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Purpose

– The purpose of this research is to explore how firm market orientation, as a culture, affects the service climate that develops in the firm.

Design/methodology/approach

– Empirical testing is performed at the managerial level and boundary-spanning employee level as part of this multilevel study. The sample includes participants from a US-based firm operating in the hospitality industry.

Findings

– Results indicate that a market-oriented firm culture interacts with other elements such as boundary-spanning employee flexibility and control to positively impact the service climate that develops.

Research limitations/implications

– This research provides theoretical implications for the development of a service climate within a market-oriented firm culture and the influence of managers on boundary-spanning employees in the development of the climate.

Practical implications

– As managers attempt to develop a service climate through a market-oriented firm culture, they will find success by providing boundary-spanning employees with control and hiring employees that possess flexibility as a personality trait.

Originality/value

– The framework developed in this research provides insights regarding the multilevel nature of service climate development and the impact of a market-oriented culture.

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