Corridors of Influence in the Dissemination of Customer-Oriented Strategy to Customer Contact Service Employees

Abstract

It is widely held that a customer-oriented firm is more likely to deliver exceptional service quality and create satisfied customers. However, little research has addressed the question of how the orientation can be disseminated among employees throughout the firm. This dissemination is especially important in service firms in which frontline, customer contact employees are responsible for translating a customer-oriented strategy into quality service. The authors propose a structural model that explains how service firms can disseminate their customer-oriented strategy by aligning the strategy with specific management- and employee-initiated control mechanisms (i.e., formalization, empowerment, behavior-based employee evaluation, and work group socialization) that lead to increased commitment and shared values on the part of customer contact employees. The findings indicate that there are three “corridors of influence” between customer-oriented strategy and shared employee values. The dominant corridor, which focuses on dual (management- and employee-initiated) control, emphasizes the importance of work group socialization and organizational commitment in the dissemination of customer-oriented strategy. A secondary corridor focuses on two management-initiated control mechanisms: formalization and behavior-based evaluation. The final corridor, which focuses on the empowerment of customer contact employees, has a more limited impact than originally hypothesized. The authors discuss implications for the implementation of customer-oriented strategy and the management of customer contact employees, along with several directions for further research.