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Does good internal communication enhance life satisfaction?

Article  in  Journal of Communication Management · May 2020

DOI: 10.1108/JCOM-11-2019-0146

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Does good internal communication Communication

to enhance life
enhance life satisfaction? satisfaction
 c
Dubravka Sincic Cori
Department of Marketing, University of Zagreb Faculty of Economics and Business,
Zagreb, Croatia
Nina Poloski Vokic Received 9 November 2019
Department of Organisation and Management, Revised 20 January 2020
6 March 2020
University of Zagreb Faculty of Economics and Business, Zagreb, Croatia, and Accepted 18 March 2020
Ana Tkalac Vercic
Department of Marketing, University of Zagreb Faculty of Economics and Business,
Zagreb, Croatia

Abstract
Purpose – The study explored the relationship between the two concepts—internal communication
satisfaction (ICS) and life satisfaction. Additionally, the study analyzed the link between eight internal
communication dimensions (satisfaction with feedback, satisfaction with communication with immediate
superior, satisfaction with horizontal communication, satisfaction with informal communication, satisfaction
with information about the organization, satisfaction with communication climate, satisfaction with the quality
of communication media and satisfaction with communication in meetings) and life satisfaction.
Design/methodology/approach – To exclude the potential impact of contextual factors, we conducted a
quantitative field research on a homogeneous sample of 507 respondents, employed in a multinational
organization. For the assessment of ICS, we used the Internal Communication Satisfaction Scale (UPZIK),
developed by Tkalac Vercic et al. (2009). For the assessment of life satisfaction, we used the satisfaction with life
acale (SWLS) developed by Diener et al. (1985).
Findings – Results showed a very high, statistically significant correlation between ICS and life satisfaction.
All dimensions of ICS are highly correlated with life satisfaction, but this relationship proved to be the strongest
between life satisfaction and two dimensions of ICS (satisfaction with informal communication and satisfaction
with communication climate).
Research limitations/implications – Our study has three general limitations: (1) the dataset is of cross-
sectional nature, which prevents inferring causality between variables; (2) a common source bias is present (ICS
and life satisfaction are measured from the same source) and (3) we used self-reports [given the subjective
nature and others’ reports of life satisfaction yield weaker but similar results (Erdogan et al., 2012)].
Originality/value – We identified satisfaction with internal communication, as a work domain that has not
yet received attention in the management literature, to have an important role in life satisfaction. Among others,
we found satisfaction with informal communication and satisfaction with communication climate to be
especially relevant ICS dimensions, implying that organizations should primarily cultivate non-formalized
dimensions of internal communication—a positive communication environment.
Keywords Internal communication satisfaction, Life satisfaction, Internal communication satisfaction scale,
Satisfaction with life scale
Paper type Research paper

