Abstract
This article introduces the emerging concept of service climate that is characterized as a mediating role of employee performance and customer loyalty. Organizational resources and work engagement are independent variables that predict service climate as a mediating variable and further it predicts employee performance and customer loyalty. The results show that employees with high level of work engagement results in high employee performance. The authors did an approach N=325 of service climate as mediator from 30 shopping malls (including local and branded) and filled questionnaire in organizational resources, work engagement and service climate perspective. There was collected data from customers when they were checked out to malls (about employee performance and customer loyalty N=1080). They used structural equation modeling analysis and the data showed a potentially alternate effect between service climate and customer loyalty. Finally, this article discusses limitations and weaknesses including future directions.