Service orientation and performance: an organizational perspective

Abstract

PurposeWith the growing interest in service orientation research, the concept has been demonstrated to be a defining factor in the creation of superior customer service and value. The purpose of the paper is to evaluate service orientation as a socially constructed variable, empirically examine its relationship with measures of organization performance, and offer implications for management.Design/methodology/approachThis study was conducted to conceptualize and measure service orientation as an element of organizational culture, understand the linkage between service orientation as a strategic choice and organizational performance, and measure service orientation utilizing a multi‐informant approach.FindingsThe data indicated that organizational service orientation in banking is positively correlated with employee commitment, longevity, and esprit de corps, consumer products performance, service quality image, and banking profitability.Research limitations/implicationsThe study had five principal limitations: the relationships were tested in one industry, the study was cross‐sectional, the researchers were dependent on self‐reported data, the incidence of low job performance may have affected other relationships in the study, and the number of strategic units was relatively small.Practical implicationsOrganizational commitment and esprit de corps are important facets of an organization's culture that lead to longevity, higher service quality and profits.Originality/valueThis study is a step forward in investigating the organizational service orientation/organizational performance relationship in the arena of banking.