Impact of service quality on satisfaction and loyalty at manufacturer-distributor dyad

2019 ◽  
Vol 16 (1) ◽  
pp. 91-122 ◽  
Author(s):  
Surjit Kumar Gandhi ◽  
Anish Sachdeva ◽  
Ajay Gupta

PurposeThe purpose of this paper is to investigate the role played by service quality (SQ) in manufacturer–distributor working partnerships in the context of Indian small and medium enterprises (SMEs), and present two models which propose and validate that contributions toward SQ, made by both the manufacturing unit and distribution firm lead to satisfaction which consequently results in business-to-business (B2B) loyalty.Design/methodology/approachThe research design for this study includes a combination of literature review, exploratory interviews with a focus group and a questionnaire survey conducted through interview schedule from 101 information rich and willing respondents working in SMEs of northern India.FindingsThe paper brings out scales foe measuring organizational (internal) and distributor (external) SQ. Further, two models using structural equation modeling are developed. Model-I examines the effect of organizational SQ on distributor SQ. Model-II examines the impact of distributor SQ on satisfaction and loyalty and also tests a set of four propositions related to their working relationship. The models are empirically tested and are found to be fit.Research limitations/implicationsFuture researchers may validate these scales, and empirically test the proposed models in alternate settings. Insights derived from this study may be transferred to other partnerships, which may exist in a manufacturing supply chain including suppliers, employees, retailers and end consumers.Practical implicationsThis study would be of interest to SME practitioners interested in improving SQ with their distributors. The study also finds support for strengthening collaborative relationships with B2B partners to achieve a win-win situation.Originality/valueThere are very few empirical studies that measure SQ w.r.t. distribution function in SMEs and the concept is in nascent stage, especially in Indian setting.

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Vibhuti Mittal ◽  
T.V. Raman

PurposeAccessing formal mainstream finance is a cumbersome process for Micro, Small and Medium Enterprises (MSMEs) of emerging economies. Empirical investigations have connected finance accessibility to financing gap that restricts MSMEs from borrowing through formal channels. The purpose of this study is to explore the influence of financing gap on firms' financial structure (FS) practices. In this regard, the research framework divides financing gap into four dimensions, namely: demand gap (DG), supply gap (SG), knowledge gap (KG) and empathy gap (EG).Design/methodology/approachThe paper adopts a quantitative approach to establish the underlying relationship between the variables. The participants of the self-structured questionnaire survey were 219 MSME owners from manufacturing, trading and service industries. The results are inferred through the partial least squares structural equation modeling (SEM) technique.FindingsThe findings recognise a significant impact of financing gap on the FS practices of firm owners. The financing constraints contributing to KG, SG and EG are found to be extending the unwillingness of firm owners to borrow through formal channels. Further, the results also confirm the influence of financing gap on the pecking order framework (POF) of MSMEs' FS.Practical implicationsThe study offers the perspective and hesitance of MSME owners towards mainstream financing. The key findings are useful for the financial intermediaries and policymakers, who need to be sensitive and proactive in their small business lending process.Originality/valueThe study adds to the limited evidence of various dimensions of financing gap. It also addresses the role of financing gap on the conscious preferences of MSME owners towards the informal source of financing along with the POF.


2016 ◽  
Vol 45 (3) ◽  
pp. 505-522 ◽  
Author(s):  
Isabella Meneghel ◽  
Isabel M. Martínez ◽  
Marisa Salanova

Purpose – It is increasingly important for organizations to respond effectively and promote positive outcomes under adverse and unstable conditions. Resilience is salient because reflects the dynamic process that enables successful results under stressful conditions. The purpose of this paper is to investigate the potential role of team resilience as the psychological mechanism that explains how job demands and job social resources are related to and enhance team performance. Design/methodology/approach – Self-reported questionnaires were distributed to 1,633 employees, nested in 275 teams from 52 Spanish small and medium enterprises. Aggregated scores were employed for a team-level structural equation modeling analysis. Findings – Results support a partial mediation model in which job social resources affect team resilience, and in turn impact team performance. No significant effects were found for job demands affecting team resilience. However, the demands×resources interaction influences team resilience, and thus the impact of resources on team resilience was attenuated by demands. In the same way, the demands×resources interaction influences team performance. Research limitations/implications – Job social resources are related to team performance, but team resilience is a significant mediator. Further research should investigate the effects of different job demands on team resilience. Practical implications – The results suggest that managers should focus on developing job social resources to augment team resilience and team performance. Originality/value – Managers could benefit from understanding how team resilience could be developed, given that team resilience aids to achieve positive team outcomes.


2020 ◽  
Vol 35 (7) ◽  
pp. 1237-1249
Author(s):  
Stefania A.B. Queiroz ◽  
Glauco H.S. Mendes ◽  
Jorge H.O. Silva ◽  
Gilberto M.D. Ganga ◽  
Paulo A. Cauchick Miguel ◽  
...  

