Hostname: page-component-78c5997874-ndw9j Total loading time: 0 Render date: 2024-11-05T07:52:32.571Z Has data issue: false hasContentIssue false

Work climate and customer satisfaction: The role of trust in the retail context

Published online by Cambridge University Press:  02 February 2015

Long W Lam
Affiliation:
Faculty of Business Administration, Universidade de Macau, Taipa, Macau
Dora C Lau
Affiliation:
Department of Management, Faculty of Business Administration, Chinese University of Hong Kong, Shatin NT, Hong Kong

Abstract

We propose that a trust climate will help the employee–customer interface in the retail context. Specifically, we argue that a work climate that is based on trust induces the exercise of discretion by retail managers and discretionary behavior by front-line staff. Managerial and staff discretion is necessary for retail stores to become locally responsive, as store responsiveness is linked to customer satisfaction. Our propositions are derived from interpersonal trust and social exchange theories. The use of a trust climate to analyse the antecedents of customer satisfaction offers another theoretical perspective to study the interface dynamics between employees and customers and thus this paper contributes to ‘linkage research.’

Type
Research Article
Copyright
Copyright © Cambridge University Press and Australian and New Zealand Academy of Management 2008

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Audia, GP, Sorenson, O and Hage, J (2001) Tradeoffs in the organisation of production: multiunit firms, geographic dispersion and organisational learning.’ In Baum, JAC and Greve, HR (Eds) Multi-unit Organisation and Multi-market Strategy, pp.75105. Amsterdam: JAI.Google Scholar
Babin, BJ and Boles, JS (1998) Employee behavior in a service environment: A model and test of potential differences between men and women, Journal of Marketing 62: 7791.Google Scholar
Banker, RD, Lee, SY, Potter, G and Srinivasan, D (1996) Contextual analysis of performance impacts of outcome-based incentive compensation, Academy of Management Journal 39: 920948.Google Scholar
Blau, PM (1964) Exchange and Power in Social Life, New Brunswick, NJ: Transaction Publishers.Google Scholar
Bowen, DE and Schneider, B (1985) Boundary-spanning-role employees and the service encounter: Some guidelines for management and research, In Czepiel, JA, Solomon, MR and Surprenant, CF (Eds) The Service Encounter: Managing Employee/Customer Interaction in Service Businesses, pp.127–47, Lexington MA: Heath and Company.Google Scholar
Bradach, JL (1998) Franchise Organisations, Boston, MA: Harvard Business School Press.Google Scholar
Brower, HH, Schoorman, FD and Tan, HH (2000) A model of relational leadership: The integration of trust and leader-member exchange, Leadership Quarterly 11: 227250.Google Scholar
Coleman, JS (1990) Foundations of Social Theory, Cambridge, MA: Belknap Press of Harvard University Press.Google Scholar
Conger, JA and Kanungo, RN (1988) The empowerment process: Integrating theory and practice, Academy of Management Review 13: 471482.Google Scholar
Cronin, JJ and Taylor, SA (1992) Measuring service quality: A reexamination and extension, Journal of Marketing 56: 5568.Google Scholar
Currall, SC and Judge, TA (1995) Measuring trust between boundary role persons, Organisational Behavior and Human Decision Processes 64: 151170.Google Scholar
Darr, D, Argote, L and Epple, D (1995) The acquisition, transfer and depreciation of knowledge in service organisations: Productivity in franchises, Management Science 41:17501762.Google Scholar
Deutsch, M (1958) Trust and suspicion, Journal of Conflict Resolution 2: 265279.Google Scholar
Dirks, KT (2000) Trust in leadership and team performance: Evidence from NCAA basketball, Journal of Applied Psychology 85: 10041012.Google Scholar
Dirks, KT and Ferrin, DL (2002) Trust in leadership: Meta-analytic findings and implications for research and practice. Journal of Applied Psychology, 87: 611628.Google Scholar
Edmondson, A (1999) Psychological safety and learning behavior in work teams, Administrative Science Quarterly 44: 350383.Google Scholar
