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Eh Di Et Al (2010)
Eh Di Et Al (2010)
To cite this article: Eh Di , Chien-Jung Huang , I-Heng Chen & Te-Cheng Yu (2010)
Organisational justice and customer citizenship behaviour of retail industries, The Service
Industries Journal, 30:11, 1919-1934, DOI: 10.1080/02642060802627533
Download by: [University of Sussex Library] Date: 07 December 2015, At: 08:40
The Service Industries Journal
Vol. 30, No. 11, September 2010, 1919 –1934
Previous research has concerned itself more with customers’ purchasing behaviours but
not non-purchasing behaviour. Hence, the purpose of this study is to investigate the
organisational justice (OJ) and customer citizenship behaviour (CCB), including the
mediating role of organisational trust. A survey was conducted on a sample of 447
fast-food restaurant customers in Taiwan in order to test the proposed model. The
findings showed that the customers who have higher perceptions of justice have
higher levels of trust and CCB. Positive relationship was found between trust and
CCB. In addition, trust has a partially significant mediating effect between OJ and
CCB. The findings are discussed in terms of their theoretical and practical
implications, and also provide some suggestions for managerial practice and further
research.
Introduction
Modern customers are better informed than their predecessors and desire to express their
opinions about decision making and the procedures of an enterprise’s services and man-
agement (Jayachandran, Sharma, Kaufman, & Raman, 2005; Verhoef, 2003). This
creates an interaction between companies and customers and also affects customer beha-
viours at the same time (Mithas, Krishnan, & Fornell, 2005). Therefore, organisations will
have to care about not only the points of view of employees but also those of customers.
Loyal employees are a company’s favourite, but now enterprises also need to pay more
attention to loyal customers (Kim & Mauborgne, 1997), which is like treating customers
as employees.
Interactions with the enterprises make customers decide their loyalty to, and relation-
ship with, the company (Rogers, 2005; Sheth & Parvatiyar, 1995; Sirdeshmukh, Singh, &
Sabol, 2002). If the corporation cannot raise the quality of total customer experiences, then
customers will not stay with it (Seybold, 2001). In order to provide a total customer experi-
ence, enterprises need to have a favourite and an identifiable brand name, develop a trust
system and build an interaction model of customer druthers (Payne & Frow, 2005; Uncles,
Dowling, & Hammond, 2002). Previous research has concerned itself more with custo-
mers’ purchasing behaviours (e.g. customer satisfaction, customer loyalty, etc.), but not
non-purchasing behaviour. If we can explore customer behaviour models from the
aspect of organisational behaviour, it should be more interesting and challenging.
Corresponding author. Email: dearjohn0213@gmail.com
Organisational citizenship behaviour (OCB) (Organ, 1988, 1990; Smith, Organ, &
Near, 1983) emphasises the members actively assisting each other without any direct
reward from the organisation. Previous research had discussed the effects of organisational
justice (OJ) and trust on OCB (Konovsky & Pugh, 1994; Motowidlo & Van Scotter, 1994;
Organ & Konovsky, 1989; Podsakoff, MacKenzie, Moorman, & Fetter, 1990). However,
almost all research is limited in the field of organisational inter-members (Orr, Sackett, &
Mercer, 1989; Podsakoff, Aheame, & MacKenzie, 1997) and ignores the value of custo-
mers. In terms of customer relationship management, customer value should be of concern
(Boulding, Staelin, Ehret, & Johnston 2005; Morgan & Hunt, 1994; Parasuraman, Berry,
& Zeithaml, 1988; Woodruff, 1997). Consequently, we integrate the concepts of customer
relationship management and OCB to develop customer citizenship behaviour (CCB). It
emphasises customers’ non-purchasing behaviour with retailers, and not being directly
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rewarded by the enterprise. It believes that the determinant factors exist widely in the
organisational management systems, especially in justice and trust systems. Therefore,
from the viewpoint of organisational trust (OT), this study would test the relationships
of OJ, trust and CCB. With that in mind, our objectives are four-fold:
1. To offer a conceptual model of OJ, OT and CCB of retail industries.
2. To develop scale items of all measures used for the constructs in the model, and
then to proceed the measurement model evaluation.