Purpose This study aims to examine the impact of the servitization on the performance of small and medium enterprises (SMEs) in Brazil. Design/methodology/approach The study uses data from Brazilian SMEs and applies partial least squares structural equation modeling (PLS-SEM) to test the research hypotheses. Findings The findings suggest a positive relationship between servitization and SME performance. It is found that the strategy of offering base services does impact SME performance. Furthermore, servitization aims to promote a fit between environmental pressures and SME performance. Practical implications SMEs can use servitization to increase their performance in spite of their resources restrictions, size limitation and low level of service revenue. However, the adoption of servitization should be accompanied by managerial adjustments in servitization practices. Originality/value This paper is dedicated to investigating the servitization-performance relationship in the context of SMEs, which is not a usual research publication. Moreover, it adds to the servitization theory by demonstrating that it is not necessary to reach a critical mass of services to be profitable and base services may be also a source of revenues and profits.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kyuho Lee ◽  
Stella Kladou ◽  
Ahmet Usakli ◽  
Yunxia Shi

PurposeThe purpose of this study is to explore the impact of service quality on the formation of destination brand equity through customer satisfaction at a winery, from the perspective of Chinese wine tourists.Design/methodology/approachThis study utilized a survey research design. A convenience sample of 311 visitors to a major winery located in Yantai, China, was surveyed, and 265 useable questionnaires were analyzed. To analyze the data, the study used partial least squares structural equation modeling (PLS-SEM).FindingsThe results of the study reveal that service quality at a winery is a significant determinant of winery satisfaction among Chinese wine tourists, which in turn affects the brand equity of a wine tourism destination.Research limitations/implicationsThis study contributes to the growing body of literature focusing on identity-based branding in the context of wine tourism. As such, this study brings together knowledge of a place branding dimension (i.e. destination brand equity), satisfaction and tourism experience at a winery.Practical implicationsThe results suggest that the road to favorable assessments of a wine destination brand (macro level) go through a satisfying experience at a winery (micro level). Therefore, the need to co-create the wine experience through various stakeholders' involvement is crucial for the success of wine tourism.Originality/valueExtant wine studies often highlight western wine tourists' behavior and examine central behavioral constructs such as winery service quality and satisfaction. This study extends previous research by: (1) investigating the issue from Chinese wine tourists' perspective and (2) integrating the destination brand equity of a wine region to current investigations that commonly focus on the service quality of a winery and wine tourists' satisfaction.


Author(s):  
Alireza Jalali ◽  
Mastura Jaafar ◽  
T. Ramayah

Purpose This study aims to explore the direct and indirect effects of organizational stakeholder’s relationship on performance through innovativeness and risk-taking among small and medium enterprises (SMEs). Design/methodology/approach This study used the cluster sampling method to select the study sample and the questionnaire survey approach to 580 SMEs established in Tehran. A total of 150 completed questionnaires were returned. Partial least squares-structural equation modeling was administered to analyze data via the SmartPLS 3.0 software. Findings The survey outcomes revealed that organization-stakeholder relationship had an indirect effect on performance through innovativeness and risk-taking. The results indicated positive links for organization-stakeholder relationship and innovativeness, as well as the organization-stakeholder relationship to risk-taking. Practical implications This research is beneficial for entrepreneurs who wish to learn about the specific resources significant for venture growth, to devise effective strategies to expand their relationship with stakeholders and to consider the significance of the correlations established, in this study, through innovativeness and risk-taking. Originality/value This research is one of the few attempts that have addressed the importance of innovativeness and risk-taking as the key mechanisms to transform the advantages of organization-stakeholder relationships to enhance performance.


Author(s):  
MARTINUS ROBERT HUTAURUK ◽  
SITI ROHMAH

        The development of information technology which is the impact to development revolution of industrial 4th makes every activity inseparable from network usage with entrepreneurs in the Micro, Small and Medium Enterprises (UMKM) group, who also must be albe to capture the business opportunity.        The purpose of this study is to confirm the role of Zahir POSX software on business management in the UMKM group in Samarinda city. This research was conducted on 275 populations in the UMKM group located in Samarinda City, especially in the area around Mulawarman University and University of Widya Gama Mahakam Samarinda, and by using the Slovin method with a 5% error rate, 163 respondents were taken as sample. Test on validity and reliability have been darried out with good results on the items received agin before further analysis.      This study was conducted in order to predict the role of Zahir POSX software on business Management and used the Structural Equation Modeling (SEM) wih multiple groups through Smart PLS Version 3.2.8 software.     The results of this study found that on use Zahir POSX software had a positive and significant impact on UMKM group in Samarinda. Entrepreneurs will be easier in controloing their business, even using paper less media. The results also show that through modern accounting software, it will increasingly make business management more effective and efficient


2019 ◽  
Vol 11 (1) ◽  
pp. 27-53 ◽  
Author(s):  
Muhammad Ikram ◽  
Robert Sroufe ◽  
Muhammad Mohsin ◽  
Yasir Ahmed Solangi ◽  
Syed Zulfiqar Ali Shah ◽  
...  

