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Business and Economic Research
ISSN 2162-4860
2020, Vol. 10, No. 3
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65
The Impact of Customer Feedback on Organizational
Health when Employee Empowerment works as a
moderator: Evidence from Pakistani Fast Food Industry
Hafiz Muhammad Naveed (Corresponding author)
School of Finance and Economics, Jiangsu University
301 Xuefu Road, Zhenjiang 212013, Jiangsu Province, China
Tel: 86-186-5128-9309 E-mail: Hafiznaveed778@gmail.com
Yao Hongxing
School of Finance and Economics, Jiangsu University
301 Xuefu Road, Zhenjiang 212013, Jiangsu Province, China
Tel: 86-8879-2098 E-mail: hxyao@ujs.edu.cn
Muhammad Akhtar
School of Finance and Economics, Jiangsu University
301 Xuefu Road, Zhenjiang 212013, Jiangsu Province, China
Tel: 86-186-5283-1185 E-mail: muhammadakhtar22@outlook.com
Muhammad Usman Anwer
School of Computer Engineering, Aptech Computer Education Institute
415-E Johar Town Lahore 54782, Pakistan
Tel: 92-323-664-8402 E-mail: uanwer741@gmail.com
David Alemzero
School of Finance and Economics, Jiangsu University
301 Xuefu Road, Zhenjiang 212013, Jiangsu Province, China
Tel: 86-186-5347-3523 E-mail: davidajene1985@gmail.com
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Received: June 18, 2020 Accepted: July 9, 2020 Published: July 19, 2020
doi:10.5296/ber.v10i3.17372 URL: https://doi.org/10.5296/ber.v10i3.17372
Abstract
Organizational health is a modern and wide-ranging phenomenon that essential to endure
long term achievements of an organization. The main objective of the current research study,
to examine the effects of customer feedback on organizational health when employee
empowerment works as a moderator. For this significant purpose, data was collected by
respondents via using five Point Likert-scale techniques. The current research study has taken
750 total sample size from population to do expose hide phenomenon. We have used Factor
Wise Reliability approach to test questions reliability; Descriptive Statistics verified whether
data normalized or not; Pearson correlation to check the variables association-ship; Multiple
linear regression technique to quantify per-point and overall fraction between dependent and
independent variables; and finally linear regression moderation equation also conclude in
methodological part for examines the moderation effect. The result indicates that Customer
Feedback and organizational health both have been positively associated with each other.
Besides, employees empowerment makes more strengthen the relationship of customer
feedback and organizational health. In the light of outcome of current study, the manager
should be aware about employees empowerment and customer feedback that are an order to
sustain old customers and attract new customers for the Fast Food Industry. This research
study has released new and different path for empirical investigation among organizational
health, customer feedback and employees empowerment.
Keywords: Organizational health, Customer feedback, Employee empowerment, Fast food
industry
1. Introduction
Organizational health is a modern and wide-ranging phenomenon that obligatory to endure
long term achievements of an organization. The OH phenomenon has comprised on
goal-focused of organization, optimal utilization of resources, best communication capability,
innovativeness efforts and problem-solving skills as well as competitiveness, profitability
ratio, vivacity and firms size (Cartwright & Cooper, 2014; Quick, Macik‐Frey, & Cooper,
2007; Sabir, Irfan, Akhtar, Pervez, & ur Rehman, 2014; Tetrick, 2002). We acknowledged
that it isnot a complete description of OH. However, here we are strained to illuminate the
interconnection between OH and employee’s performance (Jones, Mason, & Benefield) by
keeping an eye on previous literature (MacIntosh, MacLean, & Burns, 2007). Grandey and
Diamond (2010), have addressed that stimulation, manners and employee’s performance
directly affected customers attractions. Moreover, they have emphasized inspiration and
employee’s health both interconnected with customer’s reaction (Grandey, 2000; Grandey &
Diamond, 2010; Grant, 2007). In the previous study has deliberated that organizational
employees could be effect more or less from positive CFB as well as negative CFB (Maslach,
1978). Besides, it also depends on them (client) whether they can appreciate employees with
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reward or hurt with their own ridicules comments. The essential purpose of the current study,
to explore the crucial missing facts regarding organizational health (OH) & customer
feedback (CFB), especially in the context of its dimensions. In addition, EE is also part of
this study as a moderator power between CFB and OH.
In the modern era, many organizations have an additional focus on the lunched appropriate
management system for CFB (Markey, Reichheld, & Dullweber, 2009). (Morgan, Anderson,
& Mittal, 2005; Wirtz, Tambyah, & Mattila, 2010) have emphasized that the upper level of
management obtained information from a lower level of management about CFB and hurried
action on it. Moreover, CFB is the best tool for an organization evaluation and any
organizational-establishment construct plans under its tool (Wirtz et al., 2010). Besides, past
studies have explored that EE and OH both are highly positive associated with each
other(Newell, 1995; Wilson, Dejoy, Vandenberg, Richardson, & Mcgrath, 2004).
