Liao&Chuang: A multilevel investigation of factors influencing employee service performance and customer outcomes

8 important questions on Liao&Chuang: A multilevel investigation of factors influencing employee service performance and customer outcomes

What is the purpose of the study of Liao?

To develop and test a multilevel framework in which employee service performance is examined as a joint function of employee individual characteristics and service environment characteristics.

What are the effects of employees that deliver high-quality service? (Liao)

Customers are more likely to generate favorable evaluations of service encounters (ontmoetingen), experience higher satisfaction, and increase their purchases and the frequency of their future visits.

Define employee service performance and service effectiveness?

Employees service performance = employees behaviors in serving and helping customers. This distinguishes from service effectiveness, which is the result of service performance (f.e. customer satisfaction and retention).
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On basis of employees personality. Four of the Big five personalities were empirically related to service performance: conscientiousness (zorgvuldigheid) and neuroticism where expected to be associated with performance in all jobs and extraversion and agreeableness were expected to be particularly relevant when performance involved interactions with other people, as it does in service context. Which 4 hypothesis did Liao formulate regarding this knowledge?

1a: Individual-level conscientiousness will be positively related to employee service performance. (Conscientious individuals are described as dependable, responsible, organized and hardworking).
1b Individual-level neuroticism will be negatively related to emloyee service performance. (Neuroticism: the polar opposite of emotional stability)
1c Individual-level extraversion will be positively related to employee service performance. (Extraversion: sociable, assertive, talkative, active)
1d Individual-level agreeableness will be positively related to employee service performance (Agreeables: good-natured, forgiving, helpful, cooperative)

1a+1c supported
1b+1d not supported

Store-level service and HR practices will moderate the relationship  between personality and employee service performance at the individual  level, this lead to hypothesis 3 of Liao:

The relationships between personality and employee service performance will be weaker in stores with higher levels of service climate and service-inducing HR practices.

H3 = not supported

For service organizations, customers' perceptions of service quality, customer satisfaction and loyalty are crucial indicators of effectiveness because of their close relationship with sales and profits. Which hypothesis fits this thought? (Liao)

Hypothesis 4: Store-level service performance will be positively related to customer evaluation of service quality, customer satisfaction and customer loyalty.

H4 = partially supported

Explain which hypothesis of Liao are and aren't supported:

-1a+1c are supported
-1b+1d are not significantly related to employee service performance
-2a+2b are supported
-2c+2d aren't supported
-The moderating assumption of H3 wasn't supported
-H4 is partially upheld (bevestigd).

What are the 3 specific recommendations of the study for improving employee service performance? (Liao)

1 Foresting a service-oriented climate
2 It pays to invovle employees in decision making (allow them in decision-participation and let them resolve customer complaints on their own).
3 In employment selection procedures managers may consider applicants' level of conscientiousness and extraversion to improve customer service performance.

(This study bridges the gap between macro (org. level) and micro (ind. level) approach).

The question on the page originate from the summary of the following study material:

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