia
Cite as: AIP Conference Proceedings 1818, 020001 (2017); https://doi.org/10.1063/1.4976865
Published Online: 10 March 2017

Muhammad-Azfar Abdullah, Boon-Cheong Chew, and Syaiful-Rizal Hamid

ARTICLES YOU MAY BE INTERESTED IN

Feasibility of piezoelectric tiles adoption: A case study at Kuala Lumpur International Airport
(KLIA) Malaysia
AIP Conference Proceedings 1818, 020009 (2017); https://doi.org/10.1063/1.4976873

Integrated management system: The integration of ISO 9001, ISO 14001, OHSAS 18001 and ISO
31000
AIP Conference Proceedings 1818, 020034 (2017); https://doi.org/10.1063/1.4976898

Technical skills requirement of Indonesian construction labors to work in Malaysia


AIP Conference Proceedings 1818, 020002 (2017); https://doi.org/10.1063/1.4976866

AIP Conference Proceedings 1818, 020001 (2017); https://doi.org/10.1063/1.4976865 1818, 020001

© 2017 Author(s).
Factors on Green Service Industry: Case Study at AirAsia

Muhammad-Azfar Abdullah1,a), Boon-Cheong Chew2,b), Syaiful-Rizal Hamid3,c)


1,2,3
Faculty of Technology Management and Technopreneurship, Universiti Teknikal Malaysia Melaka (UTeM),
CityCampus, Jalan Hang Tuah, 75300 Melaka, Malaysia

a) Corresponding author: muhmmd.azfar@gmail.com


b) bcchew@utem.edu.my
c) syaiful@utem.edu.my

Abstract. Presently service organizations are challenged by fierce global competition, new technology and changing cus-
tomer demands. These trends force service sectors to adapt environmental factors and places innovation at the core of
their competitive strategy. On the other hand, service sectors challenge to deliver value memorable experiences and com-
plete “service solutions” while lowering costs and keep sustainable. Despite, many studies have attempted to explore the
factors that help toward environmental sustainability in the manufacturing sector, the service sector has not yet received a
considerable attention in all world countries generally and in developing countries particularly. Thus, this paper aims to
explore the factors that help to attain environmental sustainability in the service sector. A qualitative case study through
semi-structured interview conducted with twenty managers from AirAsia to explore the factors that are related to envi-
ronmental sustainability and green services. Besides, secondary data from document analysis was reviewed to gain more
comprehensive understanding and triangulate the interview data. The finding of this paper emphasizes to three important
factors namely institutional factors, process factors and result factors that each factor contain sustainability and innova-
tions to promote competitive green service in the marketplace.

INTRODUCTION
In today’s competitive advantage and dynamic environment, the service sector has become the key drivers for
global economy development. According to Cheng [1], the economic development history of mankind had evolved
from an agricultural to an industrial-based. The evolution continues then to a service economy. This is a natural and
inevitable process for a specific country and even for the whole world. All developed countries are in the process of
becoming service economies as the share of service industries in economic activities and employment continues to
grow [2]. However, many developing countries are making an extra effort in improving their respective positions in
services competition, productivity and efficiency challenges [3]. World Bank report highlighted, most of high-
income countries today are post-industrializing which becoming less reliant on the industry. On the other hand, the
low-income countries are industrializing and becoming more reliant on the industry. At this point, services sector
had become a tremendous contribution to the developing countries and generate economic income.
For instance, services are a leading sector in gross domestic product (GDP) contribution in developed country
become a tremendous factor impact to increase profit and reduce cost but it must be applied together with technolo-
gy adoption in communication and machines [4]. Even tough, technology is one of the determinants that help the
sector returns, unfortunately this service industries was doubt to be noted as environmental savvy [5]. Contrary with
manufacturing sectors, the emissions of services sector does not always have directly impact on the environment and
it is easy to overlook the hidden environmental effects and simply deem them cleaner by comparison. According to
the latest UN IPCC report on service sector concluded that transportation accounted for 27% of global CO 2 direct
emission in 2010, with baseline CO2 emissions projected to approximately double by 2050 [6]. According to Wong,
et al. [7], the provision of services require and consume resources that can be environmentally damaging.