According to previous literature, we slightly differ from others studies as following; first one
we measure OH with different dimensionality function like as Surrender control, create
buy-in, source new ideas, get the employee vote, & create a team; the second one, we are
estimating that how EE as moderator makes more strengthen the relationship of CFB and OH;
the third one, we are evaluating CFB with different dimensionality as like CS, PSQ, CR and
CL. Van Jaarsveld, Walker, and Skarlicki (2010), have also conducted an appropriate study to
measure the behaviour and attitude of the customer with the employee. On the other hand,
employee empowerment has positively influenced organizational performance. In addition,
EE has changed the relationship between customer feedback and organizational performance
(Kipfelsberger & Bruch, 2014; Menges & Ahlquist, 2011). According to reviewed previous
literature, I didn’t see a single study on FFI in Pakistan. We cannot neglect Pakistani FFI
because it is much contributing to our economy. Meanwhile, the main objectives of the
present research study are as following; to investigate the individual and collective influence
of CS, PSQ, CR and CL on OH of Pakistani FFI. Moreover, second is to evaluate how EE as
a moderator rule makes more strength between the relationship of CFB and OH. Third one is
that how EE individually influence to an OH Pakistani FFI perspective. Because Pakistan is
developing country, there economically growing population makes changes food habits and
another hand, mostly international fast food brand is quite coming at different cities since
from last decade. Thus, Pakistani investors are more focus FFI with raising fast-food demand;
hence, we have preferred FFI for the current study. For takes actual outcomes, we have
collected data from fast-food clients, their managers &other workers.
The consequences based on the following approaches; We have used Factor Wise Reliability
(FWR) method to test questions reliability; Descriptive Statistics to verifies the data
normality distributed; Pearson correlation to check the variables association-ship; Multiple
linear regression technique (MLRE) to diagnoses per-point and overall fraction between
dependent and independent variables; finally uses of simple linear regression moderation
equation (SLRME) for examines the moderation effect.
The remaining part of this paper has consisted of the following sections. Section 2 reviews
the literature concerning on OH, CFB and EE and construct the research hypothesis for
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present study; Section 3 discusses the research methodology, population, sample data and
tools. Section 4 explains the overall findings of the study; Section 5 summarizes and presents
the results; finally, Section 6 provides the policy recommendations.
2. Literature Review & Design Hypothesis
From the past several decades, the researchers were working on organizational performance
by different perspectives. The main agenda of all researches were growing-up to
organizational performance. Moreover, every researcher was concluding his own opinion
under the light of their consequences. However, every study has differed on two options from
each-others as like “diverse locality”& “diverse dimensionality. But the present research
study is going to measure the ups and downs due to changes in CFB and EE. Let move on
previous parallel literature to acquire the author’s point of view.
2.1 Organizational Health
Quick and unpredictable advancement of technology and growing global competition is
primarily required to more intention on OH for long term benefits. A healthy organization
must attain its own goals within a sustainable environment (Nobahar & Tamadon, 2016).
Organizational Health (OH) could be defined as “a healthy organization not only focuses on
the financial performance of an organization also emphasizes on the moral aspect,
communication capability, goal focus, resource utilization, innovations and problem-solving
capability. In the past, Bruhn (2001), has addressed as a healthy organization always
conscious of improving their employee’s health and customer loyalty. Moreover, (Cartwright
& Cooper, 2014; Quick et al., 2007; Tetrick, 2002), have exposed whom those organizations
maintain their vitality, productivity, and competitiveness” they are direct and indirect
supporting to our OH. Previously, Kipfelsberger, Herhausen, and Bruch (2016) have
determined that positive CFB is essential to promote organizational health. In addition, there
it might be the possibility of two types of CFB as following positive CFB as well as negative
CFB. They have summarized, the positive CFB is pushing-up to OH but the negative CFB
pull-down to OH. Moreover, the organizational health phenomenon circulate around
following elements goal-focused of organization, optimal utilization of resources, best
communication capability, innovativeness and problem-solving skills as well as
competitiveness, profitability ratio, vivacity and firms size (Cartwright & Cooper, 2014;
Quick et al., 2007; Sabir et al., 2014; Tetrick, 2002). In the current research study, the
scholars are concluded the organizational health with following dementions profitability
ratios, problem-solving skills, optimal utilization of resources, competitiveness and firm’s
size.
2.2 Customer Feedback
The term feedback has been explained as useful information or criticism about prior action or
behaviour from an individual or group hence they can improve the current situation or further
action and self-behaviour by the illumination of market feedback(Williams et al., 2015).
Appropriate communication way among human beings is also promoted positive customer
feedback because pleasant communication way might be more value-added rather than
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sharing information by using ridicules way of talking (Mets, 2002; Sydänmaanlakka, 2002;
Torokoff & Mets, 2005; Zwell, 2000).
Figure 1. Framework for organizational development and its link to the feedback system
(Mets, 2002). Individual and collective learning, main processes and mental system are three
best elements of the feedback system and consequently, organizational development &
feedback both have interdependent (Mets, 2002)
Figure 2. Mutual impact of the parts of feedback (Torokoff, 2006)
Figure 2 indicates that an appraisal interview, feedback and growing debate type of feedback
system depends on organizational goals. Moreover, an ideal administration always follows its
steady organizational goals (Türk, 2001; Woodman & Pasmore, 2002). Overall, a particular
organization and its development depend on the feedback system. They have learned by
gathering feedback and then set the primary goals for future work, and frequently it’s
repeated the process for growing purpose. Every element of the feedback system is equally
important and makes sure its consistency, and that’s also comforting for enrolled employees.
