Journal of Business Research 58 (2005) 1330 – 1339

The effects of specific job satisfaction facets on customer perceptions of

service quality: an employee-level analysis
Robin L. Snipesa,*, Sharon L. Oswaldb,1, Michael LaTourc, Achilles A. Armenakisb,2
a
D. Abbott Turner College of Business, Columbus State University, 4225 University Avenue, Columbus, GA 31907-5645, United States
b
College of Business, Auburn University, Auburn, AL 36849, United States
c
Department of Marketing, College of Business, University of Nevada, Las Vegas, 4505 Maryland Parkway, Las Vegas, NV 89154, United States
Received 17 September 2003; accepted 30 March 2004

Abstract

Previous research has shown that employee job satisfaction is a relevant factor in service quality improvement. Employees who feel
satisfied with their jobs provide higher levels of customer satisfaction. This study contributes to the current body of work in this area by
investigating the responses from 351 employees and their 8667 customers from one service industry (higher education) to determine which
specific facets of employee job satisfaction have the largest effect on customer perceptions of service quality. The uniqueness of this study is
in its design. Most other studies of this type have analyzed organization-level data, while this study employs employee-level data. The study
model also includes an unprecedented analysis of the effects of specific facets of job satisfaction on customer perceptions of service quality.
Results suggest that certain job satisfaction facets may have a larger effect on service quality than others.
D 2004 Elsevier Inc. All rights reserved.

Keywords: Employee job satisfaction; Employee empowerment; Customer satisfaction; Service quality; Job facet satisfaction; Services management

