Theory of Service-Profit Chain


Eren D., Kılıçhan R.

in: Theories and Models in Tourism, UYSAL MUZAFFER,ÇETİN İBRAHİM,İÇÖZ ORHAN,İÇÖZ ONUR,BOZKURT Yiğit Sebahattin, Editor, CAB International , London, pp.222-228, 2026

  • Publication Type: Book Chapter / Chapter Research Book
  • Publication Date: 2026
  • Doi Number: 10.1079/9781800625822.00
  • Publisher: CAB International
  • City: London
  • Page Numbers: pp.222-228
  • Editors: UYSAL MUZAFFER,ÇETİN İBRAHİM,İÇÖZ ORHAN,İÇÖZ ONUR,BOZKURT Yiğit Sebahattin, Editor
  • Kayseri University Affiliated: Yes

Abstract

Developed and conceptualized by Heskett’s work, the service-profit chain (SPC) defines the relationships between employees and customers. The starting point of the SPC is internal service quality. Satisfied, loyal, committed, and productive employees reflect this in external service quality, thus activating the SPC. Service quality creates satisfied and loyal customers, and as a result, the company achieves growth and profitability, completing all the links in the chain. The theory redefines competitive advantage in the industry by explaining the key role of employee engagement in the success of business performance.