The Relationship-Service-Profit Chain: Conceptual framework and propositons

Abstract

This conceptual paper proposes an expanded relationship-service-profit chain as a business success model based on a blending of human resource management and marketing within the relationship marketing framework. 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 including empirical assessment of the proposed model as well as individual links and sub-links within the model.