Leveraging Emotional and Artificial Intelligence for Organisational Performance

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This book takes a fresh stance and views EI and AI as services that are provided by service employees and machines as organisational offerings to customers. As emotional intelligence (EI) and artificial intelligence (AI) have been cited to have broad effects on individuals, businesses and beyond, this book is focused on the organisational context, specifically how they affect employees and customers from a marketing perspective. The stance in this book is consistent with the conceptualisation of a service. This book holds that intelligence in businesses must turn into organisational assets to manifest their values. Further, this book explores this service-dominant logic era, and compared to tangible products, service plays a key role in organisational performance and customer relationship with the organisation. Intelligence exhibited either by human or machine is not a tangible product, but can be utilised as a service to assist employees in performing tasks and delivering services as well as facilitating business transaction and customer experience.This book is structured as follows. Chapters 2 and 3 demystify emotional and artificial intelligence, from different perspectives, including conceptualisations, the history and evolution of the concepts, how they function and where they can apply to. These discussions help readers understand what exactly these two intelligences are. Chapters 4 and 5 analyse how emotional intelligence is related to employees and customers, respectively, with a focus on service organisations. Chapters 6–8 are dedicated to anatomising AI and how it is operationalised as a service to influence employees and customers. Specifically, viewing AI as a service, Chapter 6 examines the impact of AI service quality and how it is related to employee service quality. Chapter 7 analyses the influence of AI service quality on customers. Based on the discussion in Chapters 6 and 7, Chapter 8 is extended to develop a scale to measure such AI service, named AI service quality.The last three chapters of this book integrate EI and AI to analyse their respective impacts on employees and customers. Chapter 9 proposes EI as a moderator of AI, whereas Chapter 10 proposes AI as a moderator of EI. Chapter 11 employs service profit chain to integrate EI and AI in the chain relationship to understand their effects on both employees and customers. This chapter broadly covers the service industry with a focus on tourism and hospitality sector. The discussion on the impact of EI and AI is complemented with empirical studies conducted in tourism or hospitality context to address their effects in these sectors.