1. Introduction to be the center of management concern. Implementing

So far, organizations of the 21st century have faced an
environment of constant change. The changes in the work-
place in the last few decades, including the dramatic increase
in the number of service companies in the United States,
have caused an increased interest in the antecedents and
consequences of customer satisfaction in service industries
(Brady and Cronin, 2001; Hartline and Ferrell, 1996; Bitner
et al., 1994; Heskett et al., 1994). Most managers today
understand that to make a substantial impact on organiza-
tional service quality, frontline workers and customers need
* Corresponding author. Tel.: +1 706 562 1673; fax: +1 706 568 2184.
E-mail addresses: snipes_robin@colstate.edu (R.L. Snipes)8
oswald@business.auburn.edu (S.L. Oswald)8
michael.latour@ccmail.nevada.edu (M. LaTour)8
achilles@business.auburn.edu (A.A. Armenakis).
1
Tel.: +1 334 844 4071.
2
Tel.: +1 334 844 6506.
0148-2963/$ - see front matter D 2004 Elsevier Inc. All rights reserved.
doi:10.1016/j.jbusres.2004.03.007
policies to increase employee satisfaction should pay off in
the end. However, employee job satisfaction alone is not
enough to effect the changes necessary for significant service
quality improvements. Maintaining high service quality is
also a function of providing employees with the control and
authority to better serve customers. Across the private,
public, and voluntary sectors, empowering staff is widely
advocated as a means to improve the performance and
productivity of organizations (Leslie et al., 1998).
In this article, we consider the role of job satisfaction and
employee feelings of empowerment on service quality in a
service industry. Bitner (1990) noted that, in the service
encounter, employees are performers rather than simply
workers, and their behavioral performance is the service
quality that customers perceive. Service quality as perceived
by customers, then, is one of the most important nonfinancial
performance measures to examine in a service organization.
This article contributes to previous work in the areas of
employee job satisfaction and service quality in three
 R.L. Snipes et al. / Journal of Business Research 58 (2005) 1330–1339
important ways. The primary contribution of this study is in
its design, which allows for a more accurate assessment of
variable effects and relationships. In this study, we conduct
an unprecedented analysis of the specific effects of different
job satisfaction facets (e.g., satisfaction with pay, satisfaction
with supervision, satisfaction with working conditions, etc.)
on customer service quality perceptions. Previous studies
have found a significant and positive relationship between
global job satisfaction and service quality (Hartline and
Ferrell, 1996; Schneider and Bowen, 1985). In this study, we
propose that rather than using a bglobalQ job satisfaction
scale or a summed bcompositeQ scale, a study of individual
job satisfaction facets could provide researchers and man-
agers with a better understanding of the job satisfaction–
service quality linkage. In fact, previous job satisfaction
research has shown that facet scales respond differentially to
treatments and may provide more in-depth information on
the true relations between job satisfaction and other variables
(Ironson et al., 1989; Smith, 1976). A knowledge of which
specific job satisfaction facets contribute most to service
quality has both conceptual and managerial implications.
A second contribution of this study is in the way that the
data were aggregated. Most of the prior research linking job
satisfaction to service quality has used organization-level
data. To date, there are very few studies of the job
satisfaction–service quality linkage at the individual
employee level of analysis. A third contribution of this
study is in the use of 11 bcontrolQ variables to help eliminate
possible study contaminators. The inclusion of control
variables (such as employee/customer demographics and
other workplace variables) was an important element of the
study since previous research has shown that these variables
