The current issue and full text archive of this journal is available on Emerald Insight at:

www.emeraldinsight.com/0959-6119.htm

Investigating an innovative Hospitality

robots
service with hospitality robots
Chun-Min Kuo
National Chin-Yi University of Technology, Taichung, Taiwan
1305
Li-Cheng Chen
Department of Hospitality Management, Tajen University, Pingtung County, Received 15 August 2015
Taiwan, and Revised 1 February 2016
4 June 2016
Chin-Yao Tseng 6 July 2016
Accepted 27 August 2016
Department of Tourism and Leisure Management,
Yuanpei University of Medical Technology, Hsinchu, Taiwan

Abstract
Purpose – The purpose of this study is to identify the factors that influence the development of service
robots, and to apply a service innovation strategic mindset to the hotel industry in Taiwan.
Design/methodology/approach – A mixed-methods approach, combining an expert panel and
semi-structured interviews using a SMART SWOT ranking survey, was applied to understand the
perspectives of hotel owners and robotics experts.
Findings – Fifty-three items were collected regarding the demand side of the hospitality market, showing
that the Taiwan hospitality industry has good potential to implement service robots. Sixty-one items on the
supply side of business were collected, showing that this robotics service can help hotels handle seasonal
employment and labor utilization. The SWOT analysis identifies “The fun and curiosity aroused in consumers
can enhance the promotion of service robots”, “Lack of talent in system integration”, “Taiwan’s aging society
can increase the demand for service robots” and “China and South-east countries have aggressively poached
talent in the global robotics market” as key issues.
Originality/value – Few studies have investigated robotics service for hotels using the six-dimensional
service innovation model. This model helps identify six factors and implies that this new service concept can
position hotels to better compete by using IT and relationship marketing strategies.
Keywords Hospitality, Innovative service, Service robots, SMART SWOT
Paper type Research paper

1. Introduction
1.1 Background and issue
The growth in tourism has led to a rapid expansion of the local hotel industry, which is
searching for innovative new sources of competitive advantage (Gomezelj, 2016). A
comprehensive business strategy to support competitive advantage is sustainably
formulated across a range of knowledge domains, including marketing, operation process,
supply chain, finance, human resource and information technology (Michel et al., 2008).
These domains may help in building a conceptual framework for the new innovative services
that can help hotels compete in the business market proposed by den Hertog et al. (2010). In International Journal of
Contemporary Hospitality
addition, few studies have investigated robotics service for hotels using the six-dimensional Management
Vol. 29 No. 5, 2017
service innovation model. Therefore, this study investigates how such an innovative service pp. 1305-1321
with robots can create sustainable competitive advantages for hotels by using den Hertog’s © Emerald Publishing Limited
0959-6119
six-dimensional service innovation model. DOI 10.1108/IJCHM-08-2015-0414
IJCHM The nature of hospitality work has created an unparalleled number of entry-level jobs
29,5 with part-time work arrangements for seasonal employment (Baum, 2006). This has
resulted in the delivery of service quality and attitudes that are affected by the emotions
of inexperienced or part-time untrained front-line employees (Lovelock et al., 2015;
Nickson et al., 2005). Wei (2013) further indicates that entry-level jobs, particularly
unskilled services tasks, will gradually be replaced by automation and robotics
1306 technology. This robotics technology solution can enable hotels supplement human
services by introducing new employee-based technology interfaces in the self-service
delivery process (den Hertog et al., 2010). This proposed robotics solution is therefore
expected to help hotels cope with the issue of seasonal employment, which reflects the
strategic human resource in the service innovation model. Other dimensional factors are
also expected to contribute and help hotels cope with the management and marketing
issues that have existed in the hospitality industry for decades (den Hertog et al., 2010;
Gryszkiewicz et al., 2013; Lusch et al., 2008).
The paper begins by describing innovative services with robots in the hospitality
industry and the evolution of hospitality service robots. It then describes the mixed-methods
approach used in this study, which involves an expert panel and semi-structured interviews
with a qualitative method and a ranking survey with a quantitative method. The results are
analyzed using the SMART SWOT ranking technique. Findings and conclusions are then
presented and analyzed.

1.2 The purpose of this study

The purposes of this study are as follows:
• understand the strengths, weaknesses, opportunities and threats (SWOT) of the
factors of service robots and the service attitude attribute and scale;
• determine the ranking of factors;
• analyze six dimensions of service innovation in service robots; and
• identify the factors that influence the development of service robots, and apply this
strategic mindset to the hotel industry in Taiwan.

2. Literature review
2.1 An innovative service with robots in the hospitality industry
An innovative service approach using IT capabilities continuously strives for better
solutions to sustain a competitive advantage for the hospitality industry (Bhatt and Grover,
2005; den Hertog et al., 2010). This approach can help hotels compete by evaluating den
Hertog’s six-dimensional capabilities, including new service concept, new customer
interaction, new business partners, new revenue model and new organizational or
technological service delivery system (den Hertog et al., 2010). The model begins by
signaling user needs and technological options (den Hertog et al., 2010). The self-service
provision via technology of service robots implies that this promising technology may
enhance the quality of service marketing and management by providing new ways of
interacting with existing and potential customers (Kim et al., 2013; Nieves and Diaz-Meneses,
2016; Kokkinou and Cranage, 2015). This dimension generates a sense of market
opportunities with new technologies that can actively enable hotels to adapt to the changing
environment and differentiate themselves from competitors (Kim, 2016; Teece, 2007).
The next dimension is the new service concept. It identifies the new service or value that
hotels intend to create for their target customers in the given self-service technologies (Frei,
2008). This dimension explains the dynamic capabilities of the hotels based on the strategic
plan the hotels will execute in relation to a new value proposition process for their customers Hospitality
(Teece, 2007). New customer interactions address the value creation for customers in the robots
given interaction process of service encounters (Chathoth et al., 2016; Payne et al., 2008). The
introduction of self-service technology robots relies on value creation: customers must be
satisfied through benefits such as curiosity and feeling of enjoyment (Kim et al., 2013). This
dimension explains that customers are value creators in the self-service delivery process and
that new technology combined with new services can create a strategic marketing plan 1307
differentially (Kim, 2016; Vargo and Lusch, 2004).
New business partners present a set of new value chain systems in which a new
innovative service is developed by a network of business partners who are in a vertical
integration of resources that support or ally together for the value creation ( Jacobides et al.,
2006; Teece, 2007). This dimension explains that the success of the robotics solution depends
not only on support from upstream manufacturing but also on the downstream customers
who participate in the self-service technology process. A new revenue model is an important
dimension addressing the concept of return on investment and the key objective of branding
strategy (Johnson et al., 2008; Krishnan and Hartline, 2001). This dimension explains that the
assessment of cost and profit modes and new innovative services with new technology must
be financially calculated before the implementation.
Last, a new organizational delivery system is the new structure of the business that
fits into the new form of daily operations with required skills (Ambrosini et al., 2009).
This dimension explains the human resource development and the learning process that
supports new innovative services with new technology solutions. This model is
therefore expected to help hotels compete in the business market, as a competitive
business strategy is developed based on the evaluation of the six-dimensional factors,
which is the purpose of this study.

