Abstract
Operational efficiency is a central goal of service firms. The past decade witnessed the replacement of people with IT systems in service industries, yet the spotlight recently shifted to how frontline employees (FLEs) might perform a dual role by achieving sales and service goals simultaneously. This study examines the predictive ability of three well-established constructs (psychological climate perceptions, leader–member exchange, and employee self-efficacy) to model sales and service performance empirically across a range of service settings. The authors also examine the moderating impacts of environmental dynamism and employee experience, to identify the conditions in which climate, leader–manager exchange, and self-efficacy have greater or weaker impacts on FLEs' ability to meet both sales and service targets. The results indicate the significance of all three main effects in driving sales and service performance and support the moderating effects of environmental dynamism and experience.
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