3. To test the effects and relationships of OJ, OT and CCB in our conceptual model.
4. To discuss in terms of theoretical and practical implications, and also provide some
suggestions for managerial practice and for further research.
organisation goals.
According to the definition of Organ (1988) on OCB, we developed the concept of
CCB. In the early research of OCB measurement, scholars tried to use only one or few
dimensions to measure OCB (e.g. Bateman & Organ, 1983; Smith et al., 1983). In the
late 1980s, the research was more mature and the measurement of it more complete.
According to Organ (1988), there are five dimensions of OCB: (1) Altruism: employees
actively assist certain people in the related organisational tasks; (2) Conscientiousness:
employees do much more than their own basic task; (3) Sportsmanship: employees put
up with less than ideal working circumstances with no complaints; (4) Courtesy: employ-
ees actively share information to avoid problems in advance including related working
problems with others; (5) Civic virtue: employees responsibly attend and care about the
existence of the company. From these dimensions, sportsmanship describes employees
tolerating a non-ideal working condition without making any complaints, which cannot
be applied to the customers. Therefore, OCB has been revised as CCB and the sportsman-
ship should be revised or excluded.
1994). From the inferential procedure of researchers, we know most that scholars adopt the
social exchange theory. According to the theory, OJ solicits an employee’s trust, and we
find out that there is a significant relationship between OJ and OT. Hence, we deduce that
when retailers have more emphasis on justice to customers, the customers have more value
to retailers’ justice and will cause more trust. Therefore, we propose these hypotheses:
H1: Customers who have higher perceptions of justice would have higher levels of trust.
The research of the general OCB model is also based on the social exchange theory of
Blau (1964). It explores the relationship of OJ and OCB on the cognition of employees.
Socialists believe that justice logos can effectively organise functions and satisfy individ-
ual basic needs. However, in the early stage, the social justice theory has been tested on the
general social interaction justice principle but not on the organisational management
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(Greenberg, 1990). According to the past research on employee panels, we find that
there are significant effects between OJ and OCB (Cohen & Avrahami, 2006; Farh,
Earley, & Lin, 1997; Konovsky & Pugh, 1994; Moorman, Niehoff, & Organ, 1992;
Moorman, 1991; Organ & Konovsky, 1989; Puffer, 1987; Schnake, 1991; Scholl,
Cooper, & Mckenna, 1987). From the above, our study infers that if retailers are concerned
more with customers’ justice, the customers will have a higher value of retailer justice
leading to a higher probability of citizenship behaviour (for example, helping the
company). Thus, we propose
H2: Customers who have higher perceptions of justice would have higher levels of CCB.
Comparing with employees’ logical thinking, most customers are not only concerned
with the social exchange but also have strong needs of social identity. OT may be the main
effective variable for the public citizenship behaviour, and this is also proved by past
empirical research (Konovsky & Pugh, 1994; Podsakoff et al., 1990). Because CCB
does not basically focus on the immediate rewards or punishment but only on trust, cus-
tomers believe that organisations should have a comparative return in order to raise the
willingness of CCB after their payment (e.g. Deluga, 1994; Yukl, 1989). Therefore, we
propose the following hypothesis:
H3: When customers trust the retailer more, they are more likely to have CCB.
Mediation effect of OT
Because of the competitive service environment, the services that the retailer offer are of
concern to the customers. They devote time to have a benignancy interaction relationship
with the customers. Many enterprises figure out that the key to continuous consuming be-
haviour of customers is the interaction experience and feelings between the organisation
and the customers. Therefore, if the company can earn the friendship and trust of the con-
sumers, then they will be one step further to creating and maintaining a good relationship
with the customers and forming a customer trust atmosphere and premise (Anderson &
Narus, 1990; Madhok, 1994). At the same time, based on the social exchange relationship,
customers will return to the organisation. Besides, Morgan and Hunt (1994) use the trans-
action cost viewpoint to stand for trust and promise as the core successful promotion. The
proposed trust and promise is the key mediation variable in exploring the effects of
cooperation, quitting and conflict. Trust can predict more customer behaviour and lower
customer desire to leave by creating higher customer values (Reinartz & Kumar, 2000)
to boost satisfaction (Anderson & Narus, 1990) and to build a long-term relationship
The Service Industries Journal 1923
with the customers (Doney & Cannon, 1997). Therefore, we predict that the higher the
justice value of customers-to-organisation, the more likely it is to create CCB because
of the trust of customers towards the organisation. We then have the following hypothesis:
H4: Trust has a significant mediating effect between OJ and CCB.
