Previous studies have found a relationship between service climate and customers' satisfaction. This paper presents two studies that used structural equation modeling to examine the role of control and empowerment in mediating this relationship. In the first study, questionnaires were administered to 113 pairs of customers and service workers. The results show that service climate is related to a customer's satisfaction through the mediation of a service worker's self-reported control of the service situation. In the second study, the service worker's sense of empowerment was predicted with service climate and the supervisor's empowering behavior. The data was gathered with questionnaires administered to 255 workers in service roles. Service climate was found to have a positive effect on empowering leadership behaviors of the service worker's supervisor which, in turn, enhance the service worker's sense of empowerment. The results are discussed in regard to the role of control and empowerment in service organizations.
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