In the past, Kipfelsberger et al. (2016), have determined that the CFB might be two types as
positive CFB and negative CFB, so first one is worthy for organization and its progress, but
in the form of negative CFB it can be worst for OH. So it can be eliminated by tuning into
your disappointed customer through acknowledged criticism and realized them we will work
with you in any situation and we will provide the whole facilities. In addition, Ozcelik, Akan,
and Surucuoglu (2007) have conducted a research study on FFI performance via gender base
CFB. They were finalized total 400 sample size and dividing sample on gender as 200 on
male and 200 on female, and they determined 26.65 average years old peoples willing to eat
fast food deals. De Haan, Verhoef, and Wiesel (2015), have found that CFB is positively
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associated with CS and CR in the area of extensive industry. For this purpose, they were
summarized data from 93 firms of 18 different sectors. Daodao is the best source of CFB as
Trip Advisor for CFB of Chinese hotel brands and international hotel brands respectively
(Schuckert, Liang, Law, & Sun, 2019). They have found that nowadays, China is more focus
on luxury hotels due to luxury people’s demand. Jones et al. 2011), have addressed that CS,
PSQ, CR & CL are vital dimensions of CFB in FFI. Mainly, they have also indicated the PSQ
does enhance the CS and its pulling to CR and CL. Furthermore, Kipfelsberger et al. (2016),
have explained that two types of CFB, like positive CFB as well as negative CFB. So
Positive CFB is worthy for every organization, especially in growing prospective, but
negative CFB has the cause of worst for OH. Thus, when appearing negative CFB it can be
eliminates via tuning your disappointed customer, provide excellent PSQ, much more focus
on CS, acknowledged there criticism.
H1: There is a positive and significant relationship between Organizational health customer
feedbacks.
2.2.1 Customer Satisfaction
Customer satisfaction is more obligations for every business sector. Moreover, the FFI is a
place where clients have more focused and once-time a day visit for eatery purpose while
customer satisfaction is very mandatory for revisiting clients. International and local
restaurant chains are satisfying the high demand of customers in a variety of products and
services. In the modern era, the world has dwindling culture and habits due to the extensive
use of social and electronic media. So the eating behaviour has probably similar across the
globe, hence the main reason for such a massive spread of the restaurant industry in the world
(Sabir et al., 2014). Dimensionally, various scholars have expressed that the Perceived value,
affective response, fulfilling changing and new needs, fulfilling essential needs and price
transparency and its reliability as dimensions of customer’s satisfaction. Customer
satisfaction can mean very different things among to the answerer. It may include such factors
as delivery time, price, conformity, professionalism, or it is generally just a response to
customer’ requests (Suchánek & Králová, 2015).
H1a: There is a positive and significant relationship between customer satisfaction and
organizational health
2.2.2 Perceived Service Quality
Inside eatery business has not been exempted from either expanded rivalry or client interest
for high administration quality. These days, clients have a wide variety of eatery
administrations to browse, and administration quality conditions positively affect an
aggressive eatery advantage. In the past, Ramseook-Munhurrun (2012), has estimated eatery
business especially, appraise the quality and seems essential parts in enterprises with high
client inclusion. Clients have very inspired by reliable administration and its quick service
delivery (Korda & Snoj, 2010). To recognize the quality benefit, this has circulated between
client desires delivered by eatery administration and real execution of the administration
(Arun Parasuraman, Berry, & Zeithaml, 1993).
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Figure 3. Service Quality Model SQM (Ananthanarayanan Parasuraman, Zeithaml, & Berry,
1988)
In figure 3, it has mentioned PSQ dimensions like as reliability, empathy, tangibles, assurance
and responsiveness. The conflict is in between expected &perceived services.
Dimension
Definition
Empathy
Caring, easy access, excellent communication, customer understanding and
individualized attention given to customers.
Assurance
Employees’ knowledge and courtesy and their ability to inspire trust and confidence.
Responsiveness
Willingness to help customers and provide prompt service.
Reliability
Ability to perform the promised service dependably and accurately.
Tangibles
The appearance of physical facilities, equipment, personnel and written materials.
Source: Adapted from the study of (Alamgir & Shamsuddoha, 2004)
In addition, Korda and Snoj (2010), was also used the same model of perceived service
quality model and its dimensions. Consequently, the present research study has also taken
above aspects of respective past scholars.
H1b: There is a significant and positive relationship between Perceived service quality (PSQ)
and Organizational Health (OH).
2.2.3 Customer Retention
Oliver (1997), has addressed that customer retention (CR) is a common terminology which is
mostly used when retaining a particular customer or don’t move to another. He has mentioned
customer loyalty (CL) to push up to customer for customer retention. We can’t deny that CR
is complicated to hold-down, they have to stay or re-buy some commodities with high
commitment, and there are so many market forces and other factors to insist the customers
make the change on new locality. In days, FFI is extremely deviated or vibrant and requires
more focus on innovation as regarding customer needs (Oliver, Rust, & Varki, 1997).
Previously, Khan (2013), has estimated the Pakistani hotel industry, he has mentioned hotel
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administration offered different packages regarding per buffet charges and other services to
the customer to getting customer retention. The expectation of repurchasing, Financial
consciousness, Convenient atmosphere, Recommended to others & overall satisfaction have
prominent dimensions of CR by (Syaqirah & Faizurrahman, 2014). According to various
scholars, these five dimensions are the best system to explore the CR.
H1c: There is a significant and positive relationship between customer retention and
organizational health
2.2.4 Customer Loyalty
In today’s changing world, every business is looking to accomplish a competitive advantage;
they want much more customer loyalty & promote business efficiency. With more options for
the ever more challenging customers, restaurant businesses face some intense competition.
Restaurant owners and managers recognize that loyal customers are worth a great compact
more than just everyday customers-even if those are once-in-awhile customers (Mattila,
2001). High-class restaurants have advanced and aggressive competition and which one has
customer loyalty make a decisive advantage from them. Customer loyalty is a prime
determinant of the long-term financial performance of the restaurant operators. Increased
reliability can substantially increase profits in the service industry restaurants.
