Knowledge Management in Service Encounters: Impact on Customers' Satisfaction Evaluations

Purpose – This paper integrates the knowledge management and marketing literatures to examine the relationships between knowledge management (KM) practices during a service exchange and customers’ satisfaction and behavioral intentions. Design/methodology/approach Data were collected in an experimental setting using video scenarios; hypotheses were tested using MANOVA and ANCOVA. Findings Results show that tacit rather than explicit KM practices used by service providers have a greater influence on customer satisfaction and behavioral intentions. The mediating effects of perceived control and fairness on the relationship between KM practices and customer satisfaction are also found. Research implications/limitations – This paper extends research in the area of knowledge management, customer relationship management, services management, and suggests future theoretical and methodological research directions. Although sample is representative of the population, no claims are made to generalize the findings of the study to broader population. Practical implications Managers need to understand the value of knowledge management in service encounters and specifically focus on the tacit knowledge that front-line workers possess. Managers need to install organizational systems that encourage front-line workers to develop and use tacit knowledge in service encounters. Originality/value The impact of knowledge management practices on consumer evaluations of service has received less research attention. No prior studies have investigated the influence of KM practices in a service encounter context. This paper focuses on the influence of two fundamental knowledge management components, namely tacit and explicit knowledge, on consumer reactions.