AN EXPLORATION OF THE TRANSITION OF A STARTUP ENTERPRISE IN THE SHARED ACCOMMODATION BUSINESS

Maria Socorro (Marrisa) C. L. Fernando1

Abstract: The study is a qualitative research using interview data to determine the characteristics of the startup enterprise in the shared accommodation business. The data was analyzed using inter-coding analysis for qualitative study. The startup reveals characteristics typical of the organizations the creativity phase of Greiner’s organization growth were systems needs to be organized and leadership and management need to set up the strategic direction for the company including better operational management systems. The management and employees aspire to survive this initial phase amidst steep market competition in the sharing accommodation. They need internal process development and set out with a shared future direction. The recommendations in this study is a response to its current situation transitioning to its desired future phase of development.

Keywords: transition, startup enterprise, shared accommodation, organization growth, service management, inter-coding

Introduction Creativity. In the initial stage of an The focal system of the study is a startup organization, the emphasis is on creating enterprise which is a both a product and a market. The founders condominium vacation rental which of the company are usually technically or started operations in 2014. The sharing entrepreneurially oriented, and they economy business is a disruptive business generally disregard management model highlighting the ability and activities; their physical and mental preference of individuals to rent or energies are absorbed entirely by making borrow goods rather than owning or and selling the services or the product. buying them. This study utilized concepts Communication with and among from Greiner’s Organization Evolution employees is frequent and informal. (1972, 1998, cited in Jones, 2015); Work is rewarded by modest salaries and Service Model Canvas (Turner, 2015), the the promise of ownership benefits. and SOAR (Stavros and Hinrichs, 2009) Decisions and motivation highly consider to analyze the transition stage of the the feedback from the customers or startup. marketplace; management acts as Organization growth curve customers react. Creative activities are Greiner (1972,1998, cited in Jones, 2015) essential for a company to get started and describes the various stages of as the company grows, these very organization growth into various phases activities become the problem. At this as follows: stage, a crisis of leadership arises with the 1Maria Socorro (Marrisa) C. L. Fernando, Ph.D. need for a strong manager who has the Associate Program Director and Lecturer, MMOD necessary knowledge and skills to Graduate School of Business introduce new business strategies and Assumption University of practices.

Direction. As the company survives the

first phase by putting in a capable

business manager, the company usually

embarks on a period of sustained growth

with the able and directive leader. A

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functional organizational structure is accepted by stakeholders in the given introduced that separates the various decision contexts; responsive and flexible activities and then job assignments to the evolving user needs; sustainable- become more specialized. Incentives, affordable and consistent over time; and budgets, and work standards are expandable in order be applicable to implemented. Communication becomes different kinds of services. Service more formal and impersonal with the management is a continuous, cyclic setting up of titles and positions. The process for developing and delivering manager the and key supervisors assume user focused services. (The WMO most of the responsibility for direction- strategy for service delivery, n.d.) taking while lower-level supervisors Andersen & Ankerstjerne (2014) states work as functional specialists rather than that delivering excellent service is independent decision-makers. important for all companies today, but Delegation. The next phase of growth many companies struggle to deliver even stems from the successful implementation just a basic service of a decent quality. of a decentralized organizational structure Their study concludes that companies and greater responsibility is given to the who deliver excellent service are superior managers. Employees increase in the areas of people, processes, motivation as they receive bonuses. Top- leadership and culture. They propose a level executives manage based on service management model which is built periodic reports. Communication from on a thorough understanding of what is top management is infrequent and usually creating value to the customer and how to occurs by correspondence, telephone, or engage frontline employees in the brief visits. delivery process. The four key elements Coordination. This phase uses formal of their Service Management System are: systems to improve coordination and top- Service Culture, Employee Engagement, level executives take responsibility in Service Quality, and Customer initiating and managing the new systems. Experience. Collaboration. The last phase emphasizes Start-ups traditionally begin by focusing strong interpersonal collaboration to on their home markets. Now, startups are prevent the red-tape crisis. This phase 5 born global—chasing opportunities no emphasizes spontaneity in management matter the distance, learning to manage action through teams and the skillful operations across countries, and spotting confrontation of interpersonal for the best locations, brightest talent, differences. (Greiner, 1998, cited in willing investors, and most profitable Jones, 2015) customers wherever they may be—from Service Management day one of their operations. Isenberg Service management is providing a (2008) states that global start-ups face product or service that meets the needs of three challenges, namely (1) logistical a user or can be applied by a user. To be problems and psychic barriers created by effective, services should possess these distance and by differences in culture, attributes: available and time, language, education systems, religion, dependable and reliable- delivered on and economic development levels; (2) time to the required user specification; managing the challenges and usable- presented in user specific opportunities of different contexts – formats so that the client can fully various political, regulatory, judicial, tax, understand; useful that responds and labor environments and culture; (3) appropriately to user needs; credible- for must find a way to compete with the user to confidently apply to established companies with greater decision­ making; authentic to be resources while using far fewer resources.

