The Mediator Role of Customer Satisfaction on the Effects of Employee Satisfaction and Service Quality on Hotel Performance
DOI:
https://doi.org/10.21325/jotags.2020.532Keywords:
Employee job satisfaction, Customer satisfaction, Hotel performance, Service quality, Hotel industryAbstract
The aim of this study is to scrutinize the effects of employee satisfaction, one of the internal factors of Resource Based View on firm performance in the tourism and hospitality industry. In this study, it was empirically surveyed through a questionnaire at 15 hotel companies in Northern Cyprus and was also analyzed whether there were positive relationships among employee satisfaction, service quality, customer satisfaction and firm performance. Hierarchical regression analysis was used to analyze the data. Few studies have been carried out regarding the relationship between employee satisfaction and hotel firm performance in Northern Cyprus Tourism Industry. Thus, this study reveals important results for the hoteliers and marketers in Northern Cyprus. The findings posed that sservice quality had a significant effect on customer satisfaction and hotel performance, while customer satisfaction fully mediated the effect of service quality on hotel performance. Discussion section along with implications and limitations including future directions were given at the end of the study.
References
Anderson, E.W., Fornell, C., & Lehmann, D.R. (1994). Customer satisfaction, market share, and profitability: findings from Sweden. Journal of Marketing, 58(3), 53–66.
Anderson, J. C., & Gerbing, D. W. (1988). Structural equation modeling in practice: A review and recommended two-step approach. Psychological Bulletin, 103(3), 411-423.
Babakus, E., Bienstock, C.C., Scotter, J.R.V. (2004). Linking perceived quality and customer satisfaction to store traffic and revenue growth. Decision Sciences, 35(4), 713–737.
Barney, J. B. (1991). Firm resources and sustained competitive. Journal of Management , 1(17), 99-120.
Barney, J. B. (1996). The resource-based theory of the firm. Organizational Science, 7(5), 469-470.
Barney, J. B., & Hansen, M. H. (1994). Trustworthiness as a source of competitive advantage. Strategic Management Journal, 15(1), 175-190.
Baron, R. M., & Kenny, D. A. (1986). The moderator–mediator variable distinction in social psychological research: Conceptual, strategic, and statistical considerations. Journal of Personality and Social Psychology, 51(6), 1173-1182.
Blau, P. M. (1964). Exchange and Powerin Social Life. New York: Wiley.
Boudreau, J. W. (2004). Organizational behavior, strategy,performance, and design. Management Science , 11(50), 1463-1476.
Bowen, D.E., Schneider, B. (1985). Boundary-spanning-role employee and the service encounter: some guidelines for management and research. In: Czepiel, J.A., Solomon, M.R., & Surprenant, C.A. (Eds.), The Service Encounter: Managing Employee/Customer Interaction in Service Business. Lexington, MA: D.C. Heath and Company.
Brown, S. P., & Peterson, R. A. (1993). Antecedents and consequences of salesperson job satisfaction: Meta-analysis and assessment of causal effects. Journal of Marketing Research, 30(1), 63-77.
Chand, M. (2010). The impact of HRM practices on service quality, customer satisfaction and performance in the Indian hotel industry. The International Journal of Human Resource Management, 21(4), 551-566.
Chi, C. G., & Gursoy, D. (2009). Employee satisfaction, customer satisfaction, and financial performance: An empirical examination. International Journal of Hospitality Management, 28(2), 245-253.
Claver, E., José Tarí, J., & Pereira, J. (2006). Does quality impact on hotel performance?. International Journal of Contemporary Hospitality Management, 18(4), 350-358.
Cropanzano, R., & Mitchell, M. S. (2005). Social exchange theory: an interdisciplinary review. Journal of Management , 6(31), 874-900.
Dierickx, I., & Cool, K. (1989). Asset stock accumulation and sustainability of competitive advantage. Management Science, 35(12), 1504-1511.
Dörnyei, Z. (2007). Research methods in applied linguistics. New York: Oxford University Press.
Flynn, F. J. (2005). Identity orientations and forms of social exchange in Organizations. Academy of Management Review, 4(30), 737-750.
Gronholdt, L., Martense, A., Kristensen, K. (2000). The relationship between customer satisfaction and loyalty: cross-industry differences. Total Quality Management, 11(8), 509–514.
