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http://hdl.handle.net/2445/119266
Title: | Customer-Oriented Employees: Blessing or Curse for Firms? |
Author: | Manna, Ester |
Keywords: | Selecció de personal Gestió de personal Relacions amb els clients Planificació empresarial Employee selection Personnel management Customer relations Business planning |
Issue Date: | Dec-2017 |
Publisher: | Wiley |
Abstract: | I investigate whether the presence of customer-oriented employees benefi ts fi rms in a competitive environment. Employees are defi ned as customer-oriented if they are interested not only in their wage but also in the well-being of their customers. I find that fi rms may obtain higher profi ts by hiring self-interested rather than customer-oriented employees. This is because the employees' customer orientation has opposing effects on the profi ts obtained by the fi rms. On the one hand, customer-oriented employees provide a given level of quality for a lower wage. On the other hand, the employees' customer orientation increases competition reducing prices. If the second effect dominates, firms fi nd themselves trapped in a prisoners' dilemma as the strategy of hiring self-interested employees is strictly dominated by that of hiring customer-oriented employees. Hence, the very presence of customer-oriented employees may hurt fi rms. If motivated employees are merely interested in the quality of the good provided, the effect on the price outlined before disappears. |
Note: | Versió postprint del document publicat a: https://doi.org/10.1111/jems.12232 |
It is part of: | Journal of Economics & Management Strategy, 2017, vol. 26, num. 4, p. 842-875 |
URI: | http://hdl.handle.net/2445/119266 |
Related resource: | https://doi.org/10.1111/jems.12232 |
ISSN: | 1058-6407 |
Appears in Collections: | Articles publicats en revistes (Economia) |
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