2.2 Evolution of hospitality service robots

The focus of development for service robots has shifted from the hardware to the application
level, as consumer society has evolved to demand more value-added services from robots
(Lee and Sabanovic, 2014; Zalama et al., 2014). This is a trend toward service robots which are
designed to perform tasks in an unconstrained and human-centered environment (Haidegger
et al., 2013; Kwak and Park, 2012). Kwak and Park (2012) further stress that humanoid robots
can decrease production costs and increase the usefulness of service robots, which could be
a solution for commercialization. For example, humanoid robots can simply provide
directions and guidance to customers at hotel reception (Mastrogivanni and Sgorbissa, 2013).
More importantly, humanoid robots are able to move around the workspace, as they are
equipped with wheel designs and autonomous control systems (Mastrogivanni and
Sgorbissa, 2013). This evolution consequently offers an image of the innovative services that
robotic solutions may offer in helping hotels cope with the issue of seasonal employment and
labor utilization.
According to Haidegger et al. (2013) and Zalama et al. (2014), a robotic control system
requires three levels of development including hardware, functionality and service.
Hardware refers to the shape of the mechanical design, which includes the body of the service
robot, the perception system (sensors) and the movement system (actuators). Functionality
refers to the software architecture of the control system, which enables navigation, dialogue,
visual and voice recognition, location and mapping mechanisms and knowledge
representation of mind models. Service refers to the added value that a hotel aims to create
and deliver for its customers to sustain a competitive advantage.
IJCHM The timing for the widespread deployment of service robots in any part of the hotel
29,5 environment will depend on when technological limitations can be resolved (Chin et al., 2014;
Zalama et al., 2014). Such limitations are related to the second level of functionality, which is
the integration technology and standards for the robotic control system as a whole (Chin
et al., 2014; Zalama et al., 2014). This standardization will lower the costs of robotics
deployment while ensuring safety, low liability and quality of development (Haidegger et al.,
1308 2013). In a transition of social-technological phenomenon, this development may help
redesign of business models via value-added services (Brenner et al., 2013; Vargo and Lusch,
2008; Chesbrough, 2011; Bharadwaj, 2013).
Although current robotics technology has some limitations, this proposed solution may
enable hotels to enhance their internal operational efficiency and external marketing
outcomes. It is expected to help hotels improve their seasonal employment and labor
utilization, as service robots are able to perform assigned tasks such as greeting customers.
Indeed, people who currently interact with service robots accept their assistance while
feeling a sense of fun and enjoyment (Mann et al., 2015; Wood et al., 2013).

3. Method
3.1 The expert panel
As this study explores innovative services for hotels, and there is little literature about
the use of service robots, an expert panel was used to identify factors that may affect the
development of robots in hotels. Three robotics professors from universities of
technology were invited to scan the market opportunities using robotics technologies.
The panel began with the question “what is the standpoint from which we should explore
implementing service robots?”. We developed a consensus on the strategic purposes and
developing capabilities, based on the market perspective of demand and supply side, for
the new robotics services. The research question is “What would be the most important
concerns if you were considering introducing service robots in hotels?”. To gather more
insights, the panel further invited three robotics experts and two hotel owners from the
practitioners, for a total of eight experts. We developed a second consensus on the six
factors that affected the development of service robots, based on den Hertog’s
six-dimensional conceptual service innovation model.
This panel discussion was conducted in the months of May and June in 2013, as shown in
Table I. The six factors (results of the expert panel discussion) are listed and detailed as
follows:
Demand side of the hospitality market: What would be the most important concerns if you
were considering introducing service robots in hotels?

Name Organization Position Time

Academics
A Robotics expert Professor 05-06/2013
B Robotics expert Professor 05-06/2013
C Hotel mgt. dept. Associate prof. 05-06/2013
Practitioners
a Technology institute Robotics expert 05-06/2013
Table I. b Technology institute Robotics expert 05-06/2013
Robotics expert panel c Technology institute Robotics expert 05-06/2013
with academics and d Hotel Hotel owner 05-06/2013
practitioners e Hotel Hotel owner 05-06/2013
 (1) Government support: This refers to the Taiwan Government’s strategic support for Hospitality
the robotics industry. robots
(2) Capability for market development: This refers to the market demand for service
robots. If robotic products are not popular in Taiwan, why is this so? What areas of
the robotics industry would be the most profitable in Taiwan?
(3) Future development of the robotics industry: This refers to the robotics development,
operation and maintenance. Would manufacturers develop and possess their own 1309
patents and proprietary solution?

Supply side of the business: What would be the most important concerns if you were
considering introducing service robots in hotels?
(4) Capability for technology development: This refers to the commercialization, system
integration capability and supply chain of robotics production.
(5) Capability for raising money: This refers to the need for manufacturers to raise
investment capital. Would manufacturers face difficulties in raising money because
the robotics industry is still in an undeveloped stage?
(6) Capability for talent development: This refers to the robotic talent development of
manufacturers and what, if any, educational training of staff would be required?

