Employee Orientation and Performance: An Exploration of the Mediating Role of Customer Orientation
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- Zhang, J. J Bus Ethics (2010) 91(Suppl 1): 111. doi:10.1007/s10551-010-0570-6
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Managing stakeholders is an important managerial aspect of corporate social responsibility. Employee stakeholder is one of the primary stakeholders that are critical to a company. Previous studies have shown inconclusive findings regarding the performance impact of managing this stakeholder, with some identifying little impact while others finding a positive association. This study further explores this issue in the context of foreign companies’ subsidiaries in China. A potential mediating mechanism (i.e., customer orientation) between employee stakeholder orientation and performance (both financial performance and innovation performance) was proposed; a sample of 103 Chinese subsidiaries of foreign companies which have new product development responsibilities was used to test hypotheses. A subsidiary’s employee orientation was found to show a significant positive relationship with its product innovation performance, but no significant relationship with its financial results. Moreover, employee orientation showed a significant indirect relationship with both performance outcomes through customer orientation.
KeywordsChinacustomer orientationemployee orientationinnovationperformancesubsidiaries
corporate social responsibility