Can continuous improvement lead to satisfied customers? Evidence from the services industry

2018 ◽  
Vol 30 (6) ◽  
pp. 679-700 ◽  
Author(s):  
Oksana Koval ◽  
Stephen Nabareseh ◽  
Felicita Chromjakova ◽  
Robert Marciniak

Purpose To achieve higher customer satisfaction (CS), companies implement continuous improvement (CI) programs, regardless of the growing evidence of their failure to achieve declared goals. The purpose of this paper is twofold: first, to identify whether companies are able to improve CS through the application of CI; and, second, to identify what organizational practices are able to facilitate the impact of CI on CS. Design/methodology/approach To test the developed assumptions, the study uses the structural equation modeling technique. The data for analysis were collected from 304 service companies via a custom web-survey. Findings The research confirms the direct positive impact of CI on CS. Further, the study demonstrates that management commitment and rewards system that encourages employees to participate in CI play the major facilitating role in improving CS through CI. These practices accompanied by quality-oriented culture and employee training in the improvement tools provide necessary infrastructure to sustain CI in the companies over time. Additionally, regardless of the vital role of goal setting for CI established in previous research, the proposed study finds a limited ability of goal setting, as compared to other organizational practices, to facilitate CI–CS relationship. Originality/value The study contributes to the scarce field of research on CI implementation in the services environment. Further, the research assesses CS as a variable of interest, as opposite to the previous studies, considering CS as a part of the composite variable. The research assesses the impact of the training in CI methodology on the CI–CS relationship, while previous research focuses on the general, work-related training. The findings provide an important basis for further academic work in the area of quality management. The identified practices can serve as guidance for managers, implementing CI in their companies due to the high fit of the proposed model.

2019 ◽  
Vol 31 (9) ◽  
pp. 3465-3483 ◽  
Author(s):  
Uttam Chakraborty

Purpose This study aims to evaluate the vitality of source, receiver and message factors on credibility assessment of online hotel reviews. Further, the current study determines the effects of perceived credibility of online reviews (PCOR) on hotel booking intentions (HBI). Design/methodology/approach The current study performs reliability analysis to determine the internal consistency of the measurement scales and to ensure the uni-dimensionality of the measurement scales the present study performs exploratory factor analysis. Further, the present study performs structural equation modeling to identify the relationships between the variables. Findings Two-sided online reviews have a more significant positive impact on PCOR as compared to the effects of receiver, review quality, review consistency and negative-sided online reviews. Originality/value This is one of the first study that analyses the impact of source, receiver and message on PCOR. Moreover, the present study offered theoretical justification behind the factors that affect the authenticity of online hotel reviews and its effects on HBI.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Taghreed Al Dari ◽  
Fauzia Jabeen ◽  
Matloub Hussain ◽  
Dana Al Khawaja

Purpose This study aims to develop a theoretical framework of the impact of clan and hierarchy cultures and knowledge technological capabilities on organizational learning. Design/methodology/approach A questionnaire survey was used to collect data from 693 employees working in knowledge management centers in various law and enforcement units in the United Arab Emirates (UAE). Structural equation modeling was used to test the relationships between the variables. Findings The findings show that the clan culture had a significant negative effect on organizational learning. However, hierarchy culture and knowledge technological capabilities had a significant positive impact in predicting organizational learning behavior. Research limitations/implications The study focuses on a specific type of public organization only, which somewhat limits the generalizability of the research results. Second, as the study was cross-sectional, the causal relationships could not be inferred directly. The study results will help policymakers create a learning organization by examining the impact of organizational culture and knowledge of technological capabilities. Originality/value This paper has added knowledge about the relationship between culture types, knowledge technological capabilities and organizational learning, particularly in the UAE. This study helps to bridge the gap in research on culture and knowledge technological capabilities and organizational learning.


2019 ◽  
Vol 71 (5) ◽  
pp. 677-692
Author(s):  
Farhan Ahmad ◽  
Isto Huvila

Purpose While there is relatively plenty of evidence for the positive impact of communication on the perceptions of organizational change, how organizational changes affect information sharing is relatively unknown. The purpose of this paper is to investigate if a favorable perception of ongoing organizational changes has a positive impact on information sharing and whether trust mediates this relationship. Design/methodology/approach A questionnaire (n=317) was administered to the employees of a large Finnish multinational organization. Partial least square structural equation modeling was used to test the hypotheses based on earlier research findings. Findings The results show that a positive perception of recent organizational changes improves information sharing both directly and indirectly, mediated by trust. Consequently, when changes are perceived negatively, employees recoil from information sharing which is known to have negative implications for organizations. Research limitations/implications Data were collected in a single organization. The nature of the specific changes in the studied organization and its particularities undoubtedly had an effect on respondents’ perceptions. Originality/value This paper contributes to organizational information management research by elaborating on the relationship between organizational changes and interpersonal information sharing between employees. To the authors’ knowledge, this is the first quantitative study confirming the impact of the perception of organizational changes on employee information-sharing behavior.


