RES70402 Research Methodology for Executives Assessment 2 (30%) (Continuous)

PART A

Question 1. A

As a valued researcher, you are required to critically review literature to support your research questions, and to create theoretical framework and hypotheses.

Work Required: Referring to the research problems you have identified in Assessment 1, you are required to conduct a critical literature review to support your research questions. You will then need to create a theoretical framework and formulate the appropriate hypotheses statements.

Your answer should be structured into three sections namely literature review to support your research questions, theoretical framework, and hypotheses statements. Your answer should be elaborated in detail with supporting literature and examples. When providing your response, please ensure to address the following aspects: coherence in structure, clarity in sentences, proper use of grammar and accuracy of the content.

Literature review

Theme 1: Problems related to service during market expansion

Scholars underscore that intangibility, heterogeneity, and inseparability are some of the natures of services that make international expansion difficult. Battisti et al. (2025) mention that such characteristics of services as IHIP provoke “specific implications of service international expansion difficulties”. The quality of services cannot be assured by standardisation, as the services are both produced and consumed at the same time.

Yan and Chin (2025) suggest that since service delivery is human-embedded, cultural sensitivity and local adaptation are not just a strategy preference but an operational requirement. Pragmatically, even the lowest-level elements of service may require localisation. As an example, a highly-regarded service gesture in one culture can be derogatory in another culture (Battisti et al. 2025).

 This means that service firms have to customise offerings and procedures to every new market in such a way that the experience can conform to local standards (Alonge et al., 2025). Lack of adaptability, as indicated by Battisti et al. (2025), can provoke a “liability of foreignness”, wherein the inexperienced service strategies will irritate the customers and hinder performance.

Contrary to the manufacturing scenarios, researchers emphasise that service companies necessitate effective market strategies. Most of the international brands hire domestic employees

and modify business practices to the host market (Fregidou-Malama, Chowdhury, and Hyder, 2023). According to Zhong, Zhu, and Zhang (2021), one of the ways through which MNEs have to ensure that they can attract and satisfy their clients is by ensuring that employees at the front-line level know the local culture and language. Research shows that without localisation; customer satisfaction drops a lot. Taylor et al. (2021) go no further than seeing positive company growth activities only when their practices are rooted in the culture of the host country.

Arguably, as per Mostafa (2025), technology can minimise geographical barriers so long as human beings can be united (rather than replaced) through digital platforms, yet technology can only enhance, not replace, any part of the service designs based on culture. Adaptation can also be facilitated by a collaborative entry mode, such as the use of local knowledge (e.g., joint ventures or franchising with local partners) (Mostafa, 2025).

Bright Horizons would need to tailor, according to the expectations and norms of the Australian customers. As an example, the dietary patterns and local taste can vary quite a lot. Instead of the U.S.-centric model, the company needs to employ Australian employees and customise its content to the local society. Bright Horizons needs to find a compromise between the internationalised service experience and strong localisation to thrive in the Australian marketplace.

There is, moreover, the Australian consumer law, which indicates the company’s requirement to operate fairly and respect consumer rights (Australian Government, 2025). This would come down, in practice, to pairing the experience of Bright Horizons with the Australian culture to cultivate trust among local customers.

Theme 2: Human resource strategy and employee turnover

Studies regularly emphasise that it is possible to reduce turnover through certain HR practices. Ghani et al., (2022) show how the full scale of HRM (rewards, training, recruitment) influences the working experience and motivation of the employees. Ghani et al. (2022) mentioned HR practices that promote employee development (mentoring, skill building), increase retention and good HRM, decrease voluntary turnover and increase the level of productivity and satisfaction.

 The theory of strategic HRM also considers the correlation of HR policies (pay, training, appraisal) to organisational goals as the means of attracting and retaining personnel (George et al., 2024). Conversely, Vicente, Venegas, and Guerrero (2025) indicated that there are certain drivers, including determined and supportive colleagues, professional growth and material used in the job would be retention factors.

On the other hand, low pay, poor onboarding by managers, and too much paperwork caused employees to leave. These views combined indicate that a system of strong HR and a consideration of the basic level problems are both required to keep employees from leaving.

A number of levers are pointed out by empirical findings. According to Biliaev (2024), employee satisfaction and employee development (e.g. defined career paths, frequent training) will result in commitments, or on the other hand, when these things are not addressed, churn will increase. Similarly, Manjenje and Muhanga (2021) emphasised that low wages and the absence of rewards will motivate staff to quit, and that, therefore, competitive wages and recognition schemes are important. Timsina (2024) indicated the importance of organisational culture: a great work environment and supportive leaders can minimise the risk of turnover.

On the other hand, inflexible policies and overloading work increase attrition. Multidimensional approaches are needed to deal with retention on the level of compensation, development, engagement and well-being. Proposed experiences of modes of practice include conducting exit interviews and more frequent staff member surveys to identify dissatisfaction and using HR analytics to trace patterns of turnover (Wandhe, 2025). All the research and policy prioritise the idea of integrating motivating factors (e.g. recognition, career path) and useful benefits (e.g. good salaries, health programs).

Bright Horizons takes certain steps in Australia that are also based on these insights. It must invest in professional growth and well-defined career ladders for its employees, and this is characteristic of well-known retention factors. Keeping compensation and benefits will be crucial since low pay was the leading cause of turnover.

