Abstract

When employees in a service profit chain receive quality internal services, they provide quality services to external customers, but extant research does not address what connects internal and external services. This study espouses service climate as an integral part of the service profit chain by exploring its role in linking internal service management and external service performance, and the boundary conditions in which it operates. Data collected from 538 employees of 81 department managers in 24 Chinese hotels were examined using hierarchical linear modeling. Results suggest that managers’ commitment to service quality affects service climate through empowering leadership, service climate links empowering leadership and employee service-oriented behaviors, and external departments’ internal service quality strengthens the positive effect of service climate on service-oriented behaviors. This study advances the literature by integrating service climate and internal service quality into the service profit chain, helping hospitality managers understand how to foster service-oriented behaviors.

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