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In order to succeed, global entrepreneurs to consumers. It is an emerging business must cultivate four competencies, model which is expanding fast and namely: (1) clearly articulate their reasons considered disruptive enough for for going global, (2) learn to build regulators and traditional companies who alliances with more powerful partners, (3) have recognized its immense potential. excel at international supply chain (The Economist, 2013) management, and (4) create a Southeast Asia is propelling the rise of the multinational culture within their ‘sharing economy’ with a growing organization. (Isenberg, 2015). All number of start-ups using this concept to entrepreneurs must be able to identify launch new and promising businesses. opportunities, gather resources, and strike The concept is still young in Southeast deals plus soft skills like vision, Asia and the Nielsen consumer report that leadership, and passion. The only way to consumers in the region are opening up to survive and keep growing fast in a world the idea. The report placed , the of innovation is to embrace changes and and Thailand among the top entrepreneurship. five markets globally that were prepared Sharing Economy Accommodations to participate in the share economy. (Ong, Business 2015) Sharing economy or peer-to-peer renting has grown incredibly fast in refers to the process of an individual Southeast Asia in 2012. In 2012, the total renting out an owned good, service, or nights booked on Airbnb increased 400% property to another individual. It is also in Indonesia, 275% in Thailand, 547% in referred to as Person-to-Person rental, , and 345% in the Philippines. P2P renting, Collaborative Consumption, Travelmob started in July 2012 and has and Product Service System. The term is made remarkable progress as a company mainly used to describe online enabled with listings increased by 415% in a span rental transactions between individuals. of a few months and thousands of nights The sharing economy rental market alone booked on Travelmob’s properties – from is worth $26 billion. Access by the web corporate retreats, to honeymoons, expat makes it easier both for individuals and relocations and even patients on medical companies alike to rent out spare rooms, treatments in Asia. (Ong, 2015) offices and machines. The fundamental of Together with the local innovation of the sharing economy is people renting startups in the ASEAN, there are also things from each other. This manner of successful global brands who are spotting “collaborative consumption” has a Southeast Asia as a productive market. number of advantages such as owners launched its service in and earn from underused assets. Airbnb cites in ; Withlocals is a - those hosts who rent out their homes in based start-up which focuses entirely on earn an average $9,300 for connecting locals in Asia with tourists 59 nights a year. The background checks wanting authentic holiday experiences in carried out by platform owners, online these countries; Airbnb is expanding into reviews and ratings are usually posted by countries such as Thailand, Malaysia and both parties for each transaction which , Philippines. In the city of makes it easy to spot lousy drivers, , ItsNeighborhoods service bathrobe-pilferers and surfboard- allows travelers to search activities in wreckers. By using Facebook and other certain cities and then view rooms social networks, participants can check available for rental that are close to these each other out and identify friends (or desired attractions. A similar room-rental friends of friends) in common. The service called offers short-term sharing economy is one of the best value