3.2 Semi-structured interviews with SMART SWOT survey

In the second step of the study, a series of semi-structured interviews and the survey were
conducted in the months of June and August in 2013, as shown in Table II. The SMART
SWOT techniques were used together to improve the efficiency and effectiveness of the data

Name Organization Position Time

Academics
A Hotel mgt. dept. Associate prof. 06-08/2013
B Hotel mgt. dept. Associate prof. 06-08/2013
C Hotel mgt. dept. Assistant prof. 06-08/2013
D F & B mgt. dept. Assistant prof. 06-08/2013
E F & B mgt. dept. Lecture 06-08/2013
F Robotic experts Professor 06-08/2013
G Robotics expert Professor 06-08/2013
H Robotics expert Professor 06-08/2013
I Robotics expert Professor 06-08/2013
J Robotics expert Associate prof. 06-08/2013
Practitioners
a F/O division Manager 06-07/2013
b F/O division Manager 06-07/2013
c F & B division Manager 06-07/2013
d F/O division Manager 06-07/2013
e Hotel Hotel owner 06-07/2013
f Robotics expert Professor 06-07/2013
g Technology institutes Robotics expert 06-07/2013 Table II.
h Technology institutes Robotics expert 06-07/2013 Interview of 20
i System laboratories Robotics expert 06-07/2013 hospitality and
j System laboratories Robotics expert 06-07/2013 robotics experts
IJCHM collection and analysis based on the limited resources used for the study. The SMART
29,5 technique is a simple way to make comparisons and rank priorities (Edwards, 1971), which
can offset the disadvantages of the SWOT technique, the most popular technique in
developing strategic plans (Glaister and Falshaw, 1999).
Twenty robotics experts, different from the previously experts, were invited to
participate in this study. They included scholars, national industrial technology research
1310 institutes, national mechanical and system research laboratories, manufacturers and hotels
owners. The interview process began with the academic experts, followed by hotel
practitioners. The academic experts and hotel practitioners were then interviewed again and
again, which generated balanced, thoughtful insight for the content analysis. The interview
began by asking the academic expert to list the items in response to each of the strengths,
weaknesses, opportunities and threats (SWOT) of the factors. Participants were also
requested to score the items they listed on a 1-10 scale, where “1” represented “least
important” and “10” represented “most important”. The responses for all participants were
summed and these totals were used to rank the items of the factors. These results are shown
in the following section and are the basis for this study’s recommendations for innovative
services using robots in the hotel industry in Taiwan.

4. Results and discussion

Six factors were identified as influencing the development of service robots in the hotel
industry in Taiwan. The investigation into the strategic business development was
performed using SMART SWOT strategic analysis. In the results, 53 items on the demand
side of hospitality market perspective were collected (Tables III to V), while 61 items on the
supply side of business perspective were collected (Appendixes 1 to 3). These items are
discussed by ranking them in order of priority and are the basis of this study’s
recommendations for the development of service robots by the hotel industry in Taiwan.
The results from Table III indicate that the Taiwan hospitality industry has good
potential to implement service robots, as the robotics industry is an important industry
supported and funded by the government (Chen, 2011). The success of the robotics solutions
would thus depend on the strategic position the hotels intend to take in the business market
(Barrett et al., 2015; Melian-Gonzalez and Bulchand-Gidumal, 2016). This could include
marketing aimed at the increase of customer satisfaction, enhancement of customer
relationships and expanding into new markets (Baker and Magnini, 2016; Bitner et al., 2002;
Scherer et al., 2015). More importantly, the practical execution of the marketing campaigns
must be focused and enhanced, as this is a key factor in the success of innovative services
with new robotics technology (Bitner et al., 2002; Nieves and Diaz-Meneses, 2016; Scherer
et al., 2015).
Table IV indicates that the demand for service robots in Taiwan is expected to increase
because of the aging population and low birth rate. Robots can help hotels handle the issues
of seasonal employment and labor utilization. This finding is consistent with Gorle and Clive
(2013), who found that the development of service robots can create new businesses, as more
businesses understand the importance of the application of robots. Robots with human-like
interface design can create fun, enjoyment and curiosity for customers, and Asian countries
prefer robots with a human appearance and an expressive face (Lee and Sabanovic, 2014).
This establishes a foundation for formulating strategic marketing campaigns that hotels can
create for particular markets with new customers (Bitner et al., 2002; Scherer et al., 2015).
Table V indicates that the development of service robots for hotels in Taiwan can be
practically and sustainably realized, as the applications of robotics services have
increasingly stimulated the demand for hospitality service robots (Zalama et al., 2014).
Strengths
1. The Ministry of Economic Affairs has
budgeted the promotion of the smart
automation and the robotics industries
over the years
2. Government supports the robotics
industry
4. Government has been continuing to
support collaboration between academia
and industry for research and
development of robotics technology
3. Government has offered a variety of
preferential subsidies and development
programs
Opportunities
1. Smart automation programs have been
aggressively promoted to encourage
investors to fund the service robot
industry
3. Skills for those in the robotics industry
can be fostered through the use of
incentive programs such as providing a
supportive funding for robotics courses
in schools or establishing national-level
institutes for robotics research and
development
4. Government can promote a robot
development plan by using incentive
programs for industry
2. Taiwan’s mature IPC industry offers a
fair environment in which firms can
compete
5. The government can attract more
capital funding to the robotics industry
by purchasing and employing service
robots for the government sector
Rank Weaknesses Rank
Hospitality
robots
1 1. Government has focused on 1
industrial robots rather than service
robots
2 2. Government policy has lacked a 2
strategic action plan, resulting in no 1311
execution
3 3. There is a lack of a broad 3
technological strategy; emphasis is on
the manufacturing industry
4 4. Small-to-medium-sized companies 4
cannot easily gain a large amount of
funding support for their technology
development because of preferential
subsidies allocated by government
Rank Threats Rank
1 1. Brain drain of high-end talent is a 1
big challenge which needs to be
confronted
2 3. Government responds slowly to 2
avoid the big gap emerging between
Taiwan and advanced countries
3 4. Taiwan has been squeezed out in 3
the development of service robots, as
its technology is more than five years
behind Japan and Korea
4 5. Foreign governments have invested 3
a large amount of resources into their
robotics industries, which speeds up
the development of robotic technology
5 2. Changes of ruling parties influences 5
policy
Table III.
Government support

