This paper presents a model to establish the relationships amongst the employee satisfaction, service quality, customer satisfaction, customer loyalty and firm’s performance in service sector of Pakistan. The developed research model is tested empirically by conducting a survey of high-contact service industries including telecom, banking, healthcare, hotel, fashion and universities from major cities of Pakistan. Using advances statistical analysis it is observed that employee satisfaction, customer satisfaction and customer loyalty are significantly related to firm’s performance while surprisingly employees in the service industry of Pakistan consider service quality insignificant for firm performance, which may be one of the decisive causes of Pakistan’s less participation in the world service market. This finding supports the generalization of the observed relationships in a range of operating contexts.
The Impact of Employee Satisfaction and Service Quality on Perceived Firm’s Performance in High Contact Service Industry
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