Engineering International Conference (EIC) 2016


AIP Conf. Proc. 1818, 020001-1–020001-11; doi: 10.1063/1.4976865
Published by AIP Publishing. 978-0-7354-1486-0/$30.00

020001-1
In the service industry, innovation in services and by services plays a key role in the process of dematerialization
and greening [8]. There are some factors needed for innovation in a specific service innovation. Most of the devel-
oped countries increased their revenues through combination both products and services to increased national
productivity outcome. As revealed in many studies, innovation has been found to influence firm performance [9-13]
as well as financial performance [14]. The goal of green services by the developing countries want is to diversify
and sustainable the economic growth. The aim would lead to a reduction in poverty, increased well-being and con-
tributes improvements in the quality of life. Green service promotes a cost-effective and resource efficient approach
that guides towards sustainable production, consumption choices and sustainable development [15]. Since service
sector has proven led to economic growth and sustainability in developed countries, this study was conducted to
identify factors that motivate AirAsia engaging the green service approach? AirAsia was selected as a case study as
it has been awarded as the World’s Best Low-Cost Airline for eight years consecutively besides being the biggest
airline in Asia.

LITERATURE REVIEW
Service innovation is the best strategy to be implementing on pursues an excellent service to the customer. Ser-
vice innovation is not the new concept in research activity since it is used by manufacturing sector through the utili-
zation of technology. To date, they are little research effort into existing service innovation [11, 12]. Service innova-
tion is a new service experience or service solution that consists one or several of the following dimensions: new
service concept, new customer interaction, new value system/business partners, new revenue model, new organiza-
tional or technological service delivery system [16, 17]. In line with Ostrom, et al. [9] suggests that service innova-
tion creates value for customers, employees, business owners, alliance partners, and communities through new
and/or improved service offerings, service processes, and service business models. This statement shows that inno-
vation has a catalytic role in shaping the new markets and creating new business opportunities [18].
There are some factors needed for innovation in a specific service innovation. As evidence, most of the devel-
oped countries increasing their revenues through offering integrated solutions or integrative services, which combine
both products and services have increase national productivity outcome [19]. As revealed in many studies, innova-
tion has been found to influence firm performance [9-13] as well as financial performance [14]. In the recent study
by Lightfoot and Gebauer [20] has been segregated into three columns that pursue service innovation. These factors
are institutional factors (strategy and resource fit, innovation culture and management), process factors (frontline
expertise, service quality, improves service experience, standardised service) and result factors (cost effective, client
need/fit, market competitiveness, market potential).

Institutional Factors

This factor has two elements must be tackle in internal organization and top management to achieve the succes-
sion of service innovation. The elements combine with human resource to play an important role to achieve it. First-
ly, strategy and resource fit was the new service that fit with organizational skills, expertise and capabilities in term
of managerial, human resource, financial and marketing [20]. Argue by Sillanpää and Junnonen [21], networking is
the best strategy to provide more resources fit in entire of services. In line with Aksoy, et al. [22] adopting network
based approach might improve service innovation and focus on customer perspectives. Next are innovation culture
and management that motivate personnel to generate ideas and foster the improvement and action in an organization
[23]. This culture gathered expertise, frontline and senior management in new service development as well as organ-
izational responsibilities. Companies that successfully create cultures that value the human capital and innovation
will see a steady stream of incremental improvements that help the bottom line [24].

Process Factors

Process factor has emphasis on the middle and bottom line employees that create a unique interaction to the cus-
tomers. Firstly, frontline expertise is involving the extent to which firms use trained and skilled human resources for
service production and delivery, as well as for creating new service offerings. It is proven that frontline employees
attitudes and behaviours are significantly influence customer’ perceptions of the service as well as innovation per-

020001-2
formance [25]. This expertise created service offering tailored to satisfy customer needs and wants. Then, improved
service quality provides social and commercial significance, promoting business interests and greater customer satis-
faction [26]. The service quality gaps introduced by Parasuraman, assume that high levels of customer perceived
service quality depend on minimizing various gaps [27]. However, tangible features are used to identify the new
service, and to help customer define and evaluate it [20].
The third factor was improving the service experience that deals with new service enhancements including a
faster, more efficient service offering, and increased service reliability. Customers perceive service experiences ho-
listically but interact with organizations through diverse channels in complex environments characterized by physi-
cal elements, processes, people and social networks [9]. In addition, through co-creating new service experience
with customers can facilitate more open collaboration, resulting in higher customer success and loyalty. Last is cre-
ating standardized service building blocks creates consistent but customizable services [9]. However, services are
less standardized compared than manufacturing. According to Lightfoot and Gebauer [20], the standardized service
includes a more uniform customer contact during service delivery and more standardized behind the scenes service
process. The service sector that provides standardized services as a commitment technique to guaranteed the prede-
termined level of quality to their customers [28].

