Antecedents and outcomes of customer incivility: a study of frontline employees in Vietnam’s retail industry

UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business Bùi Xuân Quỳnh ANTECEDENTS AND OUTCOMES OF CUSTOMER INCIVILITY: A STUDY OF FRONTLINE EMPLOYEES IN VIETNAM’S RETAIL INDUSTRY MASTER OF BUSINESS ADMINISTRATION Ho Chi Minh City – Year 2018 1    UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business Bùi Xuân Quỳnh ANTECEDENTS AND OUTCOMES OF CUSTOMER INCIVILITY: A STUDY OF FRONTLINE EMPLOYEES IN VIETNAM’S RETAIL INDUSTRY MASTER OF BUSINESS ADMINISTRATION SUPERVISOR: Dr NGUYỄN THỊ MAI TRANG ID: 22150054 Ho Chi Minh City – Year 2018 2    Acknowledgement Apart from the efforts of me, the on time completion of the thesis largely on the encouragement and guidelines of many others I take this opportunity to express my gratitude to the people who have been instrumental in the successful completion of this thesis I would like to express my appreciation to Dr Nguyễn Thị Mai Trang – my instructor She provided me with tremendous support, help and motivations Without her instructions and guidance, I would not materialized this thesis The guidance and supports received from ISB, classmates, friends and family are also very important to me I am grateful for their constant support and help 3    Antecedents and outcomes of customer incivility: A study of frontline employees in Vietnam retail industry Abstract One of the big challenges of retail industry is improve the service quality to catch up with the growth of economics In order to improve the service quality, mandatory corporate emotional expression rules commonly employed; which is in turn, affect the frontline employee emotional well-being and increase turn-over intention – another big challenge of retail industry Workplace incivility and emotional labor somehow exist in the middle of this conflict; where they have been attended by researchers, and receiving more attention as its practical potential and importance The study examined five constructs including: experienced supervisor incivility, experienced co-worker incivility, customer incivility, emotional labor and quality of work life; which are possible antecedents, mediators and outcome of customer incivility A face-to-face survey with the target of 300 valid samples conducted with frontline employees in Ho Chi Minh City, Vietnam The results support all hypotheses; whereas experienced supervisor incivility and experienced co-worker incivility are antecedents of customer incivility; customer incivility is found related to quality of work life – a non-negative outcome Surface acting and deep acting, the two dimensions of emotional labor are found as mediators in the relation between customer incivility and quality of work life with inconsistent effects addressing the importance of workplace incivility and positive roles of emotional labor which further study should attend 4    Table of Contents Introduction Theoretical background and hypotheses 13 2.1 Customer incivility and its antecedents 13 2.2 Emotional labor 21 2.2 Quality of work life 24 Research method 25 3.1 Procedure and sample 25 3.2 Measurements 26 3.3 Data collection 27 3.4 Measurement refinement 28 Data analyses results 30 4.1 Confirmatory Factor Analysis 30 4.2 Hypotheses testing – Structural Equation Model (SEM) 31 Discussion 33 5.1 Implications for theory and research 35 5.2 Implications for managers 37 5.3 Conclusions 38 5.4 Limitations and implications for future research 38 Support information 40 6.1 Qualitative data collection procedures, guidelines and transcripts 40 6.2 English questionnaire 63 6.3 Vietnamese questionnaire 67 6.4 Analyses results 71 References 73 5    List of figures and tables Table 1: Recent studies of workplace incivility antecedents 18 Figure 1: Research model 24 Table 2: Sample characteristics 27 Table 3: Data collection 28 Table 4: EFA results 29 Table 5: CFA Model fit 31 Table 6: Validity 31 Table 7: SEM Model fit 32 Table 8: Structural paths – SEM 32 Table 9: Mediation tests 33 6    Introduction Retail industry holds a very important part in the economic; in 2016, total retail sales worldwide estimated to reach 22.049 trillion US$ and forecasted to continue to grow (“Total retail sales worldwide, 2015-2020 (trillions and % change)”, 2017) As other industries, retail industry facing multiple challenges; which two noticeable challenges are the necessity to improve the retail service quality when the growth of economics pushing the growth of retail industry (Vargo, Maglio, & Akaka, 2008), and retaining salespeople or service employees, who interact face-to-face with customers and often referred to as frontline employees, as high turnover is recognized as critical problem to the industry (Freemen, 2017; Kern & Grandey, 2009; Han, Bonn, & Cho, 2016) In order to improve the retail service quality, retailers