Abstract:

Interaction is the most outstanding feature of modern service industry; service quality is rooted in the interaction between service company\employees and customers. However, the interaction chain between company\employees and customer is always at risk. Employee is on the core position of the chain, employee’s interaction response to the interaction strategy of the company is very important. This study aims to study the path how is employee’s interactive capability developed. Through a survey of 207 modern service companies with 414 middle managers and 828 employees, we found that transformational leadership has a direct positive effect on employee’s interactive response capability, organizational identification mediate the effect of transformational leadership on employee’s interactive response capability, service climate mediate the effect of organizational identification on employee’s interactive response capability. The results have important implications on how to improve service quality of the service company.

Key words: modern service industry, employee’s interactive response capability, transformational leadership, organizational identification, service climate