Investigating the relationship between cultural intelligence and service quality in hospitality

447 Pages·2015·4.9 MB·English

by  Ali Bakir

Investigating the relationship
between cultural intelligence and
service quality in hospitality: A cross
cultural study

By

Elham Alshaibani MSc BA

A thesis submitted in partial fulfilment of the University’s
requirements for the Degree of Doctor of Philosophy
August 2015

Faculty of Design, Media and Management, Buckinghamshire
New University

Coventry University

This copy of the thesis has been supplied on condition that anyone who consults it is
understood to recognise that its copyright rests with the author under the terms of United
Kingdom Copyright Acts. No quotation from this thesis and no information derived from it may
be published without proper acknowledgment.
Abstract

This study investigates the effect of cultural intelligence of front-line service employees on
foreign guests’ perceptions of service quality. This relationship has not hitherto been
investigated. The literature suggests that culture and interactions between customers and
employees affect service quality. The literature also shows that, in cross-cultural
encounters, attitudes and behaviours are important aspects of cultural intelligence,
employee performance and service quality. It also points to interrelationships between
these constructs. A theoretical model was developed which suggests that in these
encounters, cultural intelligence is likely to affect service quality through employee
performance. A novel methodological approach consisting of a pilot study and two stages
of empirical research were undertaken in international hotels in Karbala, Iraq. The first,
qualitative stage was in the form of interviews to gain an insight into the service
interactions. Thematic analysis of the data supported the theoretical model and pointed to
additional causal relationships. The model was tested in the second quantitative stage. A
self-report cultural intelligence questionnaire was administered to a sample of local
employees (N=201). A new job performance questionnaire was designed and administered
to hotel managers (N=53) to assess these employees’ performance. A SERVPERF
questionnaire was also given to foreign guests (N=469) who were served by these
employees. The dimensions of these measures were determined by principal components
analysis (SPSS 22), and their adequacy was estimated using confirmatory factor analysis
(Lisrel 8.8). The model was tested using hierarchical multi-regression analysis. The findings
showed that employee performance mediated the relationships between cultural
intelligence and service quality. Another main contribution is the development of an
employee performance scale for use in service encounters. The study adds to the cross-
cultural service literature and to research methodology design. Its implications for
management and employee training were discussed, as well as its limitations. Further
research was also suggested.
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Contents
Chapter 1
Introduction
Page
1.1 Introduction, aims and objectives 1
1.2 The context of the study 4
1.2.1 A brief account of the study destination 7
1.2.2 A brief history of the destination as a place of pilgrimage 8
1.3 The structure of the thesis 10
Chapter 2
Literature Review
2.1 Introduction 13
2.2 The concept of culture and its relation to service 14
2.3 Service encounters: Front-line service employees 18
2.4 Intelligence 22
2.5 Cultural intelligence 26
2.5.1 Conceptual development post data collection 33
2.6 Service quality 36
2.7 Potential mediator: Cultural intelligence to service quality 40
2.8 Job Performance 45
2.8.1 Task, treatment, and tangibles (3Ts) 52

2.9 Deducing and Developing Relationships 59
2.9.1 Linking cultural intelligence to employee performance 59
2.9.2 Linking employee performance to service quality 64
2.9.3 Linking cultural intelligence to service quality through employee 66
performance
2.10 Conclusion: The research problem 68
Chapter 3
Methodology
3.1 Introduction 70
3.2 Being and knowledge 70
3.2.1 Positivism 73
3.2.2 Interpretivism 74
3.2.3 Realism/Pragmatism 76
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3.2.4 Axiology: The role of researcher 78
3.3 The study’s methodology 80
3.3.1 Stage 1: Exploratory qualitative research 81
3.3.1.1 Coding for themes 83
3.3.1.2 Credibility and dependability 85
3.3.2 Stage 2: Explanatory quantitative research 88
3.3.2.1 Factor analysis 88
3.3.2.2 The measure scales 90
3.3.2.3 Sampling 97
3.3.2.4 Validity and reliability of the scales 98
3.3.2.5 Testing of hypotheses 101
3.4 Ethical considerations 104
3.5 Conclusion 111
Chapter 4
Qualitative Data Analysis and Discussion
4.1 Pilot study 112
4.2 Extracting themes and relating to the literature 118
4.2.1 Underdeveloped service culture 119
4.2.2 Front-line service employees: Cultural knowledge, attitudes and 127
behaviours
4.2.3 Front-line employees’ performance 138
4.2.4 Service quality 144
4.3 Discussion 150
4.3.1 Searching for, and developing relationships 151
4.3.1.1 Cultural intelligence and employee performance 151
4.3.1.2 Employee performance and service quality 160
4.3.1.3 Linking cultural intelligence to service quality via employee 165
performance
Chapter 5
Quantitative Data: Results and Analysis
5.1 Introduction 168
5.2 The sample 168
5.3 Scale development 169
5.3.1 Factor analysis (principal component analysis) 170
5.3.1.1 Cultural intelligence scale 170
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5.3.1.2 Employee performance scale 175
5.3.1.3 Service quality scale 180
5.3.2 Confirmatory factor analysis 185
5.3.2.1 Cultural intelligence scale 185
5.3.2.2 Employee performance scale 188
5.3.2.3 Service quality scale 191
5.3.3 Validity 192
5.3.3.1 Convergent validity 192
5.3.3.2 Discriminant validity 195
5.3.4 Reliability 199
5.4 Hypothesis testing 200
5.4.1 Direct relationships: Cultural intelligence and employee performance 202
5.4.2 Direct relationships: Employee performance and service quality 205
5.4.3 Indirect relationships: Cultural intelligence and service quality via 207
employee performance
Chapter 6
Discussion and conclusion
6.1 Introduction 226
6.2 Direct relationships: Cultural intelligence and employee performance 228
6.3 Direct relationships: Employee performance and service quality 230
6.4 Indirect relationships: Cultural intelligence and service quality via employee 232
performance
6.5 Evaluating the contributions of the predictor variables to service quality 238
6.6 Conclusion 240
References 248