could confound the results of the study (Babin and Boles,
1998; Andaleeb and Basu, 1994; Brown and Peterson,
1993; Wiley, 1991).
2. Background and research hypotheses
2.1. Research on job satisfaction and service quality
Job satisfaction is one of the most researched phenomena
in the organizational behavior literature. In a service
organization, it is possible that employee job satisfaction
may have its biggest impact in the area of customer
satisfaction. Studies have shown that job satisfaction is
positively related to employee perceptions of service quality
(Schlesinger and Zornitsky, 1991) and customer ratings of
service quality (Yoon et al., 2001; Reynierse and Harker,
1991). This idea is at the heart of the service–profit–chain
theory developed by Heskett et al. (1994), which suggests that
the firm’s financial performance is derived from customer
satisfaction, which is derived from employee performance,
which, in turn, is derived from employee satisfaction.
In this study, we have attempted to measure employee
performance in service industries in terms of service quality
1331
perceptions. Additionally, to examine the impact of job
satisfaction on service quality, our study captures employee
performance from a customer perspective rather than from
an employee perspective. We believe this customer per-
spective is one of the more realistic performance measures
for a service employee.
2.1.1. Global scales versus facet scales
The conceptual domain of job satisfaction is broad,
because it includes all characteristics of the job itself and the
work environment, which employees find rewarding, ful-
filling, and satisfying, or frustrating or unsatisfying
(Churchill et al., 1974). Operationally, job satisfaction
consists of several facets, including satisfaction with the
supervisor, work, pay, advancement opportunities, cow-
orkers, and customers. Job satisfaction measures of varying
levels of specificity have been widely used in both
theoretical and practical research. One approach to obtaining
measures of job satisfaction is to ask directly about overall
feelings about the job, called a global scale. Global scales
ask the respondent to combine his or her reactions to various
aspects of the job in a single, integrated response. An
example of this type of scale is Hackman and Oldham’s
(1975) bfacet-freeQ scale.
Conversely, facet scales are intended to cover separately
each of the principal areas within the general satisfaction
domain. Each facet is intended to be relatively homogeneous
and discriminably different from the others. Previous
research suggests that specific job satisfaction measures
should be used to measure specific behavior (Fisher, 1980;
Ironson et al., 1989). Rather than using measures of overall
job satisfaction, such as global scales, one could focus on the
relationship between separate facet satisfaction scores to
performance. In fact, some research has shown that perform-
ance implications may differ depending upon the type of
satisfaction under study (Schwab and Cummings, 1970).
One job facet satisfaction scale was developed specifically
for the services industry: the Job Satisfaction Survey, or JSS
(Spector, 1985). It was developed to cover the major aspects
of job satisfaction in service organizations, with the
subscales (facets) being clearly distinct in their content.
Very little research exists regarding the effects of specific
facets on customer service quality. However, previous
research on service quality clearly indicates that global job
satisfaction has a positive influence on service quality (Yoon
et al., 2001; Hartline and Ferrell, 1996; Schlesinger and
Zornitsky, 1991). Therefore, based on the foregoing review
of the literature and previous research, the following
hypothesis is advanced:
Hypothesis 1. Each job satisfaction facet will exert a direct
and positive effect on service quality.
2.1.2. Intrinsic versus extrinsic facets of job satisfaction
Previous research indicates that intrinsic rewards may
play a more important role in customer-oriented behavior
1332 R.L. Snipes et al. / Journal of Business Research 58 (2005) 1330–1339

