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The Relationships Among Manager-, Employee-, and Customer-Company Identification: Implications For Retail Store Financial Performance

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  • Lichtenstein, Donald R.
  • Netemeyer, Richard G.
  • Maxham, James G.

Abstract

Based on the premise of an interpersonal “chain of influence” with respect to organizational identification, we posit a relationship between company managers, employees, and customers with respect to organizational identification with the retailer. Specifically, we hypothesize that the level of a store manager's identification with the retailer is positively related to the level of their store employees’ identification with the retailer, which in turn is positively related to the level of customers’ identification with the retailer, which results in increased levels of store financial performance. We investigate these relationships using data from 306 retail stores within a single retail chain.

Suggested Citation

  • Lichtenstein, Donald R. & Netemeyer, Richard G. & Maxham, James G., 2010. "The Relationships Among Manager-, Employee-, and Customer-Company Identification: Implications For Retail Store Financial Performance," Journal of Retailing, Elsevier, vol. 86(1), pages 85-93.
    • Handle: RePEc:eee:jouret:v:86:y:2010:i:1:p:85-93
    DOI: 10.1016/j.jretai.2010.01.001
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    1. Zannie Giraud Voss & Daniel M. Cable & Glenn B. Voss, 2006. "Organizational Identity and Firm Performance: What Happens When Leaders Disagree About “Who We Are?”," Organization Science, INFORMS, vol. 17(6), pages 741-755, December.
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    Cited by:

