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http://ssrn.com/abstract=917238
 
 

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The Relationship of Employee Perceptions of Organizational Climate to Business-Unit Outcomes: An MPLS Approach


Bruce Cooil


Vanderbilt University - Statistics

Timothy L. Keiningham


Ipsos Loyalty - North America

Lerzan Aksoy


Koc University

Kiersten M. Maryott


Virginia Commonwealth University - School of Business

July 15, 2008

Journal of Service Research, Forthcoming

Abstract:     
There has been an extensive exploration of how organizational climate is related to various business outcomes, but these studies have generally examined outcomes separately or developed univariate measures that combine outcomes. These approaches fail to (a) accommodate the multivariate character of important business results, and (b) facilitate the firm's need to achieve success on several dimensions. This research proposes a methodological approach new to the service domain to address these issues. Using data from a large, multi-national retail grocery superstore based in continental Western Europe, this study illustrates how multivariate partial least squares (MPLS) models can be used. MPLS provides three interpretable factors - Overall Organization Climate, Self Efficacy versus Leader's Efficacy and Personal Empowerment versus Management Facilitation of - climate that are important predictors of three business outcomes: employee retention, customer satisfaction, and scaled revenue. The use of the MPLS approach in other services domains is also explored.

Number of Pages in PDF File: 49

Keywords: Employee Perceptions, Organizational Climate, Employee Turnover, Customer Satisfaction, Financial Performance, Multivariate Partial Least Squares

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Date posted: July 18, 2006 ; Last revised: November 19, 2012

Suggested Citation

Cooil, Bruce and Keiningham, Timothy L. and Aksoy, Lerzan and Maryott, Kiersten M., The Relationship of Employee Perceptions of Organizational Climate to Business-Unit Outcomes: An MPLS Approach (July 15, 2008). Journal of Service Research, Forthcoming. Available at SSRN: http://ssrn.com/abstract=917238

Contact Information

Bruce Cooil (Contact Author)
Vanderbilt University - Statistics ( email )
Nashville, TN 37203
United States

Timothy L. Keiningham
Ipsos Loyalty - North America ( email )
Parsippany, NJ
United States
Lerzan Aksoy
Koc University ( email )
Cayir Cad. No: 5 Istinye
Sariyer 80910, Istanbul, 34450
Turkey
Kiersten M. Maryott
Virginia Commonwealth University - School of Business ( email )
Richmond, VA 23284-4000
United States
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