Result Factors

As a whole indicator of the organization, result is the important outcome that is able for companies to determine
whether operating activities are really effective or not. This will also affect employees’ motivation and development
of the company’s operations in the future such as cost effectiveness, market competitiveness and market potential.
Cost effectiveness emphasizes the cost nature of service and the perception of customers on the service complexity.
Heracleous, et al. [29] argue that cost effectiveness lead to improve the service standards and productivity levels of
the organization. Such cost efficiency is related to the observation that service innovation requires a standardized
service during service delivery that intent interaction between customers [20].
Then, market competitiveness involves aggressive market and price competition, highly similar product offer-
ings, frequent service introductions and modifications, and sometimes a dominant competitor with a large market
share [20] while allowing new markets and expend the new offerings and creating jobs [30]. Last, market potential
is the degree of innovation of an idea’s ‘fit’ with the company’s product and resources [31]. It is based on the market
growth rates and market volume potential of an organization. According to Lightfoot and Gebauer [20], market po-
tential is depend on the customer’s willingness to demand technical expertise when it comes to develop solutions for
the customer’s process. Other than that, market potential is based on the high customer demand and the products or
services delivered to the customer [32]. Argue by van Riel, et al. [33] market potential is an important role for inno-
vation performance together with customer acceptance.

METHODS
A qualitative case study research was conducted with twenty managers of AirAsia at Low-Cost Carrier Terminal
(LCCT) in Sepang, Selangor. The qualitative is an approach to explore and understand the meaning of individuals or
groups ascribe to the social [34] and this method offers ways of finding out what people do, know, think and feel by
observing, interviewing and analysing documents [35]. The selected sample was purposive from four departments
namely quality management, operation management, human resource and top management departments. The main
reason for selecting those departments is due to their relevant in green service and sustainability development. This
study interviewed five respondents from each department and the total interviewees were twenty. The fieldwork of
primary data collection was undertaken for six months from January 2016 until Jun 2016 in order to get convenience
time to do the interview since AirAsia was the busiest airline in Malaysia. Besides, secondary data such as annual
reports and AirAsia website were reviewed concurrently with the interview session in order to obtain more compre-
hensive understanding about green service management and activities done by AirAsia to triangulate with primary
data. The open ended questions through semi structure interview was used as a tool for data collection because it is
appropriate tool for gaining deep information and provide the respondents space to express his or her opinion freely
[36]. The tool for data analysis used Explanation Building method to analyse the case study data by building an ex-
planation about the case [37] which is suitable for analysing how and why questions that differed from one to anoth-
er according respondents experience and perspective [38].

020001-3
RESULTS AND DISCUSSIONS
In this section, the findings are summarized related to the data gathered from the interviews of green service
management and the summarization is in Table 1, 2 and 3. The main research areas to be examined the factors that
influence the green service management adoption by Air Asia or services industry per se.

The Factors that Encourage the Use of Green Service Management


Institutional Factors

Mueller, et al. [39] identified that institutional factors was influencing resource endowments at the firm level and
thus ultimately determine the success of innovations. First factor is strategy and resource fit where the service re-
sources should fit with organizational skills and capabilities while adopting networking strategy to provide more
resources of the entire services and improve customer perspectives [20-22].
According to Manager A and Manager C, the most important point to initiate any activities in the organization is
allocate the resources and (in) tangible assets in order to deliver the right services to the customer. Added by Man-
ager B, an organization should gain the latest green technology as a resource to create environmental sustainability.
“Creating networking to build tangible and intangible assets to reduce resource inefficiency and increase profitabil-
ity” (Manager C). “Facilitate resource sharing through alliance with others organization” (Manager E). “Develop-
ing collaboration agreements with other organization to increase market share” (Manager F)
Strategy and resource fit factor are the main contributor on analysing an organization to become sustainable and
innovative. The selection resources must fit with employees skill and capabilities but at the same time, must ensur-
ing the resources is friendly with the environment to avoid pollution and emission. By adopting latest technology in
service process, it may help an organization achieve efficiency and effectiveness in delivering services to the cus-
tomer. However, to level up the service efficiency, the organization should built networking internally and external-
ly to ensure improvement on environmental impact while increased revenues and cost saving.
Next factor are the innovation culture and management. This factor is gathered with human capital in the organi-
zation for new service development to motivate personnel on generate ideas and foster the improvement and action
[23] [24]. A success of creating innovation culture will see a steady stream of incremental improvements that help
the bottom line to do operation more easily and accurate.
Manager A stated that with flat structure organization will help to disseminate the information faster and easy to
communicate between employees and management. Therefore, by using flat structure organization, it will reduce
bureaucracy through decentralization management (Manager B and Manager C). Added by Manager B and Manager
C, the advantages of this structure are to ensure fair treatment to all employees and avoid any double standard.
“Here, we always give and respect employee rights to allowed them to give any opinion and good advice for com-
pany improvement” (Manager D). “The top management always facilitate employees collaboration and engagement
among the internal organization to amplify the innovation culture in exchange ideas and make precise decision
making” (Manager E). Anyhow with soft technology like Google Drive helped to facilitate the information dissemi-
nate easily, quickly and accurate while minimized the energy of human resource and time efficiency (Manager D
and Manager F). Furthermore, Manager G asserted that creating green culture technology within the company prac-
tices help to reduce pollution and increase cost efficiency.
Innovation culture and management are the critical factor for success that foster and consequently leads further
innovation in the organization. Innovation culture is built successfully if the internal communication adapts to this
understanding of change communication. Top management plays the main role in supporting and helping of specifi-
cally targeted internal communication. In doing so, more staff can be elevated to the “innovation culture” category,
thus contributing ideas which result of improving business performance and operation. With rapid technological
change and intense competition, the organization should adapt the latest technology in order to provide easy ways of
disseminating information in the short duration without burden any workload.

