Service–Sales Ambidexterity as a Double-Edged Sword: Dual-Path Effects of Frontline Employee Appraisals on Performance

While prior research suggests that service–sales ambidexterity (SSA) can produce both beneficial and harmful consequences, why it results in positive or negative outcomes is less well understood. Drawing on the transactional theory of stress and job demands–resources theory, we propose and empirically validate a novel conceptual framework of frontline employee (FLE) SSA appraisal. Specifically, we explain how FLEs appraise SSA as a challenge and/or hindrance, and how these appraisals, in turn, influence their performance. A field study reveals that psychological climate shapes FLEs’ SSA appraisals: a promotion climate fosters challenge appraisals, boosting performance via work engagement, while a prevention climate drives hindrance appraisals, reducing performance via burnout. Furthermore, work meaningfulness of serving customers acts as a psychological resource that strengthens the positive effect of SSA challenge appraisal on work engagement and mitigates the detrimental impact of SSA hindrance appraisal on burnout. An experimental study complements the field study by demonstrating the causal effects of psychological climate on SSA appraisal tendencies. The findings contribute novel insights into the dual processes underlying SSA appraisal tendencies and provide actionable guidance for managers seeking to optimize FLE performance.