The Link between Engagement and Service Performance: The Mediation Role of Job Satisfaction and Customer-Oriented Behavior

Main Article Content

Mohammed A. Sadiq
Arie Indra Gunawan
Adila Sosianika
Fatya Alty Amalia

Keywords

Small-medium enterprise, Service performance, Job satisfaction, Customer-oriented behavior

Abstract

This study investigates the impact of engagement on service performance, both directly and through the mediation role of job satisfaction and customer-oriented behavior, among Small-Medium Enterprises (SMEs) frontline employees. 451 frontline employee data were gathered from SMEs in the greater Bandung region, Indonesia. To examine the hypothesized relationship between variables, the data were assessed using Partial Least Square (PLS). Also, the Bootstrap method was employed to assess job satisfaction and customer-oriented behaviors’ mediation role. The result reinforces the existence of a multi-dimensional engagement concept that encompasses the engagement towards both job and organization. This engagement does not directly influence employee service performance; it is influenced indirectly through job satisfaction and customer-oriented behavior. The managerial practices and theoretical significance of these findings are examined.

Downloads

Download data is not yet available.
Abstract 524 | pdf Downloads 536

References

Adomako, S., Amankwah-Amoah, J., Tarba, S. Y., & Khan, Z. (2021). Perceived corruption, business process digitization, and SMEs’ degree of internationalization in sub-Saharan Africa. Journal of Business Research, 123, 196-207. doi:10.1016/j.jbusres.2020.09.065
Ajayi, O. M., Odusanya, K., & Morton, S. (2017). Stimulating employee ambidexterity and employee engagement in SMEs. Management Decision, 55(4), 662-680. doi:10.1108/MD-02-2016-0107
Bailey, C., Madden, A., Alfes, K., Fletcher, L., D, R., & Holmes, J. (2015). Evaluating the evidence on employee engagement and its potential benefits to NHS staff: a narrative synthesis of the literature. Retrieved from https://www.ncbi.nlm.nih.gov/books/NBK299335/
Borman, W. C., & Motowidlo, S. J. (1993). Expanding the criterion domain to include elements of contextual performance. In N. Schmitt & W. C. Borman (Eds.), Personnel Selection in Organizations(pp. 71-98). San Francisco, CA: Jossey-Bass.
Brien, A., Anthonisz, A., & Suhartanto, D. (2019). Human capital in the Dubai hotel industry: A study of four-and five-star hotels and the HR challenges they face. Journal of Human Resources in Hospitality & Tourism, 1-19. doi:10.1080/15332845.2019.1558489
Britt, T. W., Castro, C. A., & Adler, A. B. (2005). Self-Engagement, Stressors, and Health: A Longitudinal Study. Personality and Social Psychology Bulletin, 31(11), 1475-1486. doi:10.1177/0146167205276525
Chang, K.-C. (2016). Effect of servicescape on customer behavioral intentions: Moderating roles of service climate and employee engagement. International Journal of Hospitality Management, 53, 116-128. doi:10.1016/j.ijhm.2015.12.003
Chin, W. W., Peterson, R. A., & Brown, S. P. (2008). Structural Equation Modeling in Marketing: Some Practical Reminders. Journal of Marketing Theory and Practice, 16(4), 287-298. doi: 10.2753/MTP1069-6679160402
Choi, E.-K., & Joung, H.-W. (2017). Employee job satisfaction and customer-oriented behavior: A study of frontline employees in the foodservice industry. Journal of Human Resources in Hospitality & Tourism, 16(3), 235-251. doi:10.1080/15332845.2017.1253428
Cropanzano, R., & Mitchell, M. S. (2005). Social Exchange Theory: An Interdisciplinary Review. Journal of Management, 31(6), 874-900. doi:10.1177/0149206305279602
Culbertson, S. S., Mills, M. J., & Fullagar, C. J. (2012). Work engagement and work-family facilitation: Making homes happier through positive affective spillover. Human Relations, 65(9), 1155-1177. doi: 10.1177/0018726712440295
