The influence of a retail store manager in developing frontline employee brand relationship, service performance and customer loyalty

Abstract

Retail managers are critical to the effective performance of a firm given their key role of implementing retailer strategy through the behaviors and attitudes that are instilled within frontline employees. Yet, empirical work in retailing rarely attempts to incorporate perspectives of both the store manager and frontline employee, as well as integrating customer-focused outcomes. In this study, based upon predictions of social exchange theory, we present empirical results that provide an integrative view of how leader-member exchange quality influences the development of a frontline employee’s brand relationship, which ultimately influences retail employee performance and customer loyalty/brand equity. The strength of the observed empirical relationships is influenced by contextual factors, including manager brand knowledge and the extent to which strategic information is disseminated among employees. Both theoretical and managerial implications are discussed.