Do job satisfaction and customer satisfaction affect firm's overall performance? A new empirical evidence

Abstract

Because of their significant impacts on firm's performance nowadays, the effects of qualitative/nonfinancial measures have attracted attentions of many researchers in recent years. In a similar vein, this study examines the effects of job satisfaction and customer satisfaction on firm's overall performance with a new approach. Using the two-stage Data envelopment analysis (DEA) approach and a sample of 129 large U.S. companies, this study aims to provide new empirical evidence probing that job satisfaction and customer satisfaction significantly affect firm's overall performance and competitiveness. Especially, customer satisfaction shows its moderation effects which strengthen the influences of other variables on firm's performance.