Impact of customer orientation on word-of-mouth and cross-buying

2019 ◽  
Vol 37 (1) ◽  
pp. 97-110 ◽  
Author(s):  
Kaushik Mukerjee ◽  
Ateeque Shaikh

PurposeThe purpose of this paper is to examine the direct impact of proactive customer orientation (PCO) and responsive customer orientation (RCO) on word-of-mouth (WoM) and cross-buying (CB). Further, this study tests the mediating role of perceived value (PV) in the relationship between customer orientation (CO) (PCO and RCO) and WoM as well as CB in the context of retail banking in an emerging market, India.Design/methodology/approachThe authors used cross sectional survey research design to collect data from 443 customers of retail banks in India. The authors analyzed the data using IBM AMOS 23.0 taking structural equation modeling approach to test the hypothesized relationships.FindingsThe findings of the study suggest that PCO positively influences CB but there is no significant relationship between PCO and WoM. RCO positively influences WoM and CB. PV partially mediates the relationship between RCO and WoM as well as CB. PV does not mediate the relationship between PCO and WoM or the relationship between PCO and CB.Practical implicationsThis study shows that managers need to focus on proactive as well as RCO. Further, managers need to adopt RCO in order to ensure cross-buying and promote WoM recommendations by customers. By practicing PCO managers can promote CB. Also, managers will be able to enhance CB and promote WoM recommendations if the value delivered by the bank is perceived to be adequate by customers.Originality/valueThis study contributes to current knowledge in retail banking by testing the relationship between CO and CB as well as WoM through data obtained from customers in an emerging economy. This study also tests the mediating role of PV for the above-mentioned relationships.

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jookyung Kwon ◽  
Jiseon Ahn

Purpose This study aims to examine the effects of cruise attributes on impulse buying of service customers through impulsive buying tendency. Specifically, this study investigates whether service attributes (variety of selection and price) influence the impulsive buying behavior of customers by stimulating their impulsive buying tendency. Design/methodology/approach Partial least squares-structural equation modeling was used to test the hypothesis using a sample of 143 cruise customers. Mediating analysis was conducted to examine whether customer personal traits (impulsivity) mediated the relationship between service attributes and impulsive buying behavior. Findings The findings showed that price attributions had a significant positive direct impact on impulsive buying tendency and behavior, while a variety of selections had a significant direct effect on impulse buying behavior. The results revealed a significant mediating role of impulsive buying tendency in the relationship between price attributions and impulse buying. Originality/value Although studies on the decision-making style of service customers have been widely discussed, a limited number of studies has examined customers’ impulsive buying behavior in the service sector. Considering the importance of impulsive purchasing as a valuable marketing tool, the results of this study can help service providers and researchers enhance their knowledge of the mechanism of impulse buying behavior.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Son Thanh Than ◽  
Phong Ba Le ◽  
Thanh Trung Le

Purpose The purpose of this paper is to investigate the mediating roles of knowledge sharing behaviors (knowledge collecting and donating) in linking the relationship between high-commitment human resource management (HRM)practices and specific aspects of innovation capability, namely, exploitative and exploratory innovation. Design/methodology/approach The paper is based on quantitative approach and structural equation modeling to examine the correlation among the latent constructs based on the survey data collected from 281 participants in 95 Chinese firms. Findings The findings of this study support the mediating role of knowledge sharing (KS) behaviors in the relationship between HRM practices and aspects of innovation capability. It highlights the important role of knowledge donating and indicates that the effect of knowledge donating is more significant than that of knowledge collecting on exploitative and exploratory innovation. Research limitations/implications Future research should investigate the impact of high-commitment HRM practices on innovation capability under the moderating effects of organizational variables to bring better understanding on the relationship among them. Originality/value The paper significantly contributes to increasing knowledge and insights on the correlation between high-commitment HRM practices and specific forms of innovation. The understanding on mediating role of KS contribute to advancing the body of knowledge of HRM and innovation theory.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Behrooz Ghlichlee ◽  
Fatima Bayat