Although challenges in system integration and control issues confront hotels, customers can
perceive the value of fun and enjoyment when they interact with stand-alone service robots
(Haidegger et al., 2013; Zalama et al., 2014). These findings support hotels with marketing
campaigns that can strategically focus on creation of connections that increase opportunities
to be involved with potential customers rather than the services they actually offer. That is,
customer relationships develop when customers are involved and participating in the value
creation process (DiPietro and Wang, 2010; Gronroos and Ravald, 2011; Scherer et al., 2015).
For the factor of capability of technology development, 19 items were collected for the
SWOT table (see Appendix 1). The top item from the strength dimension is “Colleges of
technology and private organizations have a good reputation in research and development
IJCHM Strength
29,5
1. Small-to-medium-sized companies are
gradually coming to understand the importance
of the smart robotic industry
5. The fun and curiosity aroused in consumers
can enhance the promotion of service robots
1312 2. The prosperity of the IT industry increases
the demand in the domestic market
3. Passion and expectations about service robots
still exists
4. Labor costs can be reduced
Opportunities
1. Taiwan’s aging society can increase the
demand for service robots
2. The aging population and low birthrates can
decrease the workforce and increase job
opportunities in the service robot industry
3. Robotic cleaners have satisfied the
expectations of most people
4. The development of service robots is
Table IV. increased by the presence of individuals who
Capability for market combine the skills of interface design,
development fashionable design and system integrations
Rank Weakness Rank
1 2. Service robots are not easily operated, 1
as robot systems are difficult to integrate
and interface design is industrialized
1 1. The demand for service robots is not 2
strong enough
3 3. The cost and prices of service robots 3
cannot meet the expectations of
consumers
4 4. Market demands for service robots 4
cannot be boosted due to a lack of
training and promotion
4 5. The market is a niche market and this 5
influences the intentions of investors
Rank Threat Rank
1 1. Korea is more aggressive than China 1
in developing service robots
1 2. Service robot design does not match 2
the needs of consumers, which makes
them unwilling to use service robots
3 4. Manufacturers in China are employing 3
a low-price strategy to gain more market
share
4 3. There is no good application of service 4
robots, so people do not understand the
benefits. This creates a big gap between
expectation and reality

for ICT and in the semiconductor industry”. The top item from the weakness dimension is
“Collaboration between academia and industry needs to be strengthened”. The top item from
the opportunity dimension is “Funding from the government is helpful for upgrading the
capability of research and development for service robots”. Finally, the top item from the
threat dimension is “Competitors from America, Japan, and European countries have higher
levels of robotics technology than Taiwan”.
These results indicate that Taiwan has the capability to manufacture service robots for
domestic use and that all links in the technology supply chain can support the customized
design of service robots at a reasonable price. This creates advantages for Taiwan, as
customers are frustrated with poor design technologies that are difficult to use or understand
(DiPietro and Wang, 2010; Kim et al., 2013). It is important that the provision of user-friendly
design can lower the level of customer efforts and technology anxiety (Kim et al., 2013). This
capability is the result of Taiwan’s highly developed IT industry and the financial viability
of service robots that are increasingly becoming acceptable in the service sectors. Hotels can
thus enjoy fashionably designed service robots which are likely to be attractive to technology
fans and to families with children (Haidegger et al., 2013; Kwak and Park, 2012).
For the factor capability of raising money, 20 items were collected for the SWOT table (see
Appendix 2). The two top items from the strength dimension have the same score: “The
robotics industry is an attractive and potentially prosperous one which can drive demand in
the domestic market” and “Plenty of government funding can support medium-sized to large
companies with a variety of research projects which alleviate the expense burden of research
and development”. The top item from the weakness dimension is “Funding cannot be easily
Strengths Rank Weaknesses Rank
Hospitality
robots
1. More and more manufacturers are capable 1 1. Lack of investment from industry 1
of collaborating with the precision
instruments industry and the supply chain
of ICT which is helpful for developing smart
robots
2. Manufacturers in Taiwan can 2 2. Lack of talent in system integration 1 1313
competently produce components for robots
and they can collaborate to develop robots
with private organizations or government
4. Taiwan holds a global leading position in 3 3. Lack of professional training 3
some areas of the mechanical and electronic
industries
3. Taiwan has produced a lot of people who 4 4. An inability to produce key components 4
possess skills needed in the robotics of robots as well as not having the
industry and they can work together to capacity to make fine and commercialized
develop robotic products robots
Opportunities Rank Threats Rank
1. The demand for robots in hospitality is 1 2. Market demand is not high enough and 1
gradually increasing manufacturers are not supportive,
resulting in low intentions of consumers to
adopt service robots
2. The development of industrial robots has 2 1. Competitors from other countries such 2
transformed into the development of service as Japan, America and Europe are
robots dominant in the robotics market
4. There is a possibility of fostering talents 3 4. Strong competition in the international 3
in fashionable design and mechanics component technology market creates low
product costs
5. Capability in the integration of software 3 3. Integration advantages of China exceed 4
and hardware can be enhanced and could those of Taiwan
possibly establish a platform for purchasing
small numbers of products Table V.
3. Component manufacturers have a chance 5 Future development of
to increase their technological capability the robotics industry