020001-4
Process Factors

Each organization would success since their employees have skills and expertise. In service process, frontline
employees should have an expertise, trained and skilled. It is important for service production and delivery, as well
as for creating new service offerings. It is proven that frontline employees attitudes and behaviours are significantly
influencing customer’ perceptions of the service as well as innovation performance to satisfy customer needs and
wants [25].
Majority of the managers are agreed that all staffs and employees should attend regular training by the top man-
agement to increase customer relationship and ensure the continuous economic scales (Manager H, Manager I, Man-
ager J, Manager L and Manager N). Besides that, manager H and manager N claimed that management always or-
ganizes awareness program among the employees in order to educate and bring awareness on the important of envi-
ronmental sustainability. Furthermore, the organization gives reward to motivate and acknowledge them and giving
strong performance practices in the future (Manager I and Manager J).
Most of the managers are agreed that frontline employee is the heart of service process to open the opportunity
for the management to gain profitability. However, the employees need to be trained to become skilled and expertise
in order to deliver the service. This is because a service is an intangible asset that should entertain by human capital.
Besides, gain employee loyalty towards the organization by rewarding them for delivering an excellent service.
Frontline employees directly contact with the customers who need to be fulfilled their demand by handling in good
attitude and behaviour.
In order to promote higher business interests and greater customer satisfaction, service quality provides social
and commercial significance to identify new service and help customer define and evaluated [20, 26]. The relation-
ship between service quality is related with service operation process where customers and suppliers are often more
engage and interact [40].
“Achieving high-quality standard is our priority to our customers in order to improve our service delivery and
attain higher customer satisfaction by benchmark our customer feedback” (Manager I). “Frequently do assessments
on customer feedback to evaluate our service performance” (Manager K). “Benchmark customer feedback to meas-
ure the satisfaction and gauge the loyalty of customer relationship” (Manager N). According to Manager K and
Manager M, by wisely using resources to exploit the opportunity may help to ensure the quality performance and
often do maintenance to reduce pollution. Besides, Manager I argue that each service needs to diversify to another
service process for better performance. The uniqueness relies behind the service quality is adoption of ‘autono-
mation’ for required service to smoothen the service process (Manager H).
Clearly, that service quality has a major impact on delivering services to the customer by benchmarking their
customer feedback. Through this mechanism, it will help to develop knowledge about customers’ changing needs as
well as to identify actions to improve the service delivery accordingly. Since the green awareness arisen to all over
the world, the resources ought to be greener and increase the credibility of the organization to deliver green service.
One of the on-the-spot solution or on-time solution on customer feedback is put an employee into each technology
support to change customer perception at the beginning of the process. So that, at the same time customer is pleased
to use the service in the future.
The third factor was improved service experience that dealt with new service enhancements including a faster,
more efficient service offering, and increased service reliability. Customers perceive service experiences holistically
but interact with organizations through diverse channels in complex environments characterized by physical ele-
ments, processes, people and social networks [9]. In addition, through co-creating new service experience with cus-
tomers can facilitate more open collaboration, resulting in higher customer success and loyalty.
According to Manager H, Manager J, Manager K, and Manager N, they are agreed that by co-creating new ser-
vice experience through soft and hard technology is one way to enhance faster, easy and efficient and increase cus-
tomer loyalty to use the services in the future. Manager H added that innovation will create values for customers,
employees, business owners, alliance partners and communities through new or improved service offerings, service
processes, and service business models. In addition, Manager L said that by providing lower cost with good quality
is a new strategy to diverse service channel that meets customer satisfaction.
Improving customer experiences are challenging for every organization to design the new service to meet cus-
tomer satisfaction. By the way, an excellent organization always did research and development on their services to
deliver good service. In the competitive business environment nowadays, each organization must hold on innovation
strategy that always changes rapidly. This factor must get full co-operation by all parties internally or externally to
upgrade service level and increase service credibility upon customers.

