scholarly journals The effect of customer orientation on financial performance in service firms: The mediating role of service innovation

2022 ◽  
Vol 12 (2) ◽  
pp. 101-116 ◽  
Author(s):  
Mohammad Zahidul Islam ◽  
Zhang Zhe
Keyword(s):  
Financial Performance ◽  
Structural Equation ◽  
Service Industry ◽  
Customer Orientation ◽  
Equation Model ◽  
Mediating Effect ◽  
Theoretical Research ◽  
Equation Modeling ◽  
Service Firms ◽  
Survey Responses

In service firms, customer orientation and service innovativeness are the important strategic features to pledge sustainable wealth and growth for financial performance. Focusing on customer means, companies must have rigorous knowledge and understanding of customer needs, expectations, and demands. To satisfy those demands and expectations, new products and/or services need to be carefully designed. Customer orientation involves the introduction of something new or different in response to market conditions and can be perceived as an important driver for innovation. The literature on innovation in services demonstrates that this territory is still under-investigated. Our study is an attempt to slightly complement this shortcoming by empirically solving several issues related to service firms. In particular, we propose the service innovativeness as a mediating effect in the relationship between customer orientation and financial performance. A theoretical research model was investigated via structural equation modeling (SEM) using 686 survey responses from the service industry. The findings of the structural equation model indicated that customer orientation is positively related to financial performance and service innovativeness respectively. And service innovativeness was found as a partial mediating effect, which means that the service innovativeness intervenes for some part but not all of the relationships between customer orientation and financial performance.

scholarly journals The Role of Cultural Differences in Customer Retention: Evidence from the High-Contact Service Industry

2021 ◽  
pp. 109634802110149
Author(s):  
Kim-Shyan Fam ◽  
Boon Liat Cheng ◽  
Tat-Huei Cham ◽  
Mandy Tan Chia Yi ◽  
Hiram Ting
Keyword(s):  
Cultural Difference ◽  
Structural Equation ◽  
Service Industry ◽  
Customer Orientation ◽  
Customer Retention ◽  
Business Environment ◽  
Corporate Image ◽  
Customer Relationships ◽  
Customer Engagement ◽  
Equation Modeling

Current tourism landscape and dynamism of the business environment have increased market competitiveness in the high-contact service industry. Hotel operators must now pay greater heed to customer retention by exploring ways to improve customer engagement and experience. Toward this end, this study aimed to examine the interplays between relationship marketing, perceived service quality, corporate image, customer satisfaction, and customer loyalty, as well as the moderating effect of cultural difference between Asian and Western tourists. Using a questionnaire, data were collected from 400 international tourists and analyzed with the structural equation modeling technique. While the direct relationships pertaining the variables of interest were found to be significant, Asian tourists appeared to hold stricter standards in employee–customer interactions and satisfaction-based loyalty than Western tourists. Discussion and implications are provided to promote the development of fruitful hotel–customer relationships in this industry with a heightened customer orientation.

scholarly journals Impact of Industry 4.0 on Corporate Financial Performance: A Moderated Mediation Model

2021 ◽  
Vol 13 (11) ◽  
pp. 6069
Author(s):  
Hong-Long Chen
Keyword(s):  
Financial Performance ◽  
Industry 4.0 ◽  
Structural Equation ◽  
Moderated Mediation ◽  
Mediating Effect ◽  
Equation Modeling ◽  
Corporate Financial Performance ◽  
Bootstrap Sampling ◽  
Mediation Effects ◽  
Moderated Mediation Model

Many studies advance the contemporary technologies of Industry 4.0. However, relatively little is known about how Industry 4.0 affects corporate financial performance. Using a survey, bootstrap sampling, and structural-equation modeling, this study evaluates the moderated mediation effects of Industry 4.0 maturity on financial performance. The results show that Industry 4.0 maturity significantly affects internal business process performance (IBPP), which influences customer performance through the mediating effect of supply chain performance (SCP), and IBPP and SCP affect financial performance fully through the mediating effect of customer performance. The results also show that Industry 4.0 maturity moderates the positive relationship between customer performance and financial performance. Customer performance and IBPP have the largest direct and total effects on financial performance in the context of Industry 4.0 implementation, respectively. The results indicate that Industry 4.0 magnifies the potential returns to companies mainly through IBPP, SCP, and customer performance. This study offers an enhanced understanding of the financial implications of Industry 4.0 implementation and provides insights into the factors through which Industry 4.0 maturity influences financial performance.

