An explanatory and predictive PLS-SEM approach to the relationship between organizational culture,organizational performance and customer loyalty: The case of health clubs

Abstract

Purpose

This study aims to analyze the impact and predictive capacity of organizational culture on both customer loyalty and organizational performance in health clubs using data from managers and customers of health clubs in Spain. Design/methodology/approach

A total of 101 managers were asked to measure organizational culture and organizational performance and 2,931 customers were asked to indicate their customer loyalty. The proposed hypotheses were tested and their predictability assessed through PLS-SEM. A composite concept was adopted to analyze the relationships between the different constructs and their indicators. Findings

The findings suggest that organizational culture has a positive relationship with both customer loyalty and organizational performance. The four main dimensions of organizational culture that influence this relationship are, in order of significance, organizational presence, formalization, atmosphere and service-equipment. The authors’ model has a very good predictive power for both dependent variables. Originality/value

Customer loyalty is an aspect of health clubs that can be improved. This study highlights the importance of creating a strong organizational culture in health clubs, as it enhances and predicts customer loyalty and organizational performance. Its predictability has already been tested with samples of managers and customers, with the analysis being performed from the perspective of the organization’s management and customer perceptions. This study also contributes to the field of sport management, using a predictive PLS-SEM technique