Internal service quality as a driver of employee satisfaction, commitment and performance

Abstract

Purpose The purpose of this paper is to use “positive organizational behavior” and “transformative service research” paradigms to introduce “employee well-being” as a focal construct in the process by which internal service quality (ISQ) drives employee satisfaction, commitment and performance. Design/methodology/approach A field-survey using a structured questionnaire is employed to test all the hypotheses with 250 employees and their 25 supervisors in a manufacturing unit in Guangdong province of the People’s Republic of China. Findings All the eight hypotheses are supported. ISQ has a positive effect on employee satisfaction, commitment and employee well-being, which in turn positively influence employee performance. Employee well-being also positively moderates (strengthens) the effects of employee satisfaction and commitment on employee performance. Research limitations/implications This paper uses data from a single factory in China and focuses on a few key constructs, which may restrict the generalizability of its findings. Moreover, no significant differences were found among the supervisor-workers units. Practical implications Managers in non-service industries should focus on improving ISQ and employee well-being in their organizations because both these constructs have significant direct and indirect effects on employee performance. Originality/value This paper extends past research on ISQ by showing that it affects employee performance via satisfaction and commitment, and that employee well-being moderates the effects of employee satisfaction and commitment on performance.