Introduction
Happiness and well-being are becoming increasingly important issues and are beginning to
affect actions of governments, cities and most of all successful organizations. For example,
UK government Office for National Statistics started to measure national well-being (Office
for National Statistics, 2018); New Zealand announced that its 2019 budget will include
impacts of national spending on well-being and Smart Dubai Office launched a Smart
Happiness Index to assess performance based on happiness (Pykett, 2018). Germany and Journal of Communication
Management
© Emerald Publishing Limited
1363-254X
This work has been fully supported by the Croatian Science Foundation under the project No. 3323. DOI 10.1108/JCOM-11-2019-0146
JCOM Australia continuously track national life satisfaction over time (acqol.com.au, statista.com)
while Japan has introduced the Commission on Measuring Well-being in 2010 (esri.go.jp).
International agencies such as the Organization of Economic Cooperation and Development
and the United Nations are examining the measures in order to make recommendations to
nations about adopting the scales (Diener et al., 2013). Interest in measuring life satisfaction is
extensive.
Subjective well-being is an umbrella term for describing how people evaluate their lives
(Diener et al., 1999). It is a broad category of phenomena that includes people’s emotional
responses, domain satisfactions and global judgment of life satisfaction (Diener et al., 1999;
Luhmann and Hennecke, 2017). Diener et al. (1999) stress that growth in the field of subjective
well-being reflects larger societal trends concerning the value of the individual, the
importance of subjective views in evaluating life, and the recognition that well-being
necessarily includes positive elements that transcend economic prosperity. In his seminal
paper, Diener (1984 as cited in Camfield and Skevington, 2008) positioned subjective well-
being as central to a person’s experience containing measurable positive aspects and
involving a global or overall assessment of that person’s life. One of the key indicators of
subjective well-being (together with prevalence of positive affect and absence of negative
affect) is life satisfaction or cognitive assessment of satisfaction with life circumstances (e.g.
Andrews and Withey, 1976 as cited in Rode, 2004; Linley et al., 2009). For example, frequently
cited global studies of happiness levels around the world utilize life satisfaction as the
measure of happiness (e.g. Tsai, 2009), and although happiness and life satisfaction are not
synonyms, understanding factors relating to life satisfaction is crucial to understanding what
makes individuals happy (Erdogan et al., 2012).
Life satisfaction, the overall cognitive judgment of one’s life (Diener et al., 1985) is the
ultimate goal in human life and has a number of positive consequences (Hagmaier et al., 2018)
such as being healthier and having more friends (Diener and Biswas-Diener, 2008). Recent
research revealed that high levels of life satisfaction are associated with positive outcomes in
several work and life domains, such as job satisfaction, career satisfaction, job performance,
organizational citizenship behavior, organizational commitment and turnover intentions (e.g.
Erdogan et al., 2012; Hagmaier et al., 2018; Luhmann and Hennecke, 2017). However, even
though there are studies analyzing the link between life satisfaction and various work
domains, Erdogan et al. (2012) point that there are no definitive answers to the question of the
contribution of the work domain to life satisfaction. They further conclude that “the scant
attention paid to the concept of life satisfaction in the management field is a critical research
gap” (Erdogan et al., 2012, p. 1039). Understanding which aspects of work life relate to life
satisfaction may help explain individual behaviors such as absenteeism (e.g. Murphy et al.,
2006), turnover (e.g. Shaw and Gupta, 2001) and work performance (e.g. Boehm and
Lyubomirsky, 2008).
Strategic communications have an important role in safeguarding an encouraging and
inspirational working environment. Specifically, internal communication has proven to be a
predictor of employee job satisfaction, employee engagement and both job and organizational
performance (e.g. Tkalac Vercic and Poloski Vokic, 2018). A growing body of evidence points
toward a connection between effective internal communication on one side and employee
motivation and identification with their organization, on the other. Among the many
relationships explored, most effort has been directed at the link between internal
communication and work outcomes, both on the individual and organizational level
(Carriere and Bourque, 2009). There is abundant proof of a clear association between internal
communication and employees’ ability, motivation and commitment (Nakra, 2006), as well as
organizational climate and through that productivity (Joshi and Sharma, 1997). When
employees’ needs are met through communication, they are more likely to have effective
working relationships (Gray and Laidlaw, 2004). Low employee communication satisfaction
can add to occupation stress, absenteeism and burnout (e.g. Angle and Perry, 1981; Hargie Communication
et al., 1999). to enhance life
One of the relationships that has been studied the most is the link between internal
communication satisfaction (ICS) and job satisfaction (Carriere and Bourque, 2009). However,
satisfaction
the relationship between ICS and life satisfaction has not yet been explored. From both
theoretical and practical perspective, it is relevant to explore whether there is a relationship
and what is the direction of the causality between the two concepts, as well as which
components of internal communication influence the overall life satisfaction. The main
purpose of this study, therefore, is to take a first look at the relationship between ICS and life
satisfaction.

Literature review
ICS as a part of internal communication
Internal communication. Internal communication creates and maintains communication
systems between employers and employees (Tkalac Vercic, 2019) and is repeatedly identified
as a growing part of communication practice (e.g. Welch, 2012; Zerfass et al., 2010). It involves
different aspects of receiving and sharing information and represents one of the basic
management activities, vital for organizational success (e.g. George and Jones, 2006; Robbins
and Judge, 2007). Internal communication includes all communication that occurs within
various types of organizations (Linke and Zerfass, 2011) and represents transfer of ideas,
information, attitudes and emotions between people, often with the intention of modifying

