Theory of Service-Profit Chain
Abstract
Developed and conceptualized by Heskett’s work, the service-profit chain (SPC) defines the relationships between employees and customers. The starting point of the SPC is internal service quality. Satisfied, loyal, committed, and productive employees reflect this in external service quality, thus activating the SPC. Service quality creates satisfied and loyal customers, and as a result, the company achieves growth and profitability, completing all the links in the chain. The theory redefines competitive advantage in the industry by explaining the key role of employee engagement in the success of business performance.
Fields of Study & Subjects
Customer Service Quality and Loyalty
Employee Performance and Motivation
Service and Product Innovation
Publication details
- Journal / source
- CABI eBooks
- Pages
- 222–228
- Publication date
- 28 January 2026
- Language
- EN
- Document type
- Book chapter