Bridging Distances: The Role of Growth Mindset and Psychological Safety in Enhancing Employee and Customer Experiences Across Work Arrangements

The rapid adoption of virtual and hybrid work arrangements has reshaped the workplace, presenting unique challenges for employee and customer experiences. This study investigates how work arrangements influence employee service quality, focusing on the mediating roles of knowledge sharing and employee experience, and the moderating effects of growth mindset and psychological safety. Drawing on Conservation of Resources (COR) Theory, three interconnected studies were conducted. Study 1 reveals that virtual and hybrid work arrangements lead to lower employee service quality compared to onsite work due to the spatial distance that impedes knowledge sharing and diminishes employee experience. Study 2 demonstrates that a strong growth mindset mitigates these adverse effects, enabling employees to maintain knowledge sharing and service quality across diverse work arrangements. Study 3 highlights the critical role of psychological safety, showing that when psychological safety is high, employees in virtual and hybrid settings achieve levels of service quality comparable to their onsite counterparts. The findings extend COR Theory by integrating individual and contextual factors that influence employee resilience and adaptability. This research offers theoretical and practical insights into optimising work arrangements, emphasising strategies to enhance employee and customer experiences in increasingly flexible work environments. Organisations are encouraged to foster growth mindsets and psychological safety to mitigate the challenges of remote and hybrid work, ensuring sustained service excellence.