Five hypotheses were proposed to examine the direct and
indirect impact of customer satisfaction and employee satisfaction
on financial performance, the direct relationships between
employee satisfaction and customer satisfaction and the mediating
effect of customer satisfaction on the indirect relationship
between employee satisfaction and financial performance. The
first hypothesis proposed a significant direct relationship between
customer satisfaction and financial performance. This hypothesis
was supported (completely standardized b = .24; t-value = 6.30).
The second hypothesis, which proposed that there is no significant
direct relationship between employee satisfaction and
financial performance, was also supported (completely standardized
b = .09; t-value = 1.80). The third hypothesis that proposed
a significant indirect positive relationship between employee
satisfaction and financial performance was also supported
(completely standardized indirect b = .08; t-value = 4.40). The fifth
hypothesis that proposed a direct positive relationship between
customer satisfaction and employee satisfaction (completely
standardized b = .34; t-value = 5.93) was also supported.