behavior (Bahtijarevic-Siber and Sikavica, 2001). Internal communication practices within
the organization include the entire spectrum of communication activities, formal and
informal, with the main goal of disseminating information to various audiences within the
organization. These activities include downward, upward and horizontal communication,
and can be initiated by any member of the organization. However, the sole responsibility for
effective communication systems is in the hands of management (Carriere and
Bourque, 2009).
The quality of internal communication has been recognized as crucial for organizations
(e.g. Linke and Zerfass, 2011; Quirke, 2008). It can add to organizational effectiveness by
improving internal relationships as well as by improving communication between employees
and managers (Welch, 2012). When successful, internal communication can increase
awareness of threats and opportunities, while, on the other hand, it can pose a risk when
communication is poor (Tkalac Vercic, 2019). Numerous studies indicate a relationship
between internal communication practices and positive organizational outcomes (e.g.
Dickson et al., 2003; Robson and Tourish, 2005), such as increased productivity, reduced
absenteeism, higher quality of services and products, increased level of innovation, fewer
strikes and a reduction in total costs (Clampitt and Downs, 1993). The greatest value of good
internal communication are the relationships organizations build, which in turn lead to
organizational efficiency (Hargie and Tourish, 2002). Tkalac Vercic and Poloski Vokic (2018)
argue that internal communication strategies, when effectively applied, help organizations
create and sustain a higher level of employee engagement, which in turn leads to higher levels
of performance.
Internal communication satisfaction. ICS is a part of, but not the same as, internal
communication practices. It has been described as a socioemotional outcome that is a result of
communication interactions (Hecht, 1978). Downs and Hazen (1977) defined it as a sum of an
individual’s satisfaction with relationship and information flow variables, while Tsai et al.
(2009) state that it is an individual’s satisfaction with various aspects of communication in
interpersonal, group and organizational contexts. The relationship between internal
communication practices and satisfaction is a relationship between the antecedent
(communication practices) and the consequent (communication satisfaction) (Carriere and
JCOM Bourque, 2009). ICS has been studied extensively in the past 30 years and has been linked to
job satisfaction (e.g. Pincus, 1986), productivity (e.g. Clampitt and Downs, 1993),
organizational commitment (e.g. Putti et al., 1990; Varona, 1996) and level of employee
engagement (e.g. Tkalac Vercic and Poloski Vokic, 2018).
A study by Anderson and Martin (1995) showed that employees communicate with their
peers and superiors to satisfy their need of pleasure, affection, escape, relaxation, control and
inclusion. ICS is a key issue for employees, who when satisfied have a great influence on
organizational effectiveness (Gray and Laidlaw, 2004). On the other side, bad organizational
communication (i.e., where employee communication satisfaction is low) leads to a number of
negative consequences, such as reduced commitment, higher absenteeism and higher
employee turnover (Hargie et al., 2002). Snyder and Morris (1984) proved that two
communication variables (quality of communication with superiors and exchange of
information with peers) positively correlate with some measures of total organizational
success.
Dimensions of ICS. Dimensionality of ICS has been explored extensively. Some authors
provided proofs for an overall communication satisfaction approach. Varona’s (1996) study
linked organizational commitment to general communication satisfaction and supported the
unidimensional approach. However, there is more evidence toward a number of ICS
dimensions (e.g. Clampitt and Downs, 1993; Crino and White, 1981; Tkalac Vercic et al., 2009).
Studies that approached ICS as a multidimensional construct found, for example, a
relationship between the concept of job satisfaction, and the elements of ICS, with the
strongest relationship being found for personal feedback, communication climate and
supervisory communication (e.g. Pincus, 1986). Even though the exact number of dimensions
varies from 2 to 10, most studies seem to agree that it is a multidimensional construct that
includes elements such as the amount of information employees receive, the organization’s
communication climate, the receptivity of upward communication and others (e.g. Downs and
Hazen, 1977; Hargie et al., 2002; Mohr and Sohi, 1995).
For the purpose of this study we used the operationalization of ICS as an eight-dimensional
construct as defined by Tkalac Vercic et al. (2009). The eight dimensions include satisfaction
with feedback, satisfaction with communication with immediate superior, satisfaction with
horizontal communication, satisfaction with informal communication, satisfaction with
information about the organization, satisfaction with communication climate, satisfaction
with the quality of communication media and satisfaction with communication in meetings.
Satisfaction with feedback includes satisfaction with information on how well an
employee is performing, about the consequences and contribution of his/her work to the
organization’s success, and similar. Satisfaction with communication with immediate
superior is mostly oriented toward formal communication with the immediate superior, but
also includes aspects of informal communication with the superior, how much attention he or
she pays to the employee, how much he or she listens to the employee and similar. Satisfaction
with horizontal communication includes all types of communication with peers, such as their
availability, easiness of communication with colleagues within the department and readiness
of colleagues to accept criticism. Satisfaction with informal communication refers to different
types of informal communication, such as satisfaction with the frequency of informal
gatherings, satisfaction with the number of decisions based on informal communication, the
amount of gossip in the organization, as well as usefulness and accuracy of information
communicated informally. Satisfaction with information about the organization includes
formal information related to organizational functioning and success, such as satisfaction
with information on financial success, legal framework that affects organizational operations
and work procedures. Satisfaction with communication climate includes information about
the promotion of organizational values and goals, such as how much communication helps
employees to feel as they are important for the organization and to identify with the
organization. Satisfaction with communication media reflects the level of satisfaction with Communication
digital media, the possibility and quality of communicating through new media, media used to enhance life
for communication and similar. Satisfaction with communication in meetings includes the
level of satisfaction with the organization of meetings, usefulness of information given in
satisfaction
meetings, their length and similar.

