Customer integration has received considerable attention in the service literature in
order to foster service innovations (e.g. Vargo & Lusch, 2004; Chan, Yim & Lam 2010;
Yim, Chan & Lam, 2012; Grönroos & Voima, 2013). The changing role of the
customer from being a passive consumer to becoming an active contributor during
service provision and co-creator has a significant impact on numerous service firms.
Customer integration is essential to many services and successful integration improves
service experience of the customer and it allows development of new services in
particular (Magnusson, Matthing & Kristensson, 2003; Melton & Hartline, 2010).
Against this background, service industries nowadays face the challenge of dealing
with new customer and employee roles in times of digitalization, increasing customer
activity, changing interaction channels, and development of new business model.
While the impact of employee’s customer stewardship on the employee-customer
relationship has been investigated in prior studies, is unclear whether an employee’s
commitment to the customer also motivates the employee to contribute to service
innovation development.We propose that an employee’s level of customer stewardship
represents an important requirement for organizational learning about understanding
customer needs and to uncover future trends. Based on stewardship and agency theory, we develop a conceptual model proposing
that idea generation, articulation, and implementation depend on employee-related
factors (e.g., employee stewardship), structural factors (e.g., incentive system), and
control-related factors (e.g., monitoring system). Hypotheses are tested using survey
data from 390 frontline employees in financial services. Results underline the
important roles of employee stewardship and organizational commitment. Insights
provide managers guidance how to improve motivation of frontline employees to
engage in these important behaviors.