When can interaction orientation create more service value? The moderating role of frontline employees' trust in managers and employee deep acting

Abstract

Despite the well-recognized importance of interaction orientation, limited studies have investigated its boundary conditions from the frontline employees' perspective. To address this issue, this study investigates the effect of interaction orientation in service value creation and identifies hierarchical trust and deep acting of frontline employees as two moderators. This study conducts a moderated regression analysis for hypotheses testing using a triadic data set of 2090 responses from managers, frontline employees, and customers of 209 firms. The findings show that interaction orientation has no effect on service value. Rather, interaction orientation contributes to perceived service value only when frontline employees have higher trust in their managers or when employee deep acting is high. The value of this study is in revealing the contingencies of interaction orientation on service value. It offers managerial implications that firms should build high trust in managers and encourage deep acting among frontline employees when implementing an interaction orientation strategy.