Similarly, in the modern era, every business holder is willing to acquire proficiency in
customer loyalty even though they are doing services business or any other. It has argued that
it can be five or six times more expensive to achieve a new customer than to retain one. A
loyal customer is a buyer who repurchases from the same service organization whenever
possible, who continues to recommend and who maintains a positive attitude toward the
service provider (Behremen & Doğdubay, 2015). Uni-dimensional, Bi-dimensional and
Multi-dimensional approaches have significant customer dimensions loyalty (Bobâlcă, 2013).
2.2.4.1 Uni-dimensional Approach
Earlier 1970, the concept of people against brand loyalty it was just to re-buying something at
the same place. Jacoby and Kyner (1973), have endured expanding to a uni-dimensional
approach whenever the bi-dimensional model was on the initial stage
2.2.4.2 Bi-dimensional Approach
The bi-dimensional was comprised of customer attitude and behaviour. After 1970, several
studies were conducted to evaluate the criteria of customers loyalty by using different
customer segments (Baloglu, 2002).
In the last decade was introduced multi-dimensional model, behavioural, cognitive, conative
and affective loyalty has used by multi-dimensional approach (Åkerlund, 2004)
H1d: There is a significant and positive relationship between customer loyalty and
organizational health.
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2.3 Employee Empowerment
Numerous organizations are given many opportunities to their employees to ascertain their
skills for achieving short-term and long-term goals. Those organizations are poor conditions,
and they should urgently need to concentrate on EE and profession satisfaction in their
leadership to accomplish such their desires (Jacquiline, 2014). EE is one of the esteemed
ideas that are thought to be essential to promote the behavioural components of workers to
accomplish “higher level of service, advancement, collaboration feeling, business enterprise,
fearlessness, and feel rational” (Elnaga & Imran, 2014). In a study by Hunjra, Ul Haq, Akbar,
and Yousaf (2011) have analysed that EE is an earlier characterize as the ability to a
representative to well manage to customer choices and its job satisfaction to promote
organizational performance. Additionally, Daft (2001), has described empowerment as
offering worker the flexibility, control, and chances for leadership and authoritative to resolve
the issues. Empowerment is worked by planning on a specific workplace where employees
are permitted to settle on their own choices in light of certain business-related conditions and
one other side empowerment to enhance the innovation probability (Hanaysha, 2016).
Wadhwa and Verghese (2015) have concluded that empowerment is a procedure of sharing
authority with obligation and responsibility to workers through their supervisor. To
accomplish the organizational goals has contained an optimal order to capacity & advance
employee efficiency of individual and group capability (GanjiNia, Gilaninia, & Sharami,
2013).
In the modern era where enhancing the competition day by day is to certain establish robust
and productive strategies to get the optimal level of productivity. Moreover, the author funded
that EE is also positively influenced by PSQ (Timothy & Abubakar, 2013). Kipfelsberger et
al. (2016), was estimated EE climate makes more strengthen the relationship between
positive CFB & OH. Furthermore, Surrender control, Create buy-in, source new ideas, get the
employee vote & create team have dimensions of EE (Musselwhite, 2007). See technically
then we realized that the employees feeling look like a personal business by give more
respect and acknowledged appropriate there ideas, give more respect and consider a part of a
team.
In addition, EE is widely viewed as a dynamic concept to improve service quality and
operational efficiency in the hospitality industry (Kele, Mohsin, & Lengler, 2017). Several
studies have conducted on EE in the different zone but its concept not clear. For this purpose,
22 times data collected via a semi-structured interview with employees, supervisors and
managers from five-star hotels of Malaysia. Hancer and George (2003b), have determined the
psychological employee empowerment in 24 hours restaurants (FFI) and according to the
scholar, the research instrument used in this study was first developed by Spreitzer
(unpublished doctoral dissertation, University of Michigan, 1992) and modified by (Fulford
and Enz, 1995). Subjects of the survey represented three restaurant chains in Midwest United
States. Nine hundred twenty-four surveys from 66 units were received representing a 46.2%
usable response rate.
H2: Employee Empowerment can make more strengthened the relationship between customer
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feedback & organizational health.
H3: There is a positive and significant relationship between employee empowerment
organizational health.
Figure 4. Conceptual Framework
Note: Conceptual Model is the best instrument to get an overview of the study and its
conjunction of the variables. The current conceptual model has summarized on significant
three variables as following Organizational health (DV), Customer feedback (IV) &
Employee empowerment (MV). In addition, entire conceptual framework has summarized all
previous studies in an imperial current research study regarding subject.
3. Research Methodology
After the literature review, it was easy to adopt a convenient research methodology for the
empirical research study. The present research methodology was comprised on following
methods Factor Wise Reliability (FWR) approach to test questions reliability; Descriptive
Statistics to verifies the data normality distributed; Pearson correlation to check the variables
association-ship; Multiple linear regression technique (MLRE) to diagnoses per-point and
overall fraction between dependent and independent variables; finally uses of simple linear
regression moderation equation (SLRME) for examines the moderation effect. This research
methodology idea was taken from (Aktar, Sachu, & Ali, 2012; Khan, 2013; Kipfelsberger et
al., 2016; Timothy & Abubakar, 2013).
