scholarly journals Transformational Leadership in The Hotel Industry: A New Look at The Service-Profit-Chain Concept

2020 ◽  
Vol 3 (2) ◽  
pp. 98-109
Author(s):  
Evelyn Devina Teguh ◽  
Devie Devie ◽  
Serli Wijaya
Keyword(s):  
Transformational Leadership ◽  
Service Quality ◽  
Financial Performance ◽  
Employee Engagement ◽  
Business Strategy ◽  
Hotel Industry ◽  
Partial Least Square ◽  
Least Square ◽  
Hotel Managers ◽  
Service Profit Chain

Employee engagement is essential to the Service-Profit-Chain concept as the factor to produce high quality service that would meet or exceed customer expectations. However, despite its suggested advantages, limited knowledge is known about what causes employee engagement. This study attempts to understand the Service-Profit-Chain concept more comprehensively, by encompassing transformational leadership as the preceding factor to employee engagement. It aimed to examine the role of transformational leadership in shaping employee engagement and service quality which lead to financial performance. The sample groups taken were among the star-rated hotels located in Surabaya, Indonesia. Each hotel was represented by three groups namely: hotel managers, staff, and hotel customers. The Partial Least Square-SEM method was applied to evaluate the hypothesized model. The results revealed that the effect of transformational leadership on financial performance is mediated by employee engagement. However, service quality cannot mediate the effect of transformational leadership on financial performance. It is interesting to note that Service-Profit-Chain has some limitations in practice, depending on the organization’s strategy. This study is among a few attempts to contribute to a better understanding of the Service-Profit-Chain concept application, with transformational leadership as the factor preceding employee engagement specifically in the hotel industry. It founds that the application of Service-Profit-Chain concept in the hotels have some constraints related to the business strategy that hotels select to penetrate the market.  

scholarly journals RELATIONSHIP BETWEEN FAMILY OWNERSHIP, AGENCY COSTS TOWARDS FINANCIAL PERFORMANCE AND BUSINESS STRATEGY AS MEDIATION

2018 ◽  
Vol 19 (0) ◽  
pp. 49-58
Author(s):  
Enni Savitri
Keyword(s):  
Financial Performance ◽  
Business Strategy ◽  
Agency Costs ◽  
Stock Exchange ◽  
Partial Least Square ◽  
Least Square ◽  
Business Strategies ◽  
Family Ownership ◽  
Manufacturing Companies ◽  
The Relationship

This study investigates the relationship between family ownership, agency costs, financial performance, and companies’ business strategies. The targeted population of this study were all 143 manufacturing companies listed on the Indonesia Stock Exchange (IDX) during 2007–2014. About 31% (45) of these manufacturing companies are family companies. The hypotheses were tested using the partial least-square (PLS) method. Our findings reveal that the companies’ business strategies are not affected by the family ownership. Family ownership and business strategies influence companies’ financial performance. Agency costs influence business strategy and financial performance, and this shows that agency costs contribute to both the increase and decrease of financial performance. Business strategy mediates the relationship between family ownership and financial performance. This shows that family companies do not concentrate on financial goals but rather on the sustainability. Business strategy influences the relationship between agency costs and financial performance. This shows that funds can be redistributed in the course of business strategy planning, which will, in turn, improve the company’s development.

scholarly journals The Value of Catur Purusa Artha and Capital Structure as The Maximization Key of Financial Performance in LPD Buleleng District

2019 ◽  
Vol 3 (3) ◽  
pp. 329
Author(s):  
Ni Luh De Erik Trisnawati ◽  
Gede Widiadnyana Pasek ◽  
Riana Dewi Kartika
Keyword(s):  
Capital Structure ◽  
Financial Performance ◽  
Business Strategy ◽  
Random Sampling ◽  
Partial Least Square ◽  
Least Square ◽  
Sampling Techniques ◽  
Analysis Technique ◽  
Study Population ◽  
Positive Effect

The purpose of this study is to examine the implementation of the value of Catur Purusa Arthaand capital structure, as the main foundation of business strategy to create maximum financial performance of LPD in Buleleng Regency. The study population was all active LPDs in Buleleng Regency. Sampling in this study using random sampling techniques to obtain as many as 60 observational data. The data analysis technique used in this research is the Component based SEM method, Partial Least Square (PLS). The results showed that the value of Catur Purusa Artha has a positive effect on Capital Structure and Financial Performance. Capital structure also has a positive effect on financial performance.

