Does Diversity Climate Lead to Customer Satisfaction? It Depends on the Service Climate and Business Unit Demography

Published Online:https://doi.org/10.1287/orsc.1100.0550

References

  • ACSI (American Customer Satisfaction Index) Scores by industry: Apparel. (2008) . Retrieved June 16, http://www.theacsi.org/index.php?option=com_content&task=view&id=147&Itemid=155&i=ApparelGoogle Scholar
  • Aguinis H., Stone-Romero E. F. Methodological artifacts in moderated multiple regression and their effects on statistical power. J. Appl. Psych. (1997) 82(1):192–206CrossrefGoogle Scholar
  • Aiken L. S., West S. G.Multiple Regression: Testing and Interpreting Interactions (1991) (Sage, Thousand Oaks, CA) Google Scholar
  • Anderson E. W., Fornell C., Schwartz T. A., Iacobucci D. The customer satisfaction index as a leading indicator. Handbook of Services Marketing and Management (2000) (Sage, Thousand Oaks, CA) 255–270CrossrefGoogle Scholar
  • Ashforth B. E., Mael F. Social identity and the organization. Acad. Management Rev. (1989) 14(1):20–39CrossrefGoogle Scholar
  • Avery D. R., McKay P. F., Wilson D. C. What are the odds? How demographic similarity affects the prevalence of perceived employment discrimination. J. Appl. Psych. (2008) 93(2):235–249CrossrefGoogle Scholar
  • Avery D. R., McKay P. F., Wilson D. C., Tonidandel S. Unequal attendance: The relationships between race, organizational diversity cues, and absenteeism. Personnel Psych. (2007) 60(4):875–902CrossrefGoogle Scholar
  • Babakus E., Bienstock C. C., Van Scotter J. R. Linking perceived quality and customer satisfaction to store traffic and revenue growth. Decision Sci. (2004) 35(4):713–737CrossrefGoogle Scholar
  • Baer M., Frese M. Innovation is not enough: Climates for initiative and psychological safety, process innovations, and firm performance. J. Organ. Behav. (2003) 24(1):45–68CrossrefGoogle Scholar
  • Becker B., Gerhart B. The impact of human resource management on organizational performance: Progress and prospects. Acad. Management J. (1996) 39(4):779–801CrossrefGoogle Scholar
  • Bellas M. L., Coventry B. T. Salesmen, saleswomen, or sales workers? Determinants of the sex composition of sales occupations. Sociol. Forum (2001) 16(1):73–98CrossrefGoogle Scholar
  • Bentler P. M. Comparative fit indexes in structural models. Psych. Bull. (1990) 107(2):238–246CrossrefGoogle Scholar
  • Bliese P. D., Klein K. J., Kozlowski S. W. J. Within-group agreement, non-independence, and reliability: Implications for data aggregation and analysis. Multilevel Theory, Research, and Methods in Organizations (2000) (Jossey-Bass, San Francisco) 349–381Google Scholar
  • Borucki C. C., Burke M. J. An examination of service-related antecedents to retail store performance. J. Organ. Behav. (1999) 20(6):943–962CrossrefGoogle Scholar
  • Bowen D. E., Ostroff C. Understanding HRM-firm performance linkages: The role of “strength” of the HRM system. Acad. Management Rev. (2004) 29(2):203–221Google Scholar
  • Bowen D. E., Gilliland S. W., Folger R. HRM and service fairness: How being fair with employees spills over to customers. Organ. Dynam. (1999) 27(3):7–23CrossrefGoogle Scholar
  • Browne M., Cudeck R. Single sample cross-validation for covariance structure. Multivariate Behav. Res. (1989) 24(4):445–455CrossrefGoogle Scholar
  • Carr J. Z., Schmidt A. M., Ford J. K., DeShon R. P. Climate perceptions matter: A meta-analytic path analysis relating molar climate, cognitive and affective states, and individual level work outcomes. J. Appl. Psych. (2003) 88(4):605–619CrossrefGoogle Scholar
  • Central Intelligence Agency The World Factbook. (2007) . Retrieved October 5, https://www.cia.gov/library/publications/the-world-factbook/index.htmlGoogle Scholar
  • Collins C. J., Smith K. G. Knowledge exchange and combination: The role of human resource practices in the performance of high-technology firms. Acad. Management (2006) 49(3):544–560CrossrefGoogle Scholar
  • Colquitt J. A., Noe R. A., Jackson C. L. Justice in teams: Antecedents and consequences of procedural justice climate. Personnel Psych. (2002) 55(1):83–109CrossrefGoogle Scholar