3.1 Questionnaire Design
Research questionnaire is an integral part of empirical research so that should be simple,
validated and reliable. So present research questionnaire consisted on four parts, first part on
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demographics evidence; second part on Costumer Feedback (CFB); third part on
Organizational Health (OH) and fourth part on Employee Empowerment (EE). Noteworthy,
Part one & two of the questionnaire have summarized on personal information and customer
feedback which filled by Fast Food user; one and three have contained personal information
and organizational health which obtained by Fast Food Managers; one and four-part have
consisted on personal details and Employee Empowerment which collected by employees of
FFI. All questions of the present research study were adopted by different sources and
modified regarding own respected review. So our research questionnaire brings from; CS was
taken from (Hancer & George, 2003a); PSQ was taken from (Archakova, 2013); CR was
taken from (Scarff, 2017); CL was taken from (Khadka & Maharjan, 2017); EE was taken
from (Makinda) & (Busara, 2016).
3.2 Population & Sampling
Nowadays, quick-changing eating behaviour of Pakistan people’s with a growing economy.
The Fast Food trend is increased day by day in Pakistan. So “Papa’s Kitchen, Lataska,
Fri-chicks, Almaida, Chicken Cottage, Pizza Hut, McDonald’s, Hardee’s, KFC & Subway”
have a major brand of Fast Food Industry (FFI) in Pakistan This research study was
conducted on Bahawalpur Division of Pakistan. Moreover, Bahawalpur Division has
contained on comprehensive three major districts, and each district has a lot of cities, and
each city has the number of Fast Food points. Quantitatively, overall544 main Fast Food
points are available in the area of Bahawalpur Division. For such an imperative objective, we
have targeted 250 main Fast Food Points for data collection and filled questionnaire by
respondents. In this way, data were summarized from 250 Fast Food users; 250 Branch
Managers and 250 other Employees so total have 750 numbers of respondents. Comrey and
Lee (1992); Pearson and Mundform (2010) have addressed the criteria of sample size like as
50 number of respondents are considered very weak; 100 is weak, 200 is fair, 300 is good,
500 is very good, and 1,000 or more is excellent. Sabir et al. (2014), have also conducted an
empirical study on CS at FFI of Pakistan by taking 130 sample sizes.
3.3 Data Screening
Before data analysis, we made sure the following kind of steps; first was visualize the
missing items, the second was whether questions reliable or not, third was normal data
distributed. Wells and Wollack (2003), has addressed that Factor Wise Reliability Statistics is
a suitable tool to measures the consistency of questions. Horst (1953), has certified that
questions of a variable will be acknowledged if the Cronbach Alpha value is higher than 0.52.
Furthermore, after that study was confirmed to the normality of the data by using descriptive
statistics. Lendoiro et al. (2012), Singh and Sharma (2016) were suggested to examine the
data normality by using descriptive statistic seems to skewness and Kurtosis values. They
have emphasized if the absolute kurtosis and skewness is less than ± 2, so normality is
acceptable. Moreover, after reliability and normality investigations that study was going to be
on the next stage as diagnose individual and collective association of the variables.
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3.4 Statistical Techniques
Present research methodology has comprised of following statistical techniques “Factor Wise
and Simple Moderation Regression equations to diagnose moderation effect. In the previous
section, we have already addressed to factor wise reliability, and descriptive statistics hence
let’s move on the next section as;
4.4.1 Pearson Correlation Test
Pearson Correlation test has applied to assess the individual variable influence. Kipfelsberger
et al. (2016), also has an underutilized Pearson correlation test to measure the individual
impact in between customer feedback and Organizational Health. Various scholars
recommended the Pearson Correlation technique to check the personal effect. So individual
effect could be measured by the following formula;
Initially, the Pearson Correlation Formula comes down to dividing the covariance by the
product of the Standard deviation. Generally, for considerate here x & y are considered two
variables.
3.4.2 Regression Analysis
Has a most excellent tool to estimate how much deviate in the dependent variable due to per
point change explanatory variable. Moreover, regression analysis is also addressed the
collective effect of explanatory variables on the dependent variable. Additionally, Eliwa
(2006) has tried to test the relationship between customer royalty & image of fine dining
restaurant by applying regression technique. Afterwards, Ashraf, Sajjad, Ridwan, Ahmed, and
Nazeer (2013), has also tried to evaluate the determinants of consumer complaining behavior
on Pakistan region by using regression analysis technique. Customers might appreciate to
employees, and they could be enhance working efficiency by whether decent attitude or cash
reward (Aktar et al., 2012). Thus, Econometric Multiple Linear Regression Equation (ELRE);
αβ β β β μ
In equation (2) was quantified as n= total number of observations, i= number of explanatory
variables, = constant, β= coefficients, y= dependent variable, “CS, PSC, CR, & CL”=
explanatory variables & µ= stochastic error.
3.4.3 Simple Moderation Regression Equation
Appearance of moderator effect it might be promised when DV and IV both variables have
interconnected to each other. Understanding of moderation effect comes along withan
interaction effect where the third variable (Moderator) change the relationship between
dependent and independent variables. Probability of variation can be as such form;
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Note: when growing the third variable would also raise the association level between
dependent & independent variables, is known as “Enhancing Effect”. When the relationship
is opposite among third and dependent & Independent variables, is known as “Buffering
Effect”.
Kipfelsberger et al. (2016), was conducted a research study where EE was used as a
moderation rule between CFB & OH. Before we need to recognize all variables are on the
standardized form, which makes straight forward interpretations afterwards. According to the
researcher if both interaction term and predictor variable have become significant, thus, seem
full moderation effect. Furthermore, if the predictor variable has significant, but the
interaction term has not significant while the main effect is significant.