raised because current robot development is not significant and this lowers the investment
intentions of companies”. The top item from the opportunity dimension is “The most recent
two years of smart robot projects conducted by Hon Hai Corporation have reinforced the
development of the robotics industry”. Finally, the two top items from the threat dimension
have the same score: “Investment intention is not strong enough as the scale of the Taiwan
market is quite small” and “Small-to-medium sized companies do not have sufficient capital
for robot development and cannot cover the costs of business operations”.
These results indicate that service robots used in the hotel industry are expected soon
because this is a prosperous new revenue model that attracts global investors, resulting in
cost reductions in development (Bilgihan et al., 2011; Ip et al., 2011; Melian-Gonzalez and
Bulchand-Gidumal, 2016). An investment could thus be recouped in an acceptable period of
time, as the expenses of employment, personnel management and training costs have
increasingly threatened business profitability (Bilgihan et al., 2011; Melian-Gonzalez and
Bulchand-Gidumal, 2016). However, small-to-medium businesses might be concerned that a
high level of technology operation and maintenance resulting in high level of capital
IJCHM investment is unaffordable. It is expected that once the costs of business operations for
29,5 service robots become reasonable and acceptable, hotels will quickly adopt robots.
For the factor results of capability for talent development, 22 items were collected for the
SWOT table (see Appendix 3). The top item from the strength dimension is “The higher
education system in Taiwan has effectively promoted robot product development which
produces many experts in the mechanical and electrical engineering and information and
1314 communication technology fields”.
The top item from the weakness dimension is “Not enough job opportunities for using
robots, as the robotics industry in Taiwan is at a preliminary stage”. The top two items from
the opportunity dimension have the same score: “Practical competition in the robotics
industry in Taiwan has driven opportunities for industry collaboration (e.g. Hon Hai
Corporation) with academia, thereby fostering talent in the field of robot development” and
“The trend towards increased robotics and smart automation increases job opportunities in
the manufacturing of robots”. Finally, the top item from the threat dimension is “Competitors
such as Korea and China have gradually obtained talent in the field of robot development”.
These results indicate that hotels in Taiwan have great potential to offer innovative
services with robots because a range of robotic talent is available for technical support at
hotels, as technology failure is the main cause of customer dissatisfaction (Bitner et al., 2002).
While customers appreciate the fun and enjoyment of service robots, these perceived values
are suddenly lost when they fail (Kim et al., 2013). In addition, hotels will need to implement
a comprehensive program of talent management and development to protect the intellectual
property of developers and to avoid the problem of brain drain. This is because of the high
costs in training the engineers who develop, operate and maintain service robots and their
loss to other markets, particularly China, which has aggressively poached global robotic
talent.

5. Conclusions and implications

5.1 Conclusions
This study presents a strategic view of using hospitality robots by investigating the market
perspective of demand and supply. Hotels could, based on their strategic purposes and
capabilities, reconfigure their unique resources to develop competitive robotics solutions.
The six-dimensional service innovation model helps identify six factors that influence the
development of service robots for the hotel industry in Taiwan. Three of these factors,
government support, capability of market development and future development of the
robotics industry, are associated with the demand side of the hospitality market. The other
three, capabilities for technology development, raising money and talent development, are
associated with the supply side of the business.
To improve business performance, a new organizational structure and management is
required for the implementation of robotics services. This begins with the increase in
demand for talent in the fields of software and hardware, mechanical and precision
instruments, user-friendly interface design, system integration and marketing and sales.
These disciplines must develop a team that can differentiate the hotel from its competitors
(den Hertog et al., 2010). Traditional specialization in business operations is insufficient for
the challenges hotels face today. The new business model requires teams with diverse skills,
particularly those that combine different fields of knowledge and skills. New training and
development programs for existing employees are thus necessary. Reorganization, such as
the formation of new departments of services and marketing integration, can help hotels
respond to rapidly changing environments.
 Skills shortages are also expected, as the new business model using robotics technology Hospitality
creates new types of jobs. Education should construct new courses and curricula that robots
combine different disciplines, such as IT-related engineering, management and user-friendly
interface design, to close the skills gap. It is expected that some current jobs or positions will
be replaced by robot services, but many new jobs will be created by the new business model.

5.2 Theoretical implications 1315

This study shows that the six-dimensional service innovation model using service robots is
an innovative model, which can generate a strategy for the sustainable competitiveness of
hotels. The use of self-service technology, such as service robots, provides a new form of
customer interaction and service experience for hotels and may be able to improve customer
service and firm productivity (Kim et al., 2012; Melian-Gonzalez and Bulchand-Gidumal,
2016). In addition, this new service concept can position hotels to better compete by using IT
and relationship marketing strategies (Gronroos and Ravald, 2011; Kim, 2016). The
customization of robotics with a human-like interface design is significant in attracting a
particular market of new customers (Scherer et al., 2015). Customers can create their value in
the self-service process when they interact with service robots out of a sense of fun,
enjoyment and curiosity (Gronroos and Ravald, 2011). Although current robotic technology
may not be able to supplement full human service directly, the ability to attract existing and
potential customers may contribute indirectly from the perspective of marketing strategies
(Barrett et al., 2015; Johnson et al., 2008; Kindstrom et al., 2013).
In relation to the value of the supply chain system, this study also shows that the success
of service robots depends on the existence of a strong vertical integration platform of IT
business networks and resources. The advantages of Taiwan’s IT supply chain can support
an affordable robotics solution with a customized user-friendly design (Kim et al., 2013;
Kwak and Park, 2012). However, investment in service robots is expensive at present, which
will restrain the development of service robots, particularly for small-to-medium businesses.
This is shown by the return on investment of hotel IT investment and its performance
(Bilgihan et al., 2011; Melian-Gonzalez and Bulchand-Gidumal, 2016). Finally, required skill
training for employees and new staff recruitment, particularly for technical support, is a
determinant of success in deploying service robots. Failure of services provided by service
robots could seriously affect customer satisfaction and hotel performance (Kim et al., 2013;
Melian-Gonzalez and Bulchand-Gidumal, 2016).

5.3 Practical implications

From a practical standpoint, hotels could consider implementing service robots by
marketing a brand image that shows they are IT-innovative hotels. This could help hotels
enhance their relationships with existing customers and reach new customers. Initially
hotels could deploy stand-alone service robots at hotel lobbies for greeting customers,
carrying luggage for customers, operating check-in/-out services for customers and
providing information about hotel facilities, locations and event activities. This could
surprise existing customers who may feel these are fun, exciting and enjoyable. This could
also attract new customers who are technology fans and families with children. IT staff may
be required to accompany the service robots on site when assistance needed.
Marketing hotels as IT-innovative is a short-term strategy. A long-term strategy may
consider the issue of seasonal employment and labor utilization. This reflects the value of the
financial investment in robotics technology as a solution to labor issues, which itself has
complicated system integration and control issues. The rising demand for labor service from
service robots is important, as developed countries face aging populations and low birthrates.
IJCHM For talent management, hotels should consider securing employees who are experts in system
29,5 integration, mechanical and electrical engineering fields. Such employees might have high
training and development costs or be difficult to recruit because of their scarcity. More
importantly, the threat of Korea, China and other countries aggressively poaching talent in the
global robotics market may constrain the future development of the robotics industry in Taiwan.