Fig. 1. Hypothesized structural model.

than their extrinsic counterparts (Huffman and Ingram,
1992). Other research has shown that intrinsic work
rewards could affect the job satisfaction–performance
relationship (Ivancevich, 1979). Intrinsic work rewards
are those rewards received by an individual directly as a
result of task performance. They are self-regulated in that
a person is not dependent on an outsider, such as the
manager, to provide them. One example is the feeling of
achievement that comes from completing a challenging
project or helping a customer. This is in direct contrast to
the nature of extrinsic rewards, which are externally
controlled.
In their study of home healthcare employees, Huffman
and Ingram (1992) found that intrinsic job satisfaction
dimensions were positively and significantly correlated with
a customer orientation. However, satisfaction with extrinsic
factors was not found to be significantly related to a
customer orientation.
Therefore, the following hypothesis is posited:
Hypothesis 2. Job satisfaction facets dealing with intrinsic
reward factors (e.g., nature of work, satisfaction with
customers) will be stronger (more significant) predictors
of customer service quality than facets dealing with extrinsic
factors (e.g., satisfaction with pay, supervision, benefits,
contingent rewards).
2.2. Employee empowerment
Employee job satisfaction alone is not enough to
effectuate the changes necessary for significant service
quality improvements within a service organization. Main-
taining high service quality is also a function of providing
employees with the discretion and authority to better serve
customers. This principle is integral to the concept of
employee empowerment. Velthouse (1990) defined empow-
 R.L. Snipes et al. / Journal of Business Research 58 (2005) 1330–1339
erment as bone’s belief in his/her ability to exercise choiceQ
(p. 16). Several studies have found significant correlations
between feelings of empowerment and job satisfaction
(Laschinger et al., 2001; Spreitzer et al., 1997; McDonald
and Siegall, 1993; Riggs and Knight, 1994; Brown et al.,
1993). From an employee’s perspective, feelings of empow-
erment should have a positive influence on attitudinal and
behavioral responses. Previous research has found that if
contact employees perceive that their manager values them
and provides them with appropriate control and authority
over their work, they will feel more positively about their
jobs (Yoon et al., 2001; Babin and Boles, 1996). Therefore,
the following hypothesis is posited:
Hypothesis 3. Feelings of empowerment will exert a direct
and positive effect on employee job satisfaction.
Only a few studies have examined the relationship
between employee feelings of empowerment and service
quality. In their study of 279 hotel units, Hartline and Ferrell
(1996) found that empowerment, under the appropriate
conditions, increases job satisfaction and service quality. It
seems logical and makes intuitive sense that allowing
customer–contact employees to use their discretion in
serving customers could have many positive influences on
their responses and the service encounter. From an employ-
ee’s perspective, feelings of empowerment should provide
employees with the sense of control that is needed to make
the necessary changes for service quality improvements.
Therefore, we advance the following hypothesis:
Hypothesis 4. Feelings of empowerment will exert a direct
and positive effect on customer perceptions of service
quality.
2.3. Hypothesized model
Fig. 1 depicts the structural model to be tested in this
study. The structural model shows the hypothesized
relations between the independent and dependent variables,
either observed (depicted in boxes) or latent (depicted in
circles).
The design of the model contributes to the uniqueness of
this study. As shown in Fig. 1, the specific effects to be
investigated in this study are between the individual job
satisfaction facets and the latent variable bservice quality.Q
Each job satisfaction facet is hypothesized to exert a positive
effect on service quality.
3. Method
3.1. Empirical study context
To test the hypothesized model, a two-sample research
design was needed: an employee sample to measure job
attitudes and a customer sample to measure perceived
1333
service quality. Additionally, to measure these effects at the
individual employee level of analysis (versus the group
level of analysis), the responses needed to be matched
across the two response groups. Many service industries
were considered, but the industry chosen for this study was
higher education for several reasons, including (1) education
is a service industry and students, therefore, are consumers
of this service (Schneider et al., 1994); (2) this setting was
one of the few service industries that would allow the
researchers to be able to accurately match individual
employee responses to their customers so as to obtain an
employee-level of variable linkages; (3) consumers in this
industry (i.e., students) may be able to give more accurate
assessments of employee service quality because of the
amount and extent of their experiences with customer–
contact employees (i.e., faculty); and (4) the nonresponse
bias typically found in customer satisfaction research
(Richins, 1983) could be reduced by using this setting.
3.2. Data collection procedure
Two survey instruments were needed to test our hypoth-
eses: one to measure employee attitudes and one to measure
service quality perceptions. Questionnaires assessing
employee attitudes were hand-distributed by the researchers
to 571 faculty members at six post-secondary teaching
institutions located in three southeastern states. A total of
351 usable surveys were returned for a response rate of 60%.
To measure customer (student) attitudes toward faculty
service quality, a questionnaire was administered to each
participating faculty member’s students (i.e., bcustomersQ).
The student questionnaire contained demographic questions
and the SERVQUAL items relating to faculty service quality
(see Appendix A). Both the faculty and student survey
instruments were coded to assure ease of matching. After
matching student responses to faculty and eliminating all
responses for which matches were not obtained, the final
student sample totaled 8667 responses, or an average of 25
student (customer) responses per employee.
3.3. Data aggregation
The unit of analysis in this study is the contact employee.
Thus, employee service performance is an aggregate of his/
her individual customer responses. Previous studies at the
group level have aggregated employee and customer data
for each group (e.g., organization/company) and then
compared the data across groups. The difference in this
study is that the data are aggregated at the individual
employee level to compare data across employees.
3.4. Measures
While most of the scales have been widely used in
marketing and management research, some items were
reworded to make them compatible with the setting and
1334 R.L. Snipes et al. / Journal of Business Research 58 (2005) 1330–1339

