Applying Service Profit Chain model to the Korean restaurant industry

Abstract

The purpose of this study is to empirically determine the relationship between employees’ constructs such as internal service quality, service ability, employee satisfaction, and organizational commitment, and customers’ constructs such as perceived value, customer satisfaction, customer trust, and loyalty. This relationship was studied by applying the Service Profit Chain model to the Korean restaurant industry. Results show that internal service quality has a significant effect on service ability, and teamwork/communication has a significant effect on employee satisfaction. Employees’ organizational commitment has a significant direct effect on the value perceived by customers. Ultimately, there is an indirect influential relationship between employees’ and customers’ constructs. Implications of these results are discussed, and possible limitations of the study are addressed.