The service-profit chain (SPC) is one of the most influential concepts in service research. Introduced by Heskett et al. (1994), the SPC emphasizes the significance of both internal and external service quality for a firm's long-term financial performance. It bridges service companies' internal and external environments by positing employee satisfaction, loyalty, and productivity as mediators between internal and external service quality, and customer satisfaction and loyalty as mediators between external service quality and financial outcomes. In doing so, the SPC links three domains: (a) internal marketing, encompassing internal service quality and employee attitudes and behaviors; (b) external marketing, reflecting external service quality and customer attitudes and behaviors; and (c) firm performance, including revenue growth and profitability. Over the past three decades, the SPC has gained considerable scholarly attention and continues to inspire organizations that place employees and customers at the center of their strategies.
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