The right fit: how the alignment between customer orientation and service climate boosts employee commitment and customer loyalty

PurposeDrawing on the need-supply fit perspective, this study aims to examine how (mis)alignment between customer orientation (CO) and the service climate (SC) influences the affective organizational commitment and indirectly impacts employees' customer-oriented behavior (COB) and customers' word-of-mouth (WOM).Design/methodology/approachThis paper used data from three different sources. The data set comprises 1,420 time-lagged observations from 725 employees surveyed at multiple time points, a total of 19,630 customers from 34 retail stores across multiple time points and the managers of the 34 stores, surveyed multiple times.FindingsEmployees' affective commitment was found to be higher when CO and SC were both high. In case of misalignment, commitment is higher when the SC is stronger than the CO (compared to when the CO is stronger than SC). Employees' commitment was positively related to subsequent store-level COBs, which in turn boosted customers' WOM.Originality/valueVery few studies have looked for impact of (mis)alignment of frontline employee characteristics with business unit features and how it relates to employees and customers responses.