Life satisfaction as an outcome

Life satisfaction. “Life satisfaction represents a report of how a respondent evaluates or
appraises his or her life taken as a whole. It is intended to represent a broad, reflective
appraisal that a person makes of his or her life” (Diener, 2006, p. 401). Life satisfaction can be
partitioned into stable and variable components (Eid and Diener, 2004). The stable
component is defined by high temporal stability and is predicted by partly heritable
dispositional characteristics such as neuroticism and extraversion, while the variable
component is defined by low temporal stability and is predicted by situational characteristics
such as life circumstances (Luhmann and Hennecke, 2017).
Life satisfaction has antecedents in personality traits, work and family domain. Cummins
(1996 as cited in Rojas, 2006) conducted a meta-study of the literature and argued for a seven-
domain partition: material well-being, health, productivity, intimacy, safety, community and
emotional well-being. A study made by Argyle (2001 as cited in Rojas, 2006) offered domains
such as money, health, work and employment, social relationships, leisure, housing and
education.
Perspectives of life satisfaction. Although there isn’t one single, comprehensive theory of
life satisfaction, researchers in this area distinguish three perspectives: a bottom-up, a top-
down and an interactionist perspective (e.g. Hagmaier et al., 2018; Rode, 2004).
The top-down perspective stems from the idea that some people have a tendency to feel
more satisfied with their lives than the others do, because life satisfaction is a function of
stable traits (Erdogan et al., 2012). Supporters of this approach argue that both personality
traits, as well as general life satisfaction, are relatively stable constructs, and that global
features of our personality influence our perception of events (Hagmaier et al., 2018).
According to this perspective, top-down influences, such as long-term situational influences
or life events, shape our perceptions of life domains and affect life satisfaction. Treating
personality as a separate predictor in models of life satisfaction may therefore be more
consistent, as opposed to treating it as a control variable that needs to be partialled out
(Erdogan et al., 2012).
The bottom-up approach regards life satisfaction as a function of many separate but
interrelated domains (Pavot and Diener, 2008), such as health, family, community, leisure and
work. According to the bottom-up perspective, when asked about their life satisfaction,
individuals report a complex function of satisfaction with different life domains, but life
satisfaction is not a simple average of domain satisfaction as people differ in how they weigh
each domain (Erdogan et al., 2012). Support for the bottom-up perspective comes from
experimental researches, which show that life satisfaction judgments vary with situational
conditions, and that positive and negative mid-term life events have an influence on life
satisfaction (Hagmaier et al., 2018). In sum, the bottom-up approach suggests that the
satisfaction within one domain of life may spillover to other domains of life (horizontal
spillover), and spillover to hierarchically superior constructs, such as general life satisfaction
(vertical spillover) (Hagmaier et al., 2018).
A third possibility is an interactionist approach, which treats both top-down and bottom-
up factors as simultaneous independent and interdependent variables with bidirectional
causality (Hagmaier et al., 2018). This perspective is integrative and combines dispositional
(i.e. top-down) and situational/contextual (i.e. bottom-up) approaches to life satisfaction. It
suggests that life satisfaction affects domain-specific satisfaction, like, for example,
JCOM satisfaction with internal communication explored in this paper, and that domain-specific
satisfaction affects life satisfaction to a similar degree. Heller et al. (2006) support this
perspective, as their results support both the top-down and the bottom-up approach,
demonstrating a lagged effect that goes from domain satisfaction to life satisfaction (a
bottom-up process) and a lagged effect that goes from life satisfaction to domain satisfaction
(a top-down process).
Work life-related antecedents of life satisfaction. According to the process model of
Erdogan et al. (2012), work-related antecedents belong to three groups: (1) need satisfaction,
including financial (e.g. unemployment, job security and income), interpersonal (e.g.
relationships and satisfaction with coworkers) and power and status needs (e.g. power and
prestige of the job and promotion opportunities), (2) mindful activity, related to challenge,
growth and meaning at work and (3) job-related tensions focusing on work–non-work
conflict, work context stressors and role stressors. They further suggest that (1) quality of
work life (e.g. job satisfaction, career satisfaction and perceived job stress), (2) quality of non-
work life (e.g. satisfaction with family, leisure and health) and (3) feelings of self-worth (e.g.
perceived control over one’s life, perceived competences) serve as mediators linking one’s
work experiences to life satisfaction. These three groups of mechanisms that enhance life
satisfaction constitute a second large set of work life correlates with life satisfaction, among
which the majority of studies use job satisfaction as the indicator of work domain.

