Understanding the service profit chain in Latin America: managerial perspective from Mexico

Abstract

This paper reports on the initial results of an ongoing research conducted in Mexican service industries aimed at understanding how value is delivered, measured and continuously improved in the studied firms. Using the service profit chain model data were collected from a sample of 28 supermarkets and 29 hotels in Mexican cities. Results show that both industries are similarly characterized by the service profit chain model (SPCM) tool, thus providing some opportunity for cross‐learning between industries; and some significant differences exist between domestic and foreign firms in both industries, thus providing some benchmark opportunities for industries based on origin of capital. For the sampled firms, categories of the SPCM were grouped into three statistically different ranges (high, medium and low), thus providing additional knowledge as to what strengths and areas of opportunity for improving performance of the studied industries there are.