2020 ◽  
Vol 26 (6) ◽  
pp. 1709-1730
Author(s):  
Dalia Suša Vugec ◽  
Vesna Bosilj Vukšić ◽  
Mirjana Pejić Bach ◽  
Jurij Jaklič ◽  
Mojca Indihar Štemberger

PurposeOrganizations introduce business intelligence (BI) to increase their performance, but often, this initiative is not aligned with the business process management (BPM) initiative, which also aims to improve organizational performance. Although some findings from the literature indicate that BI implementation has a positive impact on organizational performance, the impact seems to be indirect. Therefore, the purpose of this study is to enhance the understanding of how BI maturity is translated into organizational performance. Alignment of BI and BPM initiatives seems one possible way for creating business value with BI, particularly because BI enables process performance measurement and management, which allows the BI initiative to become more business focused.Design/methodology/approachA questionnaire was prepared and used to collect data in Croatian and Slovenian organizations with more than 50 employees. A BI–BPM alignment measurement instrument was developed for the purpose of this study using the recommended process of scale development and validation. A total of 185 responses were analyzed by the structural equation modeling technique.FindingsOur results provide evidence that the effect of BI on organizational performance is fully mediated by alignment of BI and BPM initiatives, and therefore, BI business value can be generated through the use of common terminology and methodologies, as well as a strong communication between BI and BPM experts, managers and teams in order to coordinate the two initiatives.Originality/valueThis study has responded to the call for better understanding of how the impact of BI on organization performance is realized. It confirmed that BI and BPM initiatives should be aligned in order to give BI a business value.


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.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Emmanuel Twumasi Ampofo ◽  
Osman M. Karatepe

Purpose This paper aims to examine the impacts of links, fit and sacrifice as the sub-dimensions of on-the-job embeddedness (JE) on turnover intentions through the mediating roles of affective organizational commitment (AOC) and work engagement (WENG) and explore AOC and WENG as the two mediators linking on-the-JE to quitting intentions. Design/methodology/approach Data collected from small-sized hotels in three waves in Ghana were used to assess the aforesaid relationships. The hypothesized relationships were tested using structural equation modeling. Findings The findings reveal that on-the-JE is negatively related to turnover intentions. Additionally, the relationship between on-the-JE and turnover intentions is partly mediated by AOC and WENG. The findings further demonstrate that AOC and WENG partly mediate the impact of links on turnover intentions. Practical implications Management of hotels should enhance formal and informal connections between employees and their coworkers and supervisors through socialization tactics. Establishing and maintaining an environment that fosters social support would increase employees’ sense of belongingness and their proclivity to remain with the organization. Originality/value Little is known about the effects of the sub-dimensions of on-the-JE on work-related consequences in the hospitality and tourism literature. The literature is also devoid of evidence concerning affective variables as the potential mediators relating the sub-dimensions of on-the JE to turnover intentions. The study sets out to fill in these gaps.


2017 ◽  
Vol 18 (2) ◽  
pp. 180-195 ◽  
Author(s):  
Marilyn Giroux ◽  
Frank Pons ◽  
Lionel Maltese

Purpose In the highly saturated sports industry where sport teams represent a complex offering loaded with intangible and tangible attributes, it is important to implement appropriate marketing strategies that will ultimately contribute to the development of strong brand equity. In this paper, the authors focused on the relationship between brand variables and marketing activities on the development of brand equity. More specifically, the purpose of this paper is to study the impact of brand personality on the evaluation of marketing promotional activities and the impact on the brand equity. Design/methodology/approach Respondents (2,400) were recruited through an online survey and data were analyzed using structural equation modeling. Findings The survey revealed that the congruence between the brand personality and the promotional activities has a positive impact on its evaluation and on brand equity. In addition, the results showed that consumers who consider the financial strength of the team as an important factor evaluate more positively the value of congruent and incongruent promotional activities. Practical implications Brand managers should maintain consistency between their brand personality and their promotional activities in order to maintain and increase their brand equity. Originality/value The results contribute to the literature by investigating the impact of brand personality on the evaluation of promotional activities. Also, it examines an important factor (financial consciousness) that could influence how fans react in front of an incongruent promotional activity. This research brings a better understanding of the impact of brand personality on marketing strategies and brand equity.


