Share:


Employee motivation, job satisfaction, customer satisfaction, and firm performance: the moderating role of employee empowerment

    Hebah Zaki Makhamreh Affiliation
    ; Asaad Alsakarneh   Affiliation
    ; Bilal Eneizan Affiliation
    ; Abdul Hafaz Ngah   Affiliation

Abstract

This study mainly focuses on examining the effects of employee motivation on Job Satisfaction, job satisfaction on customer satisfaction, customer satisfaction on firm performance, and the moderating role of employee empowerment on the relationship between employee motivation and job satisfaction. The current study follows convenience sampling to collect the data. The questionnaire uses the survey method of self-administered. To analyse the relationship between the variable and test the hypothesis PLS3 (Partial least-squares) equation is used. The main contributors to the current study were staff of the hotels. The sample size of the study is 380 worker staff of a hotel. The findings of the study indicated that employee motivation effect significantly and positively on job satisfaction, job satisfaction effect significantly and positively on customer satisfaction, customer satisfaction effect significantly and positively on firm performance, and for the moderation the finding shows that Employee empowerment effect positively and significantly on the relationship between Employee motivation and Job Satisfaction.

Keyword : employee motivation, job satisfaction, customer satisfaction, firm performance, employee empowerment

How to Cite
Makhamreh, H. Z., Alsakarneh, A., Eneizan, B., & Ngah, A. H. (2022). Employee motivation, job satisfaction, customer satisfaction, and firm performance: the moderating role of employee empowerment. Business: Theory and Practice, 23(2), 357–364. https://doi.org/10.3846/btp.2022.15316
Published in Issue
Sep 29, 2022
Abstract Views
2524
PDF Downloads
2014
Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

References

Abd Aziz, N., Muslichah, I., & Ngah, A. H. (2020). Understanding factors influencing community life satisfaction towards sustainable heritage tourism destination: The case of Yogyakarta, Indonesia. Journal of Sustainability Science and Management, 15(1), 37–51. https://jssm.umt.edu.my/wp-content/uploads/sites/51/2020/05/4.15.1pdf.pdf

Abdi Mohamud, S., Ibrahim, A. A., & Hussein, J. M. (2017). The effect of motivation on employee performance: Case study in Hormuud Company in Mogadishu Somalia. International Journal of Development Research, 9(11), 17009–17016.

Ackah, D. (2014). The impact of motivation on employee performance in the manufacturing industry in Ghana. Global Journal of Management Studies and Researches, 1(5), 291–310. https://www.academia.edu/17443062/The_Impact_of_Motivation_on_Employee_Performance_in_the_Manufacturing_Industry_in_Ghana

Ahmed, S. (2015). Rhetorical organization of tourism research article abstracts. Procedia – Social and Behavioral Sciences, 208, 269–281. https://doi.org/10.1016/j.sbspro.2015.11.203

Al-dalahmeh, M., Khalaf, R., & Obeidat, B. (2018). The effect of employee engagement on organizational performance via the mediating role of job satisfaction: The case of IT employees in Jordanian banking sector. Modern Applied Science, 12(6), 17–43. https://doi.org/10.5539/mas.v12n6p17

Amollo, M. K. (2021). Employee motivation, job satisfaction and employee performance a case study of Mbale district local government [Doctoral dissertation, Makerere University]. Uganda. http://hdl.handle.net/20.500.12281/9993

Amoopour, M., Hemmatpour, M., & Mirtaslimi, S. S. (2014). Job satisfaction of employee and customer satisfaction. Arabian Journal of Business and Management Review (OMAN Chapter), 3(6), 1–6. https://doi.org/10.12816/0016457

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. https://doi.org/10.1177/002224299405800304

Aziz, S., & Arif, K. (2020). Is pre-eminence in financial performance attributable to the innovative ideas of the CEO? (An Evidence from PSX 100 Listed Companies). Research Gate.

Bamberger, B., Homburg, C., & Wielgos, D. M. (2021). Wage inequality: Its impact on customer satisfaction and firm performance. Journal of Mar-keting, 85(6), 24–43. https://doi.org/10.1177/00222429211026655

Bangcheng, L. (2009). Evidence of public service motivation of social workers in China. International Review of Administrative Sciences, 75(2), 349–66. https://doi.org/10.1177/0020852309104180

Behn, B. K., & Riley Jr, R. A. (1999). Using nonfinancial information to predict financial performance: The case of the U.S. airline industry. Journal of Accounting, Auditing & Finance, 14(1) 29–56. https://doi.org/10.1177/0148558X9901400102

