Customer empowerment and firms’ performance

2018 ◽  
Vol 36 (2) ◽  
pp. 336-356 ◽  
Author(s):  
Sarra Berraies ◽  
Manel Hamouda
Keyword(s):  
Customer Satisfaction ◽  
Financial Performance ◽  
Structural Equation ◽  
Business Performance ◽  
Positive Impact ◽  
Equation Modeling ◽  
Content Type ◽  
Customer Empowerment ◽  
Mediating Variables ◽  
Exploratory Innovation

Purpose The purpose of this paper is to examine the effect of customer empowerment (CE) on financial performance and the role of innovation and customer satisfaction as mediating variables in this relationship. Design/methodology/approach To empirically test the conceptual model and research hypotheses, data were collected through a survey from 216 branches of 14 commercial banks in Tunisia. Results were analyzed using exploratory factor analysis and structural equation modeling. Findings The results indicate a significant and a positive impact of CE on firms’ financial performance. Customer satisfaction, exploitative innovation and exploratory innovation mediate the relationship between CE and firms’ financial performance. Practical implications These findings provide useful insights for practitioners, particularly bank managers who can improve their financial performance, customer satisfaction and innovation by empowering their customers and integrating them in the products and/or services conception process. Conclusions emphasize practices to be encouraged within banks such as services customization which are acquired by customers themselves, the expression of opinions, customers’ needs and the interaction among bank customers. Originality/value Several studies in the literature have studied the CE and its impact on business performance. However, few research studies have focused on the variables that mediate this relationship. So far, this paper not only integrates mediating variables such as customer satisfaction and innovation to study the link CE-firm performance but also makes the distinction between exploitative and exploratory innovation which is seldom made by researchers.

scholarly journals Measuring dimensions of perceived business success among Malaysian and Bangladeshi SME owners

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Shehnaz Tehseen ◽  
Fatema Johara ◽  
Hussam Al Halbusi ◽  
Md Asadul Islam ◽  
Fadi Abdel Muniem Abdel Fattah
Keyword(s):  
Financial Performance ◽  
Structural Equation ◽  
Business Performance ◽  
Structural Model ◽  
Business Owners ◽  
Equation Modeling ◽  
Business Success ◽  
Retail Sector ◽  
Business Growth ◽  
Content Type

PurposeThe purpose of this study is to examine the perceptions of Malaysian and Bangladeshi retail small- and medium-sized enterprise (SME) business owners on the key elements of business growth.Design/methodology/approachThe construct measurements have all been taken from previous researches. The data were gathered from retail SMEs in Malaysia and Bangladesh in order to evaluate entrepreneurs' perception towards the essential elements of a business performance. Structural equation modeling (SEM) with PLS-technique, specifically Smart-PLS Version 3.2.4, was used to accomplish the study's objectives and analyze the measurements, as well as the structural model.FindingsAccording to the findings, Malaysian and Bangladeshi SMEs have different perspectives toward the dimensions of their business performance. For example, Malaysian retail SME owners consider business growth and financial results to be the most important aspects of their success. Retailers consider financial performance to be less critical than non-financial performance when it comes to their business's success. Owners of Bangladeshi retail SMEs, on the other hand, see efficiency relative to competition, and that non-financial performance is the key component to achieving business success. In the sense of Bangladeshi SMEs, market development and financial results are seen as less significant in attaining success.Research limitations/implicationsSince this research was only conducted in Malaysia and Bangladesh, it did not cover a large number of countries. The sample size was limited; therefore, the findings of this study cannot be applied to the entire population of Malaysian and Bangladeshi retail SMEs due to the non-probability sampling technique.Practical implicationsThe findings of this study show that entrepreneurs or business owners in the retail sector in Malaysian and Bangladeshi SMEs view the attributes of their business performance differently.Originality/valueThis study adds to the rising context of entrepreneurship by examining SME owners' perception of main business performance dimensions in the scope of Asian retail SMEs.