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stays in countries from Indonesia to the The start- up enterprise is owned by a Philippines. (Ong, 2015) couple who are Gen Y and they have six employees. Some units are owned by Startups are booming in Asia and to stay their colleagues and have been entrusted competitive, most of these startups need the management to ABC Residences with to demonstrate continuous innovation. a management fee. The enterprise uses Startups in the Asia Pacific region have to web platforms for its business do best when they adapt existing models transactions. These include AirBnb, to fit local market realities, and the Agoda, Vacationrental, Expedia, companies that do this best are generally Travelbook.ph. , and social media such as the ones attracting the most investment Facebook. There are also walk-in activity. customers, referrals and repeat customers. The Philippines is the fastest growing The start –up is expanding in terms of market in Southeast Asia for successful accommodations and there is need to global tech start-ups. Airbnb Southeast assess and enhance the service Asia reported that it had a “healthy management to sustain the business growth” in the Philippines and has amidst steep market competition. transformed the traditional lodging business from the typical hotel rooms. Research Objectives Over a thousand listings have property The research utilizes the qualitative owners willing to host accommodation approach and has the following for guests. Most of the listings were from objectives: top tourist destinations in the country including , Tagaytay, Baguio, 1. To determine the current state of Boracay, , and Davao. There was a service management in terms of service 300-percent year-on-year growth in culture, service quality, employee number of Airbnb users coming to the engagement and customer experience Philippines. Most of these travelers were 2. To analyze all the data generated from Europe and the and from the interviews in order to provide local tourists use Airbnb when travelling. recommendations that will support the (Philippine News Agency, n.d.) transition of the startup especially in the The Company area of service management The ABC Residences is a start-up enterprise which began its operations in The study is a contribution to the study of the Philippines in 2014. The enterprise transitions of startup enterprises using started with two- unit condominium qualitative approach in This research used apartment rentals and currently has 22 the experience of the participants in apartment rentals and still expanding. managing the business in the startup The customers are 80-90% expatriates phase. from , China, Korea, USA, , and European countries. Review of Related Literature Customers from the local market are Sharing economy was first used by usually Balikbayan (Filipinos on Professor Lawrence Lessig at Harvard vacation) or locals who prefer to enjoy Law School in 2008. Varsavsky (cited in staycation in nearby condominiums for Cotrim, 2015) proposes that Sharing parties or relaxation or domestic business Economy is “way of sweating trips. The annual number of customers underutilized assets, by building from 2014 number more than 2500 communities around them and turning guests, with rental capacity ranging from consumers into providers, and it has the at least 80% to 100% at any given time.

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potential to reboot businesses across most without the burden and expense of categories.” owning them outright. (Shao, 2015) The Context and Theory of the Sharing Sharing has exploded into a big part of the Economy global economy, disrupting traditional Cotrim (2015) states that sharing is as old business models in areas such as hotels, as humankind. He cited Belk (2014) taxi services, car rentals, parking, lending who states that terms like collaborative and more. It has allowed people to turn consumption and sharing economy are their idle assets into extra income and has phenomena born of the internet age. given consumers cheaper and more Sharing and collaborative consumption convenient access to a wide range of practices are growing fast and is products and services. Business people generating a debate around the cannot afford to ignore these changes implications for businesses still using whose industry could be the next to be traditional modes of sales and ownership. disrupted by the sharing economy. The Cohen and Kietzmann (2014) state that sharing economy has a number of key some of the models for sharing economy traits, namely: (1) facilitated by online stems from several factors such as the technology; (2) connecting networks of frugal spending due to the 2008 recession, people and /or assets; (3) utilizing idle growing environmental awareness, the capacity of assets (tangible and expansion of the Internet, information, intangible); (4) promoting interactions and communication technologies which and trust amongst people; (5) harnessing make sharing possible at scale. Together, openness, inclusivity and the commons. these developments have started to The sharing economy business achieved challenge traditional thinking about how successes exploring innovative ways to resources can and be offered and reduce waste, increase product usage and consumed, supporting arguments that integrate new systems into their incremental improvements in our existing sustainability agenda. (Shao, 2015) production and consumption systems are PwC estimates that global revenue from insufficient to transform our global the five most prominent sectors of the economy toward sustainability. sharing economy — finance, staffing, Belk (2014) calls this new paradigm as accommodations, car sharing and the “post –ownership economy” where music/video streaming — could rise from the sharing economy model makes people $15 billion in 2015 to about $335 billion rethink and alter the idea of possession by 2025. Mesh.It, a website that tracks and ownership. He states that we are the sharing economy, lists more than entering an age where the perception that 9,400 companies that offer goods and “you are what you own” is transforming services to be shared or rented. itself into rather “you are what you can Traditional businesses follow a simple access” or “you are what your share”. formula: create a product or service, sell Belk (2013) argues that the emergence of it, collect money. However, in last few the Internet has provided us many ways to years, an entirely different model has express our identity without ownership. emerged — one in which consumers have Kim, et al (2015) presented that there are more choices, more tools, more a few studies that have been able to draw information and more peer-to-peer power. on structured research to explain the Companies create, share and use social preference to engage in share economy media, wireless networks, and data rather than the purchasing a products or crunched from every available source to traditional services for the purpose of provide people with goods and services at ownership. the exact moment they need them, Service Management

