Managing customers as employees of the firm

Abstract

This paper discusses the role that customers play as human resources in service‐based organizations. These involve situations where a customer replaces a more traditional employee (ATMs, self‐serve gas stations), or situations where the customer serves as a strategic partner by providing resources, particularly information, that are critical for the performance of the service exchange (consulting, health care, physical fitness training). After discussing the conditions under which a customer acts as a “partial employee” of a firm, we turn to a discussion of how human resource functions apply to partial employees. Research propositions are offered to guide future research in customer labor contributions.