Building trust by signaling trustworthiness in service retail

2014 ◽  
Vol 28 (5) ◽  
pp. 361-373 ◽  
Author(s):  
Husni Kharouf ◽  
Donald J. Lund ◽  
Harjit Sekhon
Keyword(s):  
Customer Loyalty ◽  
Structural Equation ◽  
Positive Impact ◽  
Past Research ◽  
Customer Relationships ◽  
Mediating Effect ◽  
Equation Modeling ◽  
Content Type ◽  
Survey Responses ◽  
Customer Trust

Purpose – The purpose of this paper is to investigate the role of retailer trustworthiness in driving customer trust and the subsequent impact on loyalty. The authors position trustworthiness as a mediator in the link between retail strategies and the development of trust. They model customer loyalty to the service retailer as a function of the trust created through trustworthy perceptions. Design/methodology/approach – The authors validate their model using 420 survey responses from customers in a service retail setting. Nine research hypotheses were tested using structural equation modeling. Alternate models are estimated, and the results provide support for the theory-based trustworthiness mediation model. Findings – Trustworthy behaviors first build trustworthiness, which then translates into customer trust and ultimately has a positive impact on both behavioral and attitudinal loyalty. Research limitations/implications – The research highlights the importance for retailers to signal their trustworthiness to build customer trust and loyalty. Researchers should measure trustworthiness perceptions when examining customer relationships and managers should plan strategically to develop both trust and trustworthiness with their customers. Originality/value – This study is one of the first to investigate the mediating effect of trustworthiness on customer loyalty in service settings. While past research has investigated dimensions of trustworthy behaviors, none has included a measure of trustworthiness perceptions and consumer trust in the same theoretical model. The results of the research provide important insights for both researchers and managers.

scholarly journals Cyberchondria severity and quality of life among Lebanese adults: the mediating role of fear of COVID-19, depression, anxiety, stress and obsessive–compulsive behavior—a structural equation model approach

2021 ◽  
Vol 9 (1) ◽  
Author(s):  
Clara Rahme ◽  
Marwan Akel ◽  
Sahar Obeid ◽  
Souheil Hallit
Keyword(s):  
Quality Of Life ◽  
Structural Equation ◽  
Equation Model ◽  
Mediating Effect ◽  
Equation Modeling ◽  
Obsessive Compulsive ◽  
Online Questionnaire ◽  
Cross Sectional ◽  
Compulsive Disorder

Abstract Background This study highlights the significant association between cyberchondria and quality of life among the Lebanese population in the time of COVID-19. The aim was to assess the association between cyberchondria and quality of life (QOL) of Lebanese community during the COVID-19 pandemic and assess the mediating effect of fear of COVID-19, depression, anxiety, stress and Yale-Brown Obsessive–Compulsive Scale in this association. Methods This cross-sectional study was carried out between December 2020 and January 2021, during the COVID-19 pandemic. A total of 449 persons participated in this study by filling the online questionnaire. Structural equation modeling (SEM) was performed to examine the structural relationship between cyberchondria severity, the mediator (anxiety, stress, depression, obsessive–compulsive disorder (OCD) and fear of COVID-19) and physical/mental QOL. Results Having a university level of education and older age were significantly associated with higher physical QOL scores, whereas higher obsession-compulsion disorder, higher stress and higher anxiety were significantly associated with lower physical QOL scores. Higher anxiety was significantly associated with lower mental QOL scores. The results of the SEM showed that stress, fear of COVID-19 and to a lesser limit OCD, mediated the association between cyberchondria severity and physical QOL, whereas anxiety, stress and fear of COVID-19 mediated the association between cyberchondria severity and mental QOL. Conclusion This research reported interesting results encouraging more exploration of cyberchondria and its association with quality of life during this unique period of the pandemic. However, this virus has altered the lives of individuals all across the world, and the consequences will last for a long time. Along with all of the steps done to stop the development of COVID-19 and improve physical outcomes, mental health requires immediate care. More research is needed to determine the coping techniques people are employing to deal with the pandemic.

scholarly journals Does environmental performance leverage the impact of environmental strategy on financial performance? A focus on third-party logistic providers