Purpose Within the retail banking sector, the customer-centric business model has become an important and new business trend in recent years. The enhancement of the frontline service employees’ engagement and their customer-oriented behaviors are among the key factors affecting business performance (BP) in this sector of the banking industry. The purpose of this paper is to improve management decisions to enhance BP through examining the relationship between the frontline employees’ engagement and BP while taking into account the mediating effect of customer-oriented behaviors on this relationship. Design/methodology/approach A quantitative approach was adopted to conduct the present study, and the respondents were sampled from a large commercial bank in Iran using a structured questionnaire. Overall, 50 branch managers and 90 frontline employees were selected using random sampling. A confirmatory factor analysis was conducted to ascertain the validity and reliability of the observed items and a structural equation model was used for testing the proposed hypotheses and research framework. Findings The findings showed that customer-oriented behaviors mediated the relationship between the frontline employees’ engagement and bank’s branches’ BP. Higher levels of the frontline employees’ engagement enhance the customer-oriented behaviors. It was revealed that the frontline employees are engaged in their job and organization. Moreover, the engaged frontline employees listen carefully to customers, the customer’s problem is important to them and they complete their tasks precisely for customers. It has been confirmed that customer-oriented behaviors enhance branches’ BP. The bank frontline employees’ engagement and customer-oriented behaviors, in turn, affected the bank’s branches’ financial performance, process performance and employee performance compared with the bank’s key competitors. Research limitations/implications This study highlights the value of empirically establishing how employee customer-oriented behaviors are affected by employee engagement as an integrative construct bringing together BP. Practical implications This study can help improve BP by increasing the frontline employees’ engagement and their customer-oriented behaviors. This study suggests that organizations using the findings of this study could effectively assess their frontline employees’ engagement and their customer-oriented behaviors and then plan for improving them. Social implications This study offers a customer-oriented initiative as a social responsibility to be considered by retail banks. In light of the social exchange theory, the banks valuing customer-oriented can provide employees with knowledge, skills, values and support to develop motivation and abilities to demonstrate customer-oriented organizational citizenship behaviors. Originality/value Previous studies demonstrated that the employees’ engagement affects their customer-oriented behaviors. In addition, studies have referred to the effect of employees’ customer-oriented behaviors on BP. However, to the best of the knowledge, key questions regarding how the employees’ engagement at the branch level fosters customer-oriented behaviors and, in turn, the bank’s branches’ BP, remain unanswered. Hence, this study contributes to the investigation of the mediating role of the frontline employees’ customer-oriented behaviors in the relationship between their engagement and branches’ BP in the retail banking sector.


2019 ◽  
Vol 21 (1) ◽  
pp. 23-39 ◽  
Author(s):  
Syed Saad Ahmed ◽  
Jia Guozhu ◽  
Shujaat Mubarik ◽  
Mumtaz Khan ◽  
Essa Khan

Purpose The purpose of this paper is to empirically examine the mediating role of potential and realized absorptive capacity in intellectual capital (IC) and business performance. It also investigates the direct impact of the components of IC on business performance. Design/methodology/approach Partial least square-structural equation modeling (PLS-SEM) was used to assess the effect of IC dimensions on performance and to analyze the mediating role of absorptive capacity in this relationship. Data were collected from 192 managers using a survey questionnaire with Likert scale items. Findings The findings of the study show that potential absorptive capacity does not intervene in the relationship between the components of IC and those of business performance. However, realized absorptive capacity, measured as the transformation and exploitation of knowledge, played a positive mediating role in the relationship between the dimensions of IC and those of business performance. Social capital was also noted as a weak predictor of business performance, while human capital and organizational capital had a profound positive influence. Originality/value This study contributes to the literature on IC by examining the role of realized and potential absorptive capacity in the relationship between IC components and firm performance. This research also helps practitioners recognize the importance of transformation and the exploitation of knowledge for business performance.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Muhammad Aamir Saeed ◽  
Yuanyuan Jiao ◽  
Muhammad Mohsin Zahid ◽  
Humaira Tabassum ◽  
Shazia Nauman

PurposeThe aim of the current study is to empirically assess the effects of organizational flexibility on project portfolio (PP) performance, with the mediating role of innovation and moderating effects of environmental dynamism (ED) and absorptive capability (AC).Design/methodology/approachData were collected from 173 manufacturing firms and analyzed using structural equation modeling (SEM) with the help of a partial least squares (PLS) approach.FindingsResults show that innovation partially mediates the relationship between organizational flexibility and PP performance. Furthermore, the moderating effect of ED between organizational flexibility and innovation was analyzed. Additionally, AC also observed as a moderator between innovation and PP performance.Originality/valueBased on the resource-based view, this study contributes to the literature by addressing the roles of innovation, ED and AC in the relationship between organizational flexibility and PP performance. Implications for managers also discussed in the end; for example, to be more competitive, they should incorporate flexibility into the firm to encourage innovation. It also emphasizes to select new innovative opportunities that correspondingly have effects on the PP performance.


2020 ◽  
Vol 32 (6) ◽  
pp. 417-435 ◽  
Author(s):  
Mina Takhsha ◽  
Negar Barahimi ◽  
Arash Adelpanah ◽  
Reza Salehzadeh

Purpose This study aims to evaluate the effect of workplace ostracism on organization-based self-esteem (OBSE), organizational silence and knowledge sharing. Design/methodology/approach The statistical population of this research includes the employees of University of Isfahan in Iran. The structural equation modeling method is used to analyze the data and the conceptual model using 130 participants. Findings The empirical results suggest that ostracism and organizational silence influence knowledge sharing, negatively. Ostracism influences organizational silence, positively; and ostracism influences OBSE, negatively. Furthermore, organization-based self-esteem influences knowledge sharing, positively. In addition, the indirect relationship from ostracism to knowledge sharing through organizational silence was confirmed; however, the mediating role of OBSE in the relationship between workplace ostracism and knowledge sharing was not confirmed. Originality/value This research is among the first to evaluate the relationship between workplace ostracism, knowledge sharing, organizational silence and OBSE simultaneously.