Bright Horizons also has the possibility of influencing a positive culture (peer support, recognition and work-life balance) to enhance satisfaction (Nassani et al., 2024). As an illustration, the introduction of mentorship schemes can be used to capitalise on associate relationships. Bright Horizons could provide the employees with flexible schedules or wellness programs.

Theme 3: Customer experience, CRM, and Digital innovation

Digital innovation as an aspect of customer experience (CX) is a rising point of interest highlighted in new texts. Pereira et al., (2025) emphasise the impact of the emerging technologies (artificial intelligence and big data) on customer engagement, trust and satisfaction. According to them, individualisation and technological innovation are inherent customer retention boosters. Similarly, Naim, Rajuddin, and Ansyori (2024) observe that such tools as AI-based chatbots and big data analytics allow ensuring levels of real-time personalisation that increase customer satisfaction levels and brand loyalty.

 These things help a company personalise interactions and services and, in effect, improve the experience. Nonetheless, utilisation of these technologies requires the proper data management: data integration and privacy concerns are the critical points, according to Lin and Chen (2025). To keep customer trust, the CRM system should be safe and follow the rules.

A Customer Relationship Management (CRM) is the centre of the change. Recent forms of CRM technology gather and extract consumer information across several platforms (online, mobile, faceto-face) and provide a personalised customer experience. According to Lin and Chen (2025), a comprehensive execution of CRM enhances the understanding of the customers and influences innovation in service delivery.

In practice, it implies that companies may resort to CRM analytics to determine the preferences and pain points of various customers and change the offerings according to these changes. The most efficient and relevant interaction is made possible by having a digital CRM (e.g. automated outreach, chatbots). Meanwhile, the data aggregation of CRM needs to be well-governed: adherence to privacy regulations (Lin and Chen, 2025) is the key to retaining loyalty.

These insights have definite implications in the case of Bright Horizons in Australia. The introduction of digital CRM may contribute to customer satisfaction since it will help receive timely and personalised service. As an example, analytics powered by AI and chatbots can support frequent customer queries.

Such tactics are in line with what researchers have found concerning the strengthening of CX through multi-channel interactions and quick responses. Bright Horizons can also utilise CRM to request feedback (surveys or reviews) from the customers to inform changes.

Theoretical Framework

In conducting this research, three theories related to one another will be utilised to determine how Bright Horizon can improve its service delivery, mitigate employee turnover, and optimise customer experience in making its debut into the Australian market: the Service-Profit Chain, the Motivation-Hygiene Theory by Herzberg and finally the Servicescape Model.

The chain of the relationship between internal service quality, employee satisfaction with it, and a subsequent validation of such satisfaction by external customer satisfaction is now accepted to be direct and very clear in the Service-Profit Chain (Hogreve, Iseke, and Derfuss, 2022). Within the scope of Bright Horizon, this model can provide a useful guide to understanding the processes of establishing whether satisfaction of customers and general quality of service can be ensured through the investment in the employee experience (training, wellbeing programs).

 It indicates that the internal challenge, such as high turnover, cannot be considered to be an HR problem only, but one that has a direct impact on the matter of customer loyalty and business performance.

Deeper knowledge of employee behaviour is further provided by the theory developed by Herzberg

called the Motivation-Hygiene Theory, which makes a distinction between hygiene factors (e.g., salary, job security) and motivators (e.g., recognition, growth opportunities) (Lee and Lee, 2022). Reyes (2024) indicated the topicality of this theory in the service sector, implying that it is crucial to develop not only the hygiene but also the motivation factors to reduce turnover rate.

 In the case of Bright Horizon, the theory will inform the design of the retention initiatives that best respond to both the intrinsic and extrinsic requirements of the educators within the Australian childcare system.

Lastly, the Servicescape Model touches upon the significance of physical as well as digital environments on the personal identities of customers (Kandampully, Bilgihan, and Amer, 2023). This, in particular, is applicable since Bright Horizon offers its services at physical locations, with a digital touch (e.g., mobile applications, portals).

Service environments that are well constructed, such that they are clean, warm, and easily manipulable, increase trust, emotional comfort and customer loyalty.

 Utilisation of such a model will lead to the assessment of the impact that environmental cues (both online and offline) have on parental satisfaction within a new cultural context.

A combination of these theories provides a comprehensive perspective through which one can look at the interaction between internal workforce factors, the design of an environment, and customer experience. They give a systematic basis to interpret the variables affecting the success of Bright Horizon in Australia and come up with testable propositions based on service management research.

Hypothesis statements

The suggestions of the hypotheses that will be tested using the theoretical framework and goals of the research are as follows:

H1: There was a strong relationship between service quality inside the company and satisfaction, with the relation mediated by the performance and engagement of the employees.

H2: Targeted human resource initiatives (such as training, recognition, and career development) can remarkably minimise turnover among staff members in service companies such as Bright Horizon.

H3: Both the hygiene and the motivational factors established through the theory of Herzberg were determinants of employee retention and service delivery quality.

H4: Customer perceptions and satisfaction in a new market situation are strongly affected by the standards of the servicescape (including the physical store layout and its digital interface).

H5: The implementation of new advanced technologies (compared to the current internationalisation state) (CRM systems, AI-based analytics, and digital order platforms) has a positive correlation with better customer experience and operational efficiency outcomes when it comes to international expansion.

These hypotheses are geared at testing the dependencies among people, process, and technology in enhancing the market preparedness of Bright Horizon in Australia.