PurposeThe COVID-19 pandemic has, besides the health concerns, caused an unprecedented social and economic crisis that has particularly hit service industries hard. Due to extensive safety measures, many service employees have to work remotely to keep service businesses running. With limited literature on leadership and virtual work in the service context, this paper aims to report on leadership effectiveness regarding employees' work performance in virtual settings brought on by the COVID-19 pandemic.Design/methodology/approachDrawing on the input–process–outcome (IPO) framework, this research investigates the effectiveness of leadership on service employees' work performance mediated by work-related tension, autonomy, and group cohesiveness. Furthermore, this study explores moderating effects of the service provider's digital maturity. To test the derived model, the authors collected survey data from 206 service employees who, due to the COVID-19 pandemic, unexpectedly had to transform to a virtual work environment. The authors analyzed the data using partial least squares structural equation modeling (PLS-SEM).FindingsThe results indicated that it took task- and relation-oriented leadership behavior to maintain service employees' work performance in a virtual environment during crisis situations. Further, results indicated mediating effects of service employees' individual job autonomy and team cohesiveness; surprisingly, work-related tension did not impact employees' work performance. Results offered service businesses guidance on how to effectively lead in times of crisis when service employees predominantly work in virtual environments.Originality/valueThis is the first empirical study to show how leadership affects service employees' work performance in a virtual work environment during crisis times. Thus, the study contributes to the scarce literature on the impact of leadership in service firms that have to operate in such a setting.

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Purpose New approaches in loyalty programs try to activate membership by rewarding not just financial transactions but also customer engagement. The purpose of this paper is to analyze the effect of rewarded customer engagement on loyalty intentions and behavior by applying a social media context. Design/methodology/approach A field study in the mobility service industry (focus groups (n=18) and questionnaire (n=1,246)) and a laboratory experiment (n=141, 2 (rewarded engagement and transaction/rewarded transaction)×2 (low/high reward) between subjects design) were conducted to determine the effect of rewarded engagement on loyalty. Findings In the field study, the participants could gather loyalty points through their social media engagement. Their attitudinal loyalty to the loyalty program and the company was significantly higher than that of the loyalty members who collected points solely through transactions. This effect is especially prevalent with respect to engagements rewarded with monetary incentives and is underlined by behavioral data. The results of the laboratory experiment show that rewarded engagement positively moderates the impact of intrinsic motivation on loyalty intentions. Offering rewarded engagement in loyalty programs offsets the undermining effect of rewards. Practical implications Rewarding customers for social media engagement can be a beneficial way of boosting active participation in loyalty programs, but this experience should be enjoyable and self-determined. Originality/value The study is the first to show the impact of rewarded customer engagement on the attitudinal and behavioral loyalty of members of a loyalty program.

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Purpose The purpose of this paper is to contribute to marketing communications literature by exploring consumer responses to covert advertising (CA) in a social media context. Design/methodology/approach The persuasion knowledge model was used to explore the impact of CA on brand evaluations. A factorial design experiment was conducted in a social media context (YouTube). Findings The results of the study show that triggering knowledge about CA changes the way consumers respond to unfamiliar brands that use such tactics. This implies that for unfamiliar brands, with future development of persuasion knowledge, CA in social media will not only be ineffective but also detrimental with damaging effects on the brand. Research limitations/implications An important contribution of this study lies in the application of the persuasion knowledge model to social media context. Practical implications The results indicate that firms should desist from covert product and brand communications in social media contexts, and instead employ disclosed brand communications. Originality/value Given that the effects of CA have not been investigated in an online context, this study makes a unique contribution to brand communications research by providing valuable insights and better understanding of the effects of CA in social media, specifically YouTube.