scholarly journals Increasing company innovation in Russia: developing employee engagement through leadership and knowledge culture

2021 ◽  
Vol 116 ◽  
pp. 00022
Author(s):  
Ekaterina Baidina ◽  
Natalya Molodchik ◽  
Natalya Nagibina
Keyword(s):  
Transformational Leadership ◽  
Employee Engagement ◽  
Middle Managers ◽  
Positive Impact ◽  
Positive Influence ◽  
Partial Least Square ◽  
Least Square ◽  
Knowledge Culture ◽  
The Impact ◽  
Significant Positive Influence

The article examines the impact of knowledge culture and transformational leadership on employee engagement and company innovation. The partial least square is applied to the data based on the questionnaire survey of the top and middle managers of 110 different Russian enterprises. The study reveals a significant positive impact of employee engagement on company innovation, as well as an empirical evidence of significant positive influence of knowledge culture and transformational leadership on employee engagement.

Loyalty formation and its impact on financial performance of Islamic banks – evidence from Indonesia

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ayu Fusva ◽  
David Dean ◽  
Dwi Suhartanto ◽  
Moch. Edman Syarief ◽  
Agus Zainul Arifin ◽  
...  
Keyword(s):  
Service Quality ◽  
Financial Performance ◽  
Perceived Value ◽  
Partial Least Square ◽  
Least Square ◽  
Islamic Banks ◽  
Financial Reports ◽  
Content Type ◽  
Islamic Bank ◽  
Business Operations

Purpose This paper aims to examine loyalty formation, including service quality, perceived value, image and satisfaction as determinants, and their effect on the financial performance of Islamic banks. Design/methodology/approach Data were collected from 280 Islamic bank clients in Indonesia and bank financial performance data from bank financial reports. Variance-based partial least square modelling was used to assess the relationships between loyalty, its determinants and their influence on bank financial performance. Findings This study finds that client loyalty towards Islamic banks is most influenced by perceived service quality and perceived value. Further, this study documents the importance of client loyalty in influencing bank financial performance and indirect effect of clients’ satisfaction on financial performance through the strengthening of client loyalty. Practical implications This study offers a path for the managers of Islamic banks to enhance financial performance by enhancing client loyalty. To develop client loyalty, this study suggests that Islamic banks should offer economical and service-derived benefits that are superior to those other banks offer. Further, Islamic banks need to ensure that their business operations are compatible with Islamic values. Originality/value This is an early empirical study attempting to examine the link between customer loyalty and its impact on Islamic bank financial performance.

scholarly journals THE EFFECT OF TRANSFORMATIONAL LEADERSHIP ON EMPLOYEE PERFORMANCE THROUGH EMPLOYEE ENGAGEMENT

2019 ◽  
Vol 8 (2) ◽  
Author(s):  
Putri Esti Cahyani ◽  
Siswanto Siswanto
Keyword(s):  
Transformational Leadership ◽  
Employee Engagement ◽  
Indirect Effects ◽  
Employee Performance ◽  
Partial Least Square ◽  
Least Square ◽  
Quantitative Approach ◽  
Analysis Tool ◽  
Direct And Indirect Effects ◽  
Pls Analysis

Leadership and employee engagement are essential factors in the effectiveness of employee performance in the company. Those two indicators cannot be separated from the sustainability of an organization or company. The purpose of this study is to analyze the direct and indirect effects of transformational leadership on employee performance and how much employee engagement mediates the effect of transformational leadership on employee performance. This research utilized an explanatory quantitative approach and used 101 respondents as the sample. The data was collected by using questionnaires and analyzed using the Partial Least Square (PLS) analysis tool. The results of the testing show that there is a significant influence between transformational leadership on the performance of employees of PT. Victory International Futures Malang. While the employee engagement variable mediates the influence of transformational leadership on the performance of employees of PT.Victory International Futures Malang.Keywords : Transformational leadership, Employee performance, Employee engagement, Explanatory quantitative approach

