PDF - Journal of Management Sciences

Journal of Contemporary Management Sciences
Volume 1 (3) 61-70
JCMS Publication, 2014
Journal of
Contemporary
Management
Sciences
THE EFFECT OF JOB RESOURCEFULNESS ON SERVICE
RECOVERY PERFORMANCE: MEDIATING ROLE OF
CUSTOMER ORIENTATION
ROMINA CHERAGHALIZADEH
Abstract:
The main aim of this study is to investigate whether job resourcefulness increases customer orientation that in turn
fosters service recovery performance. A cross-sectional of 246 hotel industry employees was implemented through
questionnaire in Iran. This study applied the mediated regression to check the effects of dimensions and test the
mediating role of customer orientation on the relationship between job resourcefulness and service recovery
performance. Findings of the study proved that job resourcefulness significantly associated with customer
orientation and also customer orientation significantly related to service recovery performance. Results show that
customer orientation partially mediates the relationship between job resourcefulness and service recovery
performance. The implications and practice are discussed.
Key words: Customer orientation, Hotel industry, Job resourcefulness, Service recovery performance.
1. Introduction
Frontline employees have an essential role to provide quality services and deal with recovery efforts to return
dissatisfied customers especially in hospitality industry. Job resourcefulness enables employees to continue their
responsibilities in the face of adversity in particular work environment (Ashill et al., 2009). Employees who are job
resourceful try to do their best devoid resources (Harris et al., 2007). Also customer orientation enables employees
to interact with customer properly and provide high quality services in work environment (Babakus et al., 2009).
They try to satisfy customers and consider on their needs. Frontline employees are copulative between organization
and customers to delivery services (Mukherjee and Malhotra, 2006) and play essential role to maintain relationship
with customers (Yoon et al., 2001). They interact with customer directly and also influence on customer intentions
(Malhotra and Mukherjee, 2004).
Induced the scarcity of research on job resourcefulness (Karatepe, 2011); this study considers on the effect of job
resourcefulness on service recovery performance as a job outcome. Also most of researches about customer
orientation and job resourcefulness have been done in western and developed countries (e.g. United States and
Germany); thus, generalization of the results to the other countries such as nonwestern and developing countries was
the limitation of those researches. Therefore, this study uses data from frontline hotel employees in Iran which is
known as developing country.
This research aims and tests a conceptual model that considers on whether there is significant association between
job resourcefulness and customer orientation and also between customer orientation and service recovery
performance. Furthermore, this study considers on customer orientation as a mediator of the relationship between
job resourcefulness and service recovery performance.
In the following section relevant literature has provided. It continues with research method and results. At end
research provides discussion about findings and proposal for future study.
2. Conceptual framework and research model
2.1. Relationship between job resourcefulness and customer orientation
Job resourcefulness defined as ‘the enduring situation to garner rare resources and dominate barriers to following of
job-related goals’ (Licat et al., 2003, p. 258). Empirical studies indicated that job resourcefulness has positive effect
on customer orientation (Harris et al., 2006; Licata et al., 2003). Study of Karatepe and Douri (2012) indicated that
job resourceful employees have the ability to deal with their tasks under limited resources and satisfy customer
based on their expectation. Job resourceful employees can manage situation to dominate barriers and obstacles by
managing limited resources. Study of Silva (2006) indicated that the personality traits (e.g. emotional stability) are
positively associated with job outcomes. Also the results of other study which conducted among frontline hotel
employees in Northern Cyprus demonstrated that trait competitiveness, effort and self-efficacy are positively related
with job performance and job satisfaction (Karatepe et al., 2006). Therefore, following hypothesis is proposed:
H. Job resourcefulness has positive effect on customer orientation.
2.2. Relationship between customer orientation and service recovery performance
According to study of Babakus and Yavas (2012), service providers carry out their tasks to pursue service recovery
performance. Also customer orientation has an essential role to increase organizational performance (Pan and
Zinkhan, 2006). High customer orientated employees are polite and friendly and tend to solve customers’ problem
(Donavan et al., 2004); also they are stable emotionally while interaction with clients. Babakus et al. (2009)
indicated the positive relationship between customer orientation and service recovery performance in New Zealand.
Another study showed that customer oriented employees try to satisfy and return dissatisfied customers and solve
their problems (Kwon and Park, 2005). There is empirical study to show that customer orientation leads to positive
job outcomes. For instance, study of Donavan et al. (2004) indicated that customer orientation enhances
organizational commitment, job satisfaction and organizational citizenship behaviors. Rod and Ashill (2010) in their
study showed that customer orientation directly and positively effects on service recovery performance, also there is
an indirect relationship between these variables through organizational commitment and job satisfaction. Boshoff
and Allen (2000) investigated the effect of customer orientation on service recovery performance among bank
employees and found that there is not any significant relationship between customer orientation and service recovery
performance in this industry. According to abovementioned literatures it seems to be positive relationship between
customer orientation and service recovery performance. Therefore, following hypothesis is proposed:
H2. There is a positive relationship between customer orientation and service recovery performance.
