Share:


The mediating role of employee job performance in the impact of open book management dimensions on customer satisfaction

    Faisal Abdulkarim Alkhamis Affiliation

Abstract

This study aimed at investigating the impact of open book management (OBM) on customer satisfaction in the presence of employee job performance as a mediating variable. OBM was measured using employee empowerment, information sharing, employee training, and employee participation in organizational success. A sample consisted of 500 managers and employees from 10 industrial companies in Qassim region were participated in the study. Data were gathered using a questionnaire administered to participants. The final number of questionnaires received was 387 questionnaires with a response rate of 77.4 percent. The results showed positive as well as significant effects of employee training, empowerment and participation on employee job satisfaction and customer satisfaction. The results further pointed out that employee job performance mediated the effect of open book management dimensions on customer satisfaction. The originality of this study wells up from its contribution to literature as it underlined that employee training in the context of open book management should take the first priority, followed by employee empowerment as empowerment efforts do not bear its desired fruits in the absence of an employee who is able to properly implement what he or she empowered to do. It was recommended on the ground of these results to consider employee training, then employee empowerment in the context of OBM. An adoption of OBM is required to keep tabs on employee job performance in order to ensure an effective practice of OBM.

Keyword : open book management, employee performance, customer satisfaction

How to Cite
Alkhamis, F. A. (2018). The mediating role of employee job performance in the impact of open book management dimensions on customer satisfaction. Business: Theory and Practice, 19, 157-165. https://doi.org/10.3846/btp.2018.16
Published in Issue
Jul 12, 2018
Abstract Views
982
PDF Downloads
777
Creative Commons License

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

References

Abbasi A, Alvi A (2013) Impact of employee characteristics and their performance on customer satisfaction. Science International 25 (2): 387-394.

Agbaeze E, Nnaji P (2017) Evaluation of the impact of Open Book Management on employee performance in selected manufacturing firms in Enugu State, Nigeria. Journal of Applied Sciences and Development (JASD) 8 (1): 18-35.

Aggarwal R, Simkins BJ (2001) Open book “financial” management: a case study of Manco, Inc. Oklahoma State University Working Paper.

Al-Mzary M, Al-Rifai A, Al-Momany M (2015) Training and its impact on the performance of employees at Jordanian universities from the perspective of employees: the case of Yarmouk University. Journal of Education and Practice 6 (2015): 128-140.

Al-Tit A (2015) The effect of service and food quality on customer satisfaction and hence customer retention. Asian Social Science 11 (23): 129-139. https://doi.org/10.5539/ass.v11n23p129

Al-Tit A (2017) Factors affecting the organizational performance of manufacturing firms. International Journal of Engineering Business Management 9: 1-9. https://doi.org/10.1177/1847979017712628

Becker T, Billings R, Eveleth D, Gilbert N (1996) Foci and bases of employee commitment: implications for job performance. Academy of Management Journal 39 (2): 464-482.

Bhatti KK, Qureshi TM (2007) Impact of employee participation on job satisfaction, employee commitment and employee productivity. International Review of Business Research Papers 3 (2): 54-68.

Chartrungruang B, Turner L, King B, Waryszak R (2006) Customer satisfaction, training and TQM: a comparative study of Western and Thai hotels. The Journal of Services Marketing 11 (4): 249-264. https://doi.org/10.1300/J171v05n01_04

Chiang C, Hsieh T (2012) The impacts of perceived organizational support and psychological empowerment on job performance: the mediating effects of organizational citizenship behavior. International Journal of Hospitality management 31 (1): 180-190. https://doi.org/10.1016/j.ijhm.2011.04.011

Danish RQ, Humayon A, Iqbal H, Raza S, Shahid J (2018) The impact of service quality and service value on customer satisfaction through customer bonding: evidence from telecommunication sector. European Online Journal of Natural and Social Sciences: Proceedings 7 (1): 40-47.

Davis T (1997) Open-book management: its promise and pitfalls. Organizational Dynamics 25 (3): 7-20. https://doi.org/10.1016/S0090-2616(97)90044-9

Dixon MA, Cunningham GB (2006) Data aggregation in multilevel analysis: a review of conceptual and statistical issues. Measurement in Physical Education and Exercise Science 10 (2): 85-107. https://doi.org/10.1207/s15327841mpee1002_2

Elnaga A, Imran A (2013) The effect of training on employee performance. European Journal of Business and Management 5 (4): 137-147.

Evans W, Davis W (2005) High-performance work systems and organizational performance: the mediating role of internal social structure. Journal of Management 31 (5): 758-775. https://doi.org/10.1177/0149206305279370

Gillespie M, Denison D, Haaland S, Smerek R, Neale W (2008) Linking organizational culture and customer satisfaction: results from two companies in different industries. European Journal of Work and Organizational Psychology 17 (1): 112-132. https://doi.org/10.1080/13594320701560820

Glew DJ, O’ Leary-Kelly AM, Griffin RW, Van Fleet DD (1995) Participation in organizations: a preview of issues and proposed framework for future analysis. Journal of Management 21 (3): 395-421. https://doi.org/10.1177/014920639502100302

Groen BAC, Wouters MJF, Wilderom CPM (2016) Employee participation, performance, metrics, and job performance: a survey study based on self-determination theory. Management Accounting Research 36: 51-66. https://doi.org/10.1016/j.mar.2016.10.001

Hooper D, Coughlan J, Mullen MR (2008) Structural equation modeling: guidelines for determining model fit. Electronic Journal of Business Research Methods 6: 53-60.