objectives of this study. An exploratory factor analysis include the following (with ratings of 1=much worse than I
revealed that all scale items were statistically significant and expect to 7=much better than I expect):
the resulting factor loadings showed unidimensionality in
terms of model fit indices and face validity. Final measure- bThe instructor’s willingness to help you.Q (empathy)
ment items for this study and their factor loading estimates bThe instructor’s ability to teach the material.Q (com-
are listed in Table 1. petence and reliability)
bThe appearance of the physical facilities.Q (tangibles of
3.4.1. Perceived service quality the work environment)
Parasuraman et al. (1985) defined perceived service
quality as the difference between consumer expectations of As suggested by organizational researchers (Parasura-
service and the perceptions of the actual service rendered. man et al., 1991; Carman, 1990), to confirm that the
What is important then is the customer’s perception of scale measured conceptually distinct dimensions, the indi-
service quality, which is not necessarily the same as the vidual items were factor analyzed using principal compo-
company’s perception of its service quality. nents analysis. The factor analysis revealed that only four
One of the most popular measures of service quality is factors had eigenvalues greater than 1.0 (using the blatent
SERVQUAL, developed by Parasuraman et al. (1988, root criterionQ). Therefore, only four factors were retained
1991). SERVQUAL was originally conceived as a for further analysis: employee empathy (12 items),
generic measure that could be applied to any service. employee competence and reliability (10 items), tangibles
However, based on research, Carman (1990) suggested of the work environment (4 items), and overall service
that SERVQUAL needs to be customized to the service quality (1 item). An analysis of the coefficient alphas for
in question, which may mean adding items or changing each subscale revealed that subscale reliabilities were high
the wording of items. Although there may be some (see Table 1 for a factor breakdown and internal consistency
question as to the number of dimensions measured by reliabilities).
SERVQUAL, the validity of the items that make up the The SERVQUAL portion of the survey asked respond-
SERVQUAL scale appears to be well supported both by ents to compare their perception of the service quality
the procedures used to develop the items and by their received to the performance level they believed should be
subsequent use as reported in the literature (Cronin and delivered in several areas, including the job facet satisfac-
Taylor, 1992; Carman, 1990). tion and employee feelings of empowerment.
To measure instructor service quality, the survey asked
respondents to compare their perception of the service 3.4.2. Job facet satisfaction
quality received to the performance level they believed The JSS (Spector, 1985) was developed specifically for
should be delivered. Examples of the SERVQUAL items service employees. To confirm the scale measured concep-
tually distinct facets of job satisfaction, the individual items
were factor analyzed using principal components analysis.
Table 1 Both varimax and equimax rotation methods produced
Summary of study variable characteristics (N=351)a seven interpretable factors, rather than 10 (see Table 1 for a
Construct measure No. of items Mean S.D. a factor breakdown). An analysis of the internal consistency
Employee job satisfaction for each job satisfaction subscale revealed reasonably high
Satisfaction with 10 4.22 1.29 .90 coefficient alphas. Examples of job satisfaction items
contingent rewards include the following (with ratings of 1=strongly disagree
Satisfaction with 6 5.82 1.18 .87 to 7=strongly agree):
coworkers
Satisfaction with customers 5 5.59 .93 .78
Satisfaction with benefits 3 4.98 1.50 .85 bI like the people I work with.Q (satisfaction with
Satisfaction with 6 5.89 .89 .74 coworkers)
the work itself bI like my students.Q (satisfaction with customers)
Satisfaction with pay 4 4.26 1.40 .76 bThe benefit package we have is fair.Q (satisfaction with
Satisfaction with 2 3.71 1.49 .70
operating procedures
benefits)
Perceived service qualityb bMy job is enjoyable.Q (satisfaction with the work itself)
Empathy 12 5.17 .65 .97
Competence and reliability 10 5.31 .59 .95 3.4.3. Employee feelings of empowerment
Tangibles of the 4 4.77 .49 .79 A four-item scale was used to gauge employee feelings
work environment
Overall quality 1 5.47 .76 –
of empowerment. The items on our empowerment scale
Feelings of empowerment 4 4.65 1.62 .84 were taken from previous research in that area (Spreitzer,
a
Total number of employee respondents=351. 1996) and included, bMy job affords me enough power to
b
Total number of customer respondents=8667 (represents an average of take any corrective action I deem necessary when a student
25 responses per employee). is dissatisfied with serviceQ; bThe organization cares about
 R.L. Snipes et al. / Journal of Business Research 58 (2005) 1330–1339
my opinionQ; bThis organization values my contribution to
its well-beingQ; and bI do not have the authority necessary to
take actions for turning dissatisfied students into satisfied
onesQ (reverse-coded). As indicated in Table 1, the reliability
of this four-item scale was high at .84.
3.4.4. Control variables
To enable the researchers to assess the true effects of the
model variables, 11 control variables were included on the
surveys. Based on previous research in the service quality
literature, these variables were believed to be possible study
contaminators (Babin and Boles, 1998; Andaleeb and Basu,
1994; Brown and Peterson, 1993; Marsh, 1987; Reynierse
and Harker, 1991; Wiley, 1991). They include employee
tenure, employee work experience, employee workload,
employee gender, employee age, student gender, student
age, perceived complexity of the class, student class
experience, student perception of grading fairness, and
student GPA. The effects of these variables were partialed
Fig. 2. Final structural model.
1335
out of the model (see Newcomb, 1994, for a further
discussion of this method). Partialing out variable effects
assured that the effects of their differences would not distort
the results of this study.