Methodology
Sample
The sample of this study focuses on the general retail stores or those that accept service
consumers. Questionnaires were used to collect the data for this study. A questionnaire
was submitted as a pre-test to determine possible shortcomings in comprehension and
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to confirm its suitability. A pilot test of the survey was conducted with 40 customers
within one of the largest fast-food chain restaurants in the Kaohsiung area, and they
were asked to evaluate their perceptions. Based on the results of the pre-test, some revi-
sions of items on the questionnaire were made. Questionnaires were administered
between 1 October and 1 December 2006, with the sample being randomly selected
from a certain college in Kaohsiung. Students from all areas of Taiwan responded to
the questionnaire by their own actual consuming experience within the largest fast-food
chain restaurants. We also selected commercial workers in order to include two kinds
of consumers’ representative samples (Petrick, 2002). The questionnaire was a self-admi-
nistered survey and respondents filled it by themselves. Totally, 447 valid surveys were
obtained. What follows are variable measurements and operational definitions. All
measures used for the constructs in the model are shown in Table 1 and Appendix. Partici-
pants were asked to respond on a five-point Likert-type scale ranging from ‘strongly dis-
agree’ (1) to ‘strongly agree’ (5). In addition, one item in conscientiousness and one item
in courtesy were reverse scored. After reversing such scale responses, high scores indi-
cated higher conscientiousness and courtesy. Higher scores also indicated higher distribu-
tive justice, procedural justice, interactive justice, OT, altruism and civic virtue.
Organisational trust
From the experience of other scholars, we know that there are many ways to measure the
scale of trust; however, they do not fit appropriately in the measurement of our goal of OT.
1924 Eh Di et al.
IJ2 0.87
IJ3 0.78
IJ4 0.85
IJ5 0.76
Organisational trust 0.88 0.72
OT1 0.83
OT2 0.85
OT3 0.80
OT4 0.87
Altruism 0.85 0.64
AL1 0.75
AL2 0.72
AL3 0.77
AL4 0.73
AL5 0.75
Conscientiousness 0.83 0.62
CS1 0.78
CS2 0.80
CS3 0.74
CS4 0.72
CS5 0.71
Courtesy 0.87 0.65
CT1 0.73
CT2 0.76
CT3 0.72
CT4 0.81
CT5 0.70
Civic virtue 0.81 0.63
CV1 0.83
CV2 0.75
CV3 0.82
CV4 0.77
CV5 0.78
AVE: average variance extracted.
p , 0.01, all t-values . 2.
Therefore, we refer to the definition of Morgan and Hunt (1994) and believe that the trust
of customers to retailers means that customers still have confidence, rely on and trust retai-
lers after their consuming behaviours. The present study uses and adjusts the measuring
scale developed by Morgan and Hunt (1994), which consists of four items, and Cronbach’s
a is 0.88.
The Service Industries Journal 1925
Eh Di et al.
IJ 3.43 0.42 0.45 0.56 0.81
OT 3.43 0.48 0.57 0.59 0.60 0.85
AL 3.41 0.48 0.47 0.36 0.29 0.39 0.80
CS 3.83 0.51 0.44 0.41 0.36 0.45 0.32 0.79
CT 3.78 0.45 0.38 0.37 0.34 0.40 0.46 0.58 0.81
CV 3.76 0.53 0.43 0.40 0.38 0.45 0.40 0.41 0.43 0.79
Note: n ¼ 447; M, Mean; SD, Standard deviation. The square roots of AVE are given on the diagonal. The correlation coefficients of constructs are given under the diagonal.
p , 0.01.
p , 0.001.
The Service Industries Journal 1927
from the same data sources. According to this logic and result, a single factor has only
9.77% of varimax, showing that CMV is not significant in this study.
