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Does Diversity Climate Lead to Customer Satisfaction? It Depends on the Service Climate and Business Unit Demography

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  • Patrick F. McKay

    (School of Management and Labor Relations, Rutgers, The State University of New Jersey, Piscataway, New Jersey 08854)

  • Derek R. Avery

    (Department of Human Resource Management, Fox School of Business, Temple University, Philadelphia, Pennsylvania 19122)

  • Hui Liao

    (Management and Organization Department, Robert H. Smith School of Business, University of Maryland, College Park, Maryland 20742)

  • Mark A. Morris

    (Human Resources, JCPenney, Plano, Texas 75024)

Abstract

Extending insights from Cox's interactional model of cultural diversity [Cox, T. H., Jr. 1994. Cultural Diversity in Organizations: Theory, Research and Practice. Berett-Koehler, San Francisco], we examine the influence of diversity climate on customer satisfaction, a key business-unit outcome. In addition, we explore service climate and minority and female representations as boundary conditions of the diversity climate--customer satisfaction relationship. Utilizing longitudinal data from 59,592 employees and 1.2 million customers of 769 store units of a large U.S. national retail organization, the results reveal that, as hypothesized, diversity climate is positively and significantly related to customer satisfaction measured a year later. Moreover, the diversity climate--customer satisfaction relationship is most strongly positive in predominately minority, highly pro-service store units, whereas female representation exhibits null moderating effects. These findings have important research and practical implications.

Suggested Citation

  • Patrick F. McKay & Derek R. Avery & Hui Liao & Mark A. Morris, 2011. "Does Diversity Climate Lead to Customer Satisfaction? It Depends on the Service Climate and Business Unit Demography," Organization Science, INFORMS, vol. 22(3), pages 788-803, June.
    • Handle: RePEc:inm:ororsc:v:22:y:2011:i:3:p:788-803
    DOI: 10.1287/orsc.1100.0550
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    3. Wolfgruber, Daniel & Einwiller, Sabine & Brockhaus, J., 2021. "Let's talk about diversity & inclusion: Fostering an inclusive work environment through communication," Communication Insights 11, Academic Society for Management & Communication – An initiative of the Günter Thiele Foundation, Leipzig.
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    5. E. Buttner & Kevin Lowe & Lenora Billings-Harris, 2012. "An Empirical Test of Diversity Climate Dimensionality and Relative Effects on Employee of Color Outcomes," Journal of Business Ethics, Springer, vol. 110(3), pages 247-258, October.
    6. Mladen Adamovic & Victor Sojo & Rebecca Schachtman & Adriana Vargas, 2023. "Explaining the relationship between ethnicity and depressive symptoms: The roles of climate for inclusion, job self-efficacy, and job demands," Asia Pacific Journal of Management, Springer, vol. 40(3), pages 903-928, September.
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    9. Ali, Muhammad & Konrad, Alison M., 2017. "Antecedents and consequences of diversity and equality management systems: The importance of gender diversity in the TMT and lower to middle management," European Management Journal, Elsevier, vol. 35(4), pages 440-453.
    10. Hazal KORAY ALAY & Esin CAN, 2020. "The Evolution of Diversity Climate Research: A Review and Synthesis," Istanbul Business Research, Istanbul University Business School, vol. 49(1), pages 36-59, May.
    11. Foster, Benjamin P. & Manikas, Andrew & Preece, Dianna & Kroes, James R., 2021. "Noteworthy diversity efforts and financial performance: Evidence from DiversityInc's top 50," Advances in accounting, Elsevier, vol. 53(C).
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    13. Tanja Rabl & María del Triana, 2014. "Organizational Value for Age Diversity and Potential Applicants’ Organizational Attraction: Individual Attitudes Matter," Journal of Business Ethics, Springer, vol. 121(3), pages 403-417, May.
    14. Mohammed A. Al Doghan & Muhammad Awais Bhatti & Ariff Syah Juhari, 2019. "Do Psychological Diversity Climate, HRM Practices, and Personality Traits (Big Five) Influence Multicultural Workforce Job Satisfaction and Performance? Current Scenario, Literature Gap, and Future Re," SAGE Open, , vol. 9(2), pages 21582440198, May.
    15. ?lhan Kacire & Mehmet Kurtulmus & H¨¹seyin Karabiyik, 2015. "The Effect Of Perce?ved D?vers?ty Cl?mate On General Sat?sfact?on Of Un?vers?ty Students," International Journal of Learning and Development, Macrothink Institute, vol. 5(2), pages 20-31, June.
    16. Ferraro, Carla & Hemsley, Alicia & Sands, Sean, 2023. "Embracing diversity, equity, and inclusion (DEI): Considerations and opportunities for brand managers," Business Horizons, Elsevier, vol. 66(4), pages 463-479.
    17. Vasconcelos Anselmo Ferreira, 2017. "Organizational Diversity Commitment: A Web-Based Investigation," Management & Marketing, Sciendo, vol. 12(3), pages 474-499, September.
    18. Kang, Jae Hyeung & Matusik, James G. & Kim, Tae-Yeol & Phillips, J. Mark, 2016. "Interactive effects of multiple organizational climates on employee innovative behavior in entrepreneurial firms: A cross-level investigation," Journal of Business Venturing, Elsevier, vol. 31(6), pages 628-642.
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    20. Beauregard, T. Alexandra & Arevshatian, L. & Booth, Jonathan E. & Whittle, S., 2016. "Listen carefully: transgender voices in the workplace," LSE Research Online Documents on Economics 67793, London School of Economics and Political Science, LSE Library.
    21. Wenjing Li & Xuhui Wang & Md Jamirul Haque & Muhammad Noman Shafique & Muhammad Zahid Nawaz, 2020. "Impact of Workforce Diversity Management on Employees’ Outcomes: Testing the Mediating Role of a person’s Job Match," SAGE Open, , vol. 10(1), pages 21582440209, January.

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