2.3. Mediating role of customer orientation
Also his study investigated the effect of customer orientation as a mediator between job resourcefulness and service
recovery performance. As Harris et al. (2006) discussed, frontline employees can experience higher level of job
satisfaction if they fit correctly in a resource scarcity environment. Therefore, their satisfaction is more likely
mediates by customer orientation in the organization. This is true for customer service since surface-level traits have
more vicinity to behavioral intentions and outcomes such as job performance (Karatepe and Douri, 2012). Study of
Licata et al. (2003) indicated that customer orientation partially mediates the relationship among job resourcefulness
and job performance. Another study demonstrated the full mediator effect of customer orientation between job
resourcefulness and job satisfaction (Harris et al., 2006).
Thus, the following hypothesis is exerted:
H3. Customer orientation mediates the relationship between job resourcefulness and service recovery performance.
Conceptual model of this research provides in Figure 1.
c
Job
resourcefulness
Customer
orientation
Service recovery
performance
Figure1. Research model
3. Methods
3.1. Sample and procedures
Data of this research gathered from frontline employees of four and five-star hotels in Iran. To ensure employees
about confidentiality questionnaires were distributed and returned directly by researcher and respondents were asked
to answer the questionnaire in a self-administered manner. All frontline employees had the same chance to
participate in this study. This study has considered on only frontline employees because frontline employees interact
with customers directly and should be responsible for customer needs and requires; therefore they are in the position
that enables them to return dissatisfied customers.
In order to collecting data, after getting permission, only 11 hotels accepted to participate in this study. From 357
distributed questionnaires, 288 questionnaires were returned and only 246 of responses were usable with the overall
response rate of 69%.
In order to developing questionnaire in Persian, the questionnaire prepared in English originally, and then items
were subjected to standard translation and back translation process (Brislin, 1970). Twenty two employees were
targeted for pilot study and responses showed that there were not lack of clarity and confusion in their responses.
3.2. Measures
This study used pre-existing measuring items for each construct. Job resourcefulness comprised four items adapted
by Harris et al. (2006). Four items were adapted by Licata et al. (2003) to measure customer orientation. Service
recovery performance as criterion variable measured by three items was adapted by Boshoff and Allen (2000). All
items are measured on five-point Likert scale that range from 5 (strongly agree) to 1 (strongly disagree). Age was
measured with a 5-point scale. Gender was coded as a binary variable (0 = male and 1 = female). Education was
measured with 5-point scales. Marital status was coded as a binary variable (0 = married and 1 = unmarried).
4. Results
4.1. Respondents’ profile
Table 1 showed demographic breakdown of study’s population. Sixty percent of respondents were male and the rest
were female. Around half of participants (52 %) were married and 48% were single. The majority of respondents
(57 %) had academic degree; while 18% had primary school education and 25% had secondary school education.
Twenty five percent of respondents aged between 18 and 27; 32% of them were between 28 and 37 years old and
19% of participant were between 38 and 47. The rest were older than 57.
TABLE 1 Respondents’ Profile (n = 246)
Frequency
Percentage
18-27
61
24.8
28-37
79
32.1
38-47
46
18.7
48-57
37
15.0
>58
23
9.3
Total
246
100.0
Male
147
59.8
Female
99
40.2
246
100.0
Age
Gender
Total
Marital status
Unmarried
119
48.4
Married
127
51.6
Total
246
100.0
Primary school
44
17.9
Secondary school
61
24.8
Bachelor degree
107
43.5
34
13.8
246
100.0
Education
Master degree
Total
4.2. Reliability and validity
Reliabilities of all variables ranged between .55 and .89. This result demonstrated satisfactory level of reliability.
Also result of exploratory factor analysis produced three factors and showed existence of discriminant and
convergent validity; however, one item of customer orientation eliminated due to cross loading. All factors totally
explained 65% of variance.
Harmans’ single factor test utilized to testing the potential threat of common method bias. Result showed that only
30% of variance explained by one factor; it demonstrated that approach of this study minimized the threat of
common method bias.
4.3. Test of hypotheses
Table 2 shows the correlation between variables. This study used the method of Barron and Kenny (1986) for
mediation analysis. First condition is related to significant relationship between job resourcefulness and customer
orientation. As can be seen in table 2, job resourcefulness (r = .16) significantly associated with customer
orientation.
Therefore, hypothesis 1 is supported.
In second condition relationship between job resourcefulness and service recovery performance has considered.
Result showed that there is significant relationship between job resourcefulness and service recovery performance (r
= .15). Thus, hypothesis 2 is supported.
