| A correlational field study approach was applied to two sites in the hotel industry. They were distinguished by their organizational strategies on service delivery. The Service-Profit Chain Model was used as the conceptual framework for presenting the relationships between internal service quality, employee satisfaction, and guest satisfaction. This study proposed enlarging the model to incorporate the interaction of the organizational strategy and the physical facility of the organization as a vital resource which potentially contributes to competitive advantage.; Four dependent variables were culled from the literature review, (1) physical environment--characteristics of the facility, (2) communication/culture--information that is conveyed by formal and informal channels, (3) strategy--organization's strategy and employees' perception of how it was supported by the designed environment, and (4) value--job satisfaction, efficiency, and employees' sense of being valued by the organization. These variables were measured by employee perceptions through the Physical Environment, Communication/Culture, Strategy, Value (PCSV) survey which was developed for this study. Interviews and observation were performed to increase the researchers understanding of the social context of the two sites.; The results support the theory of the Service-Profit Chain by similarly finding the importance of the following criteria under internal service quality: (1) workplace design, (2) employee reward and recognition, and (3) tools for servicing the customer. The results also suggest enlarging the model to include the following criteria under internal service quality from the interaction of the organizational strategy and the physical facility: (1) a communicator of value and culture, (2) a supporter and an enhancer of work activities, and (3) a supporter of hotel policies and procedures. |
