The service-profit chain in call centre services

Abstract

Purpose The purpose of this paper is to investigate the explanatory power of the service-profit chain (SPC) model in a context that differs from its original conception. The authors do so by considering whether the main relationships it proposes apply in the context of call centre services, characterised by remote services and cost cutting business models. Design/methodology/approach The data were gathered from a survey of call centre management with a sample of 937 call centres from 14 countries. The analysis was carried out using structural equation modelling. Findings Findings reveal that the SPC model behaves somewhat differently in call centres. Although there is general support for most of the links in the model, the results indicate that customer satisfaction in the call centre industry is a separate outcome, rather than a precursor to company performance. Research limitations/implications As is common in most research of this type, the present study is based on cross-sectional data. Practical implications Managers would be well advised to keep in mind that even minimum investments in human capital can make a difference in customer satisfaction and company results. Originality/value This is the first study to examine the main links in the SPC in non-traditional, non-face-to-face services. It demonstrates that the basic logic of the model is upheld, thus providing evidence that the boundaries of the SPC model may be further pushed in line with the peculiarities of the evolving service economy. Also, the authors make a methodological contribution by proposing a series of organisational level proxies for measuring elements of the chain that are typically assessed using individual level data that is expensive to gather.