The service smile chain: linking leader emotions to customer outcomes

Abstract

ABSTRACTThis study examines the emotional mechanisms that link leadership and customer outcomes. Data were collected from 359 matched supervisor-subordinate-customer triads in a chain restaurant in China. Results show that leader positive emotions are transmitted to customers via service employee positive emotions, which then increase customer re-patronage intentions. However, although leader negative emotions are positively associated with employee negative emotions, employee negative emotions are not transmitted to customers. Moreover, employees’ negative affectivity (NA) moderates the relationship between leaders’ and employees’ negative emotions, such that the relationship is stronger among high NAs. The study extends prior literature by identifying a service smile chain that links leadership and customer outcomes and by investigating the moderating role of NA in such chains. Study findings highlight the important connection between intra-organizational emotional mechanisms and customer outcomes and point to the importance of an emotionally healthy workplace to better customer service.