Timo J. J. Brunner, Katja Rudolph, Claudia Lehmann

• The purpose is to provide a framework guiding service organizations while adopting new work practices and to specify effects of psychological empowerment. This research is based on a mixed-method approach to establish new theory and to determine correlations. It is claimed that the managerial framework ensures solid foundation for the quantitative analysis arguing that new work practices have positive effects on service organizations. This study contributes to new work and service literature by equipping service organizations with a framework and stating the positive effects on employees using psychological empowerment as a mediator where employees are the central resource to success.