Personnel capability and customer satisfaction as predictors of customer retention in the banking sector

2018 ◽  
Vol 36 (4) ◽  
pp. 663-679 ◽  
Author(s):  
Mushtaq Ahmad Darzi ◽  
Suhail Ahmad Bhat
Keyword(s):  
Customer Satisfaction ◽  
Structural Equation ◽  
Banking Sector ◽  
Positive Impact ◽  
Control Variable ◽  
Customer Retention ◽  
Equation Modeling ◽  
Private Bank ◽  
Content Type ◽  
The Relationship

Purpose The purpose of this paper is to report the findings of a study undertaken to understand customer satisfaction and customer retention in business-to-consumer markets. The study investigates the effect of personnel capability and customer satisfaction on customer retention in the banking sector. The influence of the control variable (gender) on customer retention and mediating role of customer satisfaction has also been examined. Design/methodology/approach The study has used structural equation modeling (SEM) for data analysis across a sample of 409 bank customers of a private bank operating in Jammu and Kashmir state of India. Questionnaires were distributed and respondents were selected through a cluster sampling technique. Findings The empirical analysis through SEM has confirmed that personnel capability and customer satisfaction have a significant positive impact on customer retention. Customer satisfaction partially mediates the effect of personnel capability on customer retention. Moderation analysis was performed and established that gender moderates the effect of personnel capability on customer satisfaction. It was also found that gender has no effect on other relations. Furthermore, the study shows that personnel capability has a stronger impact on customer retention as compared to customer satisfaction. However, the relationship between personnel capability and customer satisfaction is significant. Research limitations/implications The study has been conducted on the customers of a private bank in India. Therefore, generalizations may be limited. As personnel capability is the predictor of satisfaction and retention, individuals with proper social and technical skills – in addition to other skills – should be hired for managing relationships with customers. Originality/value The study has added to the understanding of the relationship which exists among the following variables: gender, personnel capability, customer satisfaction and customer retention. These variables have not been studied together previously.

Integrated sustainable supply chain management and firm performance in the Indian textile industry

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Shashi K. Shahi ◽  
Atul Shiva ◽  
Mohamed Dia
Keyword(s):  
Firm Performance ◽  
Textile Industry ◽  
Structural Equation ◽  
Business Performance ◽  
Positive Impact ◽  
Equation Modeling ◽  
Demand Side ◽  
Sustainable Supply Chain ◽  
Content Type ◽  
Sustainability Initiatives

PurposeThis research study explores the adoption of integrated sustainable SCM practices in the textile industry in India and its impact on the firm's business performance.Design/methodology/approachThe analysis was carried out using the partial least squares structural equation modeling using SmartPLS 3.3.2.FindingsIt was found that the demand-side sustainability initiatives of the large firms and the internal sustainability practices of the small firms directly impacted their business performance. It was also found that the suppliers' sustainability initiatives had a direct and positive impact on the internal sustainability of the firm, which in turn had a direct and positive impact on the demand-side sustainability in the Indian textile industry.Originality/valueThe findings emphasize the distinctive role of each dimension of the integrated sustainable SCM on the firm performance in the Indian textile industry.

The impacts of sustainable inter-firm collaboration on business performance of shipping companies

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Thi Minh Trang Tran ◽  
Su-Han Woo ◽  
Kum Fai Yuen
Keyword(s):  
Financial Performance ◽  
Structural Equation ◽  
Business Performance ◽  
Equation Modeling ◽  
Content Type ◽  
External Resources ◽  
Internal Resources ◽  
Structural Bonding ◽  
Proposed Model ◽  
External Relationships

