How an organization's ethical climate contributes to customer satisfaction and financial performance

2014 ◽  
Vol 17 (1) ◽  
pp. 85-106 ◽  
Author(s):  
Hyoung Koo Moon ◽  
Byoung Kwon Choi
Keyword(s):  
Customer Satisfaction ◽  
South Korea ◽  
Financial Performance ◽  
Ethical Climate ◽  
Organizational Innovation ◽  
Developed Countries ◽  
Positive Influence ◽  
Content Type ◽  
Climate Influences ◽  
The Individual

Purpose – Researchers in the field of business ethics have posited that an organization's ethical climate can benefit for employees as well as organizations. However, most of the prior research has been conducted at the level of the individual, not organization. Thus, the purpose of this paper is to examine how an organization's ethical climate has a positive influence on two its performance indicators – customer satisfaction and financial performance – with a perspective of organizational innovation. Design/methodology/approach – The data were collected from 29 subsidiaries of a conglomerate in South Korea. Hypotheses were tested using the partial least squares (PLS). Findings – The result showed that an organization's ethical climate was positively related to customer satisfaction as well as financial performance, and this relationship was mediated by perceived organizational innovation. Additionally, the positive influence of an ethical climate on employees’ perceived organizational innovation was mediated by their organizational commitment and the climate for innovation. Originality/value – With a focus on innovation, the study explained how an organization's ethical climate influences customer satisfaction and financial performance. Furthermore, as was the case in studies conducted in other developed countries, the results derived from South Korea sample demonstrated that an ethical climate is critical for organizational performances in developing countries.

Customer satisfaction index and financial performance: a European cross country study

2019 ◽  
Vol 37 (2) ◽  
pp. 479-491 ◽  
Author(s):  
Anastasia Golovkova ◽  
Jan Eklof ◽  
Aleksandra Malova ◽  
Olga Podkorytova
Keyword(s):  
Customer Satisfaction ◽  
Financial Performance ◽  
Banking Sector ◽  
Banking Industry ◽  
Positive Influence ◽  
Content Type ◽  
Satisfaction Index ◽  
Customer Satisfaction Index ◽  
Country Level ◽  
Cross Country

Purpose The purpose of this paper is to examine the relationship between customer satisfaction measured as Extended Performance Satisfaction Index (EPSI) and the financial performance of the banking sector for seven European countries over the period 2004–2014. Design/methodology/approach Using panel models, this study finds a significant positive influence of EPSI on banking financial performance at the country level. Findings Findings suggest that the value of the customer satisfaction index is important in explaining the financial performance of the banking industry at the aggregative country level. The customer satisfaction index measured as EPSI has a strong positive influence on the financial performance of the banking industry for the various North European countries studied. It was shown that EPSI has a positive influence on both total assets and total equity, with a higher relative influence and stronger significance on the total assets of the banking sector than on total equity. Originality/value The study contributes to understanding the importance of measuring and maintaining customer satisfaction as a profitability driver in the banking industry, providing new cross-country evidence. It also contributes to the literature focussing on a group of countries that have not previously been studied.

Supply chain practices and organizational performance

2017 ◽  
Vol 28 (1) ◽  
pp. 75-101 ◽  
Author(s):  
Shrikant Gorane ◽  
Ravi Kant
Keyword(s):  
Supply Chain ◽  
Customer Satisfaction ◽  
Financial Performance ◽  
Organizational Performance ◽  
Customer Value ◽  
Structural Equation ◽  
Decision Makers ◽  
Current Status ◽  
Content Type ◽  
Manufacturing Organizations

Purpose The purpose of this paper is to empirically test a framework which identifies the relationships between various supply chain practices (SCPs) and organizational performance (operational performance (OP), customer satisfaction, and financial performance) in the context of Indian manufacturing organizations. Design/methodology/approach From the literature, ten SCPs are selected which finally influences the organizational performance. In order to understand the interactions between SCPs and organizational performance, this paper grouped the ten SCPs into four constructs namely: information and communication technology, supply chain (SC) integration, operational responsiveness, and closed loop green practices. Three levels of firm performance are also examined, including OP, customer satisfaction, and financial performance. The paper-based and web-based survey yielded 292 responses from the Indian manufacturing organizations. The data collected were put through rigorous statistical analysis to test for the content, construct, and criterion-related validity, as well as reliability analyses. Further a structural equation model was developed to test the relationships between SCPs and organizational performance. Findings The finding suggests that a successful SCPs implementation not only improves the OP, but also enhances customer satisfaction and financial performance. In addition, higher financial performance is also attributable to better customer value resulting from the achievement of better customer satisfaction. Research limitations/implications SCPs are complex constructs. While this study shows the effect of broadly accepted SCPs on organizational performance, not all possible practices are covered in this study. Again the study can be further extended to sector specific so that the results can be further refined. Practical implications This is one of the few studies which attempts to investigate whether there is any relationship exits between SCPs and organizational performance. The finding will help decision makers in the organization to know the importance of SCPs and how SCPs influence the organizational performance. Second, this study has developed and validated a multi-dimensional construct of SCPs, which can assist decision makers of Indian organizations to evaluate the competence of their current status of SCPs in the organization. Originality/value As per the knowledge of the authors, this is the first kind of study which empirically investigated the relationships between SCPs and organizational performance in the context of Indian manufacturing organizations.

