1 Home Analytics Tadesse Aragie Upload Papers Evaluation of the relationship between job satisfaction and internal quality: A study on perceptions of clinical leadershipmore by ANGELOS PANTOUVAKIS Share 77 Download (.pdf) The_interrelationship_between_service_features_Job_and_Customer_satisfaction__TQM.pdf 111 KB Hide Sidebar Yee et al. (2008) have noticed that although the impact of employee attitudes oncustomer satisfaction has been extensively investigated, their impact on operationalperformance has largely been neglected. Motivated also by Gazzoli et al. (2010, p. 71) whostated that “[ y ] further research should explore the role of job satisfaction [ y ] on thesubdimensions of service quality instead of overall service quality. The multilevelconceptualization of service quality [ y ] allows analysis at several levels of thought,” itproposesthatratherthanusingaglobalservicequalityscale,astudyofindividualservicequality dimensions could provide researchers and managers with a better understandingof theservicequality–jobsatisfactionlinkage. Infact,thisstudytreatsjobsatisfactionasa consequence of physical features and as an antecedent of interactive features and not asan antecedent of service quality, as past research has argued.In the light of the above findings and suggestions, the contribution of this work willbe to build a more holistic model that incorporates the concept of employee jobsatisfaction to the direct impact of service features, as described by Gro¨nroos (2001), oncustomer satisfaction. Furthermore all relationships emanating from the above holisticconcept are examined and the mediating role of every sub-construct is identified.This perspective could improve managerial understanding of the service quality-jobsatisfaction relationship and lead to more focussed decisions as far as employeeand customer satisfaction enhancement.The paper is divided into six sections. Section 2 presents the conceptual frameworkand hypotheses of the study. Section 3 describes the implemented methodologicalframe. The main results of the survey are given in Section 4 and in Section 5 asummary of the main findings and the managerial implications are presented. Finally,Section 6 includes some limitations and proposals for future research. 2. Conceptual framework and hypotheses 2.1 Service quality and customer satisfaction Some researchers consider the concepts of service quality and customer satisfaction tobe synonymous, as a high degree of correlation has been found between them (Oliva et al. , 1992). Others have found notable distinctions between customer satisfaction andservice quality (Sureshchandar et al. , 2002; Bitner and Hubbert, 1994).Different opinions have also been expressed about the antecedents of service qualityand customer satisfaction. Kotler and Levy (1969) reported that customer satisfactionis connected primarily with the concept of value and price, while service quality isrelated to customer needs and expectations. In addition, Cronin and Taylor (1994)specified service quality as impacting on long-term attitudes and customer satisfactionas the result of the customer evaluating a specific experience (transaction with thefirm). However, more recent research has considered an opposing position, whereservice quality leads to customer satisfaction. In this case, service quality is regardedas the independent variable and customer satisfaction as the dependent variable (Jamaland Naser, 2002; Ting, 2004; Parker and Mathews, 2001).Although, for many years, the arguments focus on the role of and causalrelationship between service quality and customer satisfaction, recent approachesargue for the benefit of merging the two heavily debated service elements into one(Gro¨nroos, 2001) stating that service quality dimensions should be measured alongsidecustomer satisfaction. Quality, as such, should not be measured, because researchindicates that the technical and functional features directly influence perceivedcustomer satisfaction. In the same vein, Yap and Sweeney (2007) investigated theinfluence of specific service quality dimensions on two outcomes: satisfaction and 187 Customersatisfaction perceived value. The Gro¨nroos conceptualization was also used by Caceres andPaparoidamis (2007), who tested the relationship among service quality, relationshipsatisfaction, trust, commitment and loyalty, in a business-to-business environment. 2.2 Service features It is generally accepted that service quality is a multi-dimensional construct, butthere is disagreement as to the optimal conceptualization and operationalization(Parasuraman et al. , 1988). Many theoretical or mathematical models have beendeveloped in order to interpret and measure service quality. The most widelyacknowledged models by both academics and practitioners are the Americanfive-dimension SERVQUAL (Parasuraman et al. , 1988) and the more parsimoniousEuropean or Nordic model of physical and interactive quality (Gro¨nroos, 1982). In spiteof its high recognition and applicability in many service industries, SERVQUAL hasbeen questioned and subjected to theoretical and operational criticism. Critiques referamong others to the number and the contextual stability of its dimensions (dimensionsare contextualized, no universals, etc.). Specifically, Finn (2004, pp. 244-5) emphasizesthat “the five SERVQUAL dimensions are never all distinct; rather there is a singleconsistent distinction between a tangibles dimension and an intangibles dimension.”Fodness and Murray (2007) argue that three of the five dimensions of SERVQUAL(responsiveness, assurance and empathy) focus on the relational (interactive) features,whereas the other two consider the physical element of the service. Survey by Nadiriand Hussain (2005) assessed the hospitality industry in North Cyprus and supportedthe notion that service quality consists of two dimensions (tangibles and intangibles).Previous studies in the tourism field have led to the same conclusion, that the servicequality has two dimensions (Ekinci et al. , 2003; Karatepe and Avci, 2002; Oberoiand Hales, 1990). The use of a two-factor structure (tangibles and intangibles) is alsorecommended by Reimer and Kuehn (2005), who tested their model in two serviceindustries (retail banking and restaurants).Recent studies also supported the superiority of the two-dimensional instrumentsagainst the SERVQUAL for the specific setting of the empirical study (port industry).Specifically, a study in passenger port industry proposed a new model which directlyassesses the physical and interactive elements of a service and tested it against theSERVQUAL measurement model and the Nordic conceptualization in which the fivedimensions are collapsed to two second-order factors (physical and interactive quality)(Pantouvakis, 2010). Findings confirm that the five-dimensional (SERVQUAL) modeland the two-factor (Nordic) higher order factorial perspective fit the data almostequally well. However, the proposed model appears to outperform both of the othermodels with respect to fit and explanatory power of the construct of customersatisfaction. SERVQUAL has also been tested in the commercial shipping environmentby Durvasula et al. (1999) suggesting that the SERVQUAL model should be modified toa more parsimonious two- or three-dimensional structure.The interactive features “relate to the nature of interaction between the service firmand its customers and the process by which the core service is delivered” (Bell et al. ,2005, p. 172). On the other hand, the physical features (servicescape) comprise theappearance of the facilities, the equipment, personnel and communication material.Reimer and Kuehn (2005) took into consideration that physical quality is a directlyobservable variable, while the interactive feature of service is not an observable factor,physical quality represents a search quality, while the interactive feature of servicerepresents an experience and physical quality can be judged prior to the purchase, 188 TQM25,2 while interactive quality is evaluated after consumption. These qualities indicate thattangibles have a significant influence on the intangible dimension of service quality. Inaddition, the research established that the indirect effect of tangibles on perceivedservice quality is significantly greater than the direct effect which suggests amediating role of intangible quality.Bateson (1995) expressed a different opinion arguing that the physical elements of an organization form behaviors on the path to the service encounter. According toNguyen (2006), servicescape should consider two types of needs: operational andmarketing. Operations are important to improving employee performance, whilemarketing positively (or negatively) influences customer beliefs. Hence, theenvironment affects the interactive service features in two ways: it supportsemployees by providing better services and influences customers by creatingexpectations of a high-quality service.Bitner (1992) also supported the notion that employee and customer responses tothefirm environment influence the social interaction between them. In accordance withNamasivayam and Lin (2004), the present study adopts the view that an inadequateservicescape, or inadequate physical service feature, requires a higher level of intangible services, if a certain level of customer satisfaction is to be achieved.Consequently, the first and second hypotheses are: H1. Service features (interactive and physical) are directly and positively related tosatisfaction with the service provided. H2. Perceptions of the interactive features influence perceptions of the physicalfeatures. 2.3 Employee job satisfaction It has been established that employee job satisfaction exerts an important influence oncustomer satisfaction, as satisfied employees tend to be more productive, providebetter services to customers, and hence, can significantly enhance businessprofitability. The cycle of success, proposed by Schlesinger and Heskett (1991),suggests that satisfied employees deliver high service quality. In a similar vein, theservice-profit chain establishes a relationship between profitability and growth, due tocustomer loyalty and satisfaction which is, in turn, due to services provided bysatisfied employees (Heskett et al. , 1994). Vilares and Coelho (2003) proposed areformulation of the ECSI model, establishing that perceived employee satisfaction,loyalty, and commitment exert an important impact on perceived product and servicequality. Apart fromthe abovementioned studies, otherempirical studies havetested therelationship between employee job satisfaction and customer