PurposeTo gain competitive advantage, shipping companies need the abilities to manage environmental requirements, which this study refers to as sustainable shipping capabilities, including internal resources and external factors such as inter-firm collaboration. However, previous studies mainly focused on the effectiveness of internal resources, leading decision-makers in shipping companies to undervalue the significance of external relationships in managing sustainability issues and their impact on performance. Therefore, this paper aims to identify and examine the impacts of sustainable inter-firm collaboration on shipping companies' business performance (i.e. shippers' loyalty and financial performance).Design/methodology/approachA proposed model that explains the relationships between relation bonding strategies, sustainable inter-firm collaboration and business performance was developed. Accordingly, a survey questionnaire was constructed and sent to 294 shipping companies in Vietnam. Structural equation modeling was deployed to examine the validity of the measurement items and investigate relationships among the latent constructs.FindingsThe findings show that financial bonding strategies have the most significant impact on sustainable inter-firm collaboration, followed by social bonding strategies and structural bonding strategies. Furthermore, sustainable inter-firm collaboration has direct and indirect (via perceived shippers' loyalty) effects on business performance.Research limitations/implicationsRelational bonding strategies provide a unique perspective to sustainable inter-firm collaboration. This study also contributes to allocate external resources and capabilities to improve inter-firm collaboration, thereby maximizing financial performance.Originality/valueThis paper contributes to the literature by applying relational bonding strategies that determine the key factors enabling sustainable inter-firm collaboration.

Determinants of customer satisfaction in chatbot use: evidence from a banking application in Turkey

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Berrin Arzu Eren
Keyword(s):  
Customer Satisfaction ◽  
Structural Equation ◽  
Positive Impact ◽  
Sampling Technique ◽  
Target Population ◽  
Equation Modeling ◽  
Content Type ◽  
Customer Expectations ◽  
Perceived Trust ◽  
Perceived Performance

PurposeThis study aims to investigates customer satisfaction from the use of bank chatbots and the effect of perceived trust in chatbots and banks' reputation on customer satisfaction.Design/methodology/approachA survey is conducted in Turkey involving 240 customers who experienced banking transactions using a chatbot. Partial least squares structural equation modeling (PLS-SEM) is used to investigate the relationships between the variables. The data were analyzed using SPSS 21 and SmartPLS programs.FindingsPerceived performance, perceived trust and corporate reputation significantly affect customer satisfaction with chatbot use. Customer expectations and confirmation of customer expectations have no direct impact on customer satisfaction, but customer expectations positively affect perceived performance. Customer expectations exert an indirect influence on customer satisfaction through perceived performance. Perceived performance has a positive impact on the confirmation of customer expectations, but customer expectations do not significantly impact the confirmation of customer expectations.Research limitations/implicationsThis study relies on a limited number of participants. Moreover, its sample is not representative of the target population due to the convenience sampling technique. Even if the results may not be generalized to the entire population of Turkey, they reflect the reality of emerging markets with relatively high technology sensitivity and a young population.Practical implicationsThe results provide new insights regarding banking service delivery channels, which may be of interest to professionals, academics, banks' top management, product development teams, design teams and customer satisfaction units.Social implicationsThis study is believed to help the community make their lives easier by providing them with knowledge and awareness about chatbots.Originality/valueThis study extends expectations confirmation theory's predictions to chatbot use in banking.

Examination of customer-centric measures among different types of customers in the context of major Canadian ski resort

2018 ◽  
Vol 30 (2) ◽  
pp. 438-459
Author(s):  
Matti J. Haverila ◽  
Kai Christian Haverila
Keyword(s):  
Customer Satisfaction ◽  
Structural Equation ◽  
A Priori ◽  
Equation Modeling ◽  
Marketing Practice ◽  
Content Type ◽  
Ski Resort ◽  
Different Types ◽  
Managerial Implications ◽  
Satisfaction Model

Purpose Customer-centric measures such as customer satisfaction and repurchase intent are important indicators of performance. The purpose of this paper is to examine what is the strength and significance of the path coefficients in a customer satisfaction model consisting of various customer-centric measures for different types of ski resort customer (i.e. day, weekend and ski holiday visitors as well as season pass holders) in a ski resort in Canada. Design/methodology/approach The results were analyzed using the partial least squares structural equation modeling approach for the four different types ski resort visitors. Findings There appeared to differences in the strength and significance in the customer satisfaction model relationships for the four types of ski resort visitors indicating that the a priori managerial classification of the ski resort visitors is warranted. Originality/value The research pinpoints differences in the strength and significance in the relationships between customer-centric measures for four different types ski resort visitors, i.e. day, weekend and ski holiday visitors as well as season pass holders, which have significant managerial implications for the marketing practice of the ski resort.