3.5 Process Macro Approach
Process is an observed variable OLS and logistic regression path analysis modeling tool. It is
widely used through the social, business, and health sciences for estimating direct and
indirect effects in single and multiple mediator models. Process is enable to earlier use in
SPSS but since 2020 schlars have enabled to measure by R. The process Macro was
compised by Andrew F. Hayes.
4. Results & Discussion
Results and discussion unit has undertaken as following outcomes “questions reliability, data
normality, variables association & power of variables and good-fit of the model and
moderation effect. Here, lets we described one by on as;
Table 1. Factor wise reliability statistics
Name of the Factor
Cronbach Alpha
No of Items
CS
0.686
5
PSQ
0.658
4
CR
0.649
5
CL
0.661
5
OH
0.735
5
EE
0.767
5
Current research study has applied SPSS 21 version to test the consistency of questions.
Furthermore, Wells and Wollack (2003), have confirmed that Factor Wise Reliability
Statistics is a powerful tool to measures the consistency of questions. Horst (1953), has
certified that questions of a variable will be acknowledged if the Cronbach Alpha value is
greater than 0.52. According to table-1 (CS=0.686; PSQ=0.658; CR=0.649; CL=0.661;
OH=0.735 & EE=0.767) Cronbach Alpha Values have greater than 0.60 so it is an insinuation
to move-up on next stride.
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Table 2. Descriptive statistics
Variables
N
Minimum
Maximum
Mean
Skewness
Kurtosis
Statistic
Statistic
Statistic
Statistic
Statistic
Std.Error
Statistic
Std.Error
CS
250
1.6
4.4
3.2168
0.026
0.154
-0.435
0.307
PSQ
250
1.5
4.5
3.098
-0.104
0.154
-0.159
0.307
CR
250
1.6
5
3.6168
-0.19
0.154
0.42
0.307
CL
250
1.2
4.2
2.8568
-0.269
0.154
-0.089
0.307
OH
250
1.4
4.4
3.2008
-0.172
0.154
-0.537
0.307
EE
250
1.2
4.8
3.1568
-0.226
0.154
-0.003
0.307
CFB
250
2.03
4.28
3.1971
-0.084
0.154
-0.309
0.307
Note: Normality of a particular dataset has tested on 5% level.
Table-2 shows the descriptive test to determine on a particular dataset by using skewness and
kurtosis statistic. We acknowledged that there are several approaches to calculate whether a
specific dataset is normally distributed or not, but a descriptive statistic is much validated
from them. In the previous study, Aktar et al. (2012) were also used this technique to measure
the normality of data. The entire research study has also seemed with skewness and kurtosis
statistic to measure the normality of data. Doane and Seward (2011), were declared a
selection criterion of normality of data as if the values of skewness and kurtosis falls in
between respectively, then data would be considered as normal. Moreover,
Singh and Sharma (2016) also addressed the selection criteria of normality as if the absolute
skewness and kurtosis are less than ± 2, so normality is acceptable. On behalf of table-2, the
normality has accepted because absolute skewness and kurtosis values of variables CS, PQS,
CR, CL, OH, EE & CFB are fall in between and also lay into.
Table 3. Pearson correlation
Test
CS
PSQ
CR
CL
OH
EE
CFB
CS
Pearson Correlation
1
PSQ
Pearson Correlation
.534**
1
CR
Pearson Correlation
-0.005**
0.03
1
CL
Pearson Correlation
.757**
.275**
-0.053**
1
OH
Pearson Correlation
.943**
.506**
0.027**
.809**
1
EE
Pearson Correlation
.778**
.228**
-0.018
.972**
.854**
1
CFB
Pearson Correlation
.861**
.700**
.357**
.741**
.860**
.733**
1
Note: Single *Correlation is significant at the 0.05 level; double ** Correlation is significant at the 0.01 level
Table-3 shows that individual association among two categorical variables at 5% and 10%
critical level. Kipfelsberger et al. (2016), has also measured Positive & negative CFB with
OH by using Pearson Correlation technique. The Pearson correlation addresses the linear
relationship between categorical variables, e.g., CS, CSQ, CR, CL, CFB, EE & OH. In
table-3 each numeric value has associated with single and double staric hence single *
exhibits on 5% significance level as well as double ** exhibits10%significant level.
Noteworthy, more excellent statistic value shows high power of significant and lower value
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shows that less power of significant of particular variables.
4.1 Linear Regression Approach
Table 4. Coefficients
Model
Unstandardized
Coefficients
Standardized
Coefficients
t
Sig.
Collinearity Statistics
B
Std.Error
Beta
Tolerance
VIF
(Constant)
-0.368
0.107
-
-3.433
0.001
-
-
CS
0.777
0.035
0.736
21.924
0.000
0.312
3.201
PSQ
0.047
0.024
0.045
1.988
0.048
0.676
1.48
CR
0.046
0.021
0.042
2.244
0.026
0.994
1.006
CL
0.264
0.032
0.241
8.149
0.000
0.403
2.484
Notes: R= .956; R square = .914; adjusted R square= .912; F = 647.970; D-W= 2.696 **Significance p <.01
Regression test considered the best statistical approach to measure continues numerical
dataset, especially in the research field. Regression analysis used to determine per unit
change and overall influence of explanatory variables on the dependent variable. Aktar et al.