Results
Sample characteristics
Four hundred and forty-seven valid questionnaires have been returned: females (57.9%)
and males (42.1%). The age distribution focuses on four stages: 22.4% under 19, 40.1%
between 20 and 29, 18.7% from 30 to 39 and 13.6% between 40– 49 years old. The edu-
cation distribution is mainly in the categories of ‘Institute College’, which is 43.3%, and
‘University’, which is 32.1%. Occupation distribution: most are students (47.9%), others
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are government employees and teachers (18.1%), private enterprise staff (21.4%) and self-
employed persons (12.6%). Average monthly household income is mainly distributed as
follows: 24.5% from NTD20,001 to 40,000 and 26.2% from NTD40,001 to 60,000. Con-
suming areas mostly are the North area of Taiwan (59.3%), South area (17.5%) and
Midland (16.3%). The average consuming frequency of the respondents are concentrated
on random contingencies (40.2%), once in four weeks (20.1%), once in two weeks (12.1%)
and once a week (10.3%).
OJ and OT
Each variable’s result of mean, standard deviation and correlation is shown in Table 2.
From Table 2, we know the positive significant correlation between each dimension of
OJ and OT. Moreover, from Model 1 of Table 3, we find the following regression coeffi-
cients: distributive justice (0.32, p , 0.01), procedural justice (0.15, p , 0.01) and inter-
active justice (0.35, p , 0.01). It shows that the customers who have higher perceptions of
justice would have higher levels of trust with retailers and that proves H1.
OJ and CCB
From Table 2, we know the positive significant correlation between each dimension of OJ
and CCB. Also, from Model 1 of Table 4, we find the following regression coefficients:
distributive justice (0.28, p , 0.01), procedural justice (0.17, p , 0.01) and interactive
justice (0.13, p , 0.01). It shows that the customers who have higher perceptions of
justice have higher levels of CCB and that proves H2.
p , 0.001.
OT and CCB
From Table 2, we know the positive significant correlation between each dimension of OT
and CCB. Also, from Model 3 of Table 4 we know that the regression coefficient is 0.17,
p , 0.01, which is when customers feel the retailers are worthy to be trusted. This makes it
easier for customers to have CCB and that also proves H3.
Test of mediation
This study uses the step-wise regression of Baron and Kenny (1986) to verify the
mediation effect of OT. From Model 4 of Table 4 we find that the regression coefficient
b of OJ is from 0.21 down to 0.12, but it is significant, showing a partially significant
effect. Therefore, the verified result of H4 is that the trust of customers to retailers is
going to have a partial mediation effect between OJ and CCB.
Conclusions
According to the purpose of our research, research hypotheses and empirical analysis
results, the conclusions are as follows. First, H1 shows the higher the justice evaluation
of customers to retailers, the easier it is for customers to have trust in retailers. Therefore,
before making decisions on any policy, retailers should consider the standpoint of custo-
mers and be concerned with their thoughts and ideas. When setting up any measures it
needs to fit justice principles. Also, if retailers effectively perform systems with justice,
the centripetal force of customers-to-retail will be strengthened and customers will natu-
rally increase the degree of trust to retailers.
Next, H2 shows that the higher the justice evaluation of customers to retailers, the easier
it is for customers to have CCB. Therefore, if retailers keep a fair interpersonal interaction
with customers and fit the justice principles in setting up the policies and their processes,
then customers will develop positive attitudes to retailers and thus add CCB.
Thirdly, H3 shows when customers feel retailers are worth trusting, it is easier to
develop CCB with retailers. Therefore, with a higher trust level of customers to retailers,
customers are relatively more likely to show free-will assistance behaviours to certain
organisations or other tasks and problems that are related to the retailers. Next, when cus-
tomers trust retailers, they will strengthen their centripetal force to retailers. They become
more likely to have behaviours that are over and beyond the basic purchasing requirement
The Service Industries Journal 1929
behaviour to avoid problems happening in the transaction process. Finally, when custo-
mers trust retailers more and more, they will care more about the existing problems, for
example, doing promotions for dealers, understanding the difficulties of dealer’s oper-
ations and actively assisting retailers.
