This paper aims to explore the determinants of perceived internal service complexity in internal service encounters. In this context, the nature of internal service complexity is considered, to identify its promoting and limiting factors, as well as its non-linear effects on internal service quality.
To acquire information on factors influencing internal service complexity, a broad literature review was conducted. Furthermore, to validate and verify these results, structural equation modeling’ was used in the context of a quantitative study with 705 internal customers.
The results revealed four promoting and seven limiting complexity determinants at organizational, interdepartmental and internal supplier-related levels. Moreover, the findings showed that an optimal, moderate level of internal service complexity maximizes internal service quality.
As the findings are restricted to this study, further research should be conducted with regard to different types of companies and internal customers. Furthermore, future research should take variability over time into account. Executing a longitudinal approach to internal service complexity might therefore be appropriate.
Managers should note that exclusively reducing internal service complexity is insufficient; rather, a hybrid strategy of lowering and controlling is indispensable for an optimization. Based on the identified complexity determinants, a three-step guidance to optimize internal service is proposed.
Despite examining the construct complexity, previous research has neither analyzed internal service complexity nor studied its determinants. This paper provides an empirical model that analyzes inhibiting and promoting factors of internal service complexity as well as its non-linear effects on internal service quality.