Author(s): Catherine Prentice
Publisher: Springer Nature Singapore
Year: 2023

Language: English
Pages: 185

1 Introduction to Artificial and Emotional Intelligences 1
1.1 The Rise of Emotional and Artificial Intelligences 1
1.2 What is Emotional Intelligence 2
1.3 The Power of Emotional Intelligence 2
1.4 What is Artificial Intelligence 3
1.5 The Power of Artificial Intelligence 3
1.6 AI Replacing Human Jobs 4
1.7 Humans Assisting AI 4
1.8 AI Assisting Humans 5
1.9 Emotional Intelligence, or Artificial Intelligence 6
1.10 The Stance and Structure of This Book 6
References 7
2 Demystify Emotional Intelligence 11
2.1 What is Emotional Intelligence 11
2.2 The Orthodox EI 12
2.3 The Fancy EI 14
2.3.1 Goleman’s ECI 14
2.3.2 Bar-On’s EQ 17
2.4 The Operational EI 17
2.5 A Flexible Approach to Emotional Intelligence 18
2.6 Application of Emotional Intelligence to Businesses 19
2.6.1 EI and Employees 20
2.6.2 EI on Customers 20
2.7 Conclusion 21
References 21
3 Demystify Artificial Intelligence 25
3.1 Evolution of Artificial Intelligence 26
3.2 Conceptualising Artificial Intelligence 29
3.2.1 Reactive Non-memory Machines 30
3.2.2 Limited Memory AI 31
3.2.3 Narrow AI 31
3.2.4 Future AI 32
3.3 Operationalising Artificial Intelligence 32
3.3.1 Machine Learning 33
3.3.2 Deep Learning 34
3.3.3 Natural Language Processing (NLP) 35
3.4 Application of Artificial Intelligence to Businesses 37
3.5 Conclusion 38
References 38
4 Leveraging Emotional Intelligence for Employees 41
4.1 Emotional Work 41
4.2 Emotional Labour 42
4.3 Burnout 43
4.4 Emotional Labour and Burnout 44
4.5 Emotional Intelligence and Emotional Work 44
4.5.1 Leveraging Emotional Intelligence for Emotional Labour 44
4.5.2 Leveraging Emotional Intelligence for Burnout 45
4.6 Empirical Study 1 46
4.6.1 Sample and Data Collection Procedure 46
4.6.2 Instruments 47
4.6.3 Findings and Discussion 47
4.6.4 Leveraging Emotional Intelligence for Emotional Labour and Burnout 48
4.6.5 Leveraging Emotional Intelligence for Employee Satisfaction and Loyalty 49
4.7 Empirical Study 2 50
4.7.1 Sample 50
4.7.2 Instruments 50
4.7.3 Findings and Discussion 50
4.8 Implications and Conclusion 51
References 52
5 Leveraging Emotional Intelligence for Customers 55
5.1 Linking Service Quality and Business Profitability 55
5.2 The Role of Service Encounter in Service Quality 56
5.3 The Role of Service Employees in Service Encounter 57
5.4 Emotional Service Encounter 58
5.4.1 Seeking Emotional Benefits of Services 59
5.4.2 Leveraging Employee Emotional Intelligence for Emotional Services 60
5.4.3 Emotional Response Toward Service Representative 60
5.4.4 Leveraging Employee Emotional Intelligence for Customer Response 61
5.4.5 Emotions Aroused by Customer Attributions 61
5.4.6 Leveraging Employee Emotional Intelligence for Customer Attribution 62
5.4.7 Emotional Contagion 62
5.4.8 Leveraging Employee Emotional Intelligence for Emotional Contagion 63
5.5 Leveraging Customer Emotional Intelligence for Customer Experience 64
5.5.1 Leveraging Customer Emotional Intelligence for Co-production and Co-creation 64
5.5.2 Leveraging Customer Emotional Intelligence for Employees 65
5.6 Implications and Conclusion 65
References 67
6 Leveraging Artificial Intelligence for Customer Satisfaction and Loyalty 71
6.1 Three Pillars of Customer Service 71
6.2 AI Service Quality 72
6.3 Leveraging AI Service Quality for Customer Satisfaction and Loyalty 73
6.4 Leveraging Employee Service Quality for Customer Satisfaction and Loyalty 74
6.5 Empirical Study 75
6.5.1 The Study Context 75
6.5.2 The Sample and Data Collection 76
6.5.3 Instruments 77
6.5.4 Findings and Discussion 78
6.6 Comparing the Influence of AI and Employee Service Quality 81
6.7 Implications and Conclusion 82
References 83
7 Leveraging Artificial Intelligence for Customer Engagement 87
7.1 Diagnosing Artificial Intelligence 87
7.2 Operationalising Artificial Intelligence 88
7.3 AI Service Quality and Customer Satisfaction 89
7.4 Customer Satisfaction and Engagement 90
7.5 Customers’ Preference Matters 91
7.6 The Empirical Study 92
7.6.1 Sample and Data Collection Procedure 92
7.6.2 Instruments 93
7.6.3 Findings and Discussion 94
7.7 Implications and Conclusion 99
References 100
8 Developing a Scale to Measure Artificial Intelligence Service Quality 105
8.1 AI Applications 105
8.2 AI Service 106
8.3 Technical or Functional Service 107
8.4 AI Service Quality 107
8.5 Service Quality Measurement 108
8.6 Developing AI Service Quality Scale 109
8.6.1 Stage 1: Item Generation and Initial Purification 110
8.6.2 Stage 2: Scale Refinement and Validation 111
8.6.3 Internal Cross-validation 114
8.6.4 External Cross-validation 115
8.7 Conclusion and Implications 116
8.7.1 The Four Dimensions 116
8.7.2 Applications of AI Service Quality 117
8.8 Acknowledgement of Limitations 119
References 120
9 Leverage Emotional and Artificial Intelligences for Employees 125
9.1 Popularity of Artificial Intelligence 125
9.2 Concerns About Artificial Intelligence 126
9.3 Popularisation of Emotional Intelligence 126
9.4 Artificial Intelligence Facilitates Emotional Intelligence 127
9.5 The Empirical Study 128
9.5.1 Sample and Data Collection Procedure 128
9.5.2 Instruments 129
9.5.3 Findings 130
9.6 Artificial Intelligence as a Facilitator 132
9.7 Implications and Conclusion 133
References 134
10 Leveraging Emotional and Artificial Intelligences for Customers 139
10.1 Understanding Customer Experience 140
10.2 Understanding Customer Engagement and Loyalty 140
10.3 AI Experience on Customer Engagement and Loyalty 141
10.4 Humanic Experience and Customer Engagement 142
10.5 AI and Humanic Experience Are Inadequate 143
10.6 Customer Emotional Intelligence Facilitates Humanic Experience 144
10.7 Customer Emotional Intelligence Facilitates AI Experience 144
10.8 The Empirical Study 145
10.8.1 Sample and Data Collection Procedure 145
10.8.2 Instrument 145
10.8.3 Findings and Discussion 146
10.8.4 Emotional Intelligence as a Facilitator 148
10.9 Implications and Conclusion 151
References 153
11 Leveraging Emotional and Artificial Intelligences for Employees and Customers 157
11.1 The Service Profit Chain Theory 157
11.2 Artificial and Emotional Intelligence as Services 158
11.3 The Influence of AI on Internal and External Customer Satisfaction and Loyalty 159
11.4 The Influence of AI on Internal and External Customer Engagement, and Loyalty 161
11.5 Emotional Intelligence as a Facilitator 162
11.6 The Empirical Studies 164
11.6.1 Sample and Data Collection Procedure 164
11.6.2 Instruments 165
11.7 Findings and Discussion 166
11.7.1 Leveraging AI for Internal and External Customer Satisfaction and Loyalty 166
11.7.2 Leveraging AI for Customer Engagement and Loyalty 167
11.7.3 Confirming EI as a Facilitator 168
11.8 Implications and Conclusion 169
References 171