often apply strict and strong mandatory emotion expression rules to their frontline employees; however, mandatory emotion expression rules often associate with faking emotions which may negatively affect the frontline employees and reduce the job outcomes of frontline employees, increase turnover intention (Grandey, 2003; Kim, Jung-Eun Yoo, Lee, & Kim, 2012) The retail industry of Vietnam shows quite similarities; where the economy is forecasted to continue to grow (Thanh Thom, 2017), and considered as a transition market which in the world’s top 30 countries with most attractive retail market Vietnam industry revenue of 2017 is estimated to reach almost 130 billion US$ (Hùng Lê, 2018); and holds at least 50% of total businesses registered and employs almost three million labors (Nguyên Vũ, 2016), in which a large portion of these employees are working at the frontline and providing services to customer directly with face-to-face contact High 7    turnover is addressed as a critical challenge to Vietnam retailers, results of a recent survey show that 28% of employers in retail industry find frontline employees not have long-term commitment and 49% address that frontline employees are not persistent when approached by another retail employer (Nam Dương, 2017) Vietnam retailers also employ mandatory emotion expression rules for their frontline employees to improve retail service quality; and not an exception, Vietnam retailers still not yet paid sufficient attention to the affects maybe produced and harm their business as well as the well-being of their frontline employees Concern the negative effects on the well-being of frontline employees; in 2016, there are many cases of customer aggressions made the news in Vietnam (Quốc Huy, 2016; Hoàng Đan, 2016; Tuấn Phùng, 2016); these are highlighted physical aggressive actions where the customers punched and slabbed the frontline employees which involve single or few individuals where the victims (frontline employees) were traumatized and/or hospitalized; the lower intensity cases which involve large crowd of Vietnamese were gone unreported However, when using keywords “Supermarket culture of Vietnamese” searching on the internet, the results will show multiple news articles on the “bad habits” or “bad behavior” of Vietnamese in supermarket or public places (Bảo Phương, 2016; Thu Hà, 2016; T.Anh, 2012), which mostly concern the “uncivilized” behavior of Vietnamese in supermarket and public places through the viewpoint of other customers upon the occurrence of their discomforting emotions in such circumstances Though, they are customers, they only experience these behaviors occasionally; meanwhile, supermarket employees or more broadly – frontline employees are possibly 8    have to experience these behaviors with a much higher frequency These behaviors are considered as “interpersonal mistreatment” and “sub-form of counterproductive” (Vagharseyyedin, 2015, p 116); which often addressed as workplace incivility and recognized as counterproductive work behavior which reduce the productivity of the organization and employee (Fox, Spector, & Miles, 2001; Anderson & Pearson, 1999) Evidences of the negative relationship between workplace incivility and employee’s wellbeing have been found in multiple industries and contexts (Cortina, Magley, Williams, & Langhout, 2001; Han, Bonn, & Cho, 2015), and “comparable with low intensity stress” which can have emotionally and physically negative effect (Han et al., 2016) Customer incivility is identified as one of the negative factors which relates to the use of emotion of frontline employees and increase turnover intention; which has been gathered substantial attention of researchers (Grandey, 2003; Han et al., 2016) The incivility behavior occurred in workplace has not been well attended, and Vietnam is not an exception; because the corporate as well as the employee are not fully aware of its harmful potential to the whole organization (Torkelson, Holm, Backstrom, & Schad, 2016) Furthermore, the incivility behavior could be produced due to the lack of norms of civility and uncivility (Walsh, Magley, Reeves, Davies-Schrils, Marmet, & Gallus, 2012); especially in a growing market like Vietnam where the retail service quality standard is continuously increased Workplace incivility is studied by researchers under three dimensions: supervisor incivility, co-worker incivility and customer incivility; recently, the suggestion of “family incivility” and “employee incivility” by Hur, Moon, and Han (2015, p 407); and Walker, Jaarsveld, and Skarlicki (2014) 9    Previous studies found noticeable effects of customer incivility on frontline service employees (Cho, Bonn, Han, & Lee, 2016; Han et al., 2016; Laschinger, Leiter, Day, & Gilin, 2009; Hur et al., 2015); the related factors studied as increase turnover intention (Han et al., 