Appendices
Appendix 1 Interview aide memoires 290
Appendix 2 Questionnaires 291
Appendix 3 Data, coding and relating to the literature 300
Appendix 4 Ethics Committee approval 352
Appendix 5 Regression: Direct relationships (CI-EP) 353
Appendix 6 Regression: Direct relationships (EP-SQ) 365
Appendix 7 Regression: Indirect relationships (CI-EP-SQ) 375
Appendix 8 Regression: Indirect relationships (CI-EP-SQ) 424

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Figures page
Figure 1.1 Map of Iraq showing the location of the city of Karbala and the shrines 8
Figure 2.1 Cultural intelligence: Schools, definitions and measures 29
Figure 2.2 The 11-factor cultural intelligence construct 34
Figure 2.3 The trait-state continuum 41
Figure 2.4 Proposed relationship between cultural intelligence and service quality 45
via the mediation of employee performance
Figure 2.5 Job performance typologies 49
Figure 2.6 Linking cultural intelligence to employee performance 63
Figure 2.7 Linking employee performance to service quality 66
Figure 2.8 A theoretical model linking cultural intelligence to service quality via of 68
employee performance
Figure 3.1 Mediator analysis: Path diagramme 104
Figure 4.1 A provisional empirical model linking cultural intelligence to service 167
quality via employee performance
Figure 5.1 Scree plot (CI) 175
Figure 5.2 Scree plot (EP/3Ts) 180
Figure 5.3 Scree plot (SQ) 185
Figure 5.4 CFA, path diagram (CI) 187
Figure 5.5 CFA, path diagram (EP) 190
Figure 6.1 Statistically tested mediation paths between cultural intelligence and 244
service quality via employee performance

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Tables Page
Table 1.1 Number of foreign tourists 6
Table 1.2 Number of hotels and ranking 6
Table 4.1 Coding for themes and relating to the literature 116
Table 5.1 Correlation matrix (CI) 171
Table 5.2 KMO and Bartlett's test (CI) 172
Table 5.3 Total variance explained (CI) 172
Table 5.4a&b Pattern/structure coefficients (CI) 173/4
Table 5.5a Correlation matrix (EP) 176
Table 5.5b KMO and Bartlett's test (EP/3Ts) 177
Table 5.6 Total variance explained (EP/3Ts) 177
Table 5.7a&b Pattern/structure coefficients (EP/3Ts) 178/9
Table 5.8 Correlation matrix (SQ) 181
Table 5.9 KMO and Bartlett's test (SQ) 181
Table 5.10 Total variance explained (SQ) 182
Table 5.11a&b Pattern/structure coefficients (SQ) 183/4
Table 5.12 CFA (CI scale) 186
Table 5.13 CFA (EP scale) 188
Table 5.14 CFA (SQ scale) 191
Table 5.15 Summary of fit statistics 192
Table 5.16 Variance extracted (CI) 193
Table 5.17 Variance extracted (EP) 194
Table 5.18 Variance extracted (SQ) 195
Table 5.19 Summary variance extracted measures 195
Table 5.20 Squared correlation matrix (CI, EP & SQ) 197
Table 5.21 Average variance extracted for CI, EP & SQ 198
Table 5.22 Reliability (Cronbach’s alpha & composite reliability) 199
Table 5.23 Correlations (CI, EP & SQ) 201
Table 5.24 Hierarchical regression analysis evaluating predictors of task 202
Table 5.25 Hierarchical regression analysis evaluating predictors of 203
treatment
Table 5.26 Hierarchical regression analysis evaluating predictors of 204
tangibles
Table 5.27 Hierarchical regression analysis evaluating predictors of 205
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reliability
Table 5.28 Hierarchical regression analysis evaluating predictors of 206
responsiveness
Table 5.29 Hierarchical regression analysis evaluating predictors of 206
assurance
Table 5.30 Hierarchical regression analysis evaluating predictors of 206
empathy
Table 5.31 Sobel test (Met-Tas-Rel) 208
Table 5.32 Sobel test (Met-Task-Ass) 209
Table 5.33 Sobel test (Met-Task-Emp) 209
Table 5.34 Sobel test (Mot-Task-Rel) 212
Table 5.35 Sobel test (Mot-Tas-Ass) 213
Table 5.36 Sobel test (Mot-Task-Emp) 213
Table 5.37 Sobel test (Beh-Tre-Rel) 216
Table 5.38 Sobel test (Beh-Tre-Res) 217
Table 5.39 Sobel test (Beh-Tre-Ass) 218
Table 5.40 Sobel test (Beh-Tre-Emp) 218
Table 5.41 Sobel test (Cog-Tre-Rel) 219
Table 5.42 Sobel test (Cog-Tre-Res) 220
Table 5.43 Sobel test (Cog-Tre-Ass) 221
Table 5.44 Sobel test (Cog-Tre-Emp) 221
Table 5.45 Baron and Kenny’s mediator test 223-5
Table 6.1 Summary of the results of the model’s hypotheses 227
Table 6.2 Effect of predictor variables on the variance of service quality 238
variables