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Service management is defined as a advantage. Satisfied customers not only continuous process for developing and have effect on an organization’s delivering user focused services, defined profitability but also it leads to positive by user engagement, service design and word of mouth, brand loyalty and repeat development, service delivery, and purchases. Service quality is the evaluation and improvement. (WMO comparison of customer expectations Strategy for Service Delivery, n.d.) with performance. Delivering service Andersen and Ankersrjerne (2014) stated quality means fulfilling customer that the provision of service is an expectations on regular basis. During ambiguous concept depending on context evaluating service quality customers of the service provider. They enumerated compare the expected services with the some four common features of service, services they receive. (Arshad and Su, namely: service consist of intangible and 2015) tangible aspects were the intangible Olufemi, Ajayi, and Oloyede (2011) in element of service cannot be stocked and their study “Impact of Property Assets’ is difficult to measure objectively; service Management Styles on Effective Service” tends to be produced and consumed conducted a survey on 57 hotels of simultaneously; the consumer is involved various ‘stars’ in South-Western geo- in the creation and delivery of service; the political zone of Nigeria with specific leadership and management skills are objective of assessing the impact of hotel very different from manufacturing. assets management styles on service delivery effectiveness. Data were Service management as a continuous, collected on hotel organizations through cyclic process for developing and their general managers, staff, and delivering user focused services has four customers in addition to physical stages: assessment of hotel structures and system Stage 1: User Engagement • operations. Stratified sampling technique identifying users and understanding was used in selecting the samples while their needs, as well as understanding the Kothari’s formula was used to determine role of related information in different the sample size. Data analysis was sectors; executed using descriptive statistics, Stage 2: Service Design and Spearman Correlation analysis and Development • process between relative importance index. The findings users, providers, suppliers, and partners showed that all the hotels that are using of creating, designing, and developing facilities management as assets’ services, ensuring user needs are met; management tool as against maintenance Stage 3: Delivery producing, management or property management are disseminating, and communicating data, more effective in their service delivery. products and information (i.e., services) A quantitative study “Improving service that are fit for purpose and relevant to user management in budget hotels” by Peng, needs; and, Zhao, and Mattila (2015) identified and Stage 4: Evaluation and Improvement examined service attributes in the context process to collect user feedback and of budget hotels and demonstrated their performance metrics to continuously impacts on service outcomes and hotel evaluate and improve upon products performance at the unit level. Using a and services. (WMO Strategy for Service large-sample, field survey responses from Delivery, n.d.) 162,757 customers staying at 1259 units of a budget hotel chain in China, they Delivering superior service quality has a identified eight service attributes from significant role in achieving competitive previous studies, and these attributes

