Effect of Service Climate on Service Quality: Test of a Model Using Hierarchical Linear Modeling

This study builds on the research evidence of the positive influence of employees' perceptions of service climate and service quality on customer satisfaction with service (Parkington & Schneider, 1979; Schneider, Parkington, & Buxton, 1980).The study tests a model of the relationship between service climate and customer satisfaction using the themes identified by Schneider, Wheeler & Cox (1992). It was hypothesized that human resource practices, interpersonal relationships, coordination, and service emphasis will have a positive relationship with customer service quality. Similarly employee service behaviors, employee service capability and employee service quality will have a positive relationship with customer service quality. Data was collected from employees and customers of a State Government agency. The proposed model was tested using hierarchical linear modeling (HLM).The correlation matrix indicated that there were significant relationships between the variables in the model. Results of model fitting using HLM indicated that human resource practices, service emphasis, employee service behavior and service capability had a positive impact on customer satisfaction, whereas interpersonal relationships had a negative impact on customer satisfaction. No relationships were found between coordination practices and employee service quality with customer service quality. There was significant moderation effect for the office at which the service was delivered.