In pursuit of service encounter quality: Will service-oriented high-performance work systems benefit high-contact service industries?

Integrating social exchange and psychological contract theories, this study examines how perceived service-oriented high-performance work systems (service-oriented HPWS) augment high-contact service organizations to improve their service encounter quality. In addition, it also tests the impact of psychological contract fulfillment, innovative work behavior, and prosocial service behavior as parallel and serial mediating variables in the relationship between service-oriented HPWS and service encounter quality. Using survey data collected in three-time lags from 394 full-time frontline employees and their customers across high-contact service contexts, direct and indirect effects of service-oriented HPWS on service encounter quality were tested employing structural equation modeling. The results revealed that service-oriented HPWS is positively associated with service encounter quality via psychological contract fulfillment, innovative work behavior, and prosocial service behavior. The study contributes to the extant literature by integrating social exchange and psychological contract theories in explicating the impact of service-oriented HPWS on service encounter quality.