Finally, by mediation effect analysis, this study finds that OT has a partial mediation
effect on the relations between OJ and CCB. From the social exchange theory, we know
that trust is the foundation of the interpersonal interaction relationship. Only with the exist-
ence of trust will customers have free-will performing behaviours. The theory finds a
partial support in our study.
Our research has a number of important theoretical implications. First, many articles are
related to customer-relation issues and most of them depend on practical but not on theor-
etical research. Although, customer relations management is a familiar concept and is
developed as a practical management system, it still needs further observation on
whether it can be a management paradigm or not. This study highlights the behaviour
angle in order to develop related theories and also to provide an example for customer
relations management. Next, from relevant references, the theories and research of scho-
lars, our empirical results were highly supported in statistical analysis and can be referred
to in a later continuous related study. Finally, from the correlation of OJ, OT and CCB, this
study proposes the mediation variable (OT) of OJ and CCB; it has a reference value for
future-related research.
In addition, our research has thus highlighted a number of important lessons for man-
agers to operate within the retail industry. First, modern customers have higher communi-
cation abilities. Dealers have to accept that customers have become their partners for
creating enterprise values. The purpose of this study is to verify the effects of OJ on
CCB. According to empirical results, we find OJ brings CCB forth. How to design a
company system to raise trust and CCB of customers to retailers is going to be a key
task in customer relation management. Next, based on the results of empirical research,
we can effectively increase the trust of customers by modifying the design of company
systems and operation in order to improve CCB. It also has an essential meaning in the
management. Thirdly, dealers need to care about customers’ trust factors; after all, they
have to take an extreme risk in trusting every potential customer. Building a trustworthy
system and helping every customer to trust the organisation is a better policy. Finally, in
order to build loyal customers, enterprises should not only focus on purchasing behaviours
but also simulate other positive customer behaviours. It is also a very important task for
present-day enterprises. Using the research design of Organ’s CCB and attributing custo-
mers’ non-buying behaviours can be the basic references for retailers.
mediation variable is thought to be the basis of OT in this study and we do not have job
satisfaction, organisational commitment and job value factors in our study framework to
compare the correlation effect. Research design: because of time concerns, this study
adopts cross-section research methods and cannot use a time sequence to measure the
effects of OJ, trust and CCB. We can only analyse the feeling of present customers. Con-
venience sampling: bound with the difficulty of getting samples, we adopt convenience
sampling to choose our respondents. So, the research results cannot be inferred as to differ-
ent industrial traits or job characteristics.
Our study also proposes the following suggestions for continuous future research and
for practical reference.
Research target: the study focuses on customers of service retailers in Taiwan and the
conclusion is suitable for other industrial customers. Therefore, we suggest that follow-up
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research extend research targets to other industrial customers in order to stretch research-
deductive boundaries.
Leading into other variables: In addition to OJ and trust, there are some other related
factors such as organisational commitments and psychology contracts that are waiting to
be associated with CCB. Due to the limitations on data collection, this study cannot
analyse all variables. Therefore, we suggest future researchers bring in other related vari-
ables in order to strengthen the deductive foundation.
Data collection: we used a questionnaire to collect data; however, it may not be the
most appropriate way for customer behaviour research. But by considering many man-
power and environment limitations, we take the compromised position. Therefore, we
suggest future researchers use the matching method to get the necessary data if there is
an allowance of surrounding factors. For our study, by adopting the method of self-report-
ing, our data are collected from only one source and the bias from the inflation effect prob-
ably cannot be prevented. For this reason, we suggest continuous research to collect data
from multi-resources, for example, the evaluation of service retailers, in order to collect
more factual and clinical data.
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1. I think the merchant in regard to the various requests of customers is very fair.
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Procedural justice
Interactive justice
Organisational trust
Conscientiousness
Courtesy
Civic virtue
1. When I appreciate a business practice, I can voluntarily advertise for the merchant.
2. I will read notices and collect businesses posters, leaflets and other documents.
3. I will try to maintain a clean store environment.
4. I can coordinate the government’s environmental protection measures, such as the implemen-
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