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loaded on two latent factors: core and normative guidance, solidly based on auxiliary attributes. Furthermore, both experience, regarding the actions required core and auxiliary attributes were related to establish the foundation for a scalable to revisit intention, but only auxiliary business. attributes were associated with customer Business Model Canvas experience. Revisit intention influenced Osterwalder & Pigneur (2010) define the hotel performance while customer business model as a construct consisting experience failed to do so. In terms of of nine building blocks. It has some practical implications, budget hotels similarity with the more concise should use the inventory of service representation of Johnson et al., (2008) attributes to develop specific strategies for the latter starting with the value improving their service excellence and proposition including customer segments, financial returns. The inventory of service whereas Osterwalder & Pigneur explicitly attributes examined in this study could divide both. Johnson’s key processes help budget hotels to develop more include value creation (how to make) and specific strategies for achieving service customer related (how to sell) activities, excellence. whereas Osterwalder distinguishes Organization Growth of Startups between key activities, channels and Picken (2017) in his article “From startup customer relations. The functions of to scalable enterprise: Laying the channels are raising awareness, helping foundation” states that the essential steps customers to evaluate the value in the transition from a nascent startup to proposition, purchasing and delivering an organization capable of sustained and the value, providing post-purchase profitable growth are not readily apparent support. The component of key resources to many early stage entrepreneurs. The is identical in both approaches. (Verrue, life cycle of an entrepreneurial venture 2014) consists of four stages (startup, transition, The Service Model Canvas was created scaling, and exit), each defined by the by Turner in 2015. It is inspired by the principal challenges faced by the Business Model Canvas and is useful to founding team. The popular lean startup think about, de-construct, explore and methodology emphasizes a disciplined document a service. While the Business process of exploration, validation, and Model Canvas is an excellent tool for refinement of the business concept as the developing and documenting business essential first step in the process. models, the Service Model Canvas helps Although it is undeniably important to get develop and document not business the business concept right in the models, but service models. (Turner, beginning, there is a period of transition 2015) during which the founding team must establish a solid foundation for growth The research “A critical investigation of and scaling that may ultimately have a the Osterwalder Business Model Canvas: greater influence on venture success. To an in-depth case study” by Verrue (2014) date, limited research has focused on presented a critique of the Business transition and the field has offered little Model Canvas. He stated that although normative guidance. Entrepreneurs have the Osterwalder Business Model Canvas largely been on their own as they struggle, (BMC) is used by professionals through trial and error, to lay the worldwide, it has not yet been subject to a foundation and build a scalable business. thorough investigation in academic The research article describes the literature. The study presented the results essential tasks to be undertaken—the of an intensive, interactive process of data eight hurdles of transition—and provides analysis, visual synthesis and textual

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rephrasing to gain insight into the the organization’s success. The SOAR business model of a single case (health approach identifies and expands the television). The (textual and visual) existing strengths and opportunities rather representation of the business model than drill down on problems, deficiencies, needs to be consistent and powerful. It weaknesses, and threats. Research has started from the total value per customer shown that building on people’s strengths segment and besides the offer (or core can produce greater results than spending value) additional value is created through time correcting their weaknesses. customer related activities. (Stavros and Hinrichs, 2009) SOAR leverages Appreciative Inquiry Another study “Criticisms, Variations, (AI) which focus on the strengths of and Experiences with Business Model persons and organizations while still Canvas” by Ching and Fauvel (2013) addressing areas of need. Organizations aimed to highlight the importance of the do many things well, but often, they do use of BMC to the entrepreneurs and the not take the time to reflect on, academic world. The authors discussed communicate, build on and maximize the BMC problems and criticism and these strengths or to determine what is showed its variations in order to help meaningful to key stakeholders. Through entrepreneurs use these models in the co-creation, SOAR provides right way and successfully plan their opportunities to identify and discuss businesses. The shortcomings and strengths and opportunities, in order to weaknesses of the model were compared reframe underlying issues which, they can with experiences made in their class view through the lens of possibility, map ‘Entrepreneurship II’ offered in an out a shared preferred future and set undergraduate course of Business at a measures to measure success. Brazilian university in the state of São Qualitative Research Paulo. The experience with the class Qualitative research studies investigate highlighted the importance of the use of the quality of relationships, activities, BMC and its helpfulness in developing situations, or materials. There is a greater the students’ business plans. The study emphasis on holistic description – that is contributed the body of knowledge by on describing in detail all of what goes on filling the vacuum that exists in terms of in a particular activity or situation rather academic study concerning the use of than comparing the effects of a particular Business Model Canvas by the treatment (experimental research) or entrepreneurs when developing their describing attitudes or behaviors of business plan as well as to advance people (survey research). (Fraenkel, research in the areas of small and medium Wallen, Hyun, 2015). enterprises. SOAR Approach Research Methodology SOAR (Strengths, Opportunities, The research design is qualitative Aspirations, and Results) is a strategic research. Questions used for the planning framework with an approach interview were designed using concepts that focuses on strengths and seeks to from the Service Model Canvas (Turner, understand the whole system by including 2015 and SOAR ( Stavros and Hinrichs, the voices of relevant stakeholders. 2009) . As a qualitative study, the design Focusing on strengths means that the is emergent with the data analyzed using SOAR conversations center on what an inter-coding analysis. The emerging organization is doing right, what skills output from the data analysis were could be enhanced, and what is utilized for recommendations for growing compelling to those who have a stake in the startup enterprise. Table 1 shows the