Supply chain practices and organizational performance

2017 ◽  
Vol 28 (1) ◽  
pp. 75-101 ◽  
Author(s):  
Shrikant Gorane ◽  
Ravi Kant
Keyword(s):  
Supply Chain ◽  
Customer Satisfaction ◽  
Financial Performance ◽  
Organizational Performance ◽  
Customer Value ◽  
Structural Equation ◽  
Decision Makers ◽  
Current Status ◽  
Content Type ◽  
Manufacturing Organizations

Purpose The purpose of this paper is to empirically test a framework which identifies the relationships between various supply chain practices (SCPs) and organizational performance (operational performance (OP), customer satisfaction, and financial performance) in the context of Indian manufacturing organizations. Design/methodology/approach From the literature, ten SCPs are selected which finally influences the organizational performance. In order to understand the interactions between SCPs and organizational performance, this paper grouped the ten SCPs into four constructs namely: information and communication technology, supply chain (SC) integration, operational responsiveness, and closed loop green practices. Three levels of firm performance are also examined, including OP, customer satisfaction, and financial performance. The paper-based and web-based survey yielded 292 responses from the Indian manufacturing organizations. The data collected were put through rigorous statistical analysis to test for the content, construct, and criterion-related validity, as well as reliability analyses. Further a structural equation model was developed to test the relationships between SCPs and organizational performance. Findings The finding suggests that a successful SCPs implementation not only improves the OP, but also enhances customer satisfaction and financial performance. In addition, higher financial performance is also attributable to better customer value resulting from the achievement of better customer satisfaction. Research limitations/implications SCPs are complex constructs. While this study shows the effect of broadly accepted SCPs on organizational performance, not all possible practices are covered in this study. Again the study can be further extended to sector specific so that the results can be further refined. Practical implications This is one of the few studies which attempts to investigate whether there is any relationship exits between SCPs and organizational performance. The finding will help decision makers in the organization to know the importance of SCPs and how SCPs influence the organizational performance. Second, this study has developed and validated a multi-dimensional construct of SCPs, which can assist decision makers of Indian organizations to evaluate the competence of their current status of SCPs in the organization. Originality/value As per the knowledge of the authors, this is the first kind of study which empirically investigated the relationships between SCPs and organizational performance in the context of Indian manufacturing organizations.

Does employee willingness to take risks affect customer loyalty? A moderated mediation examination of innovative behaviors and decentralization

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mohd Ahmad Al-Hawari ◽  
Shaker Bani-Melhem ◽  
Faridahwati Mohd. Shamsudin
Keyword(s):  
Personality Traits ◽  
Customer Loyalty ◽  
Structural Equation ◽  
Positive Impact ◽  
Equation Modeling ◽  
Frontline Employees ◽  
Content Type ◽  
Mediating Role ◽  
Hotel Managers ◽  
Innovative Behaviors

