From Employees to Profits: An Integrated Model of Employee Engagement, Customer Satisfaction, Financial Performance, and Organizational Sustainability
DOI:
https://doi.org/10.66635/qrfg6x75Keywords:
Employee engagement, customer satisfaction, financial performance, organizational sustainability, PLS-SEM, serial mediationAbstract
This study develops and tests an integrated employee-to-outcome model in which employee engagement shapes customer satisfaction, customer satisfaction drives financial performance, and financial performance supports organizational sustainability. The model also proposes a serial indirect pathway from employee engagement to organizational sustainability through customer satisfaction and financial performance. The analyzed dataset contained 200 complete cases and 20 reflective indicators, with five indicators for each construct. Measures were adapted from Saks (2006), Lam et al. (2004), Powell and Dent-Micallef (1997), and Gelhard and von Delft (2016). Partial least squares structural equation modeling showed satisfactory reliability and convergent validity across all constructs, with Cronbach’s alpha values between .882 and .893, composite reliability between .914 and .921, and AVE between .679 and .699. All three direct hypotheses were supported: employee engagement positively affected customer satisfaction (β = .472), customer satisfaction positively affected financial performance (β = .563), and financial performance positively affected organizational sustainability (β = .531), all p < .001. The serial indirect effect was also significant (effect = .141, p < .001). The findings support a connected value-creation logic in which employee-related resources translate into customer value, financial outcomes, and ultimately sustainability performance.
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