Psychological Empowerment and Service Culture: Fostering Sustainable Service Behavior in the Banking Sector

Evidence mentions that banking is the most vulnerable business worldwide. The success of the business wholly depends on the interest of the customer. To achieve this, banks must inculcate a service nature among their employees. This study focuses on highlighting the significance of Psychological Capital (PsyCap) as a mediator variable between Psychological Empowerment (PsyEmp) and Service Behavior (SB) and Service Climate (SC) and Service Behavior (SB) of the employees in the banking sector in south India. Data were collected from the banking professionals (Mid-level Managers) using a structured questionnaire to test this interrelationship. The data were collected from public and private sector banking in various cities in Southern India. R statistical software was used to test direct and indirect effects among the variables used in the study. As a result, this study predicted the importance of Psychological Capital (Psy Cap) as a mediator to promote Service Behavior (SB) among banking employees toward the viability of business in the long run. This study further highlighted the role of Psychological Empowerment (PsyEmp) and Service Climate (SC) in encouraging Service Behavior (SB) of banking employees to sustain the business for the long run. Managerial implications and future scope were discussed in detail in this study.