Linkages Between Service Climate and Service Quality
Volume 15, Number 3 Article by G Shainesh , Tanuja Sharma September, 2003
Linkages Between Service Climate and Service Quality — A Study of Banks in India :
The ability to deliver superior service is a critical differentiator and a source of sustainable advantage in competitive businesses. The customers’ perception of service quality is related to satisfaction, retention, market share and profitability. In people intensive services, the customers’ perception of service quality is influenced by their interactions with the frontline employees of the service provider. The employees’ ability to deliver excellent service depends on the climate for service created by the organisation. G Shainesh and Tanuja Sharma explore the linkages between the employees’ perceptions of service climate and the customers’ perceptions of service quality in the banking industry in India. Data was collected from employees and customers across 48 branches of 8 public sector, private and foreign banks in New Delhi. The results of the analysis establish a strong linkage between elements of service climate and service quality. Managerial implications and directions for research are discussed, an important indication being the reduced gaps between foreign banks and private banks, which is contrary to the conventional wisdom that we need to ape the West to be competitive. The progress of the new private banks indicates that good system designs, progressive review practices, teamwork and customer orientation are important in the way forward.
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