1316 5.4 Limitations and future research

Several limitations and further research suggestions will be addressed. First, the return on
investment of service robot development has not been detailed in this study. This suggests a need
for the further research. Second, research on a quantitative approach for the new service robot
solutions is needed. Finally, as this work was restricted to studying the views of industry, further
study on the views of customers and other tourism stakeholders is necessary.

References
Ambrosini, V., Bowman, C. and Collier, N. (2009), “Dynamic capabilities: an exploration of how firms
renew their resource base”, British Journal of Management, Vol. 20 No. 1, pp. 9-24.
Baker, M. and Magnini, V.P. (2016), “The evolution of services marketing, hospitality marketing and
building the constituency model for hospitality marketing”, International Journal of
Contemporary Hospitality Management, Vol. 28 No. 8.
Barrett, M., Davidson, E., Prabhu, J. and Vargo, S.L. (2015), “Service innovation in the digital age: key
contributions and future directions”, MIS Quarterly, Vol. 39 No. 1, pp. 135-154.
Baum, T. (2006), Human Resource Management for Tourism, Hospitality and Leisure: An International
Perspective, Thomson, London.
Bharadwaj, A., Sawy, E.I.O.A., Pavlou, P.A. and Venkatramam, N. (2013), “Digital business strategy:
toward a next generation of insights”, MIS Quarterly, Vol. 37 No. 2, pp. 471-482.
Bhatt, G.D. and Grover, V. (2005), “Types of information technology capabilities and their role in
competitive advantage: an empirical study”, Journal of Management Information Systems,
Vol. 22 No. 2, pp. 253-277.
Bilgihan, A., Okumus, F., Nusair, K. and Kwun, D. (2011), “Information technology applications and
competitive advantage in hotel companies”, Journal of Hospitality and Tourism Technology,
Vol. 2 No. 2, pp. 139-154.
Bitner, M.J., Ostrom, A.L. and Meuter, M.L. (2002), “Implementing successful self-service technologies”,
Academy of Management Executive, Vol. 16 No. 4, pp. 96-108.
Brenner, W., Osterle, H., Petrie, C., Uebernickel, F., Winter, R., Karagiannis, D., Kolbe, L., Kruger, J.,
Plattner, H., Leifer, L., Lamberti, H.J., Leimeister, J.M., Schwabe, G. and Zarnekow, R. (2013), “The
digital user as new design perspective in business and information systems engineering”,
Business & Information Systems Engineering, Vol. 6 No. 1, pp. 55-61.
Chathoth, P.K., Ungson, G.R., Harrington, R.J. and Chan, S.W. (2016), “Co-creation and higher order
customer engagement in hospitality and tourism services: a critical review”, International
Journal of Contemporary Hospitality Management, Vol. 28 No. 2, pp. 222-245.
Chen, W.Z. (2011), “Smart robot industry development and strategy report”, available at: www.pmc.
org.tw/upload/files/R0/R02.pdf (accessed 20 November 2014).
Chesbrough, H. (2011), “Bring open innovation to service”, MIT Sloan Management Review, Vol. 52
No. 2, pp. 85-90.
Chin, Y.H., Lee, H.P., Su, C.W., Li, J.H., Lin, C.H., Wang, J.F. and Wang, J.F. (2014), “A framework design
for human-robot interaction”, Advanced Technologies, pp. 1043-1048.
den Hertog, P., van der Aa, W. and W. de Jong, M. (2010), “Capabilities for managing service innovation:
towards a conceptual framework”, Journal of Service Management, Vol. 21 No. 4, pp. 490-514.
DiPietro, R.B. and Wang, Y. (2010), “Key issues for ICT applications: impacts and implications for Hospitality
hospitality operations”, Worldwide Hospitality and Tourism Themes, Vol. 2 No. 1, pp. 49-67.
robots
Edwards, W. (1971), “Social utilities”, Engineering Economist Summer Symposium, Series, Vol. 6,
pp. 119-129.
Frei, F.X. (2008), “The four things a service business must get right”, Harvard Business Review, Vol. 86
No. 4, pp. 70-80.
Glaister, K.W. and Falshaw, J.R. (1999), “Strategic planning: still going strong?”, Long Range Planning, 1317
Vol. 32 No. 1, pp. 107-116.
Gomezelj, D.O. (2016), “A systematic review of research on innovation in hospitality and tourism”,
International Journal of Contemporary Hospitality Management, Vol. 28 No. 3., pp. 516-558.
Gorle, P. and Clive, A. (2013), “Positive impact of industrial robots on employment”, available at: www.
ifr.org/uploads/media/Update_Study_Robot_creates_Jobs_2013.pdf (accessed 20 November
2014).
Gronroos, C. and Ravald, A. (2011), “Service as business logic: implications for value creation and
marketing”, Journal of Service Management, Vol. 22 No. 1, pp. 5-22.
Gryszkiewicz, L., Giannopoulou, E. and Barlatier, P.J. (2013), “Service innovation capabilities: what are
they?”, International Journal of Services, Economics and Management, Vol. 5 Nos 1/2,
pp. 125-147.
Haidegger, T., Barreto, M., Goncalves, P., Habib, M.K., Ragavan, S.K.V., Li, H., Vaccarella, A.,
Perrone, R. and Prestes, E. (2013), “Applied ontologies and standards for service robots”, Robotics
and Autonomous Systems, Vol. 61, pp. 1215-1223.
Ip, C., Leung, R. and Law, R. (2011), “Progress and development of information and communication
technologies in hospitality”, International Journal of Contemporary Hospitality Management,
