LINKING SERVICE CLIMATE TO ORGANISATIONAL PERFORMANCE: EVIDENCE FROM SARAWAK by ProQuest

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									                                                     International Journal Business and Society, Vol. 10 No. 1, 2009, 18 - 26



   LINKING SERVICE CLIMATE TO ORGANISATIONAL
      PERFORMANCE: EVIDENCE FROM SARAWAK


                       Boo-Ho Voon ? , Jamil Hamali and Jennifer Tangkau
                       Faculty of Business Management, Universiti Teknologi MARA,
                                     94300 Kota Samarahan, Sarawak.



                                                 ABSTRACT

The main objective of the exploratory study reported in this paper was to examine the
relationships among service climate, employee satisfaction, employee loyalty, and
organisational performance of service organisations. The service-driven market orientation
model of Voon (2006) was adapted to gauge the service climate from the employee’s
perspective. Structured questionnaires were given to senior employees of three selected service
organisations. A total of 120 usable questionnaires were analysed and the findings indicate that
service climate positively influence employee satisfaction, employee loyalty, and employee-
perceived organisational performance. There were also positive relationships among employee
satisfaction, employee loyalty and organizational performance. Implications and directions for
future research are also discussed.

Keywords: Service climate, employee satisfaction, employee loyalty and organizational
performance.

                                            I. INTRODUCTION

       Delivering and sustaining service excellence can be essentially the key competitive
advantage for many organisations (Albrecht and Zemke, 2001). As such, the people-oriented
service organisations have been acknowledging the role of their employee for achieving this
competitive advantage. Serving the employees well is considered to be part of a solid service
culture (Voon, 2006) for delivering improved customer service. Service researchers and
practitioners also specifically recognize that service climate will lead to increased job
satisfaction (e.g. Schneider, 1980; Johnston, 2004). Undoubtedly, the organisational culture
which favours a service climate can lead to behaviors and attitudes in employees which in turn
in higher value and better results (e.g. Deshpandé et al., 1993; Lytle and Timmerman, 2006;
Walker, 2007). The main objective of this study was to examine the relationships among service
climate, employee satisfaction, employee loyalty, and organisational performance.



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  Corresponding author: Boo-Ho Voon, Faculty of Business Management, Universiti Teknologi MARA, 94300 Kota Samarahan,
Sarawak, Malaysia. Email: bhvoon@sarawak.uitm.
								
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