  • Cox T. H.Cultural Diversity in Organizations: Theory, Research and Practice (1994) (Berett-Koehler, San Francisco) Google Scholar
  • Deitch E. A., Barsky A., Butz R. M., Chan S., Brief A. P., Bradley J. C. Subtle yet significant: The existence and impact of everyday racial discrimination in the workplace. Human Relations (2003) 56(11):1299–1324CrossrefGoogle Scholar
  • Dietz J., Pugh S. D., Wiley J. W. Service climate effects on customer attitudes: An examination of boundary conditions. Acad. Management J. (2004) 47(1):81–92CrossrefGoogle Scholar
  • Dunlap W. P., Burke M. J., Smith-Crowe K. Accurate tests of statistical significance for rwg and AD interrater agreement indices. J. Appl. Psych. (2003) 88(2):356–362CrossrefGoogle Scholar
  • Dutton J. E., Dukerich J. M., Harquail C. V. Organizational images and member identification. Admin. Sci. Quart. (1994) 39(2):239–263CrossrefGoogle Scholar
  • Edmonson A. Psychological safety and learning behavior in work teams. Admin. Sci. Quart. (1999) 44(2):350–383CrossrefGoogle Scholar
  • Ely R. J., Thomas D. A. Cultural diversity at work: The effects of diversity perspectives on workgroup processes and outcomes. Admin. Sci. Quart. (2001) 46(2):229–273CrossrefGoogle Scholar
  • Faircloth A. Guess who's coming to Denny's. Fortune (1998) 138(3):108–110Google Scholar
  • French R. Cracker Barrel launches programs to rebuild image. Marketing News (2005) 39(12):31Google Scholar
  • Gilbert J. A., Ivancevich J. M. Valuing diversity: A tale of two organizations. Acad. Management Executive (2000) 14(1):93–105Google Scholar
  • Gilbert J. A., Ivancevich J. M. Effects of diversity management on attachment. J. Appl. Soc. Psych. (2001) 31(7):1331–1349CrossrefGoogle Scholar
  • Glick W. H. Conceptualizing and measuring organizational and psychological climate: Pitfalls in multilevel research. Acad. Management Rev. (1985) 10(3):601–616CrossrefGoogle Scholar
  • Gruca T. S., Rego L. L. Customer satisfaction, cash flow, and shareholder value. J. Marketing (2005) 69(3):115–130CrossrefGoogle Scholar
  • Gupta S., Zeithaml V. Customer metrics and their impact on financial performance. Marketing Sci. (2006) 25(6):718–739LinkGoogle Scholar
  • Heskett J., Sasser W. E. J., Schlesinger L.The Service Profit Chain: How Leading Companies Link Profit and Growth to Loyalty, Satisfaction, and Value (1997) (Free Press, New York) Google Scholar
  • Hicks-Clarke D., Iles P. Climate for diversity and its effects on career and organisational attitudes and perceptions. Personnel Rev. (2000) 29(3):324–345CrossrefGoogle Scholar
  • Hopkins W. E., Hopkins S. A., Mallette P. Diversity and managerial value commitment: A test of some proposed relationships. J. Managerial Issues (2001) 13(3):288–306Google Scholar
  • Johnson J. W. Linking employee perceptions of service climate to customer satisfaction. Personnel Psych. (1996) 49(4):831–851CrossrefGoogle Scholar
  • Jones T. O., Sasser W. E. Why satisfied customers defect. Harvard Bus. Rev. (1995) 73(November/December):88–99Google Scholar
  • Jöreskog K.G., Sörbom D.LISREL 8.7 (2004) (Scientific Software International, Chicago) Google Scholar
  • Joshi A., Liao H., Jackson S. E. Cross-level effects of workplace diversity on sales performance and pay. Acad. Management J. (2006) 49(3):459–481CrossrefGoogle Scholar
  • Kochan T., Berzukova K., Ely R., Jackson S. E., Joshi A., Jehn K., Leonard J., Levine D., Thomas D. The effects of diversity on business performance: Report of the Diversity Research Network. Human Res. Management (2003) 42(1):3–21CrossrefGoogle Scholar
  • Kopelman R. E., Brief A. P., Guzzo R. A., Schneider B. The role of climate and culture in productivity. Organizational Climate and Culture (1990) (Jossey-Bass, San Francisco) 282–318Google Scholar
  • Kossek E. E., Zonia S. C. Assessing diversity climate: A field study of reactions to employer efforts to promote diversity. J. Organ. Behav. (1993) 14(1):61–81CrossrefGoogle Scholar