2015 ◽  
Vol 30 (1) ◽  
pp. 1-16 ◽  
Author(s):  
Minkyun Kim ◽  
Nallan C Suresh ◽  
Canan Kocabasoglu-Hillmer

Purpose – The aim of this study is to investigate the relationships among strategic sourcing, e-procurement and firm performance, along with the moderating effects of business characteristics and environmental factors on these relationships. Design/methodology/approach – This empirical investigation relies on structured survey responses from 137 managers of US manufacturing firms. The partial least squares-based structural equation modeling approach is used for data analysis. Findings – The research results confirm that both strategic sourcing and e-procurement have a positive effect on firm performance. In addition, e-procurement is also found to have a positive impact on strategic sourcing. In addition, the research results suggest that business characteristics and the environment, especially the degree of competition, market turbulence, firm size and stage in product life cycle moderate these relationships significantly. The positive effects of strategic sourcing and e-procurement on firm performance are particularly enhanced under the right conditions. Originality/value – This research is the first, to the best of our knowledge, to provide insights into the joint effects of strategic sourcing and e-procurement, and how business characteristics and the environment affect their roles on firm performance. In addition, firm performance is evaluated as a multi-dimensional construct involving financial, operational and supply chain aspects, with the measurements consisting of several second-order constructs. The study makes both theoretical and practical contributions.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Vera Butkouskaya ◽  
Joan Llonch-Andreu ◽  
María-del-Carmen Alarcón-del-Amo

PurposeTaking the customer-centric nature of integrated marketing communications (IMC), this article investigates the specific role of customer performance in IMC effectiveness in various size companies applying inter-country context.Design/methodology/approachThe sample consists of the primary data from developed (Spain) and developing (Belarus) economies. A total of 540 manager respondents participated in the survey. The article uses structural equation modeling and multi-group analysis for analysis.FindingsWhen taking into consideration, customer performance affects the IMC outcome on the market and financial performance. The customer performance role varies in firms of various sizes and small- and medium -sized enterprises (SMEs) operating both in developed and developing economies.Research limitations/implicationsThe research underlines the significant role of customer performance in IMC implementation, which stimulates further investigation on the topic. It also closes the gap in the IMC outcomes analysis in SMEs operating in developed and developing economies.Practical implicationsCustomer evaluation plays a vital role in the IMC outcomes for market growth and financial returns. SMEs and larger companies implement IMC with different levels of effectiveness. SMEs with IMC implementation can gain an advantage over larger rivals and improve their market position. Moreover, the study generalizes the results by applying inter-country context.Originality/valueThis is a pioneering study of the complex IMC outcomes model under firms' size moderate conditions. The research applies an inter-country context.


Author(s):  
Muhammad Farrukh ◽  
Azeem Ahmad Khan ◽  
Muhammad Shahid Khan ◽  
Sara Ravan Ramzani ◽  
Bakare Soladoye Akeem Soladoye

Purpose The purpose of this paper is to investigate the impact of family background, big five personality traits and self-efficacy on entrepreneurial intentions (EIs) of business students in private universities in Pakistan. Design/methodology/approach Data were collected with the help of structured questionnaires, 500 questionnaires were distributed among the students and 306 useable questionnaires were received and analyzed. Structural equation modeling was used to investigate the relationship among the study variables. SmartPLS was utilized to run the analysis. Findings The findings revealed a strong relationship between the exogenous and endogenous variables. The variance accounted by the independent variables was 74.3 percent in the EIs of the students. Family background was found to have a positive impact on the EIs of students. The findings also showed a positive relationship between self-efficacy and EIs. Consciousness, extroversion and openness to experience are positively linked with EIs while neuroticism and agreeableness did not show any relationship. Originality/value The study’s findings attract the attention of the academicians to take note of the factors examined while training the students the art of entrepreneurship. This is because this study has revealed that if these factors are not present the intention of the students to start a business venture may prove to be weak. Entrepreneurial activities are one of the biggest ways to reduce unemployment, thus, it is suggested that academicians should develop psychological plans and training to motivate the students to convert their intentions into actions.


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