From Managers to Employees to Customers: The Hidden Toll of Technology-Induced Workload

Retailers like Walmart, Target, and Home Depot have adopted Enterprise Resource Planning (ERP), leading to cost savings and efficient inventory and supply chain management. However, some companies, such as Nike, Waste Management, and Lidl, have faced challenges in transitioning from old to new systems, marked by changes in employee behavior, increased workload, and rising stress levels. Although extant literature focuses on employees’ technology-induced workload, limited insight exists into whether and how such workload transpired by ERP is transmitted from managers to employees and the implications on customer service. To address these gaps, we draw on the conservation of resources theory, utilizing multilevel and multirespondent data collected during the initial phases of ERP implementation in retail stores. We find an indirect crossover effect of technology-induced workload from managers to employees, mediated through manager close monitoring, and an indirect effect of manager technology-induced workload on customer-directed sabotage, serially mediated by manager close monitoring and employee technology-induced workload. Furthermore, surface acting amplifies the impact of employee technology-induced workload on customer-directed sabotage. The study contributes to the discourse between technology-induced workload as a technology-related stressor and customer service, two areas that have evolved in parallel fashion without much cross-pollination.