Also according to Barron and Kenny, third condition is related to significant relationship between mediator and
criterion variable and table 2 displays that customer orientation significantly associated with service recovery
performance (r = .18).
Last condition is related to testing the mediating effect. As can be seen in table 3 the beta coefficients reveal that job
resourcefulness has significant effect on service recovery performance (β= .15, t-value =2.39). Meanwhile, customer
orientation also has a significant effect on service recovery performance (β=.16, t-value=2.60). After entering the
effect of customer orientation, beta coefficient related to job resourcefulness reduced from (β=.15) to (β=.12);
however the effect is still significant. Therefore, customer orientation partially mediate the relationship between job
resourcefulness and service recovery performance and hypothesis 3 supported. However, it is marginally significant
according to Sobel test result (1.76, p < .10).
Table 2. Mean, standard deviation and correlation between research variables
Variables
Mean
SD 1
2
1. Age
-
-
-
2. Gender
-
-
.05
*
3
4
-.08
-.18**
-
-
-.14
4. Education
-
-
-.09
-.04
*
5. JR
2.33
.95
-.05
.17
6. CO
2.58
.57
-.04
.10
2.46
1.08
.07
6
7
-
3. Marital status
7. SR
5
-.09
-
-.04
-.07
(.89)
-.05
-.012
.16*
-.01
-.01
.15
**
(.55)
.
18**
(.85)
SD denotes standard deviation. Diagonal (in brackets): coefficient alpha
* Correlations are significant at the .05 level.
** Correlations are significant at the .01 level.
TABLE 4 REGRESSION RESULTS: Direct and Mediating Effects
Dependent variable and standardized regression weights
Service recovery performance
β
t
.15
2.39**
β
t
Variables:
Job resourcefulness
Customer orientation
-
-
F
-
5.72**
-
.02
R2
R
2
Sobel test:
-
-
1.98*
.12
2.60**
.16
6.75**
-
.05
.03
Job resourcefulness
Customer orientation
Service recovery performance: 1.76
** P<.05
5. Conclusion
Finding of this research revealed that job resourcefulness increases customer orientation. This finding confirms the
previous research in this field (Harris et al., 2006; Karatepe and Douri, 2012). Job resourceful employees can
manage limited resources according to customer needs. They have the ability to deal with their tasks under limited
resources and satisfy customer based on their expectation. Job resourceful employees can manage situation to
dominate barriers and obstacles by managing limited resources.
Researches of Babakus et al. (2009) and Ashill (2010) indicated the positive relationship between customer
orientation and service recovery performance; results showed that finding of this research confirms previous studies
in this field. Customer orientated employees have composure while interacting with clients and are interested to
solve their problems; this manner increases customer satisfaction and may return dissatisfied ones.
Also this study confirms that customer orientation partially mediates the relationship between job resourcefulness
and service recovery performance. Organizations can return dissatisfied customers if they manage employees’ posts
correctly in a resource scarcity environment. Therefore, employees have more intention to attain outcomes and
satisfy customers if they fit in right places.
5.1. Managerial implication
To return dissatisfied customers, manager of hotels should fit suitable employees in right job position. These
employees are able to manage limited resources and deal with satisfactory of customers. According to finding of this
research job resourceful employees are interested to return dissatisfied customers and allocate limited resources to
satisfy them. It will be beneficial for organization to hire job resourceful employees; therefore, it needs more
attention to the functions of human resource department.
5.2. Limitations
Common method bias is the potential threat of each study; however this study considered on the method of data
collection to decrease the probability of this threat. Questionnaires distributed and gathered directly by researcher
for anonymity of respondents. This study is based on self-reported data and cross- sectional design; it would be
better if longitudinal design has been used in this study. The last limitation is about generalization of research
results. Data of this study gathered from Iran which is known as developing country and third world country.
Therefore, the result may not be generalizable to developed countries.
5.3. Future research direction
Future research can investigate the effect of job resourcefulness as inherent capability on job outcomes such
turnover intention, job satisfaction and job performance; because the results and implication will be beneficial for
managers.
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Appendix. Measures of the constructs
Job resourcefulness (Harris et al., 2006)
When it comes to completing tasks at my job I am very clever and enterprising.
I am able to make things happen in the face of scarcity at my job.
At my job, I think I am fairly a resourceful person.
On the job I am clever and inventive in overcoming barriers.
Customer orientation (Licata et al., 2003)
I try to help customers achieve their goals.
I try to get customers to discuss their needs with me.
I take a problem-solving approach with my customers.
I am able to keep the best interest of the customer in mind.
Service recovery performance (Boshoff and Allen, 2000)
Considering all the things I do, I handle dissatisfied customers quite well.
I do not mind dealing with complaining customers.
Satisfying complaining customers is a great thrill to me.