ICS and life satisfaction

Despite the importance attributed to both ICS and life satisfaction, little is known about the
relationship between the concepts. The only study discussing an aspect of this relationship
conducted by Chen et al. (1999) found a relationship between the positive job-related
communication with coworkers and life satisfaction. As life satisfaction is a desired objective
for individuals and organizations (Hagmaier et al., 2018), it is important to explore how
communication within the organization affects life satisfaction.
Using abovementioned framework developed by Erdogan et al. (2012), we position ICS as
an antecedent of life satisfaction, as it is rooted in interpersonal needs (as a part of need
satisfaction), and belongs to a quality of work life linking mechanism. The theory of ICS was
developed in order to explain the relationship between communication and job satisfaction
(Downs and Hazen, 1977). Now, we want to extend it to explain the potential connection
between internal communication and life satisfaction, therefore our research questions are:
RQ1. Is there a relationship between ICS and life satisfaction?
RQ2. Which of the dimensions of ICS are the strongest predictors of life satisfaction?

Methods
In order to test the relationship between overall ICS, ICS dimensions and life satisfaction, we
conducted a quantitative questionnaire-based field study. We operationalized ICS as an
overall employee’s satisfaction with various aspects of communication within the
organization (Tkalac Vercic et al., 2009). We operationalized life satisfaction as the
satisfaction with the respondent’s life as a whole using the person’s own criteria (Diener
et al., 1985).
Measures
For the assessment of ICS, we applied the previously described Internal Communication
Satisfaction Scale (UPZIK) developed by Tkalac Vercic et al. (2009). The instrument measures
eight dimensions of ICS though self-reporting on 32 items by using a seven-point Likert-type
scale (response options range from 1 5 “extremely dissatisfied” to 7 5 “extremely satisfied”).
The eight dimensions are: (1) Satisfaction with feedback (four-item dimension, α 5 0.91, Communication
sample item: “Information on the consequences of doing my job poorly.”); (2) Satisfaction with to enhance life
communication with immediate superior (four-item dimension, α 5 0.93, sample item:
“Recognition of my potential by my immediate superior.”); (3) Satisfaction with horizontal
satisfaction
communication (four-item dimension, α 5 0.84, sample item: “Availability of colleagues.”); (4)
Satisfaction with informal communication (four-item dimension, α 5 0.85, sample item: “The
amount of time I spend in informal communication”); (5) Satisfaction with information about
the organization (four-item dimension, α 5 0.88, sample item: “Information on changes in the
organisation.”); (6) Satisfaction with communication climate (four-item dimension, α 5 0.95,
sample item: “How much communication within the organization helps me to feel I am an
important part of the organisation.”); (7) Satisfaction with the quality of communication
media (four-item dimension, α 5 0.86, sample item: “Satisfaction with communication media
(e.g. written announcements, intranet, oral communication).”) and (8) Satisfaction with
communication in meetings (four-item dimension, α 5 0.89, sample item: “Usefulness of
information received in meetings.”).
For the assessment of life satisfaction we used the satisfaction with life scale (SWLS)
designed by Diener et al. (1985), still a predominantly used instrument for measuring life
satisfaction (e.g. Pavot and Diener, 2009; Morrison et al., 2011; Luhmann and Hennecke, 2017).
The instrument measures a one-dimensional construct through self-reporting on five items
by using a seven-point Likert-type scale (response options range from 1 5 “strongly
disagree” to 7 5 “strongly agree”) (α 5 0.91 (0.87 in Diener et al., 1985), sample item: “So far I
have gotten the important things I want in life.”).
We used four respondents’ socio-demographic information (gender, age, educational level
and number of years working in the organization) as control variables.

