Search Conferences

Type in any word, words or author name. This searchs through the abstract title, keywords and abstract text and authors. You may search all conferences or just select one conference.


 All Conferences
 EMAC 2019 Annual Conference
 EMAC 2020 Annual Conference
 EMAC 2020 Regional Conference
 EMAC 2021 Annual Conference

EMAC 2021 Annual Conference


Wage Inequality and Firm Performance: Is Customer Satisfaction the Missing Link?
(A2021-93926)

Published: May 25, 2021

AUTHORS

Boas Bamberger, University of Mannheim; Dominik Wielgos, University of Mannheim

ABSTRACT

This article addresses the impact of wage inequality between top managers and their employees from a marketing perspective. Surprisingly, marketing scholars and practitioners largely neglected this pressing societal issue. We collect a cross-industry, multisource data set, including responses by top-level managers and objective data on wage inequality and firm performance from 106 B2B firms (Study 1). Also, we analyze longitudinal panel data covering 521 firm-year observations for B2C firms (Study 2). Results reveal that wage inequality harms customer satisfaction. Specifically, results show that this link is mediated by customer-directed opportunism and customer-oriented culture but not customer-directed effort. Moreover, the findings show that wage inequality hurts firm profitability through customer satisfaction. Whereas a positive direct effect of wage inequality on short-term profitability vanishes in the long run, the negative effect through customer satisfaction persists.