Employee Customer Orientation in Context : How the Environment Moderates the Influence of Customer Orientation on Performance Outcomes

An empirical study evaluates the moderating effects of unit customer orientation climate (unit CO climate) and climate strength on the relationship between service workers’ level of customer orientation (CO) and their performance of customer-oriented behaviors (COBs). In addition, the study examines whether COB performance, at the unit level, influences firm profitability. Building on multi-source, multi-level data, the study’s results suggest that the influence of employee CO on employee COB performance is positive when the unit’s CO climate is relatively higher and that the constructs are unrelated when unit CO climate is relatively lower. In addition, the data reveal that unit COB performance influences unit profitability by enhancing revenues without a concomitant increase in costs. The study’s results underscore the theoretical importance of considering cross-level influencers of employee-level relationships and suggest that managers should focus on creating a climate that is supportive of customer-oriented behaviors if their units are to profit from the recruitment, hiring, and retention of customer-oriented employees