  • Kossek E. E., Zonia S. C., Young W., Ruderman M. N., Hughes-James M. W., Jackson S. E. The limitations of organizational demography: Can diversity climate be enhanced in the absence of teamwork? Selected Research on Work Team Diversity (1996) (American Psychological Association, Washington, DC) 121–154CrossrefGoogle Scholar
  • Kozlowski S. W. J., Klein K. J., Klein K. J., Kozlowski S. W. J. A multilevel approach to theory and research in organizations: Contextual, temporal, and emergent processes. Multilevel Theory, Research, and Methods in Organizations (2000) (Jossey-Bass, San Francisco) 3–90Google Scholar
  • Kravitz D. A. The diversity-validity dilemma: Beyond selection-the role of affirmative action. Personnel Psych. (2008) 61(1):173–193CrossrefGoogle Scholar
  • Kuenzi M., Schminke M. Assembling fragments into a lens: A review, critique, and proposed research agenda for the organizational work climate literature. J. Management (2009) 35(3):634–717CrossrefGoogle Scholar
  • Liao H. Do it right this time: The role of employee service recovery performance in customer perceived justice and customer loyalty after service failures. J. Appl. Psych. (2007) 92(2):475–489CrossrefGoogle Scholar
  • Liao H., Chuang A. A multilevel investigation of factors influencing employee service performance and customer outcomes. Acad. Management J. (2004) 47(1):41–58CrossrefGoogle Scholar
  • Liao H., Chuang A. Transforming service employees and climate: A multilevel, multisource examination of transformational leadership in building long-term service relationships. J. Appl. Psych. (2007) 92(4):1006–1019CrossrefGoogle Scholar
  • Liao H., Subramony M. Employee customer orientation in manufacturing organizations: Joint influences of customer proximity and senior leadership team. J. Appl. Psych. (2008) 93(2):317–328CrossrefGoogle Scholar
  • Lindell M. K., Brandt C. J. Assessing interrater agreement on the job relevance of a test: A comparison of the CVI, T, rwg(j), and r*wg(j) indexes. J. Appl. Psych. (1999) 84(4):640–647CrossrefGoogle Scholar
  • Lindell M. K., Brandt C. J. Climate quality and climate consensus as mediators of the relationship between organizational antecedents and outcomes. J. Appl. Psych. (2000) 85(3):331–348CrossrefGoogle Scholar
  • McClelland G. H., Judd C. M. Statistical difficulties in detecting interactions and moderator effects. Psych. Bull. (1993) 114(2):376–390CrossrefGoogle Scholar
  • McKay P. F., Avery D. R. Warning! Diversity recruitment could backfire. J. Management Inquiry (2005) 14(4):330–336CrossrefGoogle Scholar
  • McKay P. F., Avery D. R., Morris M. A. Mean racial-ethnic differences in employee sales performance: The moderating role of diversity climate. Personnel Psych. (2008) 61(2):349–374CrossrefGoogle Scholar
  • McKay P. F., Avery D. R., Tonidandel S., Morris M. A., Hernandez M., Hebl M. R. Racial differences in employee retention: Are diversity climate perceptions the key? Personnel Psych. (2007) 60(1):35–62CrossrefGoogle Scholar
  • Mintzberg H. Structure in 5's: A synthesis of the research on organizational design. Management Sci. (1980) 26(3):322–341LinkGoogle Scholar
  • Mor Barak M. E., Cherin D. A., Berkman S. Organizational and personal dimensions in diversity climate: Ethnic and gender differences in employee perceptions. J. Appl. Behav. Sci. (1998) 34(1):82–104CrossrefGoogle Scholar
  • Patterson M. G., West M. A., Shackleton V. J., Dawson J. F., Lawthom R., Maitlis S., Robinson D. L., Wallace A. M. Validating the organizational climate measure: Links to managerial practices, productivity, and innovation. J. Organ. Behav. (2005) 26(4):379–408CrossrefGoogle Scholar
  • Payne S. C., Webber S. S. Effects of service provider attitudes and employment status on citizenship behaviors and customers' attitudes and loyalty behavior. J. Appl. Psych. (2006) 91(2):365–378CrossrefGoogle Scholar
  • Podsakoff P. M., MacKenzie S. B., Lee J. Y., Podsakoff N. P. Common method biases in behavioral research: A critical review of the literature and recommended remedies. J. Appl. Psych. (2003) 88(5):879–903CrossrefGoogle Scholar
  • Pritchard R. D., Harrell M. M., DiazGranados D., Guzman M. J. The productivity measurement and enhancement system: A meta-analysis. J. Appl. Psych. (2008) 93(3):540–567CrossrefGoogle Scholar