Vol. 23 No. 4, pp. 533-551.
Jacobides, M.G., Knudsen, T. and Augier, M. (2006), “Benefiting from innovation: value creation, value
appropriation and the role of industry architectures”, Research Policy, Vol. 35 No. 8,
pp. 1200-1221.
Johnson, M.W., Christensen, C.M. and Kagermann, H. (2008), “Reinventing your business model”,
Harvard Business Review, Vol. 86 No. 12, pp. 50-59.
Kim, J. (2016), “An extended technology acceptance model in behavioral intention toward hotel tablet
apps with moderating effects of gender and age”, International Journal of Contemporary
Hospitality Management, Vol. 28 No. 8.
Kim, J., Christodoulidou, N. and Brewer, P. (2012), “Impact of individual difference and consumers’
readiness on likelihood of using self-service technologies at hospitality settings”, Journal of
Hospitality and Tourism Research, Vol. 36 No. 1, pp. 85-114.
Kim, J., Christodoulidou, N. and Choo, Y. (2013), “Factors influencing customer acceptance of Kiosks at
quick service restaurants”, Journal of Hospitality and Tourism Technology, Vol. 4 No. 1, pp. 40-63.
Kindstrom, D., Kowalkowski, C. and Sandberg, E. (2013), “Enabling service innovation: a dynamic
capabilities approach”, Journal of Business Research, Vol. 66, pp. 1063-1073.
Kokkinou, A. and Cranage, D.A. (2015), “Why wait? Impact of waiting lines on self-service technology
use”, International Journal of Contemporary Hospitality Management, Vol. 27 No. 6,
pp. 1181-1197.
Krishnan, B.C. and Hartline, M.D. (2001), “Brand equity: is it more important in services?”, Journal of
Services Marketing, Vol. 15 No. 5, pp. 328-342.
Kwak, H.J. and Park, G.T. (2012), “Study on the mobility of service robots”, International Journal of
Engineering and Technology Innovation, Vol. 2 No. 2, pp. 97-112.
Lee, H.R. and Sabanovic, S. (2014), “Culturally variable preferences for robot design and use in South
Korea”, Turkey and the United States, ACM, pp. 3-6.
IJCHM Lovelock, C.H., Patterson, P. and Wirtz, J. (2015), Services Marketing: An Asian-Pacific and Australian
Perspective, 6th ed., Pearson, Melbourne.
29,5
Lusch, R.F., Vargo, S.L. and Wessels, G. (2008), “Towards a conceptual foundation for service science:
contributions from service dominant logic”, IBM Systems Journal, Vol. 47 No. 1, pp. 5-14.
Mann, J.A., MacDonald, B.A., Kuo, I.H., Li, X. and Broadbent, E. (2015), “People respond better to robots
than computer tablets delivering healthcare instructions”, Computers in Human Behavior,
1318 Vol. 43, pp. 112-117.
Mastrogivanni, F. and Sgorbissa, A. (2013), “A behavior sequencing and composition architecture
based on ontologies for entertainment humanoid robots”, Robotics and Autonomous Systems,
Vol. 61 No. 2, pp. 170-183.
Melian-Gonzalez, S. and Bulchand-Gidumal, J. (2016), “A model that connects information technology
and hotel performance”, Tourism Management, Vol. 53, pp. 30-37.
Michel, S., Brown, S.W. and Gallan, A.S. (2008), “Service logic innovations: how to innovate customers,
not products”, California Management Review, Vol. 50 No. 3, pp. 49-65.
Nickson, D., Warhurst, C. and Dutton, E. (2005), “The importance of attitude and appearance in the
service encounter in retail and hospitality”, Managing Service Quality, Vol. 15 No. 2, pp. 195-208.
Nieves, J. and Diaz-Meneses, G. (2016), “Antecedents and outcomes of marketing innovation: an
empirical analysis in the hotel industry”, International Journal of Contemporary Hospitality
Management, Vol. 28 No. 8.
Payne, A.F., Storbacka, K. and Frow, P. (2008), “Managing the co-creation of value”, Journal of the
Academy of Marketing Science, Vol. 36 No. 1, pp. 83-96.
Scherer, A., Wunderlich, N.V. and Wangenheim, F.V. (2015), “The value of self-service: long-term effects
of technology-based self-service usage on consumer retention”, MIS Quarterly, Vol. 39 No. 1,
pp. 177-200.
Teece, D.J. (2007), “Explicating dynamic capabilities: the nature and microfoundations of (sustainable)
enterprise performance”, Strategic Management Journal, Vol. 28 No. 13, pp. 1319-1350.
Vargo, S.L. and Lusch, R.F. (2004), “Evolving to a new dominant logic for marketing”, Journal of
Marketing, Vol. 68 No. 1, pp. 1-17.
Vargo, S.L. and Lusch, R.F. (2008), “Service dominant logic: continuing the evolution”, Journal of the
Academy of Marketing Science, Vol. 36 No. 1, pp. 1-10.
Wei, Y.L. (2013), “Skills talent development for the next ten years of Taiwan”, available at: www2.itis.org.
tw/pubreport/pubreport_detail.aspx?rpno⫽64558015&chaptername⫽%E7%B5%90%E8%AB%
96%E8%88%87%E6%94%BF%E7%AD%96%E5%BB%BA%E8%AD%B0 (accessed 30 April
2016).
Wood, L.J., Dautenhahn, K., Rainer, A., Robins, B., Lehmann, H. and Syrdal, D.S. (2013), “Robot –
Mediated interviews – how effective is a humanoid robot as a tool for interviewing young
children?”, PLoS ONE, Vol. 8 No. 3, p. e59448.
Zalama, E., Garcia-Bermego, J.G., Marcos, S., Dominguez, S., Feliz, R., Pinillos, R. and Lopez, J. (2014),
“Sacarino, a service robot in a hotel environment”, Advances in Intelligent Systems and
Computing, pp. 3-14.

