Employee satisfaction, customer satisfaction, and financial performance: An empirical examination
MetadataShow full item record
The purpose of this study is to examine the relationship between employee satisfaction and customer satisfaction, and to examine the impact of both on a hospitality company's financial performance utilizing service-profit-chain framework as the theoretical base. Specifically, this study explores four major relationships: (1) the direct relationship between customer satisfaction and financial performance; (2) the direct relationship between employee satisfaction and financial performance; (3) the direct relationship between customer satisfaction and employee satisfaction; and (4) the indirect relationship between employee satisfaction and financial performance. Furthermore, this study examines the mediating role of customer satisfaction on the indirect relationship between employee satisfaction and financial performance. Data for this study was collected from employees, customers and managers of three- and four-star hotels. Structural equation modeling (SEM) with a two-step approach was utilized to empirically test the proposed hypotheses and the relationships between the constructs. Findings suggest that while customer satisfaction has positive significant impact on financial performance, employee satisfaction has no direct significant impact on financial performance. Instead, there is an indirect relationship between employee satisfaction and financial performance, which is mediated by customer satisfaction. © 2008.
Showing items related by title, author, creator and subject.
Ananthram, Subra; Xerri, M.; Teo, S.; Connell, J. (2018)Purpose: The purpose of this paper is to empirically examine the relationships between high-performance work systems (HPWSs) and four employee outcomes – job satisfaction, employee engagement, presenteeism and well-being ...
Rabbanee, Fazlul; Burford, Oksana; Ramaseshan, Balasubramani (2015)Purpose: Employees in community pharmacies play a far significant and distinct role compared to the employees in traditional retail stores. This paper examines the effects of employee performance on customer loyalty of ...
Johnson, Sarah E. (2010)Parental time pressure, in terms of actual workload and subjective reports, is high and likely to increase in the future, with ongoing implications for personal wellbeing. The combination of parenting young children and ...