Farndale, E., Beijer, S., Van Veldhoven, M., Kelliher, C., & Hope-Hailey, V. (2014). Work and organisation engagement: Aligning research and practice. Journal of Organizational Effectiveness: People and Performance, 1(2), 157-176. doi:10.1108/joepp-03-2014-0015
Guest, D. E. (2015). Voice and employee engagement. In P. Ackers & S. Johnstone (Eds.), Finding a Voice. Oxford: Oxford University Press.
Gupta, M., Shaheen, M., & Reddy, P. K. (2017). Impact of psychological capital on organizational citizenship behavior: Mediation by work engagement. Journal of Management Development, 36(7), 973-983. doi:10.1108/JMD-06-2016-0084
Gupta, N., & Sharma, V. (2016). Exploring Employee Engagement—A Way to Better Business Performance. Global Business Review. doi:10.1177/0972150916631082
Hair, J. E., Hult, G. T., Ringle, C. M., & Sarstedt, M. (2017). A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM)(2 ed.). Thousand Oaks: Sage.
Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2010). Multivariate data analysis: A global perspective(7th ed.). Upper Saddle River: Pearson Education.
Haruna, A. Y., & Marthandan, G. (2017). Foundational competencies for enhancing work engagement in SMEs Malaysia. Journal of Workplace Learning, 29(3), 165-184. doi:10.1108/JWL-07-2016-0066
Henseler, J., Ringle, C. M., & Sarstedt, M. (2015). A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the Academy of Marketing Science, 43(1), 115-135. doi:10.1007/s11747-014-0403-8
Jung, J. H., Brown, T. J., & Zablah, A. R. (2017). The effect of customer-initiated justice on customer-oriented behaviors. Journal of Business Research, 71, 38-46. doi:10.1016/j.jbusres.2016.10.019
Kahn, W. A. (1990). Psychological conditions of personal engagement and disengagement at work. Academy of Management Journal, 33(4), 692-724. doi:10.2307/256287
Karatepe, O. M., & Aga, M. (2016). The effects of organization mission fulfillment and perceived organizational support on job performance. International Journal of Bank Marketing, 34(3), 368-387. doi:10.1108/ijbm-12-2014-0171
Ko, M. S., Lee, H. Z., & Koh, M. S. (2017). Effects of Nurses' Social Capital and Job Engagement on Nursing Performance: Focused on the Mediating effects of Organizational Citizenship Behavior. J Korean Acad Nurs Adm, 23(1), 42-51. doi: 10.11111/jkana.2017.23.1.42
Lara, F. J., & Salas-Vallina, A. (2017). Managerial competencies, innovation,and engagement in SMEs: The mediating role of organisational learning. Journal of Business Research, 79, 152-160. doi:10.1016/j.jbusres.2017.06.002
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. doi:10.2307/20159559
Lu, C. Y., Dean, D., Suhartanto, D., Hussein, A. S., Suwatno, Kusdibyo, L., . . . Gunawan, A. I. (2020). Predicting Tourist Loyalty toward Cultural Creative Attractions the Moderating Role of Demographic Factors. Journal of Quality Assurance in Hospitality& Tourism, 1-19. doi:10.1080/1528008X.2020.1773371
Lu, L., Lu, A. C. C., Gursoy, D., & Neale, N. R. (2016). Work engagement, job satisfaction, and turnover intentions. International Journal of Contemporary Hospitality Management, 28(4), 737-761. doi:10.1108/ijchm-07-2014-0360
Lussier, B., & Hartmann, N. N. (2017). How psychological resourcefulness increases salesperson's sales performance and the satisfaction of their customers: Exploring the mediating role of customer-oriented behaviors. Industrial Marketing Management, 62, 160-170. doi:10.1016/j.indmarman.2016.08.009
Maria, S. R., Jong, A. d., & Zacharias, N. A. (2017). Frontline Employees' Innovative Service Behavior as Key to Customer Loyalty: Insights into FLEs' Resource Gain Spiral. Journal of Product Innovation Management, 34(2), 223-245. doi:10.1111/jpim.12338