Belias, D., Koustelios, A., Sdrolias, L., Koutiva, M., Zournatzi, E., & Varsanis, K. (2014). Motivation and job satisfaction among Greek bank employ-ees. Prime, 7, 71–87. https://www.researchgate.net/profile/Dimitrios-Belias/publication/266199929_Motivation_and_Job_Satisfaction_among_Greek_Bank_Employees/links/54295d300cf26120b7b63046/Motivation-and-Job-Satisfaction-among-Greek-Bank-Employees.pdf

Bose, I. (2018). Employee empowerment and employee performance: An empirical study on selected banks in UAE. Journal of Applied Management and Investments, 7(2), 71–82. http://www.jami.org.ua/Papers/JAMI_7_2_2018_71-82.pdf

Chen, T. L., Huang, M. Y., & Su, T. H. (2012). Work motivation, work stress, and job satisfaction in between Taiwan and China – An empirical study. World Academy Science, Engineering and Technology, 6(8), 1446–1450. https://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.926.4971&rep=rep1&type=pdf

Chien, G. C., Mao, I., Nergui, E., & Chang, W. (2020). The effect of work motivation on employee performance: Empirical evidence from 4-star hotels in Mongolia. Journal of Human Resources in Hospitality & Tourism, 19(4), 473–495. https://doi.org/10.1080/15332845.2020.1763766

Curtis, C. R., Upchurch, R. S., & Severt, D. E. (2009). Employee motivation and organizational commitment: A comparison of tipped and nontipped restaurant employees. International Journal of Hospitality & Tourism Administration, 10(3), 253–269. https://doi.org/10.1080/15256480903088469

Dresner, M., & Xu, K. (1995). Customer service, customer satisfaction, and corporate performance in the service sector. Journal of Business Logistics, 16(1), 23. https://www.proquest.com/openview/a5ee13a127abc96c91d1dce40036247b/1?pq-origsite=gscholar&cbl=36584

Emerson, R. M. (1976). Social exchange theory. Annual Review of Sociology, 2, 335–362. https://doi.org/10.1146/annurev.so.02.080176.002003

Eneizan, B. M., abdelqader Alsakarneh, A. A., AL-kharabsheh, K. A., AL-Abrrow, H., & Alnoor, A. (2019). An investigation into the relationship between emotional labor and customer satisfaction. Journal of Management and Business Administration. Central Europe, 27(4), 23–47. https://doi.org/10.7206/cemj.2658-0845.8

Eneizan, B., Taamneh, M., Enaizan, O., Almaaitah, M., Ngah, A., & Alsakarneh, A. (2021). Human resources practices and job satisfaction on custom-er satisfaction: The mediating role of quality of customer interaction in online call center. International Journal of Data and Network Science, 5(1), 11–18. https://doi.org/10.5267/j.ijdns.2020.12.001

Faraji, O., Pourreza, A., Hosseini, M., Arab, M., & Akbari, F. (2008). Role and effect of the job characteristic model (JCM) on job satisfaction. Journal of School of Public Health & Institute of Public Health Research, 6(2).

Fornell, C., Morgeson, F. V., III, & Hult, G. T. M. (2016). Stock returns on customer satisfaction do beat the market: Gauging the effect of a market-ing intangible. Journal of Marketing, 80(5), 92–107. https://doi.org/10.1509/jm.15.0229

Garson, G. D. (2016). Partial Least Squares: Regression & structural equation models. Statistical Associates Publishers.

Ghebregiorgis, F. (2018). Factors influencing employee performance in hotel – a comparative study of government and privately owned hotels in Eri-trea. International Journal of Research in Business Studies and Management, 01–09.

Graen, G., Novak, M. A., & Sommerkamp, P. (1982). The effects of leader – member exchange and job design on productivity and satisfaction: Testing a dual attachment model. Organizational Behavior and Human Performance, 30(1), 109–131. https://doi.org/10.1016/0030-5073(82)90236-7

Hair Jr, J. F., Sarstedt, M., Hopkins, L., & Kuppelwieser, V. G. (2014). Partial least squares structural equation modelling (PLS-SEM): An emerging tool in business research. European Business Review, 26(2), 106–121. https://doi.org/10.1108/EBR-10-2013-0128

Hair, J. F., Ringle, C. M., & Sarstedt, M. (2011). PLS-SEM: Indeed a silver bullet. Journal of Marketing Theory and Practice, 19(2), 139–152. https://doi.org/10.2753/MTP1069-6679190202

Hair, J. F., Ringle, C. M., & Sarstedt, M. (2013). Partial least squares structural equation modeling: Rigorous applications, better results and higher acceptance. Long Range Planning, 46(1–2), 1–12. https://doi.org/10.1016/j.lrp.2013.01.001

Hair, J. F., Risher, J. J., Sarstedt, M., & Ringle, C. M. (2018). Article information: When to use and how to report the results of PLS-SEM. European Business Review, 30(11), 3192–3210.

