Developing Collective Customer Knowledge and Service Climate: The Interaction Between Service-Oriented High-Performance Work Systems and Service Leadership

This study theorized and examined the influence of the interaction between Service-Oriented high-performance work systems (HPWSs) and service leadership on collective customer knowledge and service climate. Using a sample of 569 employees and 142 managers in footwear retail stores, we found that Service-Oriented HPWSs and service leadership reduced the influences of one another on collective customer knowledge and service climate, such that the positive influence of service leadership on collective customer knowledge and service climate was stronger when Service-Oriented HPWSs were lower than when they were higher or the positive influence of Service-Oriented HPWSs on collective customer knowledge and service climate was stronger when service leadership was lower than when it was higher. We further proposed and found that collective customer knowledge and service climate were positively related to objective financial outcomes through service performance. Implications for the literature and managerial practices are discussed.