Purpose This study aims to build on the trait activation and interactionist perspective theories to investigate the effect of frontline employees’ (FLEs) willingness to take risks on hotel guest loyalty by assessing the mediating role of their innovative behaviors. It also examines whether decentralization strengthens the positive impact of willingness to take risks on innovative behavior and, subsequently, customer loyalty. Design/methodology/approach The authors collected multilevel data from various sources – hotel FLEs (n = 183), hotel operation managers (n = 46) and hotel guests/customers (n = 266) – from five-star hotels operating in Dubai. Structural equation modeling and PROCESS macro (version 3.5) were used to analyze the data. Findings The findings showed that willingness to take risks indirectly (via innovative behaviors) affects guest/customer loyalty positively. This effect is strengthened when the hotel is decentralized. Practical implications This study provides insight into how hotel managers can foster customer loyalty. More specifically, they can do so by establishing employees’ innovative behaviors triggered by employees’ positive personality traits and by giving employees more autonomy. Originality/value The present study addresses recent calls to investigate the positive impact of FLEs’ personality traits, attitudes and behaviors on customer loyalty.

“Actions speak louder than words”: an impact of service recovery antecedents on customer delight in quick-service restaurants

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Durgesh Agnihotri ◽  
Kushagra Kulshreshtha ◽  
Vikas Tripathi ◽  
Pallavi Chaturvedi
Keyword(s):  
Social Media ◽  
Customer Satisfaction ◽  
Structural Equation ◽  
Service Recovery ◽  
Equation Modeling ◽  
Role Clarity ◽  
Content Type ◽  
Customer Delight ◽  
Quick Service ◽  
The Impact

PurposeThe purpose of this study is to conceptualize and analyze a framework that provides greater understanding toward the impact of service recovery antecedents such as role clarity, customer service orientation, employee empowerment and employee relational behavior on customer satisfaction and customer delight in the context of quick-service restaurants (QSRs).Design/methodology/approachA self-administered questionnaire was distributed to 408 participants who had experienced service recovery efforts by leading QSRs on social media. The current paper draws upon the prevailing literature to test a series of research hypotheses through structural equation modeling.FindingsThe findings of the study have confirmed that antecedents of service recovery are good to describe customer satisfaction and customer delight in the setting of QSRs. Besides, the study provides an understanding on how monetary compensation moderates the relationship between customer delight and customer satisfaction.Practical implicationsThis study carries an understanding on how frontline employees must operate in a non-conventional and innovative way to resolve customers' issues and show commitment with truthfulness to provide excellent services to make customers feel delightful.Originality/valueThis is a unique study to understand the role of service recovery antecedents to describe customer satisfaction and customer delight in the social media environment. In addition, the results support the possibilities of implementing prompt service recovery efforts using social media.

Dependence, trust, and 3PL integration: an empirical study in China

2017 ◽  
Vol 47 (9) ◽  
pp. 927-948 ◽  
Author(s):  
Baofeng Huo ◽  
Chen Liu ◽  
Haozhe Chen ◽  
Xiande Zhao
Keyword(s):  
Financial Performance ◽  
Information Sharing ◽  
Structural Equation ◽  
Mainland China ◽  
Performance Model ◽  
Equation Modeling ◽  
Content Type ◽  
Key Dimensions ◽  
Process Coordination ◽  
The Relationship

Purpose The purpose of this paper is to investigate relationships among dependence, trust, and integration in the Chinese 3PL context. 3PL integration is manifested in two key dimensions: information sharing and process coordination. Design/methodology/approach This study develops a dependence-trust-3PL integration-performance model and tests it using structural equation modeling with survey data collected from 361 companies in the Greater China area (i.e. mainland China, Hong Kong, and Taiwan). Findings The results show that switch dependence is indirectly related to information sharing and process coordination through goodwill trust, while goal dependence has direct links with both integrative behaviors. The authors also found that only goodwill trust mediates the relationship between dependence and integrative behaviors, while ability trust does not mediate any relationships. Finally, the analysis validated the direct link between process coordination and financial performance, but did not find a significant link between information sharing and financial performance. Originality/value Different from most previous studies on similar topics, this study examines the impacts of different types of dependence and trust on different 3PL integration dimensions. As a result, the findings are more specific and have direct relevance to effective 3PL relationship management in China.

Sign in / Sign up

Export Citation Format

Share Document