Corresponding author
Chin-Yao Tseng can be contacted at: chinyao@mail.ypu.edu.tw

For instructions on how to order reprints of this article, please visit our website:
www.emeraldgrouppublishing.com/licensing/reprints.htm
Or contact us for further details: permissions@emeraldinsight.com
Appendix 1
Strengths
1. Colleges of technology and private
organizations have a good reputation in
research and development for ICT and in
the semiconductor industry
4. Trained personnel such as software and
hardware engineers are easily found, as
Taiwan fosters many experts in the fields
of electronic IC design, mechanical
engineering and motor and bearing
construction
3. Taiwan has mature robotic skills with a
complete supply chain which is able to
develop robots independently
5. Academic research and development
possesses a certain level of technological
capacity for producing service robots
2. Information communication technology
in Taiwan is highly developed and this is
helpful for developing service robots
Opportunities
1. Funding from the government is helpful
for upgrading the capability of research
and development for service robots
2. There is good potential to integrate the
IT and the precision instruments industry
4. Positive international developments in
the service robot field have stimulated
manufacturers in Taiwan to invest in the
robot business
3. Increase in job opportunities
5. Increases in the number of domestic
component companies result in decreases
in the costs of developing service robots
Hospitality
robots
Rank Weaknesses Rank
1 1. Collaboration between academia and 1
industry needs to be strengthened 1319
2 3. The needs for service robots in 2
hospitality are unclear and most
demands are experimental so hospitality
owners are rarely interested in investing
in them
3 2. Lack of key skills and technology 3
4 5. High royalties are a result of reluctance 4
to invest in service robots, as Taiwan has
poured few resources into the research
and development and innovation, while
most patents are possessed by foreign
companies
4 4. Hospitality owners are not interested in 5
the development of service robots and
robot training is not offered
Rank Threats Rank
1 1. Competitors from America, Japan and 1
European countries have higher levels of
robot technology than Taiwan
2 2. If the demand for robots does not 2
increase, manufacturers will gradually
leave the market and so will talent and
knowhow
3 3. Poor designed service robot makes 3
them unattractive to consumers
4 4. Foreign countries are more likely to 4
adopt service robots Table AI.
5 Capability for
technology
development
IJCHM Appendix 2
29,5
Strengths
2. The robotics industry is an attractive and
1320 potentially prosperous one which can drive
demand in the domestic market
3. Plenty of government funding can support
medium-sized to large companies with a
variety of research projects which alleviate the
expense burden of research and development
1. There is plenty of private funding for
investment in the robotics industry
4. Companies’ research and development
capabilities can be increased by government
funding support, bank loans with lower rates
of interest and collaboration with different
industries, schools, governments and private
organizations
5. Business operation taxes can be offset by
the regulation of investment benefits, which
save money for companies
Opportunities
3. The recent two years of smart robot projects
conducted by Hon Hai corporation have
reinforced the development of the robotics
industry
1. The implementation of service robots can
gradually increase job opportunities for the
robotics industry
2. The use of robots is a global trend which
attracts the attention of both international and
domestic investors
4. Service robots are a good idea; new business
operation models and new marketing tools can
sustain business operations in the long run, as
they can easily raise the capital from venture
capital funds
5. Government has promoted service-oriented
Table AII. manufacturing and technological services,
Capability for raising which promote the development of smart
money robots
Rank Weaknesses Rank
1 3. Funding cannot be easily raised because 1
current robot development is not significant
and this lowers the investment intentions of
companies
1 2. Processes in robot development and 2
production are complex and are associated
with high entry barriers and low returns on
investment
3 1. The international robotics market is 3
highly competitive and it is hard to make a
profit
4 5. Owners in the hospitality industry have 4
no capability or plans for phasing in robots
4 4. Small-to-medium-sized companies cannot 5
raise the necessary funding
Rank Threats Rank
1 1. Investment intention is not strong 1
enough, as the scale of the Taiwan market is
quite small
2 2. Small-to-medium-sized companies do not 1
have sufficient capital for robot
development so they cannot cover the costs
of business operations
3 3. Robot technology in Taiwan is far behind 3
America, Japan and Korea, as there is no
supportive policy from government
3 4. Failure to create robots with a fashionable 4
appearance with strong features makes it
difficult to compete with Japan, Korea,
America and European countries, whose
robot technology is about five years ahead
of Taiwan’s
3 5. Other countries such as China and Korea 5
have government support for robotics and
automation, which speeds up their industry
development
Appendix 3 Hospitality
robots
Strengths Rank Weaknesses Rank

1. The higher education system in Taiwan has
effectively promoted robot product
development which produces many experts in
the mechanical and electrical engineering and
information and communication technology
fields
2. The rewards of success in robot development
can be high and might be achieved by the
collaboration of industry, academia and
research institutes, as Taiwan has established a
good reputation in these fields
3. Taiwan has gradually gained the capability
to manufacture high-quality robots
4. The focus on product innovation and
research in Taiwan can help in the application
of service robots and the development of
patents
5. The development of industrial talent is
flexible so sufficient resources can be directed
to the robotics industry
6. A market for service robots in the hospitality
industry in Taiwan can be anticipated, as the
industry is prosperous
Opportunities
1. Practical competition in the robotics industry
in Taiwan has driven opportunities for the
collaboration of industry (e.g. Hon Hai) with
academia, thereby fostering talent in the field of
robot development
2. The trend toward increased robotics and
smart automation increases job opportunities
for the manufacturing of robots
3. The rise of robot manufacturing in Taiwan
requires people who are able to integrate
systems with hardware and software to
develop high-end smart robots
4. Educational institutions have gradually
focused on robotics education, as industrial and
academic collaboration has significantly
transformed knowledge and the application of
robots
5. Taiwan’s government supports industrial
and academic collaboration and internship
activities
1 1. Not enough job opportunities for using 1
robots, as the robotics industry in Taiwan
is at a preliminary stage 1321
2 3. Robot development policy from 2
government is unclear so it lacks funding
and resources for collaboration and
development
2 4. There is a lack of interaction between 3
industry and academia as well as a gap
between the required skills and the
available skills
4 6. The value of robots is not well 4
recognized by the industry
5 2. The hospitality industry is not aware of 4
the value that robots can provide
6 5. Taiwan’s education policy is unclear 6
Rank Threats Rank
1 1. Competitors such as Korea and China 1
have gradually obtained talent in the field
of robot development
1 4. The high cost of teaching materials for 2
robotics classes makes it difficult to raise
enough money
3 2. China and Southeast Asian countries 3
have aggressively poached talent in the
global robotics market
3 5. The development of service robots in 4
Taiwan is faced with competition from
Japan, Korea and China, all of whom have
advanced technology
5 3. Small- to medium-sized companies have 5
no intention of investing in robotics
businesses because they have no power to
develop breakthrough technology due to Table AIII.
the current limitations of robot Capability for talent
development development