Adaptive Workforce Development in Digital Service Eco-systems: Evidence from Frontline Employees

The rapid digitalization of service ecosystems, characterized by real-time feedback, platform-based complaints, and algorithm-driven monitoring, has increased service complexity and intensified the need for adaptive frontline workforce behavior, raising governance challenges related to pro-customer rule-breaking. This study aims to examine how discretionary HR practices in-fluence pro-customer rule-breaking among frontline service employees, with affective commitment as a mediating mechanism and perceived customer-oriented climate as a moderating condition, contributing to workforce devel-opment and adaptive governance within smart and sustainable service sys-tems. Using a quantitative cross-sectional design, data were collected from 400 frontline service employees across multiple customer-intensive sectors in the Greater Jakarta area and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results indicate that discretionary HR practices significantly and positively affect affective commitment and pro-customer rule-breaking, while affective commitment mediates the relation-ship between HR discretion and adaptive rule-breaking behavior. In addition, a strong customer-oriented climate strengthens the indirect effect of discre-tionary HR practices through affective commitment, although its direct mod-erating effect is not statistically significant. The findings indicate controlled discretion and affective attachment as critical workforce development mecha-nisms that support adaptive service performance without undermining gov-ernance integrity. From a sustainability perspective, this study contributes to SDG 8 (Decent Work and Economic Growth), SDG 9 (Industry, Innovation, and Infrastructure), and SDG 16 (Peace, Justice, and Strong Institutions) by emphasizing ethical, adaptive, and governance-aware service systems.