scholarly journals Loyal customers’ tipping points of spending for services: a reciprocity perspective

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Karin Teichmann

Purpose Controversy exists about the shape of the relationship between loyalty and profitability. This paper aims to address the possibly nonlinear effects of behavioral loyalty (BLOY) on customer spending (as a proxy for profitability). Building on social exchange theory and the norm of reciprocity, it examines the asymmetries between BLOY and customer spending and the moderating influence of personal communication (PCOMM) as a social reward and dispositional positive reciprocity as process evidence. Design/methodology/approach Study 1a (n = 309) gathered customer data from four restaurants and Study 1b (n = 252) data from hotel guests after they checked out. Study 2 is an experimental study with two manipulated factors BLOY and PCOMM). In total, 295 participants from a large German online panel completed the study. Findings The results indicate an inverted-U shaped relationship between BLOY and customer spending: after reaching a turning point, customers gradually curb spending as their BLOY further increases. High PCOMM acts as a reciprocal response while triggering additional customer spending particularly at higher levels of behavioral loyalty; positive reciprocity adjusts the differences in customer spending when social rewards such as PCOMM are present. Research limitations/implications The asymmetric relationship between BLOY and customer spending is tested only for hedonic service settings. Practical implications Not all loyal customers spend more – companies need to meet their reciprocal obligations before they can benefit from increased customer spending. Originality/value The present research re-considers the nature of the relationship between BLOY and customer spending and reveals an inverted-U shaped relationship, with a turning point beyond which greater customer loyalty decreases customer spending. It finds converging process evidence for the mechanism of reciprocity underlying this relationship. This study also details the financial impact of BLOY on the firm by investigating actual customer spending.

2015 ◽  
Vol 115 (6) ◽  
pp. 1041-1066 ◽  
Author(s):  
Yi Li ◽  
Gang Li ◽  
Taiwen Feng

Purpose – The purpose of this paper is to investigate the relationships among suppliers’ trust and commitment, transaction-specific investment, switching cost, and customer involvement within the context of relational governance mechanism and the social exchange theory. Design/methodology/approach – The authors use survey data from 214 Chinese manufacturing firms and employ the structural equation model to verify the conceptual model. Findings – Relational governance benefits customer involvement. Transaction-specific investment mediates the relationship between trust and commitment of suppliers. Switching costs negatively moderate the relationship between suppliers’ trust and customer involvement, but positively moderate the relationship between suppliers’ commitment and customer involvement. Research limitations/implications – The authors focus on two key elements of relationship, namely, trust and commitment of suppliers, but neglect other relational factors, such as relational norms and interdependence. Originality/value – These findings broaden the understanding and present new directions for the implementation of customer involvement from the perspective of relational governance and social exchange theory.


2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Aakanksha Kataria ◽  
Kumari Rashmi ◽  
Mansi Rastogi

Purpose This study aims to investigate how workplace resourcefulness (positive psychological climate), as well as personal resources (psychological capital [PsyCap]), influence work engagement to promote change-oriented organizational citizenship behaviors (Ch-OCBs) among Indian information technology (IT) personnel. Design/methodology/approach The social exchange theory and job demands-resources model are used to provide rationale for proposing a comprehensive mechanism including antecedents, moderators as well as mediators enabling Ch-OCBs among IT personnel. Structured questionnaires were administered targeting IT professionals and their supervisors to test the proposed relationships. The obtained data from 30 supervisors and 240 subordinates were tested using confirmatory factor analysis, SEM and moderated path analysis technique. Findings Psychological climate, PsyCap and work engagement positively relate to Ch-OCBs; PsyCap moderated the relationship between psychological climate and work engagement. Specifically, the relationship between psychological climate and work engagement has come out stronger for employees with high PsyCap. Work engagement fully mediated the relationship between psychological climate and Ch-OCBs. Practical implications The findings can be critical in promoting voluntary change-focused behaviors among Indian IT personnel, for Indian and foreign (non-Indian) multi-national corporations that are interested in reaping profits by availing change-driven extra-role services of their efficient and the most preferred Indian IT employees of the world. Originality/value This study addresses to the call for more research on change-focused promotive part of OCB and advances the literature by providing evidence on the proposed set of associations from fast-pacing Indian economy.


2018 ◽  
Vol 31 (1) ◽  
pp. 135-153 ◽  
Author(s):  
Manish Kumar ◽  
Hemang Jauhari ◽  
Ashish Rastogi ◽  
Sandeep Sivakumar

