Title: The relationship-service-profit chain: conceptual framework and propositions

Authors: Carmel Herington, Lester W. Johnson

Addresses: Griffith Business School, Griffith University, PMB 50, Gold Coast Mail Centre, Queensland, 9726, Australia. ' Melbourne Business School, The University of Melbourne, 200 Leicester Street, Carlton, Victoria 3053, Australia

Abstract: This conceptual paper proposes an expanded relationship-service-profit chain as a business success model based on blending human resource management and marketing within the relationship marketing framework. The major contribution of the paper is the extension of thought and usage of the service-profit chain through the super-imposition of a relationship building approach to the provision of service. The proposed model draws on the original service-profit chain, which is further enhanced through the addition of a relationship marketing orientation guiding business culture and combining internal marketing and human resource management activities to best implement an updated service-profit chain. The enhanced relationship-service-profit chain model is introduced as a plausible explanation for previous problems encountered in the service-profit chain literature and also to provide a point of reference for future research into the association between internal service operations and external operations and sustained superior customer outcomes. Future research directions are provided.

Keywords: relationship-service-profit chain; relationship strength; internal marketing; relationship marketing; relational service quality; human resource management; HRM; internal marketing; organisational culture.

DOI: 10.1504/IJSTM.2010.034325

International Journal of Services Technology and Management, 2010 Vol.14 No.2/3, pp.144 - 162

Published online: 01 Aug 2010 *

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