020001-5
According to Lightfoot and Gebauer [20], the standardized service includes a more uniform customer contact
during service delivery and a more standardized behind the scenes service process. The service sector that provides
standardized services as a commitment technique is to guarantee a level of quality to their customers [28].
“Our organization has various procedures that endorse by the international standard and local standard in or-
der to deliver standardized service such as IATA, ICAO, KETTHA and ISO” (Manager I). “We also followed poli-
cies by internally and externally to guide the management system” (Manager L). Furthermore, Manager H and Man-
ager J said that all operations and business partner delivered same training and portfolio to deliver same service pro-
cess at the main organization hub. Manager M added, through the segregation of operation is the strategy to focus on
the business objective and leverage on labour and brand.
In researcher opinion, the international and local standard already guided the service process basically and as a
benchmark for each organization. In addition, policies that applied into the organization also a guidance to act pro-
fessionally when anything happened to the organization. By internal excellent centre, the service operation can
standardize even tough different countries and nation. This is because; the employees are responsible for enhancing
the customer perception towards their service. Service focus is important to differentiate the service structure and
easy to do innovation rather than all-in-one strategy.

Result Factors

Heracleous, et al. [29] argue that cost-effectiveness might improve the service standards and productivity levels
of the organization. Such cost efficiency is related to the observation that service innovations require a standardized
service during service delivery that intent interaction between customers [20].
“Achieve optimum minimum cost efficiency in all service process” (Manager O). In line with Manager Q and
Manager S, an organization should provide economical cost through the economic material and meet flexible de-
mand by the customer. Another activity is reducing insufficient resources from input into output service process
(Manager P). However, Manager T encourages using technology innovation to reduce energy consumption and in-
sufficient resources.
Achieving cost effectiveness is the multi-factor to the organization to gain revenues and profitability. There is no
one company want to loss and gain the higher percentage of margin. Therefore, an organization must identify insuf-
ficient resources and need to execute from the service process without compromising the quality. Technology inno-
vation just is an aid to the service process to deliver fast and accurate service.
Nowadays business competition becomes rival and aggressive. There are many of similar product offerings fre-
quent service introductions and modifications, and sometimes a dominant competitor with a large market share [20]
while allowing new markets and expanding the new offerings and creating jobs [30].
Manager O stated that an organization always offer low prices for early bird customers to secure the benefit of
the good as one of the strategies to get early confirm customers. The most important thing is the organization is
awarded Best Low-Cost Carrier in the world for seven years in a row (Manager R). Another new service process is
let the passengers reserve and refuse any services based on customer demand (Manager S) and customer have the
rights to refuse the services. To gain more highly market competitive is to advertise company branding into the
world famous sport (Manager P).
Lots of organization are loss and stagnant because of highly market competitiveness between other industry
players or business players. It is a credit to the organization that rewarded the best low-cost carrier in the world and
it is hard to imitate the business strategy. The organization also offers low cost to widen the targeted market. Besides
that, the organization spent more marketing and advertising activities to do their branding as well as giving infor-
mation.
According to Lightfoot and Gebauer [20], the market potential depends on the customer’s willingness to demand
technical expertise when it comes to developing solutions for the customer’s process. Other than that, the market
potential is based on the high customer demand and the products or services are great importance for the customer
[32]. Argue by van Riel, et al. [33] market potential is an important role for innovation performance together with
customer acceptance.
According to Manager O and Manager S, diversification of service operation helps to increase customizable or
flexible demand to added value on service process. It also has an opportunity to open new market destination and
widen the targeted market. Supported by Manager P, the service also has the capability to capture middle and low-
class target market because this category of class is the highest rate of the overall population. “Build networking and
capacity to every destination so that easy to communicate and increase organizational potential” (Manager R).

020001-6
Moreover, also benefit for local business owner to supply and selling goods to the customer while improve the living
standard (Manager T)
Market potential is the entire size of the market for a specific product that measured by sales profit. There are
some activities to increase market potentials like service diversification, market diversification, and building net-
working. Those activities exploit an opportunity to develop the solution for the customer process. However, the
management should understand the market that they are entering in. This is because easy to the management to de-
ploy and allocate resources effectively by ranking markets in priority order.