  • Reichers A. E., Schneider B., Schneider B. Climate and culture: An evolution of constructs. Organizational Climate and Culture (1990) (Jossey-Bass, San Francisco) 5–39Google Scholar
  • Ridgeway C. L. The social construction of status value: Gender and other nominal characteristics. Soc. Forces (1991) 70(2):367–386CrossrefGoogle Scholar
  • Roberson Q. M. Disentangling the meanings of diversity and inclusion in organizations. Group Organ. Management (2006) 31(2):212–236CrossrefGoogle Scholar
  • Robinson G., Dechant K. Building a business case for diversity. Acad. Management Executive (1997) 11(3):21–31Google Scholar
  • Roth P. L., Switzer F. S., Switzer D. Missing data in multi-item scales: A Monte Carlo analysis of missing data techniques. Organ. Res. Methods (1999) 2(3):211–232CrossrefGoogle Scholar
  • Ryan A. M., Schmit M. J., Johnson R. Attitudes and effectiveness: Examining relations at an organizational level. Personnel Psych. (1996) 49(4):853–882CrossrefGoogle Scholar
  • Schmit M. J., Allscheid S. P. Employee attitudes and customer satisfaction: Making theoretical and empirical connections. Personnel Psych. (1995) 48(3):521–536CrossrefGoogle Scholar
  • Schneider B., Schneider B. The climate for service: An application of the climate construct. Organizational Climate and Culture (1990) (Jossey-Bass, San Francisco) 383–412Google Scholar
  • Schneider B., White S. S., Paul M. C. Linking service climate and customer perceptions of service quality: Test of a causal model. J. Appl. Psych. (1998) 83(2):150–163CrossrefGoogle Scholar
  • Schneider B., Ehrhart M. G., Mayer D. M., Saltz J. L., Niles-Jolly K. Understanding organization-customer links in service settings. Acad. Management J. (2005) 48(6):1017–1032CrossrefGoogle Scholar
  • Schulte M., Ostroff C., Schmulyian S., Kinicki A. Organizational climate configurations: Relationships to collective attitudes, customer satisfaction, and financial performance. J. Appl. Psych. (2009) 94(3):618–634CrossrefGoogle Scholar
  • Stoll M. A., Holzer H. J., Ihlanfeldt K. R. Within cities and suburbs: Racial residential concentration and the spatial distribution of employment opportunities across sub-metropolitan areas. J. Policy Anal. Management (2000) 19(2):207–231CrossrefGoogle Scholar
  • Stryker S. Identity salience and role performance: The relevance of symbolic interaction theory for family research. J. Marriage Family (1968) 30(4):558–564CrossrefGoogle Scholar
  • Tajfel H., Turner J. C., Worchel S., Austin W. G. The social identity theory of intergroup behavior. Psychology of InterGroup Relations (1986) 2nd ed.(Nelson-Hall, Chicago) 7–24Google Scholar
  • Toossi M. Labor force projections to 2016: More workers in their golden years. Monthly Labor Rev. (2007) 130(11):33–52Google Scholar
  • U.S. Census Bureau Current Population Survey. Table 18—Employed persons by detailed industry, sex, race, and Hispanic or Latino ethnicity. (2008) . Retrieved September 19, 2009, http://www.bls.gov/cps/cpsaat18.pdfGoogle Scholar
  • Wageman R. Interdependence and group effectiveness. Admin. Sci. Quart. (1995) 40(1):145–180CrossrefGoogle Scholar
  • Wall Street Journal Massachusetts settles bias case with retailer. (2000) December 22):A4Google Scholar
  • Zatzick C. D., Elvira M. M., Cohen L. E. When more is better? The effects of racial composition on voluntary turnover. Organ. Sci. (2003) 14(5):483–496LinkGoogle Scholar
  • Zohar D. A group-level model of safety climate: Testing the effect of group climate on microaccidents in manufacturing jobs. J. Appl. Psych. (2000) 85(4):587–596CrossrefGoogle Scholar
  • Zohar D., Luria G. A multilevel model of safety climate: Cross-level relationships between organization and group-level climates. J. Appl. Psych. (2005) 90(4):616–628CrossrefGoogle Scholar
INFORMS site uses cookies to store information on your computer. Some are essential to make our site work; Others help us improve the user experience. By using this site, you consent to the placement of these cookies. Please read our Privacy Statement to learn more.