Sample and procedure

In order to evade the effect of contextual factors such as organizational and IC culture or
business function and industry specifics, the research was intentionally limited to one
organization—a large financial institution operating in Croatia owned by a
multinational bank.
Employees were contacted by e-mail to participate in the study and were provided with
the link to the intranet page with the questionnaire, resulting in a self-selected sample.
The sample consists of 507 employees (out of 1,801; response rate 28.2%) and is
homogenous considering organization and business area but heterogeneous according to
four demographic variables. The gender structure of the sample is 25.4% men and 74.6%
women, which approximates the workforce structure according to gender in the financial and
insurance industry in Croatia (according to DZS (2018), in 2017, female employees accounted
for 61.6% of employment in the industry). The age of participants ranges from 22 to 62, with
the mean age of 40.42. 39.5% of respondents are high school graduates, 18.9% hold a
bachelor’s degree, 34.1% a master’s degree and 7.6% a postgraduate degree. The number of
years respondents’ have spent working in the organization ranges from less than a year to 40
years, with the mean of 14.22 (SD 5 8.97).

Data analysis
We used the statistical software package IBM SPSS Statistics 21.0 for the data analysis. We
used descriptive statistics, internal reliability calculations (Cronbach’s alpha) and correlation
analysis for basic analyses. For the central analysis, the analysis of the relationship between
the ICS and ICS dimensions (independent variables) and life satisfaction (dependent variable),
we applied a bivariate and a multiple linear regression, as all assumptions of linear regression
were met. Because of the search for better explanatory power, we conducted two multiple
JCOM linear regression procedures enter and stepwise procedure. A stepwise regression model
showed a better overall model fit and was therefore used. It denotes that independent
variables entered only if they met the statistical criteria for inclusion in terms of the required
F-ratio value, and that the order of inclusion was determined by the contribution of each
variable to the explained variance (the variable that exhibits the highest correlation with the
dependent variable enters first) (Bryman and Cramer, 2013).
The regression analysis served as well to test whether the additional value could be gained
by adding control variables to the regression equation. However, beta coefficients of socio-
demographic variables were not significant and R values have not increased with the
addition of those variables. Therefore, control variables are not elaborated hereafter.
Finally, the possibility of multicollinearity was assessed using collinearity diagnostics
encompassing tolerance (T) and variance inflation factor (VIF) calculations.

Results
Correlation analysis revealed that the overall ICS and all ICS dimensions are statistically
significantly related to life satisfaction (rICS 5 0.519; 0.427 < rICSD < 0.486; p < 0.001 for all).
However, in line with our second research question, the multiple regressions were used to
explore which ICS dimensions evidence a greater importance. Additionally, it was relevant to
explore whether a greater variance in life satisfaction is explained when ICS is analyzed
through separate ICS dimensions or when analyzed as a total construct.
Table 1 presents two regression analysis results. In Step 1, using a bivariate linear
regression, we explored the relationship between the overall ICS (M 5 5.14, SD 5 1.12) and
life satisfaction (M 5 5.17, SD 5 1.16). In Step 2, using a stepwise multiple linear regression,
we explored the relationship between eight ICS dimensions [satisfaction with feedback
(M 5 5.05, SD 5 1.38), satisfaction with communication with immediate superior (M 5 5.25,
SD 5 1.50), satisfaction with horizontal communication (M 5 5.35, SD 5 1.05), satisfaction
with informal communication (M 5 4.86, SD 5 1.19), satisfaction with information about
the organization (M 5 5.32, SD 5 1.19), satisfaction with communication climate (M 5 4.91,

Unstandardized
coefficients
Variables B SE β t

Step 1
(Constant) 2.388 0.240 9.934***
Satisfaction with internal communication (ICS) 0.541 0.046 0.519 11.852***