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research procedures undertaken in this quality, with three study. employee experts. The participants of the study are the engagement − Actu internal stakeholders. The entire and customer al interviews population (N= 8) of the internal experience? were stakeholders participated in the conducted interviews and consisted of: two owners, with one client owner whose unit is managed manager/ow by ABC Residences, one supervisor, and ner and four employees. The study involves the employees startup team from April to September of the 2016. This is qualitative study and company. utilized results from interviews and focus group discussion. Secondary data were What Inter-coded Recommend taken from reviews in the shared recommendat data the ations that economy websites. ions may be interviews support the Interview Design constructed were transition Individual interviews were conducted based on all utilized to process of with the all the members of the company the data design the the startup within seven days. The interview guide generated new service enterprise was initially given to them in advance for from the managemen with focus prior preparation. Each individual interviews t roadmap on service interview was conducted in 20 minutes. using inter management The data was recorded with initial coding elements permission from all interviewees. analysis? An initial summary of the interview points and a focus group was also conducted to present them. The focus Data Analysis group discussion was conducted during a Coding Analysis by the researcher and five-hour session where they further two other experts was utilized to analyze confirmed the results of summary of the the interview data and used to develop the interviews and participated in further management service improvement plan. suggesting some more recommendation The structure of phenomena is the major for the sustainability of the start-up. finding of any descriptive phenomenological inquiry. This Table 1. structure is based upon the essential Summary of Research Design meanings that are present in the Research Process Output descriptions of the participants and is Questions determined both by analysis (as detailed What is the − The Interview below), and also by your (intuitive) current state interview data that insights. of startup guide was shows the development validated current Research Instruments and its utilizing situation and A set of questions was used to interview service Item aspiration of the manager and the staff. The Set A management Objective the startup questions were adapted from the Service in terms of Congruence team Model Canvas and Set B was designed by service (IOC) the researcher based on SOAR. The sets culture, validation of questions were subjected to Item – service Objective Congruence and all obtained

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IOC value from experts greater than 0.60 competence, employee competence and congruence level. customer delight? The Questions for interview Set A: Data Results and Discussion The interview data obtained was analyzed 1. What is the current state of your using inter-coding. The researcher and business in terms of the following? two other experts inter-coded the a. Customers: interview data and the summary is shown − Who are the current users and in Table 2. important users? Table 2. − Who do you plan to be the future The data from interviews resulting from users? inter-coding analysis. b. Service Proposition: Questions Inter coding of − Why would someone use your Interview Results service? Customers − What value would your service Who are the The current users of bring? current users the shared c. Channels: and important accommodations − Through which channels is your users? are foreigners service available? travelling from − Which channel is most preferred Asia, Australia, by your users? USA, Korea, UK d. Actors: who are on business − Who are the key persons involved and vacation trips. in delivering the service? There are also e. Key activities: domestic guests − Which key activity is required to who are home deliver the service? visiting from other countries “ − Which resources is required for balikbayans” and those activities? those families and f. Challenges: friends who want to − What current challenges exists? use the condo − What current challenges do you facilities for see in the future? staycation “breaks” g. Competitors: or family pleasure − What other similar services are time on weekends or available? celebrations . There − Who are the key competitors? are also foreign and − What other options do users have? domestic guests who use the Set B accommodations 2. What does growing the business are holding room of mean for you as the manager? As their personal employees? belongings before 3. What strategies and activities would flying out to other you undertake to make your business the Who do you destinations in the preferred sharing accommodation in plan to be the country or terms of business excellence, managerial future users? internationally. Since the venue is

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near the concert service, which is places and cheaper compared conference venue, to hotel the participants also accommodations. make reservations. Our service is There is a plan to relatively more cost expand the customer effective than hotel base to long- term stay due to the price users such as per room and the expatriates and amenities that are locals who want to offered to the guest. rent the There are flexible accommodations for payment options more than six and flexible months as arrangements for residence. guests. It is value for Service money. Proposition: The location is Why would central as it is easily Channels: The channels are on someone use accessible from the Through which AirBnb and other your service? international and channels is your sharing domestic airports. It service accommodation is also adjacent to available? sites and Facebook. the Mall of Asia and There is also the other shopping and word of mouth or recreational places. referrals from It is also in the area previous guests. of the convention Some guests are centers and the Bay also walk-in as of Manila and the recommended by Port of Manila. It companies or can be accessed by friends. Payments many kinds of are made available public Which channel through Paypal or transportations. is most bank payments for The Residences are preferred by walk – in customers. furnished with your users? Guests prefer the amenities for the online channels and stay including online payments. facilities for What value cooking. would your Housekeeping is Actors: service bring? available from 600- Who are the key Since the company 1000H. The persons has a very lean staff, residences are clean involved in the manager is very and well delivering the hand-on in terms of maintained. service? management. The service is The staff takes care preferred because it of reservations, delivers value for

