Service-oriented human resource practices and customer outcomes: the service-profit chain perspective

Purpose Based on the service-profit chain perspective, this study investigates whether service-oriented human resource practices can enhance customer outcomes through motivational mechanisms (i.e. intrinsic/extrinsic satisfaction) as well as emotional mechanisms (i.e. emotional labor strategies). Design/methodology/approach This study collected paired data from 220 service workers and their customers at different time points from 80 service firms. Multilevel path-analysis was conducted to test the proposed hypotheses. Findings Our results indicate that firm-level extensive training is positively related to service workers' intrinsic job satisfaction, which in turn increases deep acting. In addition, firm-level incentive compensation is positively associated with service workers' extrinsic job satisfaction, which in turn reduces surface acting. Finally, service employee's deep acting enhances customer loyalty and willingness to recommend via customer satisfaction. Practical implications The service organization should (1) stress the importance of incentive compensation to decrease surface acting via enhancing extrinsic job satisfaction and (2) provide extensive service training to improve service employees' intrinsic satisfaction and deep acting, leading to favorable customer outcomes. Originality/value The present study identifies the critical roles of motivational and emotional mechanisms in transferring service-oriented human resource practices to customer outcomes and employing rigorous research design to enhance the internal/external validity of our findings.