The Impact of Corporate Reputation on Job Satisfaction and Financial Performance: A Study of Small and Medium Sized Enterprises in Hebei, China

Abstract

The objective of this study is to determine the effects of corporate reputation on employees' job satisfaction and firm's financial performance. A questionnaire survey using middle- level managers of randomly selected small and medium sized enterprises in Hebei, China was conducted in 2013. The partial least squares structural equation modeling approach was used to analyze the data of 309 samples. The results do not support the positive relationship between corporate reputation and financial performance. However, the positive relationship between corporate reputation and job satisfaction is supported. In addition, the results also provide evidence of the indirect effect of corporate reputation on financial performance via job satisfaction. Therefore, we draw the conclusion that job satisfaction plays an important role in the relationship between corporate reputation and financial performance of small and medium sized enterprises in Hebei, China.