Drivers of Hospitality Industry Employees' Job Satisfaction, Organizational Commitment, and Job Performance

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African Journal of Business Management Vol. 4(18), pp. 4118-4134, 18 December, 2010 Available online at ISSN 1993-8233 ©2010 Academic Journals

Full Length Research Paper

Drivers of hospitality industry employees’ job satisfaction, organizational commitment and job performance Ming-Chun Tsai1, Ching-Chan Cheng2* and Ya-Yuan Chang3
Department of Business Administration, Chung Hua University, No. 707, Sec.2, WuFu Road, Hsinchu City, Taiwan 300, Republic of China. 2 Department of Food and Beverage Management, Taipei College of Maritime Technology, No. 212, Sec.9, Yen Ping N, Taipei City, Taiwan 111, Republic of China. 3 Department of Business Administration, National Chung Hsing University, No. 250, Kuo Kuang Road., Taichung City, Taiwan 402, Republic of China. Accepted 18 November, 2010


This study aims to combine empowerment, internal marketing, leadership and job stress to propose an integrated model of hospitality industry employees’ job satisfaction, organizational commitment and job performance. The subjects of this study were hospitality industry employees from Taipei City, and the structural equation modeling was adopted to validate path relationships in integrated model. The findings showed that employees’ job satisfaction directly and positively influences organizational commitment, but does not directly influence job performance. Employees’ job satisfaction enhances job performance only through organizational commitment. Internal marketing, empowerment and leadership also positively influence job satisfaction. Empowerment and leadership enhance employees’ organizational commitment. Internal job stress negatively influences employees’ job satisfaction and external job stress enhances employees’ job performance. According to the findings, this paper realized the main factors which influence hospitality industry employees’ job satisfaction, organizational commitment and job performance, which can function as criteria for human resource management in the hospitality industry. Key words: Hospitality industry, job satisfaction, organizational commitment, job performance. INTRODUCTION With the change of the industrial structure in recent years, the output value of the service industry has become more than 70% of the GDP in most advanced countries (CIA, 2009). Thus, the service industry plays a significant role in national economic development. In 2008, as the world encountered a financial tsunami, the governments of different countries selected potential service industries and supported them with resources, in order to energize economic development. The hospitality industry is a typical service industry, and it is critical service industry around the world. In Taiwan, the scale of the hospitality industry has been increasing year by year. According to the Statistics Department, Ministry of Economic Affairs, in 2001 the business volume of the hospitality industry in Taiwan was NTD 261.3 billion. In 2006 it passed NTD 300 billion and in 2009 it reached NTD 321.7 billion. However, the hospitality industry refers to labor services and relies on manpower in areas such as production, delivery and restaurant service. Thus, the hospitality industry is mainly based on services. As mentioned in Bitner’s (1995) framework of the service marketing triangle, service providers play a critical role in the service industries. In service industry management, regarding the importance of employees, Heskett et al. (1994) proposed the framework of service profit chain. In the service profit chain, there are critical linkages among internal service

*Corresponding author. E-mail: Tel: +886-2-28102292 ext. 5009. Fax: +886-2-2810-6688.

Tsai et al.


quality, employee satisfaction/productivity, the value of services provided to the customer, customer satisfaction and company’s profits. This chain shows that internal service quality can enhance employee...
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