Abstract

Analogies between internal and external service quality suggest that internal quality can be assessed without too much regard to differences between organizational customers and fee‐paying customers. Research into organizational networks, however, indicates the importance of environmental and atmospheric factors in exchange activities. In this paper we explore the gaps in service quality arising from the conflict between departmental and organizational loyalties. Using methods derived from the external model of service quality put forward by Parasuraman, Zeithaml and Berry, we consider the value of internal research into service quality and suggest that organizational power struggles and lack of communication lead to misunderstandings about the priorities and resources available for internal service exchanges. The greater empathy generated among the participating departments suggests that improvement can occur when there is closer interaction between “warring” but nevertheless dependent departments. Balanced against this is an overarching need for organizational goals to take precedence and for limited resources to be allocated according to the ultimate needs of the external customer.

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