Article : Performance Measurement Of State Bank Of India – A Service Profit Chain Approach

Title

Performance Measurement Of State Bank Of India – A Service Profit Chain Approach

Author

Sreesha CH

The service profit chain is a conceptual framework linking employee satisfaction and loyalty, and financial performance. Although widely used by practitioners, the service profit chain’s series of hypothesized relationships between employee, customer and financial outcomes has  been rigorously tested using data that span all components of the model. Primary data from the branches of a large nationalized  bank in India  are used to test individually each of the service profit chain’s constituent hypothesis. The results generally support the model, but there are some exceptions. This research raises questions about the robustness of a central premise of the service profit chain, which is that strong business performance is the result of a mirror-effect between employee and customer satisfaction 

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