CONCLUSION
In summary, this study contributes to the field of sustainable service management by identifying factors that con-
tribute environmental sustainability and service innovations. Currently, lots of service industry has demonstrated
their awareness of lean service rather than green service. This is because of very limited study on green service liter-
ature. However, services that are more sustainable operations are not only realizing improvements in environmental
impact but also realizing cost savings, increasing revenues, attracting top talent and driving productivity improve-
ments like what AirAsia was done. Supported by technology and infrastructure makes the green service more eligi-
bility and improved service experience. Therefore, nowadays climate changes drive to be more sustainable and con-
tribute to green factors. Through this study, AirAsia organization is heading to green services and could be used to
guide its competitors and another service sectors. These factors of green service aimed to be more concern about
green practices and implementation of service innovation rather than the economic gain on profit maximization
alone.

TABLE 1: The institutional factors that influence on green service management

Manager
Manager A Manager B Manager C Manager D Manager E Manager F
G
developing
Strategy & Resource

facilitate collabora-
Allocate the Build tangi-
resources tion agree-
financial and Gain the lat- ble and in-
sharing ments with
Fit

non- est green tangible as-


through the others to
financial technology sets through
alliance increase
resources networking
with others market
share
1) Two-way
Institutional Factors

communica- 1) Give and Creating


Innovation Culture & Management

tion between respect green


1) Reduce 1)Facilitate
employees & 1) Reduce employees Used of soft culture
bureaucracy employees
management. bureaucracy rights technology technolo-
through collabora-
2) Flat struc- through de- 2) Always (Google gy within
decentraliza- tion
ture organi- centralization listen to Drive) to the com-
tion 2)Encourag
zation for management. employees facilitate pany
management. e employ-
fast infor- 2)Ensure fair opinion and the infor- practices
2) Avoid any ees en-
mation dis- treatment to advice mation dis- help to
double gagement
semination. all employees 3) Implemen- semination reduce
standard and and
3) Use of and avoid any tation of soft easily, pollution
ensure decision
latest tech- double technology to quickly and and in-
quality treat- making
nology to standards minimize accurate crease
ment process
improve excessive cost effi-
communica- workload ciency
tion
Summarized by the researcher (2016)

020001-7
TABLE 2: The result factors that influence on green service management

Manager O Manager P Manager Q Manager R Manager S Manager T


Encouraging
Cost Effectiveness

technology
Achieve opti- Reduced inef-
Provide eco- reduces the innovation
mum mini- ficient re-
nomical cost cost through usage to re-
mum cost effi- sources from
by using flexi- using econom- duce energy
ciency in all internal activi-
ble demand ic material consumption
service process ties
and inefficient
resources
market competitive-

Customers Customers
Result Factors

Always offer Advertise Entitled the


only billed have right to
low prices for company Best Low-Cost
according to refuse unnec-
early bird cus- branding into Carrier in the
ness

consumer essary services


tomers to se- the most fa- world for sev-
preferences and based on
cure the bene- mous sport in en years in a
only and no customer de-
fit of the good the world row
hidden charges mand
Increase local
market potential

Widen the Diversified wellbeing


Diversified Building net-
target market service opera- through oper-
and Open new work and ca-
to all middle tion and widen ating their
market desti- pacity to each
and low- level the target mar- business and
nation destination
class ket selling to our
customers
Summarized by the researcher (2016)

020001-8
TABLE 3: The process factors that influence on green service management

Manager H Manager I Manager J Manager K Manager L Manager M Manager N


1) Always
train all the
Reward the
Frontline Expertise

1) Training to employees to Regularly Educate and


employees to
all staffs increase provide train- bring more
motivate
2) Organize customer ing to ensure awareness
them and
awareness relationship economic campaign on
giving strong
program 2) Reward scales and environmental
performance
among the the employ- environmental sustainability
practices in
employees ees to sustainability to all staffs
the future.
acknowledge
their skills
1) Always
exploits any
opportunity
that may help
1) Diversify to ensure its
Benchmarks
the services quality and Often main-
customer
Adoption of in all service efficiency taining re-
Service Quality

feedback to
‘autonomation’ process through sources to
measure the
for required 2) Get feed- wisely using reduce pollu-
satisfaction
services to back from resources tion and
and gauge the
clean the pro- customer to 2) Frequently increase
Process Factors

loyalty of
cess benchmark get feedback green envi-
customer rela-
the service from cus- ronment
tionship
process tomer to
know wheth-
er the service
is good or
not
Improve Service Experi-