Purpose The purpose of this paper is to integrate learnings from social exchange theory, organizational support theory and JD-R model to explore the relationship among support for development, work engagement (WE), job satisfaction (JS) and turnover intention (TI). It was hypothesized that the relationship between managerial support for development (MSD) and TI would be explained through organizational support for development (OSD), WE and overall job satisfaction (OJS). Design/methodology/approach A cross-sectional survey on a sample of 5,088 service industry employees undergoing organizational change and working in the business-to-business context was employed. Reponses were analyzed using IBM® SPSS® AMOSTM 20. Findings The findings were along the hypothesized lines. The study found support for mediation by OSD, WE and OJS, respectively of MSD and TI relationship. Similarly, the mediation of MSD-OJS relationship by OSD and WE, respectively were also supported. Furthermore, OSD mediated the relationship between MSD and WE; while the relationship between OSD and TI was mediated by WE and OJS, respectively and additionally, the OSD-OJS relationship was mediated by WE. Lastly, the mediation of WE-TI relationship by OJS was also supported. Therefore, the sequence of MSD-OSD-WE-OJS-TI partial mediation model was supported. Research limitations/implications While the sample size (n=5,088) is large, the respondents belong to one business unit of an organization, constraining generalizability. Additionally, the study is limited by cross-sectional design. Finally, the study was restricted by the choices of perceptual measures of study variables and non-quantitative evaluation of discretion/job demand. Originality/value Using learnings from multiple theories, the present study examined the roles of two sources of support for development (organizational and managerial) and two job-related states (WE and JS) in relating with TI. Interestingly, all the expected relationships were true in a context signifying the discretionary nature of organization. Further, testing of alternate models gives additional credence to the findings.


2019 ◽  
Vol 49 (2) ◽  
pp. 516-536 ◽  
Author(s):  
Kohinur Akter ◽  
Muhammad Ali ◽  
Artemis Chang

Purpose Empirical findings on the link between work–life programmes and organisational performance have been inconsistent, demanding further investigation of contextual factors. The paper aims to discuss this issue. Design/methodology/approach This study uses social exchange theory, strategic human resource (HR) management theory and stakeholder theory to examine the relationship between work–life programmes and organisational outcomes, using three performance measures: perceived organisational performance, financial performance and corporate social responsibility (CSR). It also investigates the moderating effect of HR systems on the work–life programmes–performance relationship. The hypotheses were tested in 192 organisations in Australia, using data from an HR manager survey and archival databases. Findings The findings support the hypotheses that work–life programmes are positively associated with all three measures of performance. The results partially support the moderating effect of HR systems on the relationship between work–life programmes and perceived organisational performance. Originality/value This study provides pioneering evidence for the moderating effect of HR system on the work–life programme–performance relationship. It also includes the rarely studied CSR as an outcome of work–life programmes.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Xue Zhang ◽  
Guyang Tian ◽  
Chao Ma ◽  
Yezhuang Tian ◽  
Zhongqiu Li ◽  
...  

PurposeGrounded in social exchange theory (SET), the purpose of this paper is to examine the relationship between empowering leadership and unethical pro-organizational behavior (UPB), as mediated by duty orientation (including duty to members, duty to mission and duty to codes). Further, this study proposes that perceived leader expediency moderates indirectly between empowering leadership and UPB.Design/methodology/approachThis paper tests this social exchange model across a survey study using time-lagged data collections from 215 employees of a service company in China.FindingsThe results show that duty orientation mediates the relationship between empowering leadership and UPB. In addition, perceived leader expediency moderates the indirect relationship between empowering leadership and UPB through duty orientation (i.e. duty to members and duty to missions).Originality/valueThis research aids in understanding the impact of empowering leadership on follower outcomes by investigating the dark side of empowering leadership and examining the relationships between empowering leadership, duty orientation and UPB. The present study also challenges the notion that the phrase “the greater the empowerment, the better the outcomes” suggests that organizations should offer a conditional approach to the empowerment of followers by their leaders.


2020 ◽  
Vol 35 (7/8) ◽  
pp. 617-630
Author(s):  
Xiaofeng Xu ◽  
Ho Kwong Kwan ◽  
Miaomiao Li

PurposeDrawing on social exchange theory and a cultural perspective, this study examines the relationship between workplace ostracism and job engagement by focusing on the mediating role of felt obligation and the moderating role of collectivism.Design/methodology/approachA two-wave survey was conducted over four months in a private service business in China. The participants comprised 108 Chinese employees.FindingsThe results indicate that workplace ostracism has a negative relationship with job engagement through a reduced sense of felt obligation. Collectivism strengthens the main effect of workplace ostracism on felt obligation and its indirect effect on job engagement via felt obligation.Research limitations/implicationsThis study contributes to understanding of the internal mechanism of the workplace ostracism–job engagement model by identifying the mediating role of felt obligation. It also emphasizes that collectivist cultures can enhance the effects of workplace ostracism. However, the generalizability of our findings may be limited due to this cultural factor.Practical implicationsOur findings show that workplace ostracism plays a significant role in reducing job engagement. Therefore, it is essential to reduce the incidence of ostracism in the workplace.Originality/valueBy addressing the previously unexplored mechanism that mediates the relationship between workplace ostracism and job engagement, this study provides new directions for research on workplace ostracism and job engagement.


