Reexamining the link between employee satisfaction and store performance in a retail environment

Abstract

Purpose - This research seeks to examine the generalizability/robustness of the findings in an exploratory study of the service-profit chain using data from another Western European retailer operating in the same business sector. Design/methodology/approach - This study applies correlation and regression analyses on data gathered from 38,513 employee surveys from 107 grocery "superstore" locations to explore the link between employee satisfaction and business performance. Findings - The findings differ significantly from those of the exploratory study. When looking at the relationship between employee satisfaction and store profitability, the correlation is found to be effectively zero. When controlling for the size of store, however, the relationship is found to be positive. Research limitations/implications - The results are based on cross-sectional employee satisfaction data. Originality/value - The original findings have received considerable exposure, being published first in the International Journal of Service Industry Management and later in the International Journal of Operations & Production Management. The results of this examination call into question the generalizability of the conclusions of the exploratory study using a larger data set in the same business sector and continent.