Efficient Ser-
Used to Extensively Providing
vice Offering:
technology use online lower cost 1)Self Service
- Online Book-
to make the services to with good Technology
ence

ing
customer ensure green quality and 2) Paperless
Innovation
easy, faster service man- meet customer system
- Phone Check-
and efficient agement satisfaction
in

Segregate
Various
Standardised Service

1) Same busi- Followed another op-


procedures Standardize
ness portfolio policies by eration to
that have operation
to all network internally and focus on
been verifing time to spe-
operations externally to business
by interna- cific period
2) Regular guide the objective
tional avia- for next op-
training to all management and leverage
tion safety eration
staffs system on labour
standard
and brand
Summarized by the researcher (2016)

ACKNOWLEDGMENTS
The authors would like to thank the ERGS grant (Grant No: E00033) from KPT for the financial support and
would like to thanks my supervisors Dr. Chew Boon Cheong and Dr. Syaiful Rizal Hamid for the most valuable
comments and feedback while this research work was run.

020001-9
REFERENCES
[1] D. Cheng, "The development of the service industry in the modern economy: mechanisms and implications for
China," China Finance and Economic Review, vol. 1, pp. 1-12, 2013.
[2] METI. (2015, 5 November 2015). Development of service industry in developed countries. Available:
http://www.meti.go.jp/english/report/downloadfiles/gIT0213e.pdf
[3] B. L. C. Wing, O. A. Yee, and C. C. P. Yee. (2006, 19 August 2014). Malaysia's Services Industry Towards the
Global Environment. Available: http://repo.uum.edu.my/2399/1/Bryan_Lo_Ching_Wing.pdf
[4] M. A. Abdullah, B. C. Chew, and S. R. Hamid, "Transformation from Lean Service to Green Service,"
presented at the International Symposium on Research in Innovation and Sustainability 2014, Malacca, 2014.
[5] S. O. Shrake, A. E. Landis, and M. M. Bilec, "Greening the service industries: A case study of a United States
engineering consulting firm," in Proceedings of the 2011 IEEE International Symposium on Sustainable
Systems and Technology, 2011, pp. 1-6.
[6] Airportwatch. (2014, 4 March 2015). IPCC report says transport contributes 27% of global CO2 – and could
double by 2050 under BAU. Available: http://www.airportwatch.org.uk/2014/04/ipcc-report-says-transport-
contributes-27-of-global-co2-and-could-double-by-2050-under-bau/
[7] C. W. Y. Wong, C. Y. Wong, and S. Boon Itt, "Green Service Practices: Performance Implications and the
Role of Environmental Management Systems," Performance Implications and the Role of EMS, vol. 5, pp. 69–
84, 2013.
[8] F. Djellal and F. Gallouj, "Service innovation for sustainability: paths for greening through service innovation,"
in Service Innovation, ed: Springer, 2016, pp. 187-215.
[9] A. L. Ostrom, M. J. Bitner, S. W. Brown, K. A. Burkhard, M. Goul, V. Smith-Daniels, H. Demirkan, and E.
Rabinovich, "Moving Forward and Making a Difference: Research Priorities for the Science of Service,"
Journal of Service Research, vol. 13, pp. 4 –36, 2010.
[10] L. Rubalcaba, S. Michel, J. Sundbo, S. W. Brown, and J. Reynoso, "Shaping, organizing, and rethinking
service innovation: a multidimensional framework," Journal of Service Management, vol. 23, pp. 696 - 715,
2012.
[11] D. Jiménez-Jiménez and R. Sanz-Valle, "Innovation, organizational learning, and performance," Journal of
Business Research, vol. 64, pp. 408-417, 2011.
[12] P. Carlborg, D. Kindström, and C. Kowalkowski, "The evolution of service innovation research: A critical
review and synthesis," Service Industries Journal, vol. 34, pp. 373-398, 2014.
[13] R. P. Lee, G. O. Ginn, and G. Naylor, "The impact of network and environmental factors on service
innovativeness," Journal of Services Marketing, vol. 23, pp. 397-406, 2009.
[14] S. Baron, A. Patterson, S. Oakes, K. Harris, H. Droege, D. Hildebrand, and M. A. Heras Forcada, "Innovation
in services: present findings, and future pathways," Journal of Service Management, vol. 20, pp. 131-155,
2009.
[15] OECD, "Green Growth and Developing Countries," Organisation for Economic Co-operation and
Development2012.
[16] P. den Hertog, W. van der Aa, and M. W. de Jong, "Capabilities for managing service innovation: towards a
conceptual framework," Journal of Service Management, vol. 21, pp. 490-514, 2010.
[17] H. Droege, D. Hildebrand, and M. A. H. Forcada, "Innovation in services: present findings, and future
pathways," Journal of Service Management, vol. 20, pp. 131 - 155, 2009.
[18] D. Kindström, C. Kowalkowski, and E. Sandberg, "Enabling service innovation: a dynamic capabilities
approach," Journal of Business Research, vol. 66, pp. 1063-1073, 2013.
[19] B. K. Chae, "An evolutionary framework for service innovation: Insights of complexity theory for service
science," International Journal of Production Economics, vol. 135, pp. 813-822, 2012.
[20] H. W. Lightfoot and H. Gebauer, "Exploring the alignment between service strategy and service innovation,"
Journal of Service Management, vol. 22, pp. 664-683, 2011.
[21] E. Sillanpää and J.-M. Junnonen, "Factors affecting service innovations in FM service sector," Facilities, vol.
30, pp. 517-530, 2012.
[22] L. Aksoy, A. van Riel, J. Kandampully, A. C. van Riel, G. Calabretta, P. H. Driessen, B. Hillebrand, A.
Humphreys, M. Krafft, and S. F. Beckers, "Consumer perceptions of service constellations: implications for
service innovation," Journal of Service Management, vol. 24, pp. 314-329, 2013.

