The Effect of Perceived Organizational Support on Financial Performance and the Mediating Role of Customer Satisfaction
DOI:
https://doi.org/10.18533/job.v7i03.265Keywords:
Perceived Organizational Support (POS); Financial Performance; Customer Satisfaction; Mediation; PLSAbstract
In this study, the aim was to evaluate the direct and indirect effect of perceived organizational support on financial performance and customer satisfaction. Moreover, this study examined the role of customer satisfaction as a mediator in the indirect relation between the perceived organizational support (POS) and the financial performance of firms. 100 pairs of bankers and their customers were surveyed as well as financial statements from 14 banks were used to measure the variables in the study. A partial least square structural equation model was used to access the hypotheses. Results suggest that customer satisfaction significantly improves financial performance. In addition, perceived organizational support (POS) has significant indirect relation with financial performance and this indirect relationship between POS and financial performance is fully mediated by customer satisfaction. The findings reveal that employees with better perceived organizational support significantly improve the financial performance of banks indirectly by ensuring better customer satisfaction.
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