Service profit chain and throughput orientation: a manager-employee-customer triad perspective in services

Abstract

Building on the Theory of Constraints (TOC) in the service context and drawing on internal and external service profit chain literature, we explore the role of throughput orientation at the manager-employee-customer triad level. Controlling for archival performance data at the branch level of banks, in a sample of 136 triads of managers-frontline employees-customers at 37 branches from a bank in a northern state in India, we find that throughput orientation is positively associated with external service profit chain; and this association is further strengthened under stronger internal service profit chain. By integrating a service-operations based perspective of service employees at a triadic level, we demonstrate the importance of throughput orientation in service profit chains.