F-test value 140.467***

R2 0.27
Adjusted R2 0.27

Step 2
(Constant) 2.730 0.216 12.665***
Satisfaction with informal communication 0.287 0.061 0.292 4.713***
Satisfaction with communication climate 0.213 0.048 0.275 4.435***
Table 1.
The regression
analysis of the F-test value 72.261***
relationship between R2 0.28
the ICS and its Adjusted R2 0.27
dimensions and life ΔR2 0.01
satisfaction Note(s): ***p < 0.001
SD 5 1.50), satisfaction with the quality of communication media (M 5 5.26, SD 5 1.05), Communication
satisfaction with communication in meetings (M 5 5.08, SD 5 1.22)] and life satisfaction. to enhance life
The Step 1 analysis shows that there is a statistically significant positive relationship
between the ICS and life satisfaction (β 5 0.519, p < 0.001). Moreover, 27% of the variance in life
satisfaction
satisfaction is explained by the respondents’ overall satisfaction with internal communication.
However, the Step 2 analysis (the final prediction model reached in two stages) reveals a
slight increase in variance (ΔR2 5 0.01), implying that life satisfaction is slightly better
predicted when analyzing individual ICS dimensions combined. Precisely, 28% of the
variance in respondents’ life satisfaction is explained by two statistically significantly and
positively related ICS dimensions combined. Two ICS dimensions that were found to be
significant predictors of life satisfaction are “Satisfaction with informal communication”
(β 5 0.292, t 5 4.713, p < 0.001) and “Satisfaction with communication climate” (β 5 0.275,
t 5 4.435, p < 0.001). Interestingly, the two ICS dimensions are the only two ICS aspects
evaluated below 5.00 on average (see above). Finally, tolerance and VIF values for both
“Satisfaction with informal communication” and “Satisfaction with communication climate”
suggest that independent variables were not in a violation of multicolinearity, as VIF of both
variables was <10 and Ts > 0.10 (T 5 0.495; VIF 5 2.019).

Discussion and conclusion

Theoretical contributions
Several implications could be drawn from this research. We add to the discussion of the work-
related antecedents of life satisfaction. Namely, there is still a lack of research examining
whether workplace factors act as antecedents of life satisfaction (e.g. Erdogan et al., 2012;
Newman et al., 2015). Empirical studies related to life satisfaction explore primarily national-
level antecedents such as income, unemployment and corruption or individual-level
antecedents such as personality, health and demographics (see Cerci and Dumludag, 2019;
Diener et al., 1985; Diener et al., 2013; Erdogan et al., 2012). As Erdogan et al. (2012) highlight,
the management literature has largely ignored the concept of life satisfaction, while the life
satisfaction literature concentrated on non-working populations (children, students, geriatric
populations, those with health problems, etc.) and has tended to ignore the work domain
although people spend a majority of their adult lifetime working. Furthermore, some studies
suggest that the effect of work domain on life satisfaction may be weak compared to non-
work domains (Erdogan et al., 2012). However, research indicates that satisfaction with work
and non-work domains accounts for about 50% of variance in life satisfaction (Rode, 2004).
Consequently, work-related correlates of life satisfaction should be neglected neither in
academic research nor in practice. As previously stated, no prior work has examined the
relationship between life satisfaction and ICS as a work domain factor.
We revealed that ICS explains 27%, and two ICS dimensions combined (“Satisfaction with
informal communication” and “Satisfaction with communication climate”) 28% of the
variance in life satisfaction. The statistically significant positive correlations between the
overall ICS and life satisfaction of 0.519, between “Satisfaction with informal communication”
and life satisfaction of 0.486, and between “Satisfaction with communication climate” and life
satisfaction of 0.482, imply a considerable contribution of the ICS to life satisfaction.
Compared, for example, with Tait et al. (1989) finding of the correlation between job
satisfaction and life satisfaction of 0.035, or Michel et al. (2009) finding of the correlation
between work-based social support and life satisfaction of 0.320, our higher correlation
coefficients indicate that paying attention to employee’s personal characteristics and non-
work lives is not sufficient for understanding employees’ life satisfaction. A work-related
correlate of ICS is relevant as well.
The finding that satisfaction with informal communication and communication climate
are the most pertinent ICS dimensions for life satisfaction purports that non-formalized ICS
JCOM dimensions are more important. Formalized work-related dimensions of internal
communication—feedback, communication with supervisors, horizontal communication,
information about the organization, quality of communication media and communication in
meetings, were not found to be that important. This is in line with Chen et al.’s (1999) finding
that the more frequently employees communicate with their coworkers (but as well friends
and family) regarding positive job-related aspect, which is exactly what the informal
communication is, the more satisfied with their lives they are. The finding about the
importance of communication climate is aligned with Michel et al.’s (2009) finding that
experiencing a supportive environment at work correlates with life satisfaction.
Finally, from a methodological perspective, this research adds to a body of studies that use
robust scales that include four or more items to measure life satisfaction. The majority of prior
research used single item indicators to measure life satisfaction (e.g. Cerci and Dumludag,
2019), which has been widely criticized because such indicators are subject to low levels of
internal reliability (the internal consistency of a single item indicator could not be estimated)
and construct validity (a single item indicator is not able to capture the multidimensionality of
the construct) (Newman et al., 2015). The SWL scale used in this research is shown to be a
valid and reliable measure of life satisfaction, suited for use with different age and population
groups in any world country (e.g. Diener et al., 1985; Erdogan et al., 2012).