Isimoya A, Bakarey B (2013) Employees’ empowerment and customers’ satisfaction in insurance industry in Nigeria. Australian Journal of Business and Management Research 3 (5): 1-11. Journal of Business Studies Quarterly 3 (4): 92-104.

Jonathan VL, Johnmark DR (2012) The impact of employee empowerment on customer satisfaction in the Nigerian service organizations (a study of some selected hotels in jos, plateau state). International Journal of Current Research and Review 4 (19): 37.

Kattara H, Weheba D, El-Said O (2008) The impact of employee behavior on customers’ service quality perceptions and overall satisfaction. Tourism and Hospitality Research 8 (4): 309-323. https://doi.org/10.1057/thr.2008.35

Lee S, Lee D, Kang C (2012) The impact of high-performance work systems in the health-care industry: employee reactions, service quality, customer satisfaction, and customer loyal-ty. The Service Industries Journal 32 (1): 17-36. https://doi.org/10.1080/02642069.2010.545397

Liao H, Chuang A (2004) A multilevel investigation of factors influencing employee service performance and customer outcomes. Academy of Management journal 47 (1): 41-58.

Lloyd B, Case J (1998) Open book management: a new approach to leadership. Leadership & Organization Development Journal 19 (7): 392-396. https://doi.org/10.1108/01437739810242568

Molina JA, Ortega R (2003) Effects of employee training on the performance of North American firms. Applied Economics Letters 10: 549-552. https://doi.org/10.1080/ 1350485032000100297

Naeem H, Saif MI (2010) Employee empowerment and customer satisfaction: empirical evidence from the banking sector of Pakistan. African Journal of Business Management 4 (10): 2028-2031.

Nikzad M, Maryam G (2012) The relationship between open book management and trust with organization financial performance. Procedia Technology 1: 340-344. https://doi.org/10.1016/j.protcy.2012.02.071

Padmasiri MD, Sandamali JGP, Mahalekamge WGS, Mendis MVS (2018) The relationship between training and development and employee performance of executive level employees in apparel organizations. International Invention of Scientific Journal 2 (01): 13-17.

Peters C, Mazdarani E (2008) The impact of employee empower-ment on service quality and customer satisfaction in service organizations: a case study of Länsförsäkringar Bank AB: the impact of employee empowerment. Västerås: Mälardalens högskola, 71.

Pfeffer J, Veiga J (1999) Putting people first for organizational success. The Academy of Management Executive 13 (2): 37-48. https://doi.org/10.5465/ame.1999.1899547

Rich B, Lepine J, Crawford E (2010) Job engagement: antecedents and effects on job performance. Academy of mana-gement journal 53 (3): 617-635. https://doi.org/10.5465/amj.2010.51468988

Rogg KL, Schmidt DB, Shull C, Schmitt N (2001) Human resource practices, organizational climate, and customer satisfaction. Journal of Management 27: 431-449. https://doi.org/10.1177/014920630102700403

Roy S, Raju A, Mandal S (2017) An empirical investigation on e-retailer agility, customer satisfaction, commitment and loyalty. Business: Theory and Practice 18: 97-108. https://doi.org/10.3846/btp.2017.011

Salanova M, Agut S, Peiró JM (2005) Linking organizational re-sources and work engagement to employee performance and customer loyalty: the mediation of service climate. Journal of applied Psychology 90 (6): 1217. https://doi.org/10.1037/0021-9010.90.6.1217

Schuster J, Carpenter J, Kane M (1996) The power of open book management. NJ: John Wiley and Sons. Söderlund M, Oikarinen E (2018) Joking with customers in the service encounter has a negative impact on customer satisfaction: replication and extension. Journal of Retailing and Consumer Services 42: 55-64. https://doi.org/10.1016/j.jretconser.2018.01.013

Spreitzer G, Porath C (2012) Creating sustainable performance. Harvard Business Review 90 (1): 92-99.

Sturman M, Cheramie R, Cashen L (2005) The impact of job complexity and performance measurement on the temporal consistency, stability, and test-retest reliability of employee job performance ratings. Journal of Applied Psychology 90 (2): 269. https://doi.org/10.1037/0021-9010.90.2.269

Ugboro I, Obeng K (2000) Top management leadership, employee empowerment, job satisfaction, and customer satisfaction in TQM organizations: an empirical study. Journal of Quality Management 5 (2): 247-272. https://doi.org/10.1016/S1084-8568(01)00023-2

Wright T, Cropanzano R, Bonett D (2007) The moderating role of employee positive well-being on the relation between job satisfaction and job performance. Journal of Occupational Health Psychology 12 (2): 93. https://doi.org/10.1037/1076-8998.12.2.93

Yee L (2018) An analysis on the relationship between job satisfaction and work performance among academic staff in Malaysian private universities. Journal of Arts & Social Sciences 1 (2): 64-73.Yukl G, Becker W (2006) Effective empowerment in organizations. Organization Management Journal 3 (3): 210-231. https://doi.org/10.1057/omj.2006.20

Zhang X, Bartol K (2010) Linking empowering leadership and employee creativity: the influence of psychological empowerment, intrinsic motivation, and creative process engagement. Academy of Management Journal 53 (1): 107-128. https://doi.org/10.5465/amj.2010.48037118