Customer prioritization, product complexity and business ties: implications for job stress and customer service performance

Abstract

Purpose: Drawing on the theoretical lens of the job demands-resources model, this study builds upon and tests a conceptual model that links customer prioritization, product complexity, business ties, job stress and customer service performance. Conceptualizing customer prioritization and product complexity as job demands and business ties as personal job resources, this research explicates the mediating process by which customer prioritization and product complexity affect customer service performance through job stress and its boundary conditions. The purpose of this paper is to offer a theoretical framework in which business ties moderates the mediated relations of customer prioritization and product complexity to customer service performance. Design/methodology/approach: Structural equation modeling and a moderated mediation analysis were used on a unique multi-level, multi-respondent data set of 248 participants from 124 small and medium-sized enterprises in Turkey. Findings: This study finds that both customer prioritization and product complexity increase job stress. In addition, this paper finds that business ties have a bitter-sweet nature as a personal resource and reverse the relation of customer prioritization to job stress while strengthening the negative direct relation of product complexity to job stress. Finally, this study finds that the indirect relation of customer prioritization to customer service performance through job stress is contingent on business ties. Specifically, this paper finds that high levels of business ties negate the indirect relation of customer prioritization to customer service performance while low levels of business ties exacerbate the negative effects of customer prioritization to customer service performance, channeled through job stress. Practical implications: The findings demonstrate the critical role that personal networks play in reducing job stress and enhancing customer service performance for small and medium-sized enterprises that adopt customer-centric strategies such as customer prioritization. Nevertheless, the results suggest that the managers need to cognizant of the undesirable consequences of business ties may have on job stress when boundary-spanners handle a wide range of products/services that are technically complex. Accordingly, this study recommends small and medium-size enterprise managers and owners should be cautious in resource allocation to establish informal, personal ties with suppliers, competitors, customers and other market collaborators. Originality/value: This paper offers a deeper perspective of the relations of customer prioritization and product complexity to job stress and customer service performance. This study also specifies business ties as a personal coping resource, which decreases the undesirable consequences when used in small and medium enterprises that adopt customer-centric strategies.