Drivers of service climate: an emerging market perspective

Purpose: Drawing on social exchange theory, the purpose of this paper is to develop and test an integrative model of internal and external factors determining employee perceptions of their organizational service climate. Design/methodology/approach: Data are collected from a sample of 549 service employees in local and foreign-owned service firms in the emerging market of Vietnam. Structural equation modeling is used to test the hypothesized relationships. Findings: Leadership commitment to service quality, internal processes and service standards, work facilitation resources and service-oriented human resource practices are positively associated with service climate. Internal customer service mediates the effects of these variables on service climate, with the exception of work facilitation resources. Furthermore, competitive intensity negatively moderates the impact of the internal drivers on service climate. The results also suggest that, depending on the ownership types (local vs foreign firms), the influences of the internal drivers of service climate might differ. Originality/value: Despite the recognition of the role of organizational resources in fostering service climate, the integration and processes by which such resources influence service climate have not been fully examined. In particular, little is known about the external factors facilitating or hindering service climate, especially from an emerging market perspective. By examining both internal and external drivers of service climate under different ownership types, this paper enriches the existing knowledge on service climate and provides important implications for service firms operating in emerging markets.