4. Data analysis and results
The variables were analyzed using structural equations
modeling. The software chosen to analyze the structural
equations model was EQS (Bentler, 1992).
4.1. Descriptive statistics
4.1.1. Employees
Of the 351 faculty respondents, 61% were male and 39%
were female. The respondents’ average age was 49 years,
and average tenure with the organization was approximately
11 years.
1336 R.L. Snipes et al. / Journal of Business Research 58 (2005) 1330–1339
4.1.2. Customers
A total of 8667 undergraduate student surveys were
collected, for an average of 25 student responses for each
faculty member. Of the student responses, 42% were male
and 58% were female.
4.2. Analysis of the model
The model used in this study was a type of nonstandard
structural equations model used to measure the effects of
specific facets of a construct on other constructs (see
Bentler, 1990, for more information on latent variable
models for separating specific from general effects). This
type of model is similar to models used in prior psycho-
logical research. As shown in Fig. 1, the specific effects to
be investigated in this study are between the individual job
satisfaction facets and the latent variable bservice quality.Q
(Note that the specific effects are between the indicators of
job satisfaction and service quality, rather than between the
job satisfaction construct and service quality.)
4.2.1. Structural model analysis
A partial variance/covariance matrix (excluding the
effects of the control variables) was the input matrix for
this study (see Appendix A). The final structural model fit
the data fairly well (CFI=.951, GFI=.935, v 2=126.5, df=41).
Associations among the factors are displayed graphically in
Fig. 2.
4.3. Hypothesis test results
The model explains 42.4% (r 2=1 .7592, or .424) of the
variance in job satisfaction, and 17.7% (r 2=1 .9072, or
.177) of the variance in service quality. The analysis of the
confirmatory factor model shows that all of the job
satisfaction facets loaded significantly on the overall job
satisfaction construct ( Pb.001), providing evidence of
convergent validity. However, contrary to Hypothesis 1,
only three facets of job satisfaction were found to be
significant in predicting service quality in the structural
model: satisfaction with customers, satisfaction with bene-
fits, and satisfaction with the work itself. As hypothesized,
two of the job satisfaction facets dealing with intrinsic
reward factors (satisfaction with the work itself and
satisfaction with customers) were significant in predicting
service quality at the Pb.05 level. Therefore, the model
partially confirms Hypothesis 2. However, contrary to the
initial hypothesis, the model also shows that one extrinsic
reward factor, satisfaction with benefits, also contributes
significantly to service quality (path=.221, Pb.001).
The path relating feelings of empowerment to job
satisfaction was significant at the Pb.001 level (path=.651).
Therefore, the model did confirm Hypothesis 3. However,
the direct path relating feelings of empowerment to service
quality was not found to be significant at the Pb.05 level
(path=.046). Therefore, the model did not confirm Hypoth-
esis 4. To investigate the possibility of an indirect effect on
service quality, a post hoc analysis of indirect paths was
conducted using structural equations modeling. An analysis
of indirect parameter effects revealed that employee feelings
of empowerment had a significant indirect effect on service
quality through its effect on job satisfaction (t=4.894,
Pb.001). This means that, although it may not have a
significant direct effect on service quality, employee
empowerment may have a significant indirect impact on
service quality via job satisfaction.
5. Discussion
The model in this study explains 17.7% of the variance in
service quality (r 2=.177), and confirms previous research
that has shown that job satisfaction can have a significant
impact on service quality and, ultimately, on organizational
effectiveness in a service organization. Especially in a
service company, service quality improvements can have a
dramatic impact on the organization’s bottomline (cf. Rust
et al., 1995). As noted by Heskett et al. (1994), service
quality drives customer satisfaction and loyalty, and the
lifetime value of a loyal customer bcan be astronomicalQ (p.
164). The use of facet scales in this study enables a better
understanding of how job satisfaction affects customer
perceptions of service quality. Perhaps the most interesting
finding of this study is that individual job satisfaction facets
do not contribute equally to customer service quality
perceptions. Additionally, Hypothesis 2 was only partially
confirmed—intrinsic job satisfaction facets were found to be
significant in determining customer perceptions of service
quality, but one extrinsic factor (satisfaction with benefits)
was also found to be significant in this study.
Many managers believe the key to motivating service
employees is to reward workers with money, bonuses, or
raises (Timmreck, 2001). However, oftentimes, the work
itself can provide job satisfaction because the task is
fulfilling or enjoyable. Intrinsic job satisfaction has to do
with the psychological rewards employees get simply from
doing their jobs. It may be that when service employees are
intrinsically motivated by their jobs, they look for better
ways to serve customers. This type of motivation is quite
different from extrinsic motivation, which is about the
rewards one gets from others, such as pay raises and
bonuses. While extrinsics are important, they are normally
not enough to keep service employees at their best. The
results of this study suggest that management efforts to
increase intrinsic job satisfaction facets, such as employees’
perception of the job itself, may have a larger influence on
service quality than other satisfaction facets. Aspects related
to pay, contingent rewards, and operations have less of an
effect on employees’ service performance than intrinsic
factors. It may be that with extrinsic motivation, employees
focus more on the rewards rather than the work itself and,
therefore, work only well enough to get the rewards.
 R.L. Snipes et al. / Journal of Business Research 58 (2005) 1330–1339 1337

