Relationships between Service Providers and Their Impact on Customers

Abstract

Relationships between service providers and customers are important for achieving high levels of customer satisfaction and loyalty, service management scholars have shown. Building from existing theories, the author proposes that relationships between service providers are another important contributor to customer outcomes. When service processes are highly interdependent, uncertain, and time constrained, relationships between service providers are integral to the process of coordination and therefore are an important contributor to customer outcomes. In a study of postsurgical care in nine hospitals, the author finds that strong provider-provider relationships directly increase customer satisfaction and loyalty because the overall service experience is more effectively coordinated. Second, strong provider-provider relationships help service providers to develop more effective relationships with their customers, which further increases customer satisfaction and loyalty. Managers should therefore select, train, and reward service providers in a way that supports the formation of strong working relationships between them.