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ACKNOWLEDGEMENT

My special gratitude goes to Dr. Ali Bakir for his inspirational supervision, guidance and
continuing encouragement and unfailing support; I am lucky. My appreciation also goes
to Dr. Nadia Wager, my second supervisor.
I am indebted to the Iraqi Ministry of Higher Education and Scientific Research for their
financial support, and the Iraqi Cultural Attache and his staff at the Cultural Department
of the Iraqi Embassy in London, particularly, Mr. Ali Al-Rubaiy.
My thanks are also due to those managers, their employees and the many nameless
guests whose participation was vital to the commencement and completion of this
research.
I am grateful to Laura Bray, the Research registrar, for her understanding, help and for
always being there; to Professor Jake Kaner for his support.
I also thank my colleagues for sharing their thoughts and experience with me, and for
their friendship in this difficult journey.
But first and foremost, I am indebted to my family for their infinite patience and unfailing
support, particularly to Deea Al-Dean for putting up with me, and for baby Zachary for
being most disruptive and most joyful.
I must not forget the support I receive from my mother who is thousands of miles away
but always with me in spirt, and from my father, sister and brothers.

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CHAPTER 1
INTRODUCTION

1.1 Introduction, aims and objectives

Cultural factors have long been recognised in hospitality and tourism to have most
influence in a cross-cultural setting where tourists and hosts are members of different
cultural groups, speak different languages, and have different values and perceptions
of the world (see, for example, early writings by Bochner, 1982; Sutton, 1967).
Reisinger and Turner (1998a, 1998b) posited that understanding cultural differences
between tourists and hosts is necessary for developing positive cross-cultural tourist-
host interactions. These differences, they suggested, are found in cultural values, rules
of behaviour, attitudes, perceptions, relationship patterns, verbal and non-verbal
communications, among others. These differences cause problems as people from
different cultural backgrounds socially interact and affect their perceptions of each
other (Ang, Dyne, Koh, Ng, Templer, Tay, & Chandrasekar, 2007; Sharma, Tam, and
Kim, 2009; Tsang, 2007). Reisinger and Turner (1998a) added that understanding
differences in perceptions helps to assess the effectiveness of the service provider’s
performance from the perspective of the culturally different customer. In the hospitality
and tourism literature there is ample evidence to suggest that culture and interactions
between customers and front-line service employees affect service quality (e.g., Bitner,
1992; Chow, Lau, Lo, Sha, and Yun, 2007; Furrer, Liu, & Sudharshan, 2000; Nickson,
Warhurst, and Dutton, 2005; Reisinger & Turner, 1998a, 1998b; Sharma, Tam, & Kim,
2012; Sizoo, Plank, Iskat & Serrie, 2005; Stewart, 2003; Tsang, 2007; Zhang, Beatty, &
Walsh, 2008). This is because culture is seen to shape the attitudes and behaviours of
service employees (Ang, et al., 2007; Bitner, 1992; Harris, 2012; Hartline & Ferell,
1996; Zeithaml & Bitner, 2000). Furthermore, in the cross-cultural service encounter
awareness of the ‘other’ culture enables service employees to communicate more
effectively and sensitively with people from that culture (Ang, Van Dyne, & Koh, 2006;
Reisinger & Turner, 1998a, 1998b).

Service encounters, the moments of direct interaction between the customer and the
service provider, Bitner, Brown, and Meuter (2000: 138) stated, are “moments of truth
in which customers often develop indelible impressions of a firm”. Service encounter is
theoretically underpinned by role and script theories (Broderick, 1999). In role theory
1