Practical implications
As explained by Erdogan et al. (2012), life satisfaction could be introduced as a potential
mechanism through which one’s experiences at work are translated into employee behaviors
that influence the organization’s bottom line. Accordingly, understanding which aspects of
internal communication and satisfaction with it relate to life satisfaction may help explain
and predict work behavior and its consequences.
Having in mind that empirical researches acknowledged employee life satisfaction to be
related to better job performance, less job avoidance and absenteeism, higher commitment,
lower turnover intentions and lower turnover (see Erdogan et al., 2012; Luhmann and
Hennecke, 2017), managers and organizations should proactively address internal
communication policies and processes. If we accept the premise that higher ICS is a
desirable outcome, organizations should invest resources into improving both internal
communication channels and overall communication atmosphere.
This is one of the first studies in which a link between ICS and life satisfaction has been
explored. The relationship between the two has fundamental practical implications for
organizations. Just as with job satisfaction, internal communication systems that do not
create ICS among employees will not foster life satisfaction. Therefore, managers should
ensure an internal communication atmosphere, which adds to communication satisfaction.
To achieve that, a better understanding of communication practices, which are, valued the
most by employees is needed (Carriere and Bourque, 2009).

Research limitations and future research suggestions

Our study has three general limitations: (1) the dataset is of cross-sectional nature, which
prevents inferring causality between variables; (2) a common source bias is present (ICS and
life satisfaction are measured from the same source) and (3) we used self-reports [although
suitable given the subjective nature of life satisfaction, and others’ reports of life satisfaction
yielding weaker but similar results (Erdogan et al., 2012)].
As well, our research has a limitation of the potential reverse causality between ICS and
life satisfaction. ICS, similar to the majority of studies including work-related satisfaction –
such as job satisfaction, satisfaction with pay, satisfaction with career progress and
satisfaction with colleagues (see Diener et al., 2013; Erdogan et al., 2012), is treated as the
antecedent to life satisfaction. However, there is a question of the reverse causality running Communication
from life satisfaction to ICS. For example, respondents may be more prone to condemn the to enhance life
communication efforts of their organizations if they are less satisfied with their life.
Therefore, future studies should examine the effect of life satisfaction on ICS following the
satisfaction
study idea of Judge and Watanabe (1993) who revealed that job and life satisfaction are
significantly and reciprocally related. This is in line with the spillover hypothesis, which
proposes that an individual’s positive experiences in the work domain spill over into the non-
work domain, and vice versa (Newman et al., 2015).
Further research should also take into consideration the moderating or mediating role of
other potentially intervening factors, such as job or career satisfaction. It is concluded, for
example, that job satisfaction is not a unilateral but rather multidimensional concept, and that
it has many influencing factors. Rode (2004, p. 1206) suggested that “much of the relationship
between job satisfaction and life satisfaction is spurious, resulting from common influences”,
which could stand for the internal communication as well. For instance, Carriere and
Bourque’s (2009) data showed that internal communication practices explain 49.8% of the
variation in communication satisfaction, 23.4% of the variation in job satisfaction, and 17.5%
of the variation in affective organizational commitment and that these effects are fully
mediated by communication satisfaction when job satisfaction and affective organizational
commitment were regressed against both internal communication practices and
communication satisfaction. The results of Kulachai et al. (2018) indicated that internal
communication has a positive influence on employee participation and job satisfaction, with
employee participation and job satisfaction playing a mediating role between internal
communication and job performance. They further concluded it can be implied that internal
communication would enhance employees’ job satisfaction. Ehler’s data (2003) illustrate that
employees’ communication with coworkers is related to whether they are satisfied with their
job. Job satisfaction does not necessarily mean that employees are always happy. However, if
the communication is effective, it is related with employees being satisfied with their job.
Given presented arguments, it is obvious that the discussion about the potential influencing
factors on the relationship between ICS and life satisfaction (via job satisfaction or other
factors) should therefore serve as a base for future studies.

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Corresponding author
 c can be contacted at: dsincic@net.efzg.hr
Dubravka Sincic Cori

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