Hair, J. F., Risher, J. J., Sarstedt, M., & Ringle, C. M. (2019). When to use and how to report the results of PLS-SEM. European Business Review, 31(1), 2–24. https://doi.org/10.1108/EBR-11-2018-0203

Hanaysha, J., & Tahir, P. R. (2016). Examining the effects of employee empowerment, teamwork and employee training on job satisfaction. Procedia – Social and Behavioral Science, 219, 272–282. https://doi.org/10.1016/j.sbspro.2016.05.016

Hartati, T. (2020). Analysis of influence of motivation, competence, compensation toward performance of employee. Budapest International Research and Crirics Institute (BIRCI-Journal): Humanities, 3(2), 1031–1038. https://doi.org/10.33258/birci.v3i2.933

Harter, J. K., Schmidt, F. L., & Hayes, T. L. (2002). Business-unit-level relationship between employee satisfaction, employee engagement, and busi-ness outcomes: a meta-analysis. Journal of Applied Psychology, 87(2), 268–279. https://doi.org/10.1037/0021-9010.87.2.268

Hitka, M., Lorincová, S., Potkány, M., Balážová, Ž., & Caha, Z. (2021). Differentiated approach to employee motivation in terms of finance. Journal of Business Economics and Management, 22(1), 118–134. https://doi.org/10.3846/jbem.2020.13702

Homburg, C., & Stock, R. M. (2004). The link between salespeople’s job satisfaction and customer satisfaction in a business-to-business context: A dyadic analysis. Journal of the Academy of Marketing Science, 32(2), 144. https://doi.org/10.1177/0092070303261415

Homburg, C., Hoyer, W. D., & Koschate, N. (2005). Customers’ reactions to price increases: Do customer satisfaction and perceived motive fairness matter? Journal of the Academy of Marketing Science, 33(1), 36–49. https://doi.org/10.1177/0092070304269953

Hulin, C. L., & Judge, T. A. (2003). Job attitudes. In Handbook of psychology (pp. 255–276). Italian social enterprises. European Research Institute on Cooperatives and Social Enterprises. https://doi.org/10.1002/0471264385.wei1211

Ibrahim, M., & Brobbey, V. A. (2015). Impact of motivation on employee performance the case of some selected micro finance companies in Ghana. International Journal of Economics, Commerce and Management, 3(11), 1218–1236.

Ignore, H. (2009). Managing behind the scenes: A view point on employee empowerment. African Journal of Business Management, 3(1), 009–015. https://academicjournals.org/journal/AJBM/article-abstract/368627C15461

Jonić, V. (2018). Motivation of employees in Hotel Patria (Serbia). European Researcher. Series A, (9–3), 227–234. https://doi.org/10.13187/er.2018.3.227

Karatepe, O. M. (2013). High-performance work practices and hotel employee performance: The mediation of work engagement. International Journal of Hospitality Management, 32, 132–140. https://doi.org/10.1016/j.ijhm.2012.05.003

Khan, A, Baloch, S, Arif, K, & Alvi, J. (2020). Does capital asset pricing hold in Pakistan stock exchange? An application of seemingly unrelated re-gression. International Journal of Psychosocial Rehabilitation, 24(09).

Koys, D. J. (2003). How the achievement of human-resources goals drives restaurant performance. Cornell Hotel and Restaurant Administration Quarterly, 44(1), 17–24. https://doi.org/10.1016/S0010-8804(03)90042-5

Luthans, F., & Youssef, C. M. (2007). Emerging positive organizational behavior. Journal of Management, 33(3), 321–349. https://doi.org/10.1177/0149206307300814

Ngah, A. H., Zainuddin, Y., & Thurasamy, R. (2017). Applying the TOE framework in the Halal warehouse adoption study. Journal of Islamic Ac-counting and Business Research, 8(2), 161–181. https://doi.org/10.1108/JIABR-04-2014-0014

Nigussie, Y. (2018). Determinant of employees’ motivation in the hotel industry. Journal of Marketing and Consumer Research, 43. https://core.ac.uk/download/pdf/234694408.pdf

Olusadum, N. J., & Anulika, N. J. (2018). Impact of motivation on employee performance: A study of Alvan Ikoku Federal College of Eduaction. The Journal of Men’s Studies, 1(1). https://doi.org/10.5430/jms.v9n1p53

Otto, A. S., Szymanski, D. M., & Varadarajan, R. (2020). Customer satisfaction and firm performance: Insights from over a quarter century of empirical research. Journal of the Academy of Marketing Science, 48(3), 543–564. https://doi.org/10.1007/s11747-019-00657-7

Petter, S. (2018). “Haters Gonna Hate”: PLS and information systems research. ACM SIGMIS Database: The DATABASE for Advances in Information Systems, 49(2), 10–13. https://doi.org/10.1145/3229335.3229337

Randolph, W. A. (1995). Navigating the journey to empowerment. Organizational Dynamics, 23(4), 19–32. https://doi.org/10.1016/0090-2616(95)90014-4

Rehman, M. W. U., & Arif, K. (2015). Investment behavior and stock preference of an individual investor: Evidence from Karachi stock exchange. Developing Country Studies, 5(9), 124–131.