Performance risk factors in SME strategic planning

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Keyword(s):  
Strategic Planning ◽  
Financial Performance ◽  
Emerging Market ◽  
Negative Influence ◽  
Positive Influence ◽  
Content Type ◽  
Political Ties ◽  
Pertinent Information ◽  
Internal Stakeholders ◽  
Business Ties

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings This research paper concentrates on the links between SME financial performance, business ties, and political ties. Business ties were revealed to be the fundamental microfoundations of formal strategic planning (FSP), by significantly boosting firms' financial performance. However, political ties were revealed to be something to avoid, in emerging market like Turkey, due to their distracting negative influence of firm performance. SMEs can overcome some of the disadvantages of their size by involving positive influence external parties in strategic work, to support internal stakeholders. Originality/value The briefing saves busy executives, strategists and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

Does capacity utilisation influence financial performance? A study of Indian public bus transport companies

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Shivam Kushwaha ◽  
Shankar Prawesh ◽  
Anand Venkatesh
Keyword(s):  
Financial Performance ◽  
Public Transport ◽  
Ordinary Least Squares ◽  
Positive Influence ◽  
Data Envelopment ◽  
Truncated Regression ◽  
Capacity Utilisation ◽  
Content Type ◽  
Unit Increase ◽  
Unused Capacity

PurposeThe objective of the paper is to get a better understanding of capacity utilisation (CU) in Indian public bus companies. More specifically, this paper would be measuring CU and identifying the drivers of the same. Finally, the influence of CU on the financial performance of Indian bus companies is examined.Design/methodology/approachThe study adopted data envelopment analysis (DEA) to measure the CU in Indian public bus companies. Truncated regression was used to identify the drivers of CU. Subsequently, the ordinary least squares (OLS) regression was used to analyse the influence of CU on Indian bus companies' financial performance. The period of study was from 2013 to 17.FindingsThe significant drivers of CU were fleet age, passenger lead and fleet utilisation. Additionally, it was found that CU had a significant positive influence on the financial performance of Indian public bus companies and a unit increase in unused capacity has led to an increase of 7% in the operating ratio of the bus companies.Practical implicationsGetting insights into CU, apart from technical efficiency, is of immense use to both public transport researchers and practitioners. Managers of public bus companies should be mindful of CU as it has a significant bearing on their financial performance.Originality/valueThis is the first study in public transport, which establishes the linkage between CU and financial performance. Besides, a modified measure of cost-efficiency has also been conceptualised in this study.

scholarly journals Evaluating the individual- and country-level variations in tax morale

2017 ◽  
Vol 44 (5) ◽  
pp. 816-832 ◽  
Author(s):  
Colin C. Williams ◽  
Besnik Krasniqi
Keyword(s):  
Tax Compliance ◽  
State Intervention ◽  
Developed Countries ◽  
Social Actor ◽  
Actor Model ◽  
Tax Morale ◽  
Content Type ◽  
Country Level ◽  
The One ◽  
The Individual

Purpose Recently, a small but burgeoning literature has argued that tax non-compliance cannot be fully explained using the conventional rational economic actor approach which views non-compliance as occurring when the pay-off is greater than the expected cost of being caught and punished. Instead, a social actor approach has emerged which views tax non-compliance as higher when “tax morale”, defined as the intrinsic motivation to pay taxes, is low. To advance this social actor model, the purpose of this paper is to evaluate the individual and national heterogeneity in tax morale, which is crucial if tax compliance is to be improved. Design/methodology/approach To do this, the authors report data from the 2010 Life in Transition Survey on tax morale in 35 Eurasian countries. Findings Logit econometric analysis reveals, on the one hand, that there is higher tax morale among middle-aged, married, homeowners with children, with a university degree and employed, and on the other hand, that there is higher tax morale in more developed countries with stronger legal systems and less corruption, and higher levels of state intervention in the form of both taxation and expenditure. Research limitations/implications Rather than continue with the rational actor approach, this paper reveals that how an emergent social actor approach can help to more fully explain tax non-compliance and results in a different policy approach focused upon changing country-level economic and social conditions associated with low tax morale and thus non-compliance. Practical implications These results display the specific populations with low tax morale which need targeting when seeking to tackle tax non-compliance. Originality/value This paper provides a new way of explaining and tackling tax non-compliance in Eurasian countries.