Ekeh, PP (1974) Social Exchange Theory: The two traditions, London: Heinemann.Google Scholar
Ferrin, DL, Dirks, KT and Shah, PP (2006) Direct and indirect effects of third-party relationships on interpersonal trust. Journal of Applied Psychology, 91: 870883.Google Scholar
Graen, GB and Uhl-Bien, M (1995) Relationship-based approach to leadership: Development of leader-member exchange (LMX) theory of leadership over 25 years: Applying a multi-level multi-domain perspective, Leadership Quarterly 6: 219247.Google Scholar
Hambrick, DC and Finkelstein, S (1987) Managerial discretion: A bridge between polar views of organisational outcomes, In Cummings, LL and Staw, BM (Eds) Research in Organisational Behavior, pp. 369406, Greenwich, CT: JAI Press.Google Scholar
Hartline, MD and Ferrell, OC (1996) The management of customer-contact service employees: An empirical investigation, Journal of Marketing 60: 5270.Google Scholar
Hui, CC, Chiu, CK, Yu, HC, Cheung, CH and Tse, HM (2007) Effects of service culture and supervisor leadership behaviours on service quality: A multi-level analysis, Journal of Occupational and Organisational Psychology 80: 151172.Google Scholar
Hurley, RE (1998) Customer service behavior in retail settings: A study of the effect of service provider personality. Journal of the Academy of Marketing Science 26: 115127.Google Scholar
Ingram, P and Baum, ACJ (1997) Chain affiliation and the failure of Manhattan hotels, 1898-1980. Administrative Science Quarterly 42: 68102.Google Scholar
Konovsky, MA and Pugh, SD (1994) Citizenship behavior and social exchange, Academy of Management Journal 37: 656669.Google Scholar
Lau, D and Lam, LW (2007) Effects of trust and being trusted on team citizenship behavior in chain stores. Asian Journal of Social Psychology, forthcoming.Google Scholar
Liao, H and Chung, A (2004) A multilevel investigation of factors influencing employee service performance and customer outcomes. Academy of Management Journal 47: 4158.Google Scholar
Luo, Y (2001) Determinants of local responsiveness: Perspectives from foreign subsidiaries in an emerging market, Journal of Management 27: 451477.Google Scholar
Malhotra, D and Murnighan, JK (2002) The effects of contracts on interpersonal trust, Administrative Science Quarterly 47: 534559.Google Scholar
MacNeil, IR (1980) The New Social Contract, New Haven: Yale University Press.Google Scholar
Mayer, RC, Davis, JH and Schoorman, FD (1995) An integrative model of organisational trust, Academy of Management Review 20: 709734.Google Scholar
Metters, RD, King-Metters, KH, Pullman, M and Walton, S (2006) Successful Service Operations Management, Singapore: Southwestern.Google Scholar
McAllister, DJ (1995) Affect-based and cognition-based trust as foundations for interpersonal cooperation in organisations, Academy of Management Journal 38: 2459.Google Scholar
Molm, LD, Takahashi, N and Peterson, G (2000) Risk and trust in social exchange: An experiment of a classical proposition, American Journal of Sociology 105: 13961427.Google Scholar
Morradian, TA and Olver, JM (1997) I can't get no satisfaction: The impact of personality and emotion on postpurchase processes, Psychology and Marketing 14: 379393.Google Scholar
Morrison, EW and Phelps, CC (1999) Taking charge at work: Extrarole efforts to initiate workplace change, Academy of Management Journal 42: 403419.Google Scholar
Oliver, RL (1980) A cognitive model of the antecedents and consequences of satisfaction decisions, Journal of Marketing Research 17: 460469.Google Scholar
Organ, DW (1988) Organisational Citizenship Behavior: The good soldier syndrome, Lexington, MA: Lexington Books.Google Scholar
Parasuraman, A, Zeithaml, V and Berry, L (1988) Servqual: A multiple-item scale for measuring consumer perceptions of service quality, Journal of Retailing 64: 1240.Google Scholar
Parasuraman, A, Valarie, AZ and Leonard, LB (1994) Alternative scales for measuring service quality: A comparative assessment based on psychometric and diagnostic criteria, Journal of Retailing 70: 201230.Google Scholar
Pfeffer, J (1994) Competitive Advantage Through People: Unleashing the power of the work force, Boston, MA: Harvard Business School Press.Google Scholar
