Customer Orientation of Service Employees and Organizational Performance: Empirical Evidence from Indian Banking

Abstract

The concept of Customer Orientation of Service Employees (COSE) continues to receive considerable attention from research scholars and business professionals in developed countries. However, very little or no such research has focused on understanding the complex relationship between various dimensions of COSE and organizational performance in a developing country like India. In order to plug the gap the present study has been conducted in the Indian service sector with samples from its four prestigious banks. The study that matches perceptions from both the contact employees and their customers reveals that (COSE) exerts its direct impact on several employee out comes (employee service effort, job satisfaction, esprit de corps and commitment) as well as on organizational performance (Customer service quality perception and their satisfaction). The empirical results also report indirect effects of COSE on organizational performance via the employee outcomes. These employee outcomes are found effective mediators thus linking positive effects of COSE to customer outcomes.