020001-10
[23] A. Linke and A. Zerfass, "Internal communication and innovation culture: developing a change framework,"
Journal of Communication Management, vol. 15, pp. 332-348, 2011.
[24] L. L. Berry, V. Shankar, J. T. Parish, S. Cadwallader, and T. Dotzel, "Creating new markets through service
innovation," MIT Sloan Management Review, vol. 47, p. 56, 2006.
[25] M. C. Ottenbacher and R. J. Harrington, "Strategies for achieving success for innovative versus incremental
new services," Journal of Services Marketing, vol. 24, pp. 3-15, 2010.
[26] R. Herstein and E. Gamliel, "The role of private branding in improving service quality," Managing Service
Quality: An International Journal, vol. 16, pp. 306-319, 2006.
[27] A. Mukherjee, N. Malhotra, A. M. Dean, and A. Rainnie, "Frontline employees' views on organizational
factors that affect the delivery of service quality in call centers," Journal of Services Marketing, vol. 23, pp.
326-337, 2009.
[28] P. S. Coelho and J. Henseler, "Creating customer loyalty through service customization," European Journal of
Marketing, vol. 46, pp. 331-356, 2012.
[29] L. Heracleous, J. Writz, and N. Pangarkar, Flying High In A Competitive Industry: Secrets Of The World's
Leading Airline. Singapore: McGraw Hill Education, 2009.
[30] D. Pilat, "Factors and policies affecting services innovation: some findings from OECD work," Science and
Technology Policy Division, Brussels2008.
[31] K. Diener and F. T. Piller, The Market for Open Innovation: Increasing the efficiency and effectiveness of the
innovation process: RWTH Aachen University, Technology & Innovation Management Group, 2010.
[32] A. Rese and D. Baier, "Success factors for innovation management in networks of small and medium
enterprises," R&D Management, vol. 41, pp. 138-155, 2011.
[33] A. C. R. van Riel, J. Semeijn, W. Hammedi, and J. Henseler, "Technology-based service proposal screening
and decision-making effectiveness," Management Decision, vol. 49, pp. 762-783, 2011.
[34] J. W. Creswell, Research design: Qualitative, quantitative, and mixed methods approaches: Sage publications,
2013.
[35] M. Q. Patton, "Qualitative research & evaluation methods: Integrating theory and practice," ed: Thousand
Oaks, CA: Sage, 2015.
[36] M. Saunders, P. Lewis, and A. Thornhill, "Research Methods for Business Students," Fifth ed Edinburg Gate:
Pearson Education Limited, 2009, p. 320.
[37] R. K. Yin, "Case study research: Design and methods," 4 ed Los Angeles, CA: Sage, 2009.
[38] R. K. Yin, "Case study research : Design and Methods ", Third ed Thousand Oaks: Sage Publications, 2003.
[39] V. Mueller, N. Rosenbusch, and A. Bausch, "Success patterns of exploratory and exploitative innovation a
meta-analysis of the influence of institutional factors," Journal of Management, vol. 39, pp. 1606-1636, 2013.
[40] Y. Zhang and L. Zhang, "Organizing complex engineering operations throughout the lifecycle," Journal of
Service Management, vol. 25, pp. 580 - 602, 2014.

020001-11

You might also like