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housekeeping and management. Trust hospitality to guests. and competency is Key activities: very important for Which key The key activities small team activity is include promotion, There is a need to required to reservations, check- have the deliver the in, in house management and service? accommodation owner to look services, check –out beyond the current services. We also situation and see offer shuttle what and how they services to and from want the business to Which airport. grow further. resources is Basically, these Customer required for services require What current complaints need those activities? good promotional challenges do professional management, staff you see in the handling. There are competency in guest future? negative feedbacks relations, efficient on social media housekeeping sites. services and coordination with The steep market Condominium competition is a management. Good challenge to be command of the prepare for. Many English language is other similar also important. services are Service mushrooming in the management is key area. There should to quality delivery be “something of these services. more” to offer guest We have a lot to and have more work on as a team in repeat customers or terms of referrals. competence and Competitors: Unit owners who professional What other are independent service. similar services sharing There is a need to are available? accommodation standardize the Who are the key with lower costs. procedures and competitors? They are the key policies of the What other competitors. startup so that the options do users Trained people are team have common have? pirated by other unit expectation and owners. KPIs . What does As manager: Challenges: The challenges growing the growing the What current include: business mean business means 5- challenges High staff turnover for you as the 10 percent increase exists? (5%) which affects manager? As in the rate of the service employees? occupancy,

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especially during of business the lean season and processes especially more staff to handle in the hospitality the guests in a more service business. competent manner. Business operations It also means management is a growing the competence that the business with more owner/manager related services such keenly needs for as car service, sustainability of the laundry, etc. startup enterprise. As employees: Employee better business competence: means better Employees desire to remuneration and be sent to benefits for them. It workshops to gain also means less staff competence in guest turnover. They ask relations and for more service. They also coordination with want training in manager and professional English training in the language to deal service business , with both local and especially in foreign guest. They professional English also express the language desire for better competency and benefits and job guest handling. security. What strategies Business Customer Delight: and activities excellence: There is Have a customer would you a need to have a hotline and a 24 /7 undertake to strategic planning staff to respond to make your for the unit owners guests’ needs. business the and managers in Feedback survey is preferred order to set out necessary and not sharing common just rely on the accommodation expectations and feedback on the in terms of deliverables, at least sharing business for the next three accommodation excellence, years. website. Have managerial Managerial further options for competence, Competence: There digital payment employee are two managers such as Alipay, etc. competence and who are also Have guest loyalty customer owners. Since they incentives for repeat delight? are Gen Y, they feel customers. Target the need for that the company is professional a “preferred managerial accommodation” in competence in terms the shared