2016), decrease service performance (Cho et al., 2016), recruitment and retention (Laschinger et al., 2009) The studies of customer incivility have been conducted in Asia countries such as Korea (Cho et al., 2016), China (Chen, Ferris, Kwan, Yan, Zhou, & Hong, 2013), Malaysia (Santos, Mustafa, & Gwi, 2014), and Thailand (Akkawanitcha, Patterson, Buranapin, & Kantabutra, 2014) where negative effects are found However, only little studies attempted to find the antecedents of workplace incivility and especially customer incivility (Hershcovis & Barling, 2010; Bartlett, Bartlett, & Reio, 2008; Lanzo, Aziz, & Wuensch, 2015; Hur, Moon, & Jun, 2016) Lanzo et al (2015, p 175) note “An examination of the antecedents of workplace incivility is a novel area of study”, “did not address the question who likely to be uncivil as a result of stress” and future research should examine the instigator of the workplace incivility Workplace incivility is proved to have strong relation with emotional exhaustion and mediated by surface acting and deep acting which are the two dimensions of emotional labor (Hur et al., 2015) Decreasing in service performance, increase turnover intention, and reducing organization commitment are studied outcomes of customer incivility (Cho et al., 2016) Emotional labor concept was initiated by Hochschild (1983), which is a form of emotional regulation but different to emotional intelligent; and previously proved to have negative effects on individual (employee) as well as 10    Ơ số 1: Hồn tồn khơng đồng ý Ơ số 5: Hồn tồn đồng ý Cịn mức độ khác đánh vào ô số 2, tương ứng Hồn tồn khơng đồng Khơng đồng ý Trung dung Đồng ý Hoàn toàn đồng ý Xin Anh/Chị cho biết mức độ đồng ý phát biểu sau X cách đánh dấu (√) vào ô tương ứng, với: Sự khiếm nhã cấp trên: Cấp bạn có hay thực hành vi tháng vừa qua 01 Hạ thấp bạn hay lên giọng, trịch thượng bạn 02 Thờ với lời nói (phát biểu) bạn thể quan tâm đến ý kiến bạn 03 Đưa nhận xét mang tính hạ thấp hay xúc phạm bạn 04 Nhắc đến (gọi) bạn danh xưng không chuyên nghiệp, cách không khai không công khai 05 Phớt lờ hay bỏ qua bạn mối quan hệ nơi làm việc 06 Nghi ngờ định bạn vấn đề mà bạn người chịu trách nhiệm 07 Có hành vi cố ý lôi kéo bạn tham gia vào việc nói vấn đề cá nhân mà bạn khơng muốn Sự khiếm nhã đồng nghiệp: Đồng nghiệp bạn có hay thực hành vi tháng vừa qua 08 Hạ thấp bạn hay lên giọng, trịch thượng bạn 09 Thờ với lời nói (phát biểu) bạn thể quan tâm đến ý kiến bạn 10 Đưa nhận xét mang tính hạ thấp hay xúc phạm bạn 11 Nhắc đến (gọi) bạn danh xưng không chuyên nghiệp, cách không khai không công khai 12 Phớt lờ hay bỏ qua bạn mối quan hệ nơi làm việc 68    13 Nghi ngờ định bạn vấn đề mà bạn người chịu trách nhiệm 14 Có hành vi cố ý lơi kéo bạn tham gia vào việc nói vấn đề cá nhân mà bạn không muốn Sự khiếm nhã khách hàng: Bạn có thường gặp phải khách hàng có hành vi tháng vừa qua 15 Khách hàng xem bạn (nhân viên) thể họ cỏi ngu ngốc 16 Khách hàng cho thấy họ khó chịu kiên nhẫn 17 Khách hàng không tin tưởng vào thông tin mà bạn cung cấp cho họ yêu cầu nói chuyện với người có thẩm quyền cao 18 Khách hàng trịch thượng bạn 19 Khách hàng đưa nhận xét có tính nghi ngờ lực bạn 20 Khách hàng cơng kích cá nhân lời nói bạn 21 Khách hàng có mối quan hệ với cơng ty khách hàng thơng thường có yêu cầu không hợp lý 22 Khách hàng nhận xét cách thức làm việc bạn Thể cảm xúc: Bạn thường có phản ứng cảm xúc bạn nhận thấy bị khách hàng xem thường (hoặc cơng kích cách khơng trực tiếp) 23 Tơi ln kiềm chế thể cảm xúc thật 24 Giả vờ thể cảm xúc mà bạn khơng thực có 25 Giấu cảm xúc thật bạn tình 26 Thử cảm nhận cảm xúc mà bạn cần để thể cho người khác (khách hàng) 27 Cố gắng trải nghiệm cảm xúc mà bạn phải thể 28 Thực cố gắng cảm nhận cảm xúc mà bạn phải thể công việc bạn Chất lượng sống làm việc: Trong ngành nghề bạn, bạn thường xuyên trải qua thiếu tôn trọng từ khách hang (hoặc cơng kích cách 69    khơng trực tiếp), bạn nhận định chất lượng sống làm việc mình: 29 Cơng việc tơi có cấp dưỡng (quyền lợi) sức khỏe tốt 30 Tơi hài lịng với tơi trả cho công việc 31 Cơng việc tơi tốt cho gia đình tơi 32 Tơi có bạn bè tốt nơi làm việc 33 Tơi có đủ thời gian để làm việc để tận hưởng thứ khác sống 34 Tôi cảm thấy đánh giá cao công việc 35 Tơi cảm thấy cơng việc cho phép tơi nhận tiềm 36 Công việc cho phép rèn luyện kỹ nghề nghiệp 37 Công việc giúp phát triển sáng tạo PHẦN 3: THÔNG TIN CÁ NHÂN Xin Anh/Chị vui lịng cho biết số thơng tin khác để tổng hợp liệu thống kê Giới tính: Nhóm tuổi: □ Nữ □ 18-22 tuổi □ Nam □ 23-30 tuổi Mức thu nhập bình quân/tháng: □ Dưới triệu Trình độ học vấn: Tình trạng hôn nhân: thân □ Cấp □31-45 tuổi □ 5-9 triệu □ Đại học, Cao đẳng □ Trên triệu □ Khác:……… □ Có gia đình, có □ Có gia đình, khơng Xin chân thành cảm ơn hợp tác Anh/Chị 70    □ Trên 45 tuổi □ Độc 6.4 Analyses results Figure 1: CFA Results Notes: SA, surface acting; 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