Menguc, B., Auh, S., Fisher, M., & Haddad, A. (2013). To be engaged or not to be engaged: The antecedents and consequences ofservice employee engagement. Journal of Business Research, 66(11), 2163-2170. doi:10.1016/j.jbusres.2012.01.007Mukerjee, K. (2013). Customer-oriented organizations: a framework for innovation. Journal of Business Strategy, 34(3), 49-56. doi:10.1108/JBS-Jun-2012-0013
Najib, M., Ermawati, W. J., Fahma, F., Endri, E., & Suhartanto, D. (2021). FinTech in the Small Food Business and Its Relation with Open Innovation. Journal of Open Innovation, Technology, Market, and Complexity, 7(1), 88. doi:10.3390/joitmc7010088
Najib, M., Sumarwan, U., Septiani, S., Waibel, H., Suhartanto, D., & Fahma, F. (2021). Individual and Socio-Cultural Factors as Driving Forces of the Purchase Intention for Organic Food by Middle Class Consumers in Indonesia. Journal of International Food & Agribusiness Marketing, 1-22. doi:10.1080/08974438.2021.1900015
Nitzl, C., Roldan, J. L., & Cepeda, G. (2016). Mediation analysis in partial least squares path modeling: Helping researchers discuss more sophisticated models. Industrial Management & Data Systems, 116(9), 1849-1864. doi:10.1108/IMDS-07-2015-0302
Podsakoff, P. M., MacKenzie, S. B., & Podsakoff, N. P. (2012). Sources of method bias in social science research and recommendations on how to control it. Annual Review of Psychology, 63,539 -569. doi: 10.1146/annurev-psych-120710-100452
Rich, B. L., LePine, J. A., & Crawford, E. R. (2010). Job engagement: Antecedents and effects on job performance. Academy of Management Journal, 53(3), 617-635. doi:10.5465/AMJ.2010.51468988Saks, A. M. (2006). Antecedents and consequences of employee engagement. Journal of Managerial Psychology, 21(7), 600-619. doi:10.1108/02683940610690169
Sarstedt, M., Hair, J. F., Ringle, C. M., Thiele, K. O., & Gudergan, S. P. (2016). Estimation issues with PLS and CBSEM: Where the bias lies! Journal of Business Research, 69(10), 3998-4010. doi:10.1016/j.jbusres.2016.06.007
Shokhsanam, Z., & Ahn, Y.-j. (2021). Employee Service Quality at Uzbekistani Halal Restaurants Amid the COVID-19 Pandemic.Sustainability,13(10), 5712. doi: 10.3390/su13105712
Shuck, B. (2011). Four Emerging Perspectives of Employee Engagement: An Integrative Literature Review. Human Resource Development Review, 10(3), 304-328. doi:10.1177/1534484311410840
Sirgy, M. J., Efraty, D., Siegel, P., & Lee, D.-J. (2001). A New Measure of Quality of Work Life (QWL) Based on Need Satisfaction and Spillover Theories. Social Indicators Research,55(3), 241-302 doi:10.1023/A:1010986923468
Siu, O.-l., Lu, J.-f., Brough, P., Lu, C.-q., Bakker, A. B., Kalliath, T., . . . Shi, K. (2010). Role resources and work–family enrichment: The role of work engagement. Journal of Vocational Behavior, 77(3), 470-480. doi:10.1016/j.jvb.2010.06.007
Suhartanto, D., & Brien, A. (2018). Multidimensional engagement and store performance: The perspective of frontline retail employees. International Journal of Productivity and Performance Management, 67(5), 809-824. doi:10.1108/IJPPM-03-2017-0065
Suhartanto, D., Dean, D., Nansuri, R., & Triyuni, N. N. (2018). The link between tourism involvement and service performance: Evidence from frontline retail employees. Journal of Business Research, 83(Supplement C), 130-137. doi:10.1016/j.jbusres.2017.10.039
Suhartanto, D., & Leo, G. (2018). Small business entrepreneur resistance of ICT adoption: a lesson from Indonesia. International Journal of Business and Globalisation, 21(1), 5-18. doi:10.1504/IJBG.2018.10015253
Tenenhaus, S. M., Esposito, V., Chatelin, Y.-M., & Laura, C. (2005). PLS path modeling. Computational Statistics & Data Analysis, 48(1), 159-205.