service quality to servicebusinesses (Gil et al. , 2008; Schlesinger and Zornitsky, 1991). Nonetheless, some studiesclaim that the measurement of customer satisfaction should be based exclusively onthe interactive quality, as employees cannot affect customer satisfaction with regard tophysical quality which is determined by management and the available resources.More specifically, Snipes et al. (2005) found that some aspects of job satisfaction, suchas satisfaction with customers, with benefits and with the work itself, may havea larger effect on service quality than others. Their study focussed on items thatrepresent the employee-related aspects of service quality.Hartline and Ferrell (1996) proposed that managers should increase employeeself-efficacy and job satisfaction and reduce employee role conflict, in order to raise 189 Customersatisfaction customer perceptions. The measurement of perceived service quality was restrictedto interactive features (not physical quality elements) which specifically assess theemployee-related aspects of service quality. Gazzoli et al. (2010) used two samples(restaurant contact employees and their customers) to determine the effects of empowerment and job satisfaction on customer perceptions of service quality. Thephysical environment quality dimension was discarded from service qualitymeasurement, on the basis that employees have little or no control over thisdimension and its sub-dimensions.In the same vein, Malhotra and Mukherjee (2004) conducted an empirical survey of the telephone call centers of a UK retail bank. They confirmed that job satisfactioninfluences the intrinsic dimensions of service quality delivered by contact employees(phone encounters). Tangibles were not considered, because customers did not play arole in measuring service quality because, in the specific service setting, the customerhas no contact with physical quality. Thus, he/she should not attempt to evaluate it.Hence, the third hypothesis was formulated as: H3. Job satisfaction has a significant positive effect on the interactive features.As already mentioned, researchers have established that the physical environmentplays an important role in customer evaluations of a provided service, especially incertain service settings (Baker et al. , 1988). The physical service features not onlyinfluence customers, they also influence employees.Bitner (1992) emphasized the impact of physical surroundings on the behavior of both employees and customers. Parish et al. (2008) observed that, as the servicescapefor customers is part of their consumption experience, the working environment is partof the employee experience. It should be noted that the customer spends minimal timein this environment, only as long as the duration of the transaction (immersion).According to Turley and Milliman (2000), the time spent in a particular placeinfluences the potential to be affected by it. This affection may produce either positiveor negative feelings (Mehrabian and Russell, 1974), which can trigger an employeeresponse (e.g. job satisfaction). Parish et al. (2008) demonstrated that the perceivedsafety and pleasantness of a hospital environment has a positively sizable effect onemployee job satisfaction. Other previous studies on the cognitive field of organizational behavior support the influence that a physical setting may have onemployee satisfaction, productivity and motivation (Davis, 1984; Sundstrom andSundstrom, 1986; Wineman, 1986). Accordingly, H4 is: H4. The physical features exert a significant positive effect on employee jobsatisfaction.The literature review highlights the important role that front-line employees play informing customer perceptions of service quality. The latter is influenced mainly by thevalue of services provided to customers and created by satisfied employees. Heskett et al. (1994) proposed a theoretical model, the “service-profit chain” which establishesrelationships between customer satisfaction and job satisfaction. They stated thatcustomer satisfaction is largely influenced by the value of services provided tocustomers and created by satisfied, loyal and productive employees. A substantialbody of research confirms the positive relationship between employee job satisfactionand customer satisfaction. Specifically, Wiley (1991) found that customer satisfaction 190 TQM25,2 was related to a variety of employee attitudes, including satisfaction with the overall job, related to customer satisfaction and intended repeat business. The same result wasverified by Ugboro and Obeng (2000), who tested the relationships between topmanagement leadership, employee empowerment, job satisfaction and customersatisfaction. They found that employee job satisfaction exerts a significant positiveeffect through customer satisfaction on firms which implement TQM principals. Theseobservations are explored in H5 : H5. Employee job satisfaction exerts a significant positive effect on customersatisfaction.The conceptual framework of this study, as summarized in H1-H5 is depicted inFigure 1. Based on the above hypotheses, it was observed that interactive featuresinfluence physical features which, in turn, influence customer satisfaction. It can alsobe hypothesized that the physical service features have an impact both directly andindirectly through job satisfaction on customer satisfaction. Employee job satisfactionhas a positive impact on the interactive features as well as on the customer perceptionsof service quality. These observations yielded the following hypotheses: H6. The physical features mediate the relationship between the interactive featuresand customer satisfaction. H7. Employee job satisfaction mediates the relationship between the physicalfeatures and customer satisfaction. H8. The interactive features mediate the relationship between employee jobsatisfaction and customer satisfaction. 