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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. 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.
    4. 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.
    5. 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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    14. 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.
    15. Kanze, Dana & Conley, Mark A. & Higgins, E. Tory, 2021. "The motivation of mission statements: How regulatory mode influences workplace discrimination," Organizational Behavior and Human Decision Processes, Elsevier, vol. 166(C), pages 84-103.
    16. 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.
    17. ?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.
    18. 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.
    19. Vasconcelos Anselmo Ferreira, 2017. "Organizational Diversity Commitment: A Web-Based Investigation," Management & Marketing, Sciendo, vol. 12(3), pages 474-499, September.
    20. 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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