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accommodation learning on the business operations websites. management and strategic management. Currently, the owner/manager and the The results of the data were inter-coded team can initially cope with the demands from the interviews show that the startup of leadership and management. However, enterprise is in the creativity phase of as the company grows, they will be pulled development. Greiner (1972, 1998, cited towards many directions until they are in Jones, 2015) explains that the unable to fulfill their duties. This will lead Creativity phase is characterized by an to challenges in the capabilities of the emphasis on creating a product and owner/manager to carry on and deal with market, where the founders are in charge, the complexities of the growth of the is technically orientated, focused on startup enterprise. Being Gen Y manager making and selling the product, also needs to learn from experts in the communication is frequent & informal, field which could be attained by and hard work is rewarded by modest networking and seeking professional salaries & promise of ownership benefits. advice from those in the business and The interview data show that the related fields. managers and the staff form a very lean The company has to set time for direction team composed of eight people. The setting with a strategic plan and which the owner/manager takes charge of company does not have at the present administrative decisions and the staff state. It is operating based on success due simply works as delegated or assigned. to profits. The steep competition within The main focus of the work team is to the same business needs direction and deliver quality accommodations for the innovation to be sustainable. The customers from the first point of contact company needs professional expert to whether online or personally until their allow the owner/manager to know more check-out from the accommodations. The about strategic thinking and design work is so technical that most employees strategic and operations plan that will who are relatively young tend to resign ensure that the business grows amidst the from the job after two or three months due current and future challenges. Business to routine job tasks that do not create excellence will be ensured in a market challenging undertakings. The with growing competition. communication and decision making is The quality of employees need to be partly participative because the team assured in order to grow the enterprise. works to solve problems together, unless The data from interview reveals the high directions are given by the turnover of the staff and the intention of owner/manager. request for better benefits alongside job Managerial excellence at this point is related training to better handle the critical as the business expands. Greiner demands of customers. These training (1972, 1998, cited in Jones, 2015) points include guest handling and language out that the crisis of at the creativity phase skills. Furthermore, there will be a need to involves increasing complexity where engage a more professional manager who founders struggle to both run and manage has the expertise and can be entrusted the business, and conflicts emerge on new with the operations of the growing products / markets, lack of decisive business. The quality of the business in direction. He suggests that there is a this regard is connected to the quality of necessity to install a strong business management and service delivery. manager to pull the business together. The company’s sustainability is ensured Data from the interviews reveal that the by the increase in the number of manager expressed the need for further customers. As the owner/manager looks

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to being a preferred accommodation in organizations in approaching service the sharing accommodation sites such as delivery management. The elements Airbnb, trip Advisor, etc. and also include fostering a culture of service through word of mouth, it has to come up which determined discretionary behavior with strategies that will deliver these in the absence of direct supervision, aspirations. The growing competition creating a sense of purpose in the needs innovations so that customers will organization which responds to the need notice the service or product. of the service employees for meaning and Conclusions identity in their work, engaging This research presents the following employees, and leading instead of conclusions based on the findings: managing. The startup is currently at its transition Following Greiner’s organization cycle phase from creative phase where the (1972/1998 cited in Jones, 2015) the emphasis is on creating both a product enterprise at the creative phase is and a market. The current company is transitioning to the next phase of developing it service culture, service direction. The transitions include the quality, and improving its employee following shifts: management focus engagement for better customer shifts from make and sell to efficiency of experience. The lean staff structure needs operations; the informal organizational competencies to better serve the structure develops to be centralized and customers. The business is growing functional; top management style shifts which is an indicator of the satisfactory from individualistic and entrepreneurial service quality. The employee to directive; management reward engagement needs improvement as emphasis develops from ownership to indicated by the high rate of turnover. salary and merit increase; and finally the Skills such as language skills and task- market focus shifts from market focus to related training are necessary to better standards and cost centers. improve the quality of customer The stages of growth of the startup to a experience. The company owner and sustainable organization is a employees are focused on growing the consciousness that the owner /manager business in terms of customer rate and and startup team needs to develop. Being recognize that there is a need to further faced with market demands, the improve service quality by better service entrepreneur needs to undergo a through better internal processes and disciplined and systematic exploration of upgrading standards to the next level so its strategic direction and refinement of its that they would be the preferred company business concept and operations by both the repeat and new customers. management. Picken (2017) calls this the The interview data analysis indicated that transition of the startup to a scalable the move towards the next phase of business organization growth and sustainability Limitations of the Study and Implications requires direction setting by the owners. for further research There is a need to systematize the The research is qualitative and focused on structure and standard processes for one sharing economy business company internal stakeholders such as benefits, job at the start-up phase. descriptions, monitoring and evaluation. Further research on sharing economy All of the above points from the data as enterprises using qualitative approach and analyzed are coherent with what the models used in this research is Andersen and Ankerstjerne (2014) stated recommended. The extend of growth of that frontline employees are key along the sharing economy in various forms is with additional elements for service an area to explore the study of

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organizations, particularly that they Journal of Sustainable Development, present new forms of organizing and of August, 4(4), 116 – 137. doing business. Further research may explore the possibility of providing a Fraenkel, J.R., Wallen, N.E., Hyun, H.H. deeper perspectives of the stages in the (2015). How to design and evaluate transition process and shed guidelines to research in education. 8th ed. USA: help startups develop to scalable levels. McGraw-Hill Education

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