2016 ◽  
Vol 36 (11) ◽  
pp. 1601-1624 ◽  
Author(s):  
Nisha Paul Kulangara ◽  
Sherry Avery Jackson ◽  
Edmund Prater

Purpose The purpose of this paper is to investigate the interrelationship between trust, socialization, and information sharing on the buying firm’s innovation capability in the context of the buyer-supplier relationship (BSR). A nomological model is developed that examines the mediating role of relational capital (supplier trust) on the relationship between structural capital (socialization and information sharing) and innovation capability. Design/methodology/approach A survey was conducted on 357 US executives. Structural equation modeling was used to analyze the hypothesized relationships. Findings Information sharing and formal socialization activities increased the buying firm’s trust in its key supplier. However, formal socialization activities within the context of the business environment did not have a significant direct impact on buyer’s innovative capabilities; but when mediated by trust, it positively impacted innovation capabilities. Informal socialization within the context of the social environment directly impacted innovation capabilities but trust did not mediate the relationship. Information sharing impacted trust and innovation significantly and trust mediated the impact of information sharing on innovation capabilities. Originality/value This study defines the formal and informal aspects of socialization and investigates its impact on trust and buyer innovation capabilities. This is one of the few studies that highlights the mediating role of trust between firms to facilitate innovation capability.


2016 ◽  
Vol 37 (7) ◽  
pp. 912-935 ◽  
Author(s):  
Xiaofeng Zheng ◽  
Zhiying Liu ◽  
Xiuyuan Gong

Purpose The purpose of this paper is to explore the role leader attention plays in the nurture of transformational leadership (TL) behavior, as well as the mechanism by which TL affects innovation ambidexterity, this research empirically studied the relationship between leader attention scope (LAS) and innovation ambidexterity (exploratory innovation and exploitative innovation) through the mediating role of TL. Further, the moderating effect of environmental dynamism (ED) on the relationship between TL and innovation ambidexterity was examined. Design/methodology/approach Empirical study was adopted by distributing questionnaires to high echelon leaders in mainland China to assess related variables. Structural equation modeling was used to examine the relationships of the variables based on the 188 returned questionnaires. Findings The results show that LAS had a positive effect on innovation ambidexterity, and the relationship was partially mediated by TL. ED negatively moderated the relationship between TL and innovation ambidexterity. Practical implications The results suggest that upper echelon leaders receive more unfamiliar, outward-oriented, and source-diverse information to broaden their attention scope. The broad outlook they get obliges them to engage in TL behavior which is beneficial for innovation ambidexterity. Originality/value Based on upper echelons theory, this research reveals the realization mechanism of innovation ambidexterity from the perspectives of leader attention and leadership behavior. This paper avoids the previous research limitation of prevalently employing demographic measurements to substitute for leaders’ psychological processes. The study of LAS also explains the formation mechanism of TL. ED is considered to examine the effectiveness of TL.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Han Chen ◽  
Yvette Green ◽  
Kim Williams

PurposeSupervisory employees in the hotel industry experience high levels of emotional exhaustion. The current study aims to examine the impact of perceived manager support, perceived control over time and negative emotions at others on hotel supervisors' emotional exhaustion. It further investigates the mediating role of perceived control over time and negative emotions at others on the relationship between perceived manager support and hotel supervisors' emotional exhaustion.Design/methodology/approachPaper questionnaires were distributed at a hotel supervisor training seminar. A total of 155 usable responses were collected from hotel supervisors. Confirmatory factor analysis and structural equation modeling were used for hypotheses testing.FindingsResults showed that perceived manager support and perceived control over time both were negatively associated with hotel supervisors' emotional exhaustion. Negative emotions at others were positively related to hotel supervisors' emotional exhaustion. Both perceived control over time and negative emotions at others were found to mediate the relationship between perceived manager support and hotel supervisors' emotional exhaustion.Originality/valueThe study applied the job demand–resources model and the affective event theory to examine hotel supervisors' emotional exhaustion. The mediating role of perceived control over time and negative emotions at others added to the current knowledge of factors that are associated with hotel supervisory employees' emotional exhaustion.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Isa Nsereko ◽  
Samuel S. Mayanja ◽  
Waswa Balunywa

PurposeThe purpose of this study is to examine the mediating role of novelty ecosystem in the relationship between prior knowledge and social entrepreneurial venture creation (SEVC) among community-based organizations (CBOs) in Uganda.Design/methodology/approachThe study is cross sectional and quantitative. Data were collected from CBO owner-managers. Mean, standard deviations, correlations and structural equation modeling were conducted to check the relationships among variables.FindingsResults show that both prior knowledge and novelty ecosystem are significantly associated with SEVC. Results further indicate that novelty ecosystem partially mediates the relationship between prior knowledge and SEVC.Research limitations/implicationsThe design was cross sectional in nature, thus limiting monitoring changes in knowledge and its effect on SEVC. The results should be interpreted as they are because there could be some endogeneity biases, which were not detected like measurement errors and failure to identify appropriate instruments.Originality/valueThis study provides an initial empirical evidence on the relationship between prior knowledge, novelty ecosystem and SEVC using evidence from a developing African country – Uganda. Mostly, this provides an initial evidence of the mediation role of novelty ecosystem in the relationship between prior knowledge and SEVC.


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