Multilevel Linking Service Innovation, Service Sweethearting, and Brand Association: The Moderating Role of Sustainable Human Resource Management

Abstract

This study investigated the effects of incremental service innovation on customer brand association and further explored the multilevel mediating and moderating variables underlying this link. Multilevel analyses of the data were conducted using 374 valid questionnaires from employee–customer paired samples in 68 hospitality companies in China. The research results showed that incremental service innovation (supervisor-reported) explained significant variance in customer brand association (customer-reported). The service sweethearting (employee-reported) fully mediated the relationship between incremental service innovation and brand association. Furthermore, sustainable human resource management (supervisor-reported) positively moderated the relationship between incremental service innovation and brand association. This study originally represents a unique contribution to combine the individual and organizational perspectives of service innovation and further confirms the multilevel-moderating effect of sustainable human resource management that enhances the relationship between service sweethearting and customer brand association. Managerial implications and future research suggestions are presented.