Purpose This study aims to examine whether corporate social responsibility (CSR) activities influence firm performance based on a longitudinal survey for small and medium-sized enterprises (SMEs) in Pakistan. Empirical studies suggest that the SME sector plays an essential role in the economic development of Pakistan and can be considered the backbone of the economy. Design/methodology/approach The data for this study were collected from SMEs located in the cities of Karachi, Lahore and Faisalabad in Pakistan. A well-designed questionnaire was administrated over 240 entrepreneurs to analyze and measure the impact of CSR on financial performance for a 12-month period. The authors used econometric analysis of the data using structural equation modeling. Findings Results reveal significant relationships between CSR and two determinants of firm performance, namely, employee commitment and corporate reputation. Research limitations/implications Findings of the study are important for policymakers, entrepreneurs and other professionals in SMEs sectors both in under-developed and, with further application and exploration, in developing countries. Originality/value There is no single longitudinal study prior to this has been carried out on the relationships of CSR and firm performance in the SME sector in the context of the Pakistani economy. Hence, this study significantly fills an important gap in the research.


2020 ◽  
Vol 34 (1) ◽  
pp. 13-28 ◽  
Author(s):  
Ruth Annette Smith ◽  
Andrea White-McNeil ◽  
Faizan Ali

Purpose The purpose of this paper is to determine the students’ perceptions of an on-campus foodservice operation at an identified historically black college and university (HBCU) and its effect on their satisfaction and dining frequency. Design/methodology/approach A survey of 685 students was conducted to collect data. Partial least squares based structural equation modeling is used to test the proposed structural model with SmartPLS 3.0. Findings Results confirm that quality of food, ambience, value for money, food and beverage options and service quality have a positively significant impact on students’ overall satisfaction with the on-campus foodservice operation and dining frequency. As such, all the hypotheses are supported. Research limitations/implications These findings indicate that on-campus foodservice operators should focus on quality of food, ambience, value for money, food and beverage options and service quality to achieve student satisfaction. This in turn could positively impact the institution’s reputation, student retention and the marketability of the institution to future students. Originality/value This study would help on-campus foodservice operators to better understand the impact of the various elements of foodservice experience which will lead to students’ overall satisfaction and dining frequency, particularly in a HBCU setting.


2018 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Qaisar Iqbal ◽  
Noor Hazlina Ahmad ◽  
Basheer Ahmad

PurposeThis paper aims to provide empirical evidence of the associations between perceived job characteristics and workplace spirituality with environmental sustainability within the domain of small- and medium-sized enterprises. This study aims to investigate the influence of perceived job characteristics (job identity, task significance and task variety) on environmental sustainability through workplace spirituality.Design/methodology/approachData are collected from 400 small and medium enterprises (SME) employees working in New Delhi, India, and Islamabad, Pakistan. Response rate in this study is 58 per cent. Structural equation modeling has been used to analyze the data through SmartPLS 3.0 and SPSS version 24.FindingsThe results indicate that perceived job characteristics have significant positive influence over workplace spirituality. It is concluded that workplace spirituality also significantly mediates the relationship between perceived job characteristics and environmental sustainability.Research limitations/implicationsIn the present study, perceived job characteristics have been evaluated to improve environmental sustainability in SMEs from Pakistan and India. Therefore, before generalization in the context of other countries can be made, the results obtained may need some modifications.Practical implicationsThe research concerns the understanding of various job characteristics and environmental sustainability from the viewpoint of employees in SMEs at imparting perceived job characteristics as important factors to meet challenges relevant to environmental sustainability in the dynamic market.Social implicationsThere is anecdotal evidence claiming the pivotal role of job characteristics and workplace spirituality toward the recognition of sustainability in the progressive dynamic market. The results of this study represent the effectiveness of perceived job characteristics for accomplishing social objectives through workplace spirituality.Originality/valueThis study contributes to the field by bringing together the concepts of workplace spirituality with perceived job characteristics and environmental sustainability in the context of Pakistani and Indian SMEs.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Peerayuth Charoensukmongkol

Purpose This paper examines the effect of improvisational behavior of entrepreneurs on firm performance of small and medium enterprises (SMEs) in Thailand during the economic crisis following the COVID-19 pandemic. The study also explores external factors in terms of competitive intensity and internal factors in terms of financial and human resources possessed by firms that could enhance the impact of improvisational behavior on firm performance. Design/methodology/approach A self-administered online questionnaire survey was used to collect the data from the random sample of 312 SMEs in Thailand. Partial least squares structural equation modeling was used to analyze the data. Findings The analysis supports the positive relationship between the improvisational behavior of entrepreneurs and firm performance. Moreover, the moderating effect analysis shows that the positive impact of improvisational behavior on firm performance tends to be stronger for firms that encountered a higher level of competitive intensity and for firms that possessed a higher level of financial and human resources. Originality/value This research extends the knowledge from prior research by confirming some moderating factors that could strengthen the benefit of improvisational behavior during the crisis.


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