    1. Di Mascio, Rita & Fatima, Johra, 2018. "The role of identification in frontline employee decision-making," Journal of Retailing and Consumer Services, Elsevier, vol. 43(C), pages 131-138.
    2. Mohammad Taghi Amini & Elham Keshavarz & Arezu Keshavarz & Seyed Mohammad Bagheri, 2016. "Prioritisation and performance evaluation of employees at strategic human resource management process using fuzzy AHP and fuzzy TOPSIS methods," International Journal of Productivity and Quality Management, Inderscience Enterprises Ltd, vol. 17(1), pages 61-81.
    3. Lu, Vinh Nhat & Capezio, Alessandra & Restubog, Simon Lloyd D. & Garcia, Patrick R.J.M. & Wang, Lu, 2016. "In pursuit of service excellence: Investigating the role of psychological contracts and organizational identification of frontline hotel employees," Tourism Management, Elsevier, vol. 56(C), pages 8-19.
    4. Lee, Mina & Mutlu, Canan & Lee, Seung-Hyun, 2023. "Bribery and Firm Growth: Sensemaking in CEE and Post-Soviet Countries," Journal of International Management, Elsevier, vol. 29(1).
    5. Lee, Kuo-Wei & Li, Chia-Ying, 2023. "It is not merely a chat: Transforming chatbot affordances into dual identification and loyalty," Journal of Retailing and Consumer Services, Elsevier, vol. 74(C).
    6. Ranghchian, Maryam & Sehat, Shima & Akhgari, Mehdi & Mehralian, Gholamhossein, 2018. "Performance model of community pharmacies in low-middle income countries: A societal perspective," Journal of Retailing and Consumer Services, Elsevier, vol. 40(C), pages 241-248.
    7. Laura Marie Edinger-Schons & Lars Lengler-Graiff & Sabrina Scheidler & Jan Wieseke, 2019. "Frontline Employees as Corporate Social Responsibility (CSR) Ambassadors: A Quasi-Field Experiment," Journal of Business Ethics, Springer, vol. 157(2), pages 359-373, June.
    8. Avery, Derek R. & McKay, Patrick F. & Volpone, Sabrina D. & Malka, Ari, 2015. "Are companies beholden to bias? The impact of leader race on consumer purchasing behavior," Organizational Behavior and Human Decision Processes, Elsevier, vol. 127(C), pages 85-102.
    9. Coelho, Filipe & Augusto, Mário & Lages, Luis Filipe, 2011. "Contextual Factors and the Creativity of Frontline Employees: The Mediating Effects of Role Stress and Intrinsic Motivation," Journal of Retailing, Elsevier, vol. 87(1), pages 31-45.
    10. Wolter, Jeremy S. & Donavan, D. Todd & Giebelhausen, Michael, 2021. "The corporate reputation and consumer-company identification link as a sensemaking process: A cross-level interaction analysis," Journal of Business Research, Elsevier, vol. 132(C), pages 289-300.
    11. Asif Nawaz & Beenish Tariq & Sarfraz Ahmed Dakhan & Antonio Ariza-Montes & Niaz Ahmed Bhutto & Heesup Han, 2020. "Behaviors also Trickle Back: An Assessment of Customer Dysfunctional Behavior on Employees and Customers," Sustainability, MDPI, vol. 12(20), pages 1-17, October.
    12. Teichmann, Karin & Scholl-Grissemann, Ursula & Stokburger-Sauer, Nicola E., 2016. "The Power of Codesign to Bond Customers to Products and Companies: The Role of Toolkit Support and Creativity," Journal of Interactive Marketing, Elsevier, vol. 36(C), pages 15-30.
    13. Dianne Hofenk & Marcel Birgelen & Josée Bloemer & Janjaap Semeijn, 2019. "How and When Retailers’ Sustainability Efforts Translate into Positive Consumer Responses: The Interplay Between Personal and Social Factors," Journal of Business Ethics, Springer, vol. 156(2), pages 473-492, May.
    14. Ali Asghar Rashid & Ali Hamidizade & Mohhamad Rahim Esfidani & Hasan Zaree Matin, 2016. "The effect of cause-related marketing on the consumer purchase intention: focusing on the meditating variables (studied on clients of Ghalamchi educational services)," International Journal of Business Forecasting and Marketing Intelligence, Inderscience Enterprises Ltd, vol. 2(3), pages 233-247.
    15. Wolter, Jeremy S. & Bacile, Todd J. & Smith, Jeffery S. & Giebelhausen, Michael, 2019. "The entitlement/forgiveness conflict of self-relevant and self-neutral relationships during service failure and recovery," Journal of Business Research, Elsevier, vol. 104(C), pages 233-246.
    16. Lee, Na Young & Zablah, Alex R. & Noble, Stephanie M., 2023. "A meta-analytic investigation of the organizational identification – Job performance relationship in the frontlines," Journal of Retailing, Elsevier, vol. 99(3), pages 370-384.
    17. Feng, Cong & Xiang, Kexin, 2023. "Structural power of female executives and retailer profitability: A contingent resource-based perspective," Journal of Business Research, Elsevier, vol. 168(C).
    18. Won‐Moo Hur & Hanna Kim & Hyun Kyung Kim, 2018. "Does customer engagement in corporate social responsibility initiatives lead to customer citizenship behaviour? The mediating roles of customer‐company identification and affective commitment," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 25(6), pages 1258-1269, November.
    19. Brashear-Alejandro, Thomas & Kang, Jun & Groza, Mark D., 2016. "Leveraging loyalty programs to build customer–company identification," Journal of Business Research, Elsevier, vol. 69(3), pages 1190-1198.
    20. Radojko LUKIC, 2015. "The Analysis of Profit per Employee in the Trade of Serbia," Economia. Seria Management, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 18(1), pages 5-16, June.
    21. Kraus, Florian & Haumann, Till & Ahearne, Michael & Wieseke, Jan, 2015. "When Sales Managers and Salespeople Disagree in the Appreciation for Their Firm: The Phenomenon of Organizational Identification Tension," Journal of Retailing, Elsevier, vol. 91(3), pages 486-515.
    22. Galina Biedenbach & Thomas Biedenbach & Peter Hultén & Veronika Tarnovskaya, 2022. "Organizational resilience and internal branding: investigating the effects triggered by self-service technology," Journal of Brand Management, Palgrave Macmillan, vol. 29(4), pages 420-433, July.
    23. Keeling, Kathleen A. & McGoldrick, Peter J. & Sadhu, Henna, 2013. "Staff Word-of-Mouth (SWOM) and retail employee recruitment," Journal of Retailing, Elsevier, vol. 89(1), pages 88-104.
    24. Rosengren, Sara & Bondesson, Niklas, 2017. "How organizational identification among retail employees is affected by advertising," Journal of Retailing and Consumer Services, Elsevier, vol. 38(C), pages 204-209.
    25. Arnold, Todd J. & Grewal, Dhruv & Motyka, Scott & Kim, Namwoon & Sharma, Arun & Srivastava, Rajendra, 2019. "Store Manager–Store Performance Relationship: A Research Note," Journal of Retailing, Elsevier, vol. 95(2), pages 144-155.

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    Organization identification; Self-identity;

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