Podsakoff, PM, MacKenzie, SB, Moorman, RH and Fetter, R (1990) Transformational leader behaviors and their effects on followers' trust in leader, satisfaction and organisational citizenship behaviors, Leadership Quarterly 1: 107142.Google Scholar
Podsakoff, PM, MacKenzie, SB, Paine, JB and Bachrach, DG (2000) Organisational citizenship behaviors: A critical review of the theoretical and empirical literature and suggestions for future research, Journal of Management 26: 513563.Google Scholar
Rempel, JK, Holmes, JG and Zanna, MP (1985) Trust in close relationships, Journal of Personality and Social Psychology 49: 95112.Google Scholar
Rogg, KL, Schmidt, DB, Shull, C and Schmitt, N (2001) Human resource practices, organisational climate and customer satisfaction, Journal of Management 27: 431499.Google Scholar
Salamon, DM and Robinson, S (2002) Does Trust Climate Deter Work Deviance? An organisational level analysis, Paper presented at the Academy of Management Conference, Denver.Google Scholar
Salancik, GR and Pfeffer, J (1978) A social information processing approach to job attitudes and task design, Administrative Science Quarterly 23: 224253.Google Scholar
Schneider, B (1990) The climate for service: An application of the climate construct, in Schneider, B (Ed.) Organisational Climate and Culture, pp. 383412, San Francisco: Jossey-Bass.Google Scholar
Schneider, B and Bowen, D (1985) Employee and customer perceptions of service in banks: Replication and extension, Journal of Applied Psychology 70: 423433.Google Scholar
Schneider, B, Ehrhart, MG, Mayer, DM, Saltz, JL and Niles-Jolly, K (2005) Understanding organisation-customer links in service settings, Academy of Management Journal 48: 10171032.Google Scholar
Schneider, B, White, SS and Paul, MC (1998) Linking service climate and customer perceptions of service quality: Test of a causal model, Journal of Applied Psychology 83: 150163.Google Scholar
Schoorman, FD, Mayer, RC and Davis, JH (1996) Organisational trust-Philosophical perspectives and conceptual definitions, Academy of Management Review 21: 337340.Google Scholar
Senge, PM (1990) The Fifth Discipline: The Art and Practice of the Learning Organization. New York: Doubleday.Google Scholar
Sherony, KM and Green, SG (2002) Coworker exchange: Relationships between coworkers, leader-member exchange and work attitudes, Journal of Applied Psychology 87: 542548.Google Scholar
Simons, T and Roberson, Q (2003) Why managers should care about fairness: The effects of aggregate justice perceptions on organisational outcomes, Journal of Applied Psychology 88: 432443.Google Scholar
Smith, CA, Organ, DW and Near, JP (1983) Organisational citizenship behavior: Its nature and antecedents, Journal of Applied Psychology 68: 653663.Google Scholar
Smith, KG, Carroll, SJ and Ashford, SJ (1995) Intra-and interorganizational cooperation: Toward a research agenda, Academy of Management Journal 38: 723.Google Scholar
Spreitzer, GM (1995) Psychological empowerment in the workplace: Dimensions, measurement and validation, Academy of Management Journal 38: 14421465.Google Scholar
Taggart, J (1997) Autonomy and procedural justice: A framework for evaluating subsidiary strategy, Journal of International Business Studies 28: 5175.Google Scholar
Taggart, J and Hood, N (1999) Determinants of autonomy in multinational corporation subsidiaries, European Management Journal 17: 226236.Google Scholar
Takahashi, N (2000) The emergence of generalised exchange, American Journal of Sociology 105: 11051134.Google Scholar
Tse, DK and Wilton, PC (1988) Models of consumer satisfaction formation: An extension, Journal of Marketing Research 25: 204212.Google Scholar
Tsiros, M, Mittal, V and Ross, WT Jr. (2004) The role of attributions in customer satisfaction: A reexamination, Journal of Consumer Research 31: 476483.Google Scholar
Wiley, JW (1991) Customer satisfaction: A supportive working environment and its financial cost. Human Resource Planning, 14: 117127.Google Scholar
Wiley, JW (1996) Linking survey results to customer satisfaction and business performance, In Kraut, AI (Ed.) Organisational Surveys: Tools for assessment and change, San Francisco: Jossey-Bass.Google Scholar