2022 ◽  
Vol 10 (1) ◽  
pp. 29-36 ◽  
Author(s):  
Quang-Huy Ngo
Keyword(s):  
Financial Performance ◽  
Environmental Performance ◽  
Structural Equation ◽  
Partial Least Square ◽  
Least Square ◽  
Mediating Effect ◽  
Third Party ◽  
Equation Modeling ◽  
Environmental Strategy ◽  
The Impact

Although prior studies draw upon natural resource-based views, environmental strategy permits competitive advantages, and as such, gains financial performance. However, empirical results are mixed. To shed light on this issue, this study proposes that environmental performance mediates the link between environmental strategy and financial performance. Data were collected from 175 third-party logistic providers currently operating in Vietnam to test the hypotheses. Partial least square structural equation modeling was borrowed to test the data. The results reveal environmental performance partially mediates the link between environmental strategy and financial performance. By considering the mediating effect, this study contributes to the literature by addressing the intervening mechanism of environmental performance on the inconclusive relationship between environmental strategy and financial performance. Besides, this study also extends prior studies by borrowing a concept of environmental strategy, which captures the extent of organizations pursuing this strategy, to explain how and why pursuing this strategy permits environmental and financial performance.

Determinants of quality and efficiency performance in service operations

2016 ◽  
Vol 36 (3) ◽  
pp. 265-285 ◽  
Author(s):  
Jayanth Jayaram ◽  
Kefeng Xu
Keyword(s):  
Knowledge Management ◽  
System Performance ◽  
Structural Equation ◽  
Customer Orientation ◽  
Service System ◽  
Performance Outcomes ◽  
Equation Modeling ◽  
Service Firms ◽  
Content Type ◽  
Internal Knowledge

Purpose – Using arguments from the knowledge-based view and resource-based view of the firm, the purpose of this paper is to propose that external knowledge (as measured by a firm’s customer orientation) and internal knowledge management (through human capital development techniques of job-related training and enhancing employee capability) together contribute to successful service delivery systems. Design/methodology/approach – The hypothesized model is tested on a large sample of 249 Chinese service firms using structural equation modeling and hierarchical regression analyses. Findings – The results indicate that the knowledge management factors of customer orientation, employee capability and job-related training had a varying influence on quality and efficiency dimensions of service system performance. Also, internal knowledge facets of employee capability and job-related training had complementary effects in inducing improved performance on both quality and efficiency. Research limitations/implications – The focus on the key enablers of customer orientation, employee capability and job-related training does not represent a comprehensive set of enablers of service system performance outcomes. Also, a longitudinal examination of capabilities that influence service system performance can also be explored. Originality/value – The context of service firms in multiple sectors serves as an important contribution to the emerging literature that bridges human resource management and customer orientation in service settings. Implications of the results for practice and theory development are discussed.

Engaging customers with employees in service encounters

2020 ◽  
Vol 31 (6) ◽  
pp. 1071-1105
Author(s):  
Haw-Yi Liang ◽  
Chih-Ying Chu ◽  
Jiun-Sheng Chris Lin
Keyword(s):  
Structural Equation ◽  
Customer Orientation ◽  
Past Research ◽  
Service Industries ◽  
Customer Engagement ◽  
Equation Modeling ◽  
Service Firms ◽  
Content Type ◽  
Service Engagement ◽  
Service Interactions

PurposeKeeping both employees and customers highly engaged has become a critical issue for service firms, especially for high-contact and highly customized services. Therefore, it is essential to engage employees and customers during service interactions for better service outcomes. However, past research on employee and customer engagement has primarily focused on brands and organizations. Little research has concentrated on service interactions as the objects of engagement. To fill this research gap, this study aims to clarify and define service engagement behaviors (SEBs), identify various employee and customer SEBs and develop a model to investigate the relationships between these behaviors.Design/methodology/approachA theoretical framework was developed based on social contagion theory and service-dominant (S-D) logic to explore the effects of employee SEBs on customer SEBs through customer perceptions of relational energy and interaction cohesion. Dyadic survey data collected from 293 customer-employee pairs in various high-contact and highly customized service industries were examined through structural equation modeling.FindingsResults show that employee SEBs (service role involvement, customer orientation behavior and customer empowerment behavior) positively influence relational energy and interaction cohesion, which in turn affect customer SEBs (service exploration behavior and service coordination behavior).Originality/valueThis study represents pioneering research to conceptualize SEBs. Different from the extant literature on engagement, SEBs capture the proactive and collaborative engagement behaviors of employees and customers in service interactions. Various employee and customer SEBs were identified and an empirical model was proposed and tested to investigate the effect of employee SEBs on customer SEBs through relational energy and interaction cohesion.