(2012), was estimated the impact of paying rewards attention to the performance of
employees in Commercial Banks of Bangladesh by using regression analysis approach. The
outcome shows that there is positive & significant association-ship between paying rewards
attention and employee’s performance. As the previous study, Khan (2013) has explored the
determinants of customer retention in the Hotel Industry of Pakistan by applying regression
technique. Therefore, regression analysis is a reliable& effected technique in business studies.
However, wedrag this research technique to the attained actual outcome. Consequently,
are indicating that the explanatory variables (CS, CSQ, CR, CL) have91.4% described
to the dependent variable (Organizational Health). Moreover, P<0.01 of F-statistic, which
indicates a good fit of the model. Furthermore, DW= 2.696 to means that the entire model is
free from the autocorrelation problem. Collinearity statistics VIF<10% &Tolerance>0.2
shows that our model free from error of Multicollinearity. Additionally, Coefficient Values of
explanatory variables are CS=0.777, PSQ=0.047, CRT=0.046 & CL=0.264, which indicates
that per-unit power of association along with dependent veritable. Here P<0.05;T>2 shows
that all explanatory variables are positively associated along with the dependent variable. So
outcomes in table-4 were acknowledged to accepted alternative hypothesis and reject the null
hypothesis.
H1a: There is a positive and significant relationship between Customer satisfaction (CS) and
Organizational Health (OH).
H1b: There is a positive and significant relationship between Perceived service quality (PSQ)
and Organizational Health (OH).
H1c: There is a positive and significant relationship between Customer retention (CR) and
Organizational Health (OH).
H1d: There is a positive and significant relationship between Customer Loyalty (CL) and
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Organizational Health (OH).
In addition, rejected null hypothesis and accepted alternative hypothesis H1a, H1b, H1c and
H1d have emphasized the productive and positive CFB that ultimately will promoting to OH
Kipfelsberger et al. (2016).
Table 5. Coefficients
Model
Unstandardized Coefficients
Standardized Coefficients
t
Sig.
B
Std. Error
Beta
(Constant)
-1.213
0.168
-
-7.216
0.000
CFB
1.381
0.052
0.86
26.529
0.000
Note; R=.860;R square=.739;F= 703.808 (p < 0.01); D-W= 2.300**Significance, p < .01
Table-5 explained the relationship between Explanatory variable CFB and OH. The
coefficient value recognizes per-unit variation between regressed variables by using P and T
values, hence, B=1.381 which means that1.381-unit variation in OH due to 1-unitchangein
CFB. Moreover, R-square value indicates that 74% OH has explained by CFB. Besides, on
the other hand, F-statistic valueis P<0.01, which shows that good fit of the model. By under
illumination of table-5, we have been diagnosed both variables CFB & OH was positively
associated with one another. However, we can reject the null hypothesis and accept the
alternative hypothesis.
H1: There is a positive and significant relationship between positive Customer Feedback
(CFB) and Organizational Health (OH).
Table 6. Moderation effect
Model
Unstandardized
Coefficients
Standardized
Coefficients
T
Sig.
Collinearity
Statistics
B
Std.Error
Beta
Tolerance
VIF
(Constant)
0.459
0.187
-
2.459
0.015
-
-
CFB
0.42
0.086
0.261
4.863
0.000
0.222
4.507
CFB*EE
0.135
0.011
0.678
12.621
0.000
0.222
4.507
Note; R=.917; R square =.842; F=656.156 (p < 0.01); D-W=1.898; **Significance, p < .01
Baron and Kenny (1986), was fundamental utilized simple linear moderation regression
equation to test the moderation effect. They certified if the interaction term has become
significant with the explanatory variable; thus, moderation effect fall-down in the model it
might be positive as well as negative. Previously, Timothy and Abubakar (2013), was
conducted an empirical research study on Nigerian Baking Industry (NBI), he addressed both
variables EE & NBI have positively associated. Additionally, GanjiNia et al. (2013) have also
tested to EE in organizations. They were found that EE to promote appropriate environment
& Innovations.
Furthermore, Kipfelsberger et al. (2016) have analysed how CFB effects to an OH and they
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have categories to CFB into two parts as well as positive CFB and Negative CFB. Similarly,
they have taken EE as a Moderator variable, and they have agreed that the employee
empowerment climate sort more strengthened between positive CFB & OH but does not
affect the negative CFB and OH. In Table-6, we have diagnosed EE as moderation effect into
CFB& OH. Under the shed light of consequences, it has been acknowledged EE makes more
strengthen to the relationship of CFB & OH. Thus, we can see b=0.135; P<0.05of interaction
term has bring significant with explanatory variable CFB. So we are rejecting null hypothesis
and accepting alternative hypothesis.
H2: Employee Empowerment (EE) makes more strengthened to customer feedback (CFB) &
organizational health (OH).
Table 7. Coefficients
Model
Unstandardized Coefficients
Standardized Coefficients
t
Sig.
B
Std.Error
Beta
(Constant)
0.702
0.1
-
7.035
0.000
EE
0.792
0.031
0.854
25.838
0.000
Note; R =.854; R square =.729;F =667.597 (p < 0.01); DW=1.315&**Significance, p < .01
Hunjra et al. (2011), estimated the relationship between EE and Job Satisfaction an empirical
study of Pakistani Service Industry by using regression analysis technique. Here we are
representing the relationship between EE & OH via regression approach
In table 7 B=0.792; P<0.000; T>2 which is highlighted that when 1-unit variation in EE, then
0.792-unitcan be variation in OH. Furthermore, which are shows that
approximately EE 73% influences to OH and F-value is also under 0.01. Consequences are
supporting our hypothesis.
