The conventional service profit chain (SPC) proposes that a firm’s financial
performance can be improved via a path that connects employee satisfaction,
customer orientation, customer satisfaction and customer loyalty. In this paper, a
complementary SPC is introduced which is built on both a conventional path as well
as a social identity-based path. The latter SPC part centrally builds on customer and
employee company identification as a core construct. On the basis of a large scale
triadic data set that included data from employees, customers and firms, we find
strong support for the extended SPC, which accounts for important customer (loyalty
and willingness to pay) and firm outcomes (financial performance). Also, the effects
of company identification exist incrementally beyond the effects of the conventional
SPC path.
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