Harter, J. K., Schmidt, F. L., & Hayes, T. L. (2002). Business-unit-level relationship between employee satisfaction, employee engagement, and business outcomes: A meta-analysis. Journal of Applied Psychology, 87(2), 268-279.
Hartline, M. D., Maxham III, J. G., & McKee, D. O. (2000). Corridors of influence in the dissemination of customer-oriented strategy to customer contact service employees. Journal of Marketing, 64(2), 35-50.
Herzberg, F., Mausner, B., Peterson, R. D., & Capwell, D. F. (1957). Job attitudes: Review of research and opinions. Pittsburgh: Psychological Service of Pittsburgh.
Heung, V. C., & Ngai, E. W. (2008). The mediating effects of perceived value and customer satisfaction on customer loyalty in the Chinese restaurant setting. Journal of Quality Assurance in Hospitality & Tourism, 9(2), 85-107.
Homburg, C., Koschate, N., & Hoyer, W. D. (2005). Do satisfied customers really pay more? A study of the relationship between customer satisfaction and willingness to pay. Journal of Marketing, 69(2), 84-96.
Iaffaldano, M. T., & Muchinsky, P. M. (1985). Job satisfaction and job performance: a meta-analysis. Psychological Bulletin, 22(97), 251-273.
Judge, T. A., Thoresen, C. J., Bono, J. E., & Patton, G. K. (2001). The job satisfaction–job performance relationship: A qualitative and quantitative review. Psychological Bulletin, 127(3), 376-421.
Jung, H. S., & Yoon, H. H. (2013). Do employees’ satisfied customers respond with an satisfactory relationship? The effects of employees’ satisfaction on customers’ satisfaction and loyalty in a family restaurant. International Journal of Hospitality Management, 34(1), 1-8.
Kirca, A. H., Jayachandran, S., & Bearden, W. O. (2005). Market orientation: a meta-analytic review and assessment of its antecedents and impact on performance. Journal of Marketing, 2(69), 24-41.
Kohli, A., & Jaworski, B. (1990). Market orientation, the construct, research propositions, and managerial implications. Journal of Marketing, 54 (2), 1-18.
Lee, S. M., Lee, D., & Kang, C. Y. (2012). The impact of high-performance work systems in the health-care industry: employee reactions, service quality, customer satisfaction, and customer loyalty. The Service Industries Journal, 32(1), 17-36.
Lee, S., & Heo, C. Y. (2009). Corporate social responsibility and customer satisfaction among US publicly traded hotels and restaurants. International Journal of Hospitality Management, 28(4), 635-637.
Lise, M. S. (2004). Employees Attitude and job satisfaction. Human Resource Management, 4(43), 395-407.
Locke, E. (1976). The nature and causes of job satisfaction. Chicago: Rand Mc Nally.
Loveman, G.W. (1998). Employee satisfaction, customer loyalty, and financial performance: an empirical examination of the service profit chain in retail banking. Journal of Service Research, 1(1), 18–31.
Meyer, J. P., Becker, T. E., & Vandenberghe, C. (2004). Employee commitment and motivation: a conceptual analysis and integrative model. Journal of Applied Psychology, 6(89), 991-1008.
Michalisin, M. D., Smith, R. D., & Kline, D. M. (1997). In Search of strategic assets. International Journal of Organizational Analysis, 5(4), 360-387.
Oh, H. (1999). Service quality, customer satisfaction, and customer value: A holistic perspective. International Journal of Hospitality Management, 18(1), 67-82.
Oh, H., & Parks, S. C. (1996). Customer satisfaction and service quality: a critical review of the literature and research implications for the hospitality industry. Hospitality Research Journal, 20(3), 35-64.
Osman, Z., & Sentosa, I. (2013). Mediating effect of customer satisfaction on service quality and customer loyalty relationship in Malaysian rural tourism. International Journal of Economics Business and Management Studies, 2(1), 25-37.
Ostroff, C. (1992). The relationship between satisfaction, attitudes, and performance: An organizational Level Analysis. Journal of Applied Psychology, 77(6), 963-974.
Roth, A. V., & Jackson III, W. E. (1995). Strategic determinants of service quality and performance: Evidence from the banking industry. Management Science, 41(11), 1720-1733.
Schmidt, F. L., Hunter, J. E., Outerbridge, A. N., & Trattner, M. H. (1986). The economic impact of job selection methods on size, productivity, and payroll costs of the federal work force: An empirically based demonstration. Personnel Psychology, 39(1), 1-29.
