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Journal cover: International Journal of Service Industry Management

International Journal of Service Industry Management

ISSN: 0956-4233
Currently published as: Journal of Service Management

Online from: 1990

Subject Area: Industry and Public Sector Management

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Quality of work life and performance – An investigation of two key elements in the service profit chain model


Document Information:
Title:Quality of work life and performance – An investigation of two key elements in the service profit chain model
Author(s):R.S.M. Lau, (School of Business, University of South Dakota, Vermillion, USA)
Citation:R.S.M. Lau, (2000) "Quality of work life and performance – An investigation of two key elements in the service profit chain model", International Journal of Service Industry Management, Vol. 11 Iss: 5, pp.422 - 437
Keywords:Profit, Profitability, Quality of working life, Service organizations
Article type:Research paper
DOI:10.1108/09564230010360164 (Permanent URL)
Publisher:MCB UP Ltd
Abstract:Service profit chain is a well-received model to explain the sustainable competitiveness of many service organizations. The model attributes a service organization’s financial and market performance to its relationships with its customers and employees. According to the service profit chain, internal service quality serves the foundation of the model and it ignites a chain effect leading to an organization’s growth and profitability in the end. The purpose of this study is to provide an ad hoc analysis of two key elements of the service profit chain. Specifically, this research explores the direct linkage between performance in growth and profitability and quality of work life, which is a proxy for internal service quality in the service profit chain model. The performance of companies with a reputation of high quality of work life were contrasted to a control group of S&P 500 companies using COMPUSTAT data.



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