3. Methodology 3.1 Measures The questionnaire consisted of 27 items split into three survey instruments thatmeasure service quality, customer satisfaction and job satisfaction. In order to measureservice quality, a 12-item instrument, based on a Nordic conceptualization anddeveloped by Pantouvakis (2010), has been used. That instrument was recently testedin an empirical survey of the same service sector and proved its superiority againstSERVQUAL instrument. The instrument was adapted to the needs of the presentsurvey. Customer satisfaction was measured with five items, based on Lam et al. ’s Service features H1H5 H4 H2 H3 H1 InteractivefeaturesPhysicalfeaturesJobsatisfactionCustomersatisfaction Figure 1. Conceptual frameworkof the study 191 Customersatisfaction (2004) instrument. The items in these two instruments took the form of a seven-pointpsychometric Likert scale (anchored on 1 ¼ “strongly disagree” through 7 ¼ “stronglyagree”). The measurement of job satisfaction was based on a job satisfaction surveyinstrument (Spector, 1985). This instrument was chosen, because it was developedspecifically for use in service organizations. The nine facets of this instrument werepay, promotion, supervision, fringe benefits, contingent rewards, operating procedures(required rules and procedures), co-workers, the nature of the work, andcommunication. One of these facets, fringe benefits, was omitted, as it not found tobe applicable to the particular service industry. The measure asks employees howeach of the eight facets affected their perceived job satisfaction. The core question was“how satisfied are you with [ y ]?.” Respondents were asked to rate their degree of job satisfaction on a seven-point Likert scale ranging from “extremely dissatisfied”to “extremely satisfied.”The wording of all items, along with the statistical analysis, appear in theAppendix. The self-administrated questionnaire also included a series of questionsrelated to the demographic characteristics of the sample. 3.2 Sample The setting for this empirical study is the shipping industry, specifically the Piraeusport authority (PPA S.A.) in Greece. This company is engaged in the management andoperation of Piraeus port. Its activities include ships’ anchoring services, handlingcargo, loading and unloading services, goods storage, and car transportation. Thepassenger port operates domestic and international passenger terminals withapproximately 20 million passengers served annually. It is one of the biggest seaportsin the Mediterranean Sea basin, the third largest passenger port worldwide and one of the top ten container ports in Europe. It is the main link of Greece’s mainland tothe Aegean islands and Crete and the main maritime gate of the European Union toits southeast end. The company is also a major employer in the area, with more than1,500 employees who provide services to more than 24,000 ships every year.The questionnaire was given only to first-line employees who were identified fromthe HR department database. A cover letter was included in the mailing to all samplemembers, explaining the purpose of this academic study, along with the questionnaireand a return envelope addressed to one of the authors. Participants were assured of total confidentiality and anonymity. A sample of 175 questionnaires from the contactedemployeeswas collected, of which sevenwere excluded because they provided answersthat were uniformly positive or negative (skewed responses). The 168 usablequestionnaires constitute the 15.6 percent of the total employee population.In the current study, the data from first-line employees was used as a surrogatemeasurement of customer satisfaction based on the assumption that the perceptions of employees and customers about customer satisfaction and service quality tend to beidentical, especially for repeat services. For example, the empirical findings of Johnson(1995) indicate that the two groups of employees and customers, have similar viewsabout employee perceptions of customer satisfaction ( r ¼ 0.46). In the same vein,Schneider and Bowen (1985) indicated that employee perceptions of service quality arehighly related to customer perceptions ( r ¼ 0.63).As far as the demographic characteristics of the sample were concerned, respondentswere split reasonably evenly between males (57.2 percent) and females (42.8 percent).The age groupings were 18-25 years (0.6 percent), 26-35 years (6.1 percent), 36-45 years(33.3 percent), 46-55 years (43 percent) and over 56 years of age (17 percent) (SD ¼ 0.84). 192 TQM25,2 Job Board About Mission Press Blog Stories Were hiring engineers! FAQ Terms Privacy Copyright Send us Feedback Academia © 2014
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