Academic journal article Business: Theory and Practice

The Mediating Role of Employee Job Performance in the Impact of Open Book Management Dimensions on Customer Satisfaction

Academic journal article Business: Theory and Practice

The Mediating Role of Employee Job Performance in the Impact of Open Book Management Dimensions on Customer Satisfaction

Article excerpt


Renewed attention has been paid to open book management (OBM) as a management style due to the essence of this style in terms of managerial practices. It was defined as practice that make an organization's financial data and performance available for employees in order to be aware of its financial position. Although OBM definitions differ in terms of their terms, the content of these definitions is the same. Some researchers have focused on one aspect when defining open book management. An example of these definitions the one that describes OBM as "information sharing" between management and employees (Nikzad and Maryam 2012). Some of the other definitions took into account several aspects when describing OBM like employee training on using financial data, employee empowerment in decision-making process, giving employees the opportunity to contribute to their organization (Aggarwal and Simkins 2001).

The benefits of OBM have emerged as a result of studies conducted on the nature of the relationship between this OBM and other variables. These benefits include improving employee performance, enhancing employee knowledge and expertise, improving open communication, giving employees the opportunity to contribute to organizational goals, boosting employee creativity and making better customer satisfaction (Ugboro and Obeng 2000, Yukl and Becker 2006, Bhatti and Qureshi 2007, Peters and Mazdarani 2008, Zhang and Bartol 2010, Spreitzer and Porath 2012, Lee et al. 2012, Isimoya and Bakarey 2013, Elnaga and Imran 2013, Al-Mzary et al. 2015, Groen et al. 2016, Padmasiri et al. 2018).

Despite these results, studies that examined the effect of open book management on employee performance and consumer satisfaction are still few, especially in the Arab region and in the industrial sector in particular. On the other hand, previous studies have dealt with the concept of open book management as a composite variable. Hence, the present study aims to explore the effect of open book management on customer satisfaction in the presence of employee job satisfaction as a mediating variable. What distinguishes the current study from previous studies is that it studies OBM by focusing on its dimensions and not on the variable as a whole. Therefore, the study seeks to identify the impact of the dimensions of open book management on employee job performance and satisfaction of customers.

Based on previous studies, three dimensions of open management were selected in the current study: employee empowerment, employee training, and employee participation. Of course, the purpose of dividing open book management into these three dimensions is to identify the most dimension capable of influencing employee performance and customer satisfaction. The importance of this categorization will be clear in light of the study results, which will show the importance of one dimension for the rest of the dimensions. In fact, such a result helps organizations, identifying their priorities, i.e., whether or not training is offered on empowerment.

1. Literature review and hypotheses development

1.1. Open book management definition and indicators

OBM has been defined as a style of management that opens the organization's financial books so that employees know its returns, expenses and profit (Davis 1997). Nikzad and Maryam (2012) defined this term as a practice of information sharing between management and employees. Pfeffer and Veiga (1999) argued that the shared information in this context refers to information belongs to the organization's financial performance and strategies. For Evans and Davis (2005), OBM was considered as a mean to give employees an access to its financial information in order to be able to compare the degree of alignment of organizational goals with their goals. Spreitzer and Porath (2012) mentioned another benefit of OBM which was to give employees the opportunity to compare the degree of fitness between organizational strategies and their work. …

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