The Effect of Perceived Organizational Support on Financial Performance and the Mediating Role of Customer Satisfaction

Authors

  • Mohammad Awal Hossen Jashore University of Science and Technology
  • Shahedul Alam Khan Leading University
  • Noman Hasan Mawlana Bhashani Science & Technology University

DOI:

https://doi.org/10.18533/job.v7i03.265

Keywords:

Perceived Organizational Support (POS); Financial Performance; Customer Satisfaction; Mediation; PLS

Abstract

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.

Author Biographies

Shahedul Alam Khan, Leading University

Assistant Professor, Department of Business Administration, Leading University, Sylhet

Noman Hasan, Mawlana Bhashani Science & Technology University

Assistant Professor, Department of Management, Mawlana Bhashani Science & Technology University, Tangail

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Published

2022-10-11