Risambessy, A., Swasto, B., Thoyib, A., & Astuti, E. S. (2012). The influence of transformational leadership style, motivation, burnout towards job satisfaction and employee performance. Journal of Basic and Applied Scientific Research, 2(9), 8833–8842.

Saengchai, S., Siriattakul, P., & Jermsittiparsert, K. (2019). Exploring the link between HR Practices, employee motivation, employee empowerment and employee performance in engineering firms of Indonesia. International Journal of Psychosocial Rehabilitation, 23(4). https://doi.org/10.37200/IJPR/V23I4/PR190406

Sampson, W. G., & Akyeampong, O. (2014). Work-related stress in hotels: An analysis of the causes and effects among frontline hotel employees in the Kumasi Metropolis, Ghana. Journal of Tourism and Hospitality, 3(2). https://doi.org/10.4172/2167-0269.1000127

Schlesinger, L. A., & Zornitsky, J. (1991). Job satisfaction, service capability, and customer satisfaction: An examination of linkages and management implications. Human Resource Planning, 14(2). https://www.hbs.edu/faculty/Pages/item.aspx?num=45319

Seibert, S. E., Silver, S. R., & Randolph, W. A. (2004). Taking empowerment to the next level: A multiple-level model of empowerment, performance, and satisfaction. Academy of Management Journal, 47(3), 332–349. https://doi.org/10.5465/20159585

Snyder, E., & Grasberger, M. (2004). From a clinical engineering perspective… Understanding motivation and employee satisfaction. Biomedical In-strumentation & Technology, 38(4), 283–287. https://meridian.allenpress.com/bit/article/38/4/283/141418/From-a-Clinical-Engineering-Perspective

Sorescu, A., & Sorescu, S. M. (2016). Customer satisfaction and longterm stock returns. Journal of Marketing, 80(5), 110–115. https://doi.org/10.1509/jm.16.0214

Soto-Acosta, P., Placer-Maruri, E., & Perez-Gonzalez, D. (2016). A case analysis of a product lifecycle information management framework for SMEs. International Journal of Information Management, 36(2), 240–244. https://doi.org/10.1016/j.ijinfomgt.2015.12.001

Stank, T. P., Goldsby, T. J., & Vickery, S. K. (1999). Effect of service supplier performance on satisfaction and loyalty of store managers in the fast food industry. Journal of Operations Management, 17(4), 429–447. https://doi.org/10.1016/S0272-6963(98)00052-7

Towler, A., Lezotte, D. V., & Burke, M. J. (2011). The service climate–firm performance chain: The role of customer retention. Human Resource Management, 50(3), 391–406. https://doi.org/10.1002/hrm.20422

Varma, C. (2017). Importance of employee motivation & Job satisfaction for organizational performance. International Journal of Social Science & Interdisciplinary Research, 6(2). https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3073813

Vavra, J., Patak, M., Kostalova, J., & Bednarikova, M. (2021). S-LCA indicators as employee motivation factors. European Journal of Sustainable Development, 10(2), 267–267. https://doi.org/10.14207/ejsd.2021.v10n2p267

Verhoef, P. C. (2003). Understanding the effect of customer relationship management efforts on customer retention and customer share development. Journal of Marketing, 67(4), 30–45. https://doi.org/10.1509/jmkg.67.4.30.18685

Walsh, K., & Taylor, M. S. (2007). Developing in-house careers and retaining management talent: What hospitality professionals want from their jobs. Cornell Hotel and Restaurant Administration Quarterly, 48(2), 163–182. https://doi.org/10.1177/0010880407300521

Wang, Z., Cai, S., Liang, H., Wang, N., & Xiang, E. (2021). Intellectual capital and firm performance: The mediating role of innovation speed and quality. The International Journal of Human Resource Management, 32(6), 1222–1250. https://doi.org/10.1080/09585192.2018.1511611

Wright, T. A. (2003). Positive organizational behavior: An idea whose time has truly come. Journal of Organizational Behavior, 24(4), 437–442. https://doi.org/10.1002/job.197

Xie, W., & Haidung, L. (2013). The role of job satisfaction and motivation in professional development. International Journal of Advanced Research in Business and Management, 1(1), 34–40.

Yee, R. W., Yeung, A. C., & Cheng, T. E. (2008). The impact of employee satisfaction on quality and profitability in high-contact service industries. Journal of Operations Management, 26(5), 651–668. https://doi.org/10.1016/j.jom.2008.01.001

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. https://doi.org/10.1016/j.ijpe.2009.10.015