Examining the influence of expatriates’ social capital and knowledge-sharing behavior on financial performance

2019 ◽  
Vol 28 (3) ◽  
pp. 557-577 ◽  
Author(s):  
Wann Yih Wu ◽  
Li Yueh Lee ◽  
That Thi Pham
Keyword(s):  
Social Capital ◽  
Customer Satisfaction ◽  
Financial Performance ◽  
Knowledge Sharing ◽  
Balanced Scorecard ◽  
Organizational Support ◽  
Content Type ◽  
Moderation Effect ◽  
Internal Process ◽  
The Impact

Purpose The purpose of this paper is to examine the impact of expatriate’s social capital and knowledge sharing on multinational companies’ (MNCs) financial performance, with a specific focus on the influence of trust, commitment, organizational support and the four elements of balanced scorecard (BSC). Design/methodology/approach A quantitative questionnaire survey was conducted using expatriates of MNCs in Taiwan as the respondents. Findings Trust and organizational support are significant predictors of knowledge sharing and social capital, which further facilitate their influence on learning and growth, customer satisfaction, internal process improvement and financial performance of MNCs. Besides, social capital serves as an accelerate agent to promote the influence of trust on knowledge sharing, and customer satisfaction serves as a catalyst on the influence of learning and growth and internal process on a firms’ financial performance. Practical implications This study provides a clear articulation of the role of knowledge sharing on the financial performance and its moderation effect on the elements of BSC. Trust and organizational support are essential for knowledge sharing and expatriates’ social capital. The roles of social capital and knowledge sharing are critical for expatriates to be success in the overseas market places. Originality/value Since the evidences regarding expatriate performance rarely integrate the variables of social capital, knowledge sharing and BSC into a more comprehensive framework, the results of this study can be an important reference for academicians to do further validation. These results are also critical for practitioners to develop dispatching policies for the expatriates in the oversea market places.

Promoting service excellence for tourist destinations

2016 ◽  
Vol 10 (4) ◽  
pp. 440-454
Author(s):  
Marit Gundersen Engeset ◽  
John S. Hull ◽  
Jan Velvin
Keyword(s):  
Customer Satisfaction ◽  
Structural Equation ◽  
Local Community ◽  
Survey Design ◽  
Positive Influence ◽  
Equation Modeling ◽  
Content Type ◽  
Service Excellence ◽  
Ski Resort ◽  
Guest Satisfaction

Purpose This paper aims to understand the relationship between employee satisfaction and customer satisfaction and its impacts on the long-term sustainability of Hemsedal Ski Resort, Norway. Design/methodology/approach This study uses a mixed method approach. Focusing on the case of Hemsedal, Norway, the authors employ survey design to measure employee service attitudes as well as guest satisfaction and loyalty. Correlation analysis and structural equation modeling (SEM) analysis is used to investigate the relationships between the constructs. Findings Results from the four-year programme reveal that the correlation between employee service attitude and customer experience is strongest for behavioural loyalty which was found to have a direct and observable effect for the customer and that working to teach and train employees is important. Further, results showed that guest satisfaction with service not only influenced loyalty to the company that provided the service, but also loyalty to the destination where the company was situated. In explaining the relationships between levels of employee service attitude, customer satisfaction and community sustainability at Hemsedal ski resort, results showed that through partnership and cooperation, training and development have benefitted the individual companies, the destination and local community at large. Practical implications Results suggest that managers of tourism destinations should focus on employee motivation and training to improve their guests’ satisfaction and loyalty, their competitiveness and sustainability for the future. Originality/value The Service Excellence Project at Hemsedal, Norway demonstrates that mountain destinations can have a positive influence on their competitiveness and their sustainability by instituting a programme that works with employees, customers and businesses to promote a climate of service excellence.

The effect of shipping knowledge and absorptive capacity on organizational innovation and logistics value

2015 ◽  
Vol 26 (2) ◽  
pp. 218-237 ◽  
Author(s):  
Eon-Seong Lee ◽  
Dong-Wook Song
Keyword(s):  
Organizational Performance ◽  
Absorptive Capacity ◽  
Organizational Innovation ◽  
Positive Impact ◽  
Business Environment ◽  
Positive Influence ◽  
Maritime Logistics ◽  
Logistics Industry ◽  
Content Type ◽  
The Impact

