Employee/Employer Service Relation and Commercial Banking Sector of Pakistan: A Lens of Service Dominant Logic

Abstract

This research paper used grounded theory as a research methodology with the main objective; to explore the applicability of Service Dominant Logic (S-D logic), to the concepts of management i.e. “Employee Engagement” and “Experiential Learning” by analyzing employee/employer behaviours of value co-creation in the commercial banking sector of Pakistan. In align, the theoretical contribution of this study is; the transformation of the conventional concept of management “employee engagement into a tentative theory of employee/employer service relation (EESR). In addition to this track, the study proposed a lens of S-D logic through experiential learning (EL) to draw a platform, which enables managers to adopt reciprocal and interconnected exchange relationships between actors to develop value co-creation for higher organizational performance (OP). Based on empirical evidence collected via interview method, the study substantiated that the narratives of processes and practices of S-D logic given by Vargo and Lusch are the foundation to establish proposed transformation. The outcome of employee/employer service relation suggested that employee/employer relationship (employee engagement) is based on service relationship (reciprocal exchange of service). Value is proposed through promising, an attractive and desired offer. Employer and employee as service actors play the role of resource holders and resource integrators in this relationship. Both service actors integrate their resources (operand and operant resources) to co-create value which is mutually benefited. However, the convergence of conventional logic of employee engagement into employee/employer service relation will first require a modification in the mind-set of commercial banking sector organizations.