Another interesting finding of this study is the signifi-
cance of the facet dealing with bsatisfaction with custom-
ers.Q The results of this study suggest that employees who
are more satisfied with their customers are more likely to
provide higher quality service. From a management stand-
point, recruitment and selection programs that focus on
candidates who have more of a customer orientation should
lead to higher levels of service quality. As pointed out by
Huffman and Ingram (1992), to improve employee job fit
and intrinsic job satisfaction for contact employees, man-
agers should recruit and screen for customer-oriented
employees who have realistic expectations of what the job
has to offer (p. 72). Such individuals may derive job
satisfaction from performing customer-oriented activities.
The significant contribution of the satisfaction with
benefits facet to overall service quality is somewhat
surprising. Although the topic of employee benefits has
received increased attention in the media in recent years,
the results of this study suggest that a competitive benefits
plan may play a more important role than previously
thought in delivering high service quality. As companies
continue to compete for qualified workers, many employ-
ers today are beginning to recognize the value of a
competitive benefits plan in terms of increasing overall
employee job satisfaction and reducing employee turnover
(Parus, 1999). Benefit programs have become important
tools for attracting and retaining top talent, and this study
suggests that benefit programs may also affect service
quality. The effect of employee benefit programs on
customer service quality has received little attention in
the literature, but given its importance here, perhaps it
deserves greater attention. Future research should continue
to look at specific benefit programs and their impact on
service performance.
5.1. Limitations and directions for future research
Some caveats should be noted to put our findings in
perspective. First, as suggested in the introduction of this
study, we opted for focus and clarity rather than breadth in
this study. Therefore, only one service industry was
included in the sample of this study. The sample chosen
in this study contributed to the uniqueness in the design of
the study because it allowed the researchers to be able to
match employee responses to their respective customers at
the individual employee level of analysis. However,
although academia is similar to other service industries in
many ways, it is unclear whether the results of this study
can be generalized across all industries. As with any other
study using a one-industry sample, this study should be
replicated to provide validation across other service
industries.
The mixed effects of empowerment raise an interesting
question for further research. Although much has been
published in the area of employee empowerment, to date
little research has been published on the relationship
between employee empowerment and service quality. More
research is needed to determine under which conditions
empowerment is beneficial to service delivery. In this study,
we investigated employee feelings of empowerment only as
it relates to the sense of power and control over service
quality improvements. Future studies should also investigate
other psychological and contextual factors that may affect
the success of empowerment programs. The relationship
between empowerment and service quality may be mod-
erated by other employee and contextual variables, such as
organizational commitment, self-esteem, self-efficacy, job
structure, and job design (Spreitzer, 1996).
These and other limitations notwithstanding, the current
study provides dramatic substantiation of needed bsynergyQ
between service employees and customers. This research
provides further validation of the link between specific
employee attitudes and customer service quality percep-
tions. It shows a causal link between certain job satisfaction
facets and customer attitudes. As pointed out by Ittner and
Larcker (2003), being able to weigh these measures makes it
easier for managers to allocate resources according to their
most beneficial uses.

Appendix A. Partial variance/covariance matrix (after partialing control variable effects)

V1 V2 V3 V4 V5 V6 V7 V8 V9 V10 V11 V12

Feelings of empowerment (V1) 1.97
Satisfaction with promotions (V2) 1.21 1.48
Satisfaction with coworkers (V3) .58 .60 1.17
Satisfaction with customers (V4) .22 .24 .10 .77
Satisfaction with benefits (V5) .77 .68 .59 .16 2.14
Satisfaction with work itself (V6) .45 .45 .41 .22 .36 .72
Satisfaction with pay (V7) .68 .85 .45 .06 .71 .38 1.75
Satisfaction with operations (V8) .32 .49 .20 .03 .08 .24 .29 2.05
Empathy (V9) .15 .21 .10 .09 .24 .12 .20 .09 .33
Reliability (V10) .16 .16 .09 .09 .24 .12 .15 .06 .26 .26
Tangibles (V11) .13 .13 .09 .05 .19 .10 .17 .02 .15 .14 .20
Overall quality (V12) .16 .20 .12 .09 .30 .13 .19 .07 .33 .29 .15 .44
1338 R.L. Snipes et al. / Journal of Business Research 58 (2005) 1330–1339
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