From Employees to Sustainable Profits: Integrating Employee Engagement, Customer Satisfaction, and Financial Performance
DOI:
https://doi.org/10.66635/sjj8sa80Keywords:
Employee Engagement, Customer Satisfaction, Financial Performance, Service-Profit Chain, PLS-SEM, Sustainable PerformanceAbstract
Employee engagement has increasingly been recognized as a strategic resource for achieving sustainable organizational performance. This study examines the relationships among employee engagement, customer satisfaction, and financial performance using the Service-Profit Chain Theory and Social Exchange Theory. A quantitative research design was adopted, and data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The measurement model demonstrated satisfactory reliability and validity, while the structural model exhibited excellent fit (SRMR = 0.0216). The findings reveal that employee engagement significantly influences customer satisfaction (β = 0.796, p < 0.001), and customer satisfaction significantly enhances financial performance (β = 0.838, p < 0.001). Mediation analysis further indicates that customer satisfaction significantly mediates the relationship between employee engagement and financial performance (β = 0.667, p < 0.001). The proposed model explains 63.3% of the variance in customer satisfaction and 70.1% of the variance in financial performance. The study highlights the strategic importance of investing in employee engagement to enhance customer satisfaction and achieve sustainable financial performance. It contributes to the literature by integrating human resource management and marketing perspectives into a unified framework.
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