2018 ◽  
Vol 24 (1) ◽  
pp. 57-75 ◽  
Author(s):  
Jeff Muldoon ◽  
Eric W. Liguori ◽  
Josh Bendickson ◽  
Antonina Bauman

Purpose This paper aims to correct some misconceptions about George Homans. Specifically, it clarifies the relationship between Homans and Malinowski, explains why Homans is rightfully considered the father of social exchange, shows Homans’ perspective on altruism and self-interest and analyses Homans’ place in management’s complex history. Design/methodology/approach This is a conceptual paper which synthesizes both primary and secondary sources on Homans, social exchange theory (SET), Malinowski and other Homans’ contemporaries and theories, which, in aggregate, help dispel some common misconceptions in the literature today. Findings This paper disperses several common misconceptions about Homans and his work. First, the findings show that beliefs that Homans was unaware of Malinowski are not justified, as Homans was not only aware of Malinowski but also significantly influenced by Malinowski’s work. Second, this manuscript clarifies that while Homans, for specific reasons, focussed on self-interest, his work accounted for altruism. Lastly, this paper also further cements Homans’ place in history as the father of social exchange. Originality/value Recent misconceptions have emerged in the literature calling to question not only Homans’ legitimacy as the father of social exchange but also some of his views on the theory itself. By clarifying these misconceptions, this paper enables scholars from a variety of management fields to better understand historical foundations of SET and its impact on current research.


2017 ◽  
Vol 38 (2) ◽  
pp. 259-273 ◽  
Author(s):  
Elif Cicekli ◽  
Hayat Kabasakal

Purpose The purpose of this paper is to determine the relationships between promotion, development, and recognition opportunities at work and organizational commitment, and whether these relationships are moderated by the job opportunities employees have in other organizations. Design/methodology/approach An opportunity model of organizational commitment is developed based on social exchange theory and several streams of opportunity research. Factor analyses and hierarchical multiple regression analyses are carried out to test the hypotheses using data from 550 white-collar employees. Findings The results of the analyses show that opportunities for development and recognition are predictors of organizational commitment, that job opportunities employees have in other organizations negatively moderate the relationship between recognition opportunity at work and organizational commitment, and that promotion opportunity does not predict organizational commitment. Research limitations/implications Future researchers could study the issue in the context of other cultures using data from multiple sources. Practical implications Employers who seek to increase their employees’ organizational commitment are advised to divert their energies from struggling to create promotion opportunities for their employees to creating opportunities for development and recognition. Originality/value The study explores the under-researched concept of opportunity at work and connects several streams of opportunity research by drawing on social exchange theory as a theoretical framework. The model is the first to address the effects of opportunity and alternative opportunities on organizational commitment.


2015 ◽  
Vol 44 (6) ◽  
pp. 866-882 ◽  
Author(s):  
Monique Veld ◽  
Judith Semeijn ◽  
Tinka van Vuuren

Purpose – The purpose of this paper is to investigate the moderating role of employees’ willingness to invest in training and development and willingness for mobility on the relationship between human resource (HR) management practices and employability. As such, the study takes an interactionist perspective, building on human capital theory and social exchange theory. Investigating possible interaction effects is highly relevant as little is known yet on how organizational efforts (i.e. policies and activities) and individual effort of employees might strengthen each other in their aim of enhancing employability. Design/methodology/approach – Analyses were based on a sample of 1,346 respondents from 91 primary school locations in the Netherlands. Hypotheses were tested using regression analyses controlling for nesting of the data. Findings – The results indicate that HR activities and employees’ willingness are positively related to employability. Furthermore, only employees’ willingness for mobility strengthens this relationship, not their willingness for training and development. These results indicate that both organizations and employees are responsible for enhancing employability. Practical implications – Both HR activities and employee willingness appear to play a significant and interactive role for enhancing employability. Therefore, explicit cooperation between employee and organization in light of optimizing employability seems warranted. Originality/value – This study extends current research on enhancing employability, by theorizing and testing the combined efforts of organizations and employees from an interactionist perspective.


2018 ◽  
Vol 39 (6) ◽  
pp. 794-806 ◽  
Author(s):  
Maria Khalid ◽  
Sajid Bashir ◽  
Abdul Karim Khan ◽  
Nida Abbas

Purpose The purpose of this paper is to examine the association between abusive supervision and knowledge hiding behaviors. The authors further investigate how abusive supervision is linked with knowledge hiding behaviors, and why some subordinates, unlike others, tend to engage in more knowledge hiding behaviors in response to abusive supervision. The authors propose that interpersonal justice mediates the relationship between abusive supervision and knowledge hiding behaviors, and that Islamic work ethics (IWE) weaken the hypothesized relationship between abusive supervision and knowledge hiding behaviors. Design/methodology/approach The data were gathered in three time lags from 224 respondents working in the hospitality industry of Pakistan. Findings The results reveal that the abusive supervision is positively associated with a knowledge hiding behaviors. This relationship is mediated by perceptions of interpersonal justice, but the IWE moderated this relationship such that in the presence of high levels of IWE, the impact of abusive supervision on knowledge hiding behaviors is weak. Practical implications Employees’ values and beliefs can serve as a safeguard against reactions to abusive supervision. The impact of abusive supervision on employees’ behaviors may be minimized by building their ethical values around Islamic principles. Originality/value To the best of the knowledge, this is the first study to examine the relationship between abusive supervision and knowledge hiding behaviors. The authors integrate displaced aggression and social exchange theory with the IWE literature to offer new insights in-to the mechanisms and boundary conditions associated with the relationship between abusive supervision and knowledge hiding behaviors.


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