Purpose – The purpose of this paper is to examine what types of shipping knowledge are crucial in order for shipping companies to survive in dynamic business environment, and to investigate how the shipping knowledge affects the company’s performance (i.e. organizational innovation and logistics value). This paper also diagnoses the moderating effect of absorptive capacity on the relationship between the shipping knowledge and its effectiveness. Design/methodology/approach – Based on the literature, a theoretical framework and relevant hypotheses are established so as to show associated relationships between shipping knowledge, absorptive capacity, and organizational innovation and logistics value. Data are collected for an empirical analysis and a moderated hierarchical regression analysis is conducted to test the hypotheses. Findings – Results show that a high level of shipping knowledge has a positive influence on the organizational innovation and logistics value of shipping companies. The findings also indicate that, while the absorptive capacity of shipping companies moderates the positive impact of shipping knowledge on the logistics value, it directly affects the improvement of organizational innovation. Research limitations/implications – This research verifies that effective knowledge management of shipping companies plays a significant role in developing organizational innovation and improving logistics performance. The research findings provide shipping companies with a strategic insight into the identification of critical sources for competitive advantage and greater organizational performance from an organizational learning perspective. Practical implications – This line of research is served as an indicator of a good strategic direction for the practitioners engaged in the maritime transport and logistics industry, in order for them to become better integrated entities in a global logistics system as well as maximize their competitive advantages. Originality/value – This paper makes the first attempt in its kind at empirically examining the types of shipping knowledge and its overall effectiveness in terms of the improvement of organizational innovation and logistics value. The moderating role of absorptive capacity on the impact of knowledge on organizational performance has also been initiated in the maritime logistics research.

Managing strategic supplier relationships: antecedents and outcomes

2015 ◽  
Vol 30 (2) ◽  
pp. 129-138 ◽  
Author(s):  
Eric P. Jack ◽  
Thomas L. Powers
Keyword(s):  
Service Quality ◽  
Financial Performance ◽  
Empirical Evidence ◽  
Structural Equation ◽  
Positive Influence ◽  
Equation Modeling ◽  
Management Support ◽  
Quality Outcomes ◽  
Supplier Relationships ◽  
Content Type

Purpose – The purpose of this paper was to examine the antecedents of strategic supplier relationships in conjunction with outcomes of product and service quality and financial performance. The management of strategic supplier relationships involves the selection and development of suppliers that share common goals and strategies of the partnering organization. Design/methodology/approach – Structural equation modeling using partial least squares is used to verify and test these relationships. Findings – Top management support, technological preparedness and trust were found to have significant positive influences on the management of strategic supplier relationships. Strategic supplier relationships were found to have a positive influence on product and service quality outcomes and financial performance. Research limitations/implications – The results provide new and original empirical evidence on the relationship between the antecedents and outcomes of strategic supplier relationships. Practical implications – The findings can contribute to the management of supplier relationships, resulting in improved product and service quality outcomes and financial performance. Originality/value – The research adds empirical evidence to the literature on the factors that contribute to effective supplier relationships and the customer- and firm-related outcomes of this process.

Employees and sustainability: the role of incentives

2016 ◽  
Vol 31 (4) ◽  
pp. 820-836 ◽  
Author(s):  
Kimberly K Merriman ◽  
Sagnika Sen ◽  
Andrew J Felo ◽  
Barrie E Litzky
Keyword(s):  
Financial Performance ◽  
Employee Engagement ◽  
Status Quo ◽  
Organizational Sustainability ◽  
Content Type ◽  
Incentive Effects ◽  
Environmental Objectives ◽  
Wide Range ◽  
The Individual

Purpose – Organizational sustainability has become a priority on many corporate agendas. How to integrate sustainability efforts throughout the organization, however, remains a challenge. The purpose of this paper is to examine two factors that potentially enhance incentive effects on employee engagement in environmental objectives: explicit organizational values for sustainability and the performance objective’s complementarity with incented financial objectives. Design/methodology/approach – The authors employed a quasi-experimental design in which participants were randomly assigned to one of four conditions, including a status quo condition against which the treatments were contrasted. Participants (n=400) were comprised of a cross-section of US employees from a wide range of occupations and industries. A post hoc qualitative analysis provided additional insights. Findings – Incentive effects were enhanced (i.e. preference for the environmental objective was significantly higher) when the environmental project offered complementary benefits for financial objectives, but not when organization values emphasized sustainability. An entrenched status quo bias for financial performance was discerned among a subset of the sample. Research limitations/implications – Management scholars must pay close attention to the role of implicit norms for financial performance when investigating employee engagement in organizational sustainability efforts. From an applied perspective, framing sustainability objectives to emphasize financial benefits consistent with a financial mission may maximize employee engagement. Originality/value – This study contributes to understanding of organizational sustainability efforts at the individual employee level of analysis, a conspicuously small part of the organizational research surrounding this topic.

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