Fostering sustainable relationships in Pakistani cellular service industry through CSR and brand love

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ammar Javed ◽  
Zia Khan
Keyword(s):  
Structural Equation ◽  
Service Industry ◽  
Equation Modeling ◽  
Service Firms ◽  
Brand Love ◽  
Content Type ◽  
Mediating Role ◽  
Corporate Ability ◽  
Corporate Social

PurposeThis study investigates the mediating role of brand love in two important relationships: first, corporate social responsibility (CSR)–word-of-mouth (WoM) intentions and second, corporate ability (CA)–WoM relationships.Design/methodology/approachData were collected with a sample of 359 respondents, and partial least squares-based structural equation modeling was utilized for data analysis.FindingsThe research reveals interesting findings as brand love fully mediates the CSR–WoM relationship, whilst it partially mediates the CA–WoM relationship.Practical implicationsThe results demonstrate that cellular service firms should strive to create brand love. This is because CSR investments can be diligently translated into WoM intentions through brand love.Originality/valueThe proposal and validation of brand love as a mediator in CSR–WoM and CA–WoM relationships in the cellular service context of a South Asian market is the key contribution of this research.

LEARNING ORIENTATION, INNOVATIVENESS AND FINANCIAL PERFORMANCE IN TRADITIONAL MANUFACTURING FIRMS: A HIGHER-ORDER STRUCTURAL EQUATION MODEL

2012 ◽  
Vol 16 (05) ◽  
pp. 1250029 ◽  
Author(s):  
ERLEND NYBAKK
Keyword(s):  
Financial Performance ◽  
Structural Equation ◽  
Manufacturing Industry ◽  
Equation Model ◽  
Mediating Effect ◽  
Learning Orientation ◽  
Wood Industry ◽  
Firm Innovativeness ◽  
Traditional Manufacturing ◽  
Positive Effect

This study examines the relationships among learning orientation, firm innovativeness and financial performance in the context of the Norwegian wood industry. A questionnaire-based survey was sent to the CEOs of firms in the wood industry in Norway (241 usable replies, response rate of 49 percent). Learning orientation and firm innovativeness were conceptualised and analysed as latent second-order constructs by using structural equation modelling. The findings show that learning orientation has a positive effect on firm innovativeness in the traditional manufacturing industry. In addition, learning orientation was found to positively affect financial performance via the full mediating effect of firm innovativeness. Furthermore, firm innovativeness was also found to have an independent positive effect on financial performance. No direct effect of learning orientation on financial performance was found. According to the data, firm age also does not appear to affect the relationship between learning orientation and firm innovativeness.

scholarly journals Mediating effect of perceived stress between social capital and work satisfaction among modern service industry workers in Shanghai

2019 ◽  
Author(s):  
Ning Wu ◽  
Zan Li ◽  
Junming Dai ◽  
Chao Wang ◽  
Junling Gao ◽  
...  
Keyword(s):  
Social Capital ◽  
Perceived Stress ◽  
Structural Equation ◽  
Service Industry ◽  
Work Satisfaction ◽  
Multiple Linear Regression Model ◽  
Service Industries ◽  
Mediating Effect ◽  
Equation Modeling ◽  
Modern Service Industry

Abstract Background To explore the relationship among social capital, perceived stress, and work satisfaction to provide a basis for improving work satisfaction among modern service industry workers.Methods A total of 737 employees from two units belonging to modern service industries in Shanghai were investigated through purposive sampling. A self-administered anonymous questionnaire was used to collect data. The relationships among these variables were analyzed using a multiple linear regression model and structural equation model.Results After controlling for demographics, perceived stress was shown to be a negative predictor of work satisfaction, while social capital had a significant positive predictive effect. Structural equation modeling confirmed that perceived stress partially mediated the relation between social capital and work satisfaction.Conclusion Social capital could be an efficient method for improving work satisfaction directly or indirectly by reducing perceived stress.

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