Multiple psychological climates and employee self-regulatory focus: Implications for frontline employee work behavior and service performance

•Different FLEs will thrive or languish under different psychological climates.•Psychological climate affects FLE performance via different FLE work behaviors.•Employee's regulatory focus moderates the effect of climate on FLE work behaviors.•Cultivating multiple climates can backfire and diminish FLE performance.•Clear climate-based signals must be conveyed to FLEs. Frontline employees (FLEs) play a critical role in shaping customer experiences and purchase intentions in retail settings. Yet not all FLEs display the same work behaviors or motivational tendencies. Adopting person-environment fit theory, this research investigates whether multiple work climates can coexist within a workplace to support FLEs with different work behaviors. Using multisource data from 285 FLEs and 31 supervisors in the retail banking sector, this study examines whether a quality-focused climate and an initiative-focused climate positively influence FLE service performance via different FLE behaviors. It also examines the moderating effect of FLE self-regulatory focus on the relationship between work climate and FLE behaviors. The results demonstrate that when FLEs are willing to innovate and take risks, a work climate that supports initiative-taking will encourage them to go beyond prescribed job roles to satisfy customer needs. In contrast, when FLEs seek to minimize or avoid risks, a work climate that reinforces rule adherence will support them in using standardized procedures to satisfy customer needs. Managers should not assume that one climate fits all or that one climate is better than the other as this study shows that a quality-focused and an initiative-focused climate can operate in tandem to enhance FLE service performance. [Display omitted]