The influence of servant leadership on an organization’s serving-driven capabilities in a Kuwaiti bank environment

Abstract

PurposeThe purpose of this paper is threefold: first, to test the direct influence of servant leadership (SL) on an organization’s serving-driven capabilities (S-DC). Second, to test the indirect effect of SL on employee customer-service behaviors and identification with their branch. Third, to determine the direct effect of an organization’s S-DC on employee customer-service behaviors and identification with the branch. Thus, the authors provide evidence of how SL influence serving-driven interaction capabilities that are later deployed to execute customer-oriented behaviors.Design/methodology/approachSurvey data were obtained from a sample of 36 bank branches of one bank in the Middle East. Employees evaluated their manager’s SL behaviors, the six S-DC and their identification with the organization. In turn, managers assessed their employees on customer-service behaviors. Partial least squares path analysis was used to model the relationships.FindingsResults indicate servant leaders’ behaviors are example, motivator and determinant of an organization’s S-DC. Employees not only adopt the S-DC by imitation but also as a mean to reciprocate the leader: serve your customers like the leader serves you. Other results and implications for managers are presented.Research limitations/implicationsThe study is of a cross-sectional nature therefore a causal effect of SL on S-DC cannot be determined. Second, the study is limited to one bank although several branches were randomly sampled. Third, the evaluations of the S-DC have been done by the employees rather than customers.Practical implicationsThe S-DC concept provides ample opportunities for managers to enhance their interactions with employees and customers to improve their performance by identifying which capabilities to develop. Specifically, interactions that promote ethical, empowering, developmental relationships and that encourage genuine two-way communication and responds to individual needs.Originality/valueThe study is original in testing the mediating effect of a S-DC. The focus on individual and organizational capabilities is relevant because they have been touted as among the most important factors to explain the differences of company performances and competitive advantages