The service profit chain model (SPC) underscores the well-established correlation between employee and customer attitudes. It posits that engaged and satisfied employees can provide superior customer service outputs, fostering increased customer satisfaction and eventually driving higher organization revenue and profitability. The authors propose an extension of the service-profit model in this chapter, which involves pinpointing neuro-leadership behaviors that promote favorable employee attitudes, engagement, and productivity. By briefly analyzing the SPC variables of past 26 years research, and as evidenced by the nearly 6,500 citations (as of 31 Dec. 2022, according to Google Scholar), the research findings from two interdisciplinary studies indicate that there are a number of important takeaways, such as the possibility that past research may have underestimated the connection between employee attitudes and performance due to the methodology employed. This expanded SPC framework provides organizations with a clearer picture of how to deliver superior quality service and achieve positive customer outcomes by recognizing the role of neuro-leadership leading to transformational leadership conduct fostering employee engagement in the realm of internal marketing. The realm of neuro-leadership delves into the neural foundations of leadership and management methodologies, aggregating insights from diverse sources, including social cognitive and affective neuroscience, cognitive neuroscience, integrative neuroscience, neurobiology, and various other neuroscience domains, can help understanding the key predictors of customer outcomes and the importance of employee attitudes and behaviors, organizations can make informed decisions about their human resource practices and leadership behaviors to create a positive work environment that promotes employee engagement and ultimately leading to improved perceived service quality and customer satisfaction. By presenting an extended rendition of the service-profit-chain framework, this chapter makes a valuable addition to the existing literature that includes transformational neuro-leadership as predictors of employee engagement, employee well-being, healthy work environment, work passion, and customer devotion leading to positive customer and organizational outcomes. The implications of this chapter are significant for organizations that aim to enhance their customer service and achieve better outcomes.
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Marketing researchers have identified a significant shift from tangible goods to service-based exchanges, where customers play a critical role, because of the fast expansion of the service industry (Lovelock and Gummesson, 2004; Vargo and Lusch, 2004). This has led to increased competition among service providers, with customers becoming more discerning in their evaluation of service experiences. As a result, companies are under pressure to prioritize the quality and nature of their services to meet customer expectations. Front-line employees have emerged as pivotal in shaping the customer experience (Singh, 2000; Chung & Schneider, 2002). Studies have demonstrated that providing exceptional service is crucial in order to be successful in today's fiercely competitive environment (Berry, 1999; Carrillat et al, 2009). Furthermore, human resources, particularly front-line employees, are a critical contributor of competitive advantage which is hard to imitate for competitors (Benoy, 1996).
The exploration of emotion management in the workplace, particularly in relation to its associated cognitive processes, is gaining traction among companies. This trend reflects a growing interest in cultivating leadership that prioritizes effective decision-making to enhance the overall work environment. The ‘Transformational Leadership Theory’, initially introduced by Burns (1978) and further elaborated by Bass (1985), emphasizes the impact of exceptional leaders who inspire and transform their followers, and can lead to significant changes in organizational performance. Knezović, E., &Drkić, A. (2021) suggest that the style of leadership is strongly linked to the performance of organizations. These leaders act as coaches who help improve organizational performance. The significance of cognitive neuroscience in the context of leadership lies in its ability to elucidate the biological mechanisms underpinning decision-making (Hecht et al., 2013). Additionally, Neuro-leadership can contribute by uncovering essential skills crucial for effective leadership that may not be readily apparent (Goldsmith, 2010).
By bringing together the concepts of Neuro-leadership from the perspectives of transformational Neuro-leadership based on Bass and Burns (1985),for employee-engagement and employee satisfaction, we may gain a deeper understanding of the factors that raise or decrease the possibility that workers will become involved in their work.
Neuro-leadership delves into the neural foundations of leadership and management, drawing insights from diverse fields including social cognitive and affective neuroscience, cognitive neuroscience, integrative neuroscience, neurobiology, and other neuroscience domains. This scientific approach aims to make leadership more accessible to those interested in self and others' development by incorporating the physiology of the mind and brain. It transforms soft skills in professional development into tangible, evidence-based skills through the application of scientific principles. (Gocen, 2021)
The service profit chain (SPC)model proposed by Heskett, Jones, Loverman, Sasser, and Schlesinger (1994), is widely regarded as one of the most influential models that establishes a link between employee attitudes/behaviors and firm profitability, with a focus on the essential association between attitudes of the employees and customer outcomes. The service-profit chain model has long been used by businesses to gauge employee happiness on the job as a possible indicator of both customer satisfaction and financial success. A growing body of empirical research has consistently corroborated this association, with multiple studies demonstrating that staff motivation (Salanova et al, 2005) and employee satisfaction (Brown & Lam, 2008; Harter et al, 2002) find a favorable correlation between staff motivation and satisfaction and service quality provided to customers.