H3: Employee empowerment (EE) is positively associated with organizational health (OH)
4.2 Robustness check of Moderation Effect
Table 8. Model Summary
R
R-sq
MSE
F
df1
df2
p
.9205
.8473
.0866
454.9424
3.0000
246.0000
.0000
Model
coeff
se
t
p
LLCI
ULCI
constant
-.7123
.4282
-1.6634
.0975
-1.5558
.1312
CFB
.7803
.1463
5.3332
.0000
.4921
1.0685
EE
.4164
.1376
3.0266
.0027
.1454
.6874
Int_1
.3701
.4261
2.2351
.0044
.3107
.2940
Table 8 indices that overall interaction effect has determined significant because the
probability value of in erection effect <0.005. Furthermore, the moderation variable has
significant with dependent variable while the p = .0027 and t > 2. The overall model has
become good fit.
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Figure 5. Process-Macro Moderation Approach
Procss-Macro is a very useful and famous approach to examine the mote ration effect among
dependent and predictor variable. In figure 5, on Y-axis is dependent variable and X-axis is
predictor variable. In addition, on the top right side is showing moderator effects level with
different colours circle. There light blow circle shows less moderator effect, light green circle
shows mediam moderator effect and light yellow circle shows high moderator effect.
Consequentially visualizing indicates that the EE as a moderator effect has mild incorporated
among dependent and predictor variable.
5. Summary & Discussion
The main objective of the present study was explored that the impact of CFB on OH when
EE works as a moderator. Primarily, we examine the consistency of the questions via FWRT;
after that, we make sure data normality through Descriptive Statistics that we can visualize in
table 2. Consequently, table 4indicates that CS, PSQ, CR and CL have positively associated
with OH, but CS is more associated as comparatively. The positive association-ship between
OH and CS, PSQ, CR, CL has been supported with following scholars (Aktar et al., 2012;
Khan, 2013; Mattila, 2001; Ramseook-Munhurrun, 2012; Sabir et al., 2014). Furthermore,
CFB is also positively associated with OH meanwhile entire findings matched with
(Kipfelsberger et al., 2016; Mets, 2002; Sydänmaanlakka, 2002; Torokoff & Mets, 2005;
Zwell, 2000).The findings show that when positive CFB raise then OH also raise because
positive CFB increase means indirectly raise up CS PSQ, CR and as well as CL. These
consequences are supporting (Timothy & Abubakar, 2013). Besides, Kipfelsberger et al.
(2016), hasconcluded that if you higher management give more authority to our employee’s,
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then they can get suitable OH. Furthermore, EE can also acquire customer attention. In the
past, Kipfelsberger et al. (2016) have also described that EE makes more strengthen the
relationship between CFB and OH. EE creates more inspiration among employees while they
give more attention on our work. Moreover, keeps motion look like a personal business, so
they work with full dedication. Pakistani fast-food customers are compassionate concerning
product quality, employee behaviour, service quality as well.
6. Conclusions and Implementation
The present research study has proposed that there has a positive and significant relationship
between Customer feedback (CFB) and organizational health (OH) when EE works as a
moderator. The consequences have summarized positive CFB positively influenced to OH of
FFI (Kipfelsberger et al., 2016; Mets, 2002; Sydänmaanlakka, 2002; Zwell, 2000).
Noteworthy, increasesin OH means that extrafocuson organizational goals, optimal utilization
of resources, appropriate communication capability, improve innovations and
problem-solving skills, (Cartwright & Cooper, 2014; Quick et al., 2007; Tetrick, 2002). Thus,
positive CFB is must be essential for worthy OH. Now the question is that how the
administration of FFI can be improved to CFB so it can be better with following ways; first
one it can be possible with enhancing customer CS, PSQ, CR & CL. The second one makes
more authorized to your employees because as the way the relationship between CFB and OH
will more strengthen-full. This phenomenon has supported previous studies (Kipfelsberger &
Bruch, 2014; Kipfelsberger et al., 2016). Additionally, in Fast Food Industry (FFI), if the
administration wants to promote the organizational health (OH) they must be deliberation
about employee empowerment, then they could be better performed. In this way, they can
more focus our work; provide better services, convenient behaviour & attitude with
customers and enthusiasm of time sacrifices. Finally, Fast Food Industry (FFI) the Employee
Empowerment (EE) to do more influence on organization health (OH) because Employees
directly engaged with customers.
6.1 Limitations
Present research study has summarized on a single zone (Pakistan) due to first-hand data
collection. Therefore, we have unable to access the data from multiple zones while behind the
point for further studies. Finally, entire research study leaves appropriate knowledge for
managers of Pakistani FFI because the managers construct imperative rule on organizational
health. Consequently, the managers of FFI should provide suitable empowerment to our
employees because employees of FFI directly engage with costumers. Therefore, employees
of FFI can create customer satisfaction, customer loyalty, customer retentions, provide
perceived service quality which these enhanced the quality of organizational health with our
better services, right attitude and behaviour. Thus, the empowerment builds up the feeling
like as a personal business, so they work with full dedications. Besides, when they have very
serious with our profession and those working on a single agenda, then operational risk
ultimately minimized.
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Acknowledgments
The authors would like to thank the anonymous referees very much for their valuable
comments and suggestions. This work would not have been possible without their support.
We also thank all those who contributed in diverse ways in making the work complete.
Conflicts of Interest
The authors declare no conflict of interest.
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