Abstract
Purpose - The purpose of this paper is threefold: first, to test the direct influence of servant leadership (SL) on an organization's serving-driven capabilities (S-DC). Second, to test the indirect effect of SL on employee customer-service behaviors and identification with their branch. Third, to determine the direct effect of an organization's S-DC on employee customer-service behaviors and identification with the branch. Thus, the authors provide evidence of how SL influence serving-driven interaction capabilities that are later deployed to execute customer-oriented behaviors.
Design/methodology/approach - Survey data were obtained from a sample of 36 bank branches of one bank in the Middle East. Employees evaluated their manager's SL behaviors, the six S-DC and their identification with the organization. In turn, managers assessed their employees on customer-service behaviors. Partial least squares path analysis was used to model the relationships.
Findings - Results indicate servant leaders' behaviors are example, motivator and determinant of an organization's S-DC. Employees not only adopt the S-DC by imitation but also as a mean to reciprocate the leader: serve your customers like the leader serves you. Other results and implications for managers are presented.
Research limitations/implications - The study is of a cross-sectional nature therefore a causal effect of SL on S-DC cannot be determined. Second, the study is limited to one bank although several branches were randomly sampled. Third, the evaluations of the S-DC have been done by the employees rather than customers.
Originality/value - The study is original in testing the mediating effect of a S-DC. The focus on individual and organizational capabilities is relevant because they have been touted as among the most important factors to explain the differences of company performances and competitive advantages