Schneider, B., & Bowen, D. E. (1985). Employee and customer perceptions of service in banks: Replication and extension. Journal of Applied Psychology, 70(3), 423-433.
Schneider, B., Hanges, P. J., Smith, D. B., & Salvaggio, A. N. (2003). Which comes first:Employee attitudes or organizational financial and market performance? Journal of Applied Psychology, 88(5), 836-851.
Schwab, D. P., & Cummings, L. L. (1970). Theories of performance and satisfaction: A review. Industrial Relations: A Journal of Economy and Society, 9(4), 408-430.
Seiders, K., Voss, G. B., Grewal, D., & Godfrey, A. L. (2012). Do satisfied customers buy more? Examining moderating influences in a retailing context. International Retail and Marketing Review, 8(1), 38-60.
Sharma, R. D., & Jyoti, J. (2006). Job satisfaction among school Teachers. IIMB Management Review, 4(18), 349-363.
Sharpley, R., & Forster, G. (2003). The implications of hotel employee attitudes for the development of quality tourism: the case of Cyprus. Tourism Management, 24(6), 687-697.
Silvestri, C., Aquilani, B., & Ruggieri, A. (2017). Service quality and customer satisfaction in thermal tourism. The TQM Journal, 29(1), 55-81.
Singh, J., & Sirdeshmukh, D. (2000). Agency and trust mechanisms in consumer satisfaction and loyalty judgments. Journal of Academy of Marketing Science, 1(28), 150-167.
Sirdeshmukh, D., J.Singh, & Sabol, B. (2002). Consumer trust, value,and loyalty in relational exchanges. Journal of Marketing, 66(1), 15-37.
Slater, S. F., & Narver, J. C.. (1994). Market orientation, customer value, and superior performance. Business Horizons, 37(2), 22-26.
Soutar, G. N. (2001). Service quality, customer satisfaction and value: An examination of their relationships. In Kandampually, J., Mok, J., & Sparks, B. (Eds.), Service Quality Management in Hospitality, Tourism and Leisure, 97-110. New York: Routledge.
Stock, R. M. (2005). Can customer satisfaction decrease price sensitivity in business-to-business markets?. Journal of Business-to-Business Marketing, 12(3), 59-87.
Tarn, J. L. (1999). The effects of service quality, perceived value and customer satisfaction on behavioral intentions. Journal of Hospitality & Leisure Marketing, 6(4), 31-43.
Terpstra, D. E., & Rozell, E. J. (1993). The relationship of staffing practices to organizational level measures of performance. Personnel Psychology, 46(1), 27-48.
Testa, M. R., Skaruppa, C., & Pietrzak, D. (1998). Linking job satisfaction and customer satisfaction in the cruise industry: implications for hospitality and travel organizations. Journal of Hospitality & Tourism Research, 22(1), 4-14.
Wang, G. L. (2011). A study of how the internal-service quality of international tourist hotels affects organizational performance: using employees' job satisfaction as the mediator. Journal of Global Business Management, 7(2), 1-12.
Wayne, S. J., Shore, L. M., & Linden, R. C. (1997). Perceived organizational support and leader-member exchange: a social exchange perspective. Academy of Management Journal, 40(1), 82-111.
Whetten, D. A. (1989). What constitutes a theoretical contribution?. Academy of Management Review, 14(4), 490-495.
Yee, R. W., Yeung, A. C., & Cheng, T. E. (2010). An empirical study of employee loyalty, service quality and firm performance in the service industry. International Journal of Production Economics, 124(1), 109-120.
Yee, R. W., Yeung, A. C., & Cheng, T. C. E. (2011). The service-profit chain: An empirical analysis in high-contact service industries. International Journal of Production Economics, 130(2), 236-245.
Yeh, C. M. (2013). Tourism involvement, work engagement and job satisfaction among frontline hotel employees. Annals of Tourism Research, 42(1), 214-239.
Yoon, M. H., & Suh, J. (2003). Organizational citizenship behaviors and service quality as external effectiveness of contact employees. Journal of Business Research, 56(8), 597-611.
Zaibaf, M., Taherikia, F., & Fakharian, M. (2013). Effect of perceived service quality on customer satisfaction in hospitality industry: Gronroos’ service quality model development. Journal of Hospitality Marketing & Management, 22(5), 490-504.
Published
How to Cite
Issue
Section
License
Copyright (c) 2023 Journal of Tourism & Gastronomy Studies
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
