When and How Does Sustainable HRM Improve Customer Orientation of Frontline Employees? Satisfaction, Empowerment, and Communication

Abstract

This study investigated the relationship between sustainable human resource management (HRM) practices, employee satisfaction, and customer orientation of frontline employees (FLEs) in the hotel industry from the perspective of internal marketing. Specifically, the study focused on three facets of sustainable HRM practices (i.e., training, reward, and benefit) as well as organizational empowerment and communication as FLE-supportive contexts. Although some studies have examined the relationship between HRM practices and customer orientation, they overlooked the importance of service context in facilitating FLE customer orientation. Thus, this study developed a comprehensive framework based on social exchange theory and self-determination theory. The results show that all three facets of the sustainable HRM practices were positively related to FLEs' satisfaction. FLEs' satisfaction was also positively related to their customer orientation. Furthermore, both organizational empowerment and communication moderated the relationship between FLEs' satisfaction and customer orientation, which showed a positive relationship only when FLEs perceived high organizational empowerment or communication. The research findings provide beneficial theoretical and practical implications.