Linking Service Orientation and Financial Performance through the Mediating Role of Job Satisfaction in Banking Sector of Pakistan

Abstract

The service sector of an economy plays a major role in financial and social advancement around the globe. Service sector is dominant in the developed economies as it contributes up to 70% of total GDP in those countries. Even in the case of manufacturers it is difficult to survive without providing quality services. To shed light on the subject, this study intended to link the service orientation with financial performance via mediating role of employees’ job satisfaction in Pakistani banking sector. For this purpose, data was gathered from staff employed in branch banking of bank at district Vehari, Pakistan. Data were collected through questionnaire from a sample of 196 staff working in banks of district Vehari. For data analysis SPSS version 17 was used. To assess the validity of studied construct, factor analysis was done. Cronbach’s alpha values confirmed the reliability of all study variables. Moreover, correlation and regression analyses show that all variables are positively linked with each other. In particularly, Service orientation has affirmative and significant impact on the financial performance and employees’ job satisfaction. Furthermore, it is also confirmed that employees’ job satisfaction mediates the relationship between service orientation and financial performance. Findings of the study would be helpful for the HR policy makers for improvement in the HR policies and resultantly improvement in the financial performance of banks.