Reexamining the link between employee satisfaction and store performance in a retail environment

Abstract

If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.comEmerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online products and additional customer resources and services.Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation. AbstractPurpose -This research seeks to examine the generalizability/robustness of the findings in an exploratory study of the service-profit chain using data from another Western European retailer operating in the same business sector. Design/methodology/approach -This study applies correlation and regression analyses on data gathered from 38,513 employee surveys from 107 grocery "superstore" locations to explore the link between employee satisfaction and business performance. Findings -The findings differ significantly from those of the exploratory study. When looking at the relationship between employee satisfaction and store profitability, the correlation is found to be effectively zero. When controlling for the size of store, however, the relationship is found to be positive.Research limitations/implications -The results are based on cross-sectional employee satisfaction data. Originality/value -The original findings have received considerable exposure, being published first in the International Journal of Service Industry Management and later in the International Journal of Operations & Production Management. The results of this examination call into question the generalizability of the conclusions of the exploratory study using a larger data set in the same business sector and continent.

Mobile technology usage and B2B market performance under mandatory adoption

“…Gómez et al (2004) illustrated that retailers can affect store revenues by managing customer satisfaction. Keiningham et al (2006) showed a positive relationship between employee satisfaction and store profitability. Based on these arguments, the following hypothesis is proposed:…”

“…Anderson & Sullivan, 1993;Etezadi-Amoli & Farhoomand, 1996;Gelderman, 1998;Gómez et al, 2004;Keiningham, Aksoy, Daly, Perrier, & Solom, 2006). Anderson and Sullivan (1993) addressed the simultaneous estimation of antecedents and consequences of customer satisfaction, with data from more than 20,000 Swedish consumers patronizing approximately one hundred Swedish companies.…”

The role of customer contact employees as external customers: A conceptual framework for marketing strategy and future research

“…Furthermore, in a longitudinal study spanning two years, Koys (2001) found that job satisfaction contributed directly to profits for a restaurant chain. Similarly, Keiningham et al (2006) found that employee satisfaction has a positive effect on store profitability for grocery superstores. Clearly a direct relationship also exists between employee job satisfaction and organizational profits, and thus, a parallel proposition to P10b is indicated as well.…”

Service Profit Chain in the Technical Assistance Environment: an Exploratory Study

“…Studies concerning the relationship between the chain elements are recurrent in international journals and specialized magazines publications like Keiningham et al (2006), Gelade and Young (2005), Yingzi (2005), Kassinis and Soteriou (2003). The present study differs from those, both on the studied sector and the aim.…”

“…On the other hand, Keiningham et al (2006) explored the relationship between employees´ satisfaction and profitability in studies on a major European supermarket chain and had found results that differ significantly of the exploratory studies lead by Heskett et al (2002), finding no relationship between satisfaction of employees and the profitability of the company.…”