Fit Perception and Engagement: The Mediating Role of Work Meaningfulness

2021 ◽  
pp. 097226292199986
Author(s):  
Robinson James
Keyword(s):  
Employee Engagement ◽  
Structural Equation ◽  
Strong Predictor ◽  
Organizational Outcomes ◽  
Research Strategy ◽  
Partial Least Square ◽  
Least Square ◽  
Future Research ◽  
Work Meaningfulness

Research on engagement has gained considerable attention in recent years as it is a strong predictor of a range of positive individual and organizational outcomes. There is a question of why the level of the engagement is different from employee to employee in an organization, though they are provided with the same resources. This study aims to investigate the influence of fit perception on engagement and the role of the employee’s psychological condition (work meaningfulness) on this relationship. This study mainly employed a survey research strategy, and data were primarily garnered from a questionnaire. This study was conducted among 145 respondents from the public sector organizations in Sri Lanka. Partial least-square structural equation modelling was employed to analyse the generated data. In this study, the researcher has conceptualized fit perception as a higher order construct comprising Person Job fit and Person Organization fit. The study revealed that fit perception positively influences employee engagement, and this relationship is mediated by work meaningfulness. This study contributes to the literature by deepening the understanding of the fit perception and engagement relationship by introducing work meaningfulness as a mediator variable. By highlighting how engagement is influenced by fit perception and work meaningfulness, this study facilitates practitioners to build and maintain an engaged workforce. Further contributions of this study, the avenue for future research, and study limitations are presented in detail at the end of this article.

scholarly journals The Influence of Food Service Quality and Innovation Production on Local Product of Thailand: Study of Creative Agriculture

2020 ◽  
Vol 11 (5) ◽  
pp. 469
Author(s):  
Waleerak Sittisom ◽  
Thammarak Srimarut
Keyword(s):  
Data Analysis ◽  
Customer Satisfaction ◽  
Service Quality ◽  
Food Service ◽  
Partial Least Square ◽  
Least Square ◽  
Raw Material ◽  
Primary Data ◽  
Local Product ◽  
Product Promotion

Creative agriculture is a vast and deep knowledge of a product from its preparation from raw material to the end consumer of the product. Hence creative agriculture deals with deep analysis, production process, and commercialization, of a product. The present study explored the relationship between food service quality, innovation in production, customers’ satisfaction, and local product promotion. Both the foodservice quality and innovation in production increase customer satisfaction and local product promotion. An increased level of customer satisfaction is also promising for the increment in local product promotion. A survey from 300 food engineers working with different food providing companies, were the respondents of the present study for the collection of primary data. Then, a statistical software, named Partial Least Square (PLS) was used for the finalization of the data analysis process. The results achieved from the data analysis were used for the accomplishment of the end results of the present study.

Customer satisfaction with sommelier services of upscale Chinese restaurants in Hong Kong

2019 ◽  
Vol 31 (4) ◽  
pp. 532-554 ◽  
Author(s):  
Tommy Lau ◽  
Man Lai Cheung ◽  
Guilherme D. Pires ◽  
Carol Chan
Keyword(s):  
Hong Kong ◽  
Customer Satisfaction ◽  
Service Quality ◽  
Customer Loyalty ◽  
Positive Impact ◽  
Partial Least Square ◽  
Least Square ◽  
Survey Method ◽  
Content Type ◽  
The Impact

Purpose The abolishment of the wine tax in Hong Kong has led to increased wine consumption and increased demand for wine-related professionals, such as sommeliers. Yet the importance of sommeliers’ value-adding performance in the context of upscale Chinese restaurants has not been examined. To address this gap, the SERVQUAL framework is adopted to examine the influence of sommeliers’ service quality (SQ) on customer satisfaction (CS) and loyalty in the context of upscale Chinese restaurants in Hong Kong. Design/methodology/approach The survey method is used to collect data from 302 units of the population of interest, partial least square-structural equation modelling (PLS-SEM) is used to test the links between constructs. Findings Four of the seven dimensions of sommeliers’ service quality, namely, empathy, tangibles, credibility and assurance, have a significant positive impact on customer satisfaction and customer loyalty, whereas the impact of perceived value and responsiveness on customer satisfaction and customer loyalty is positive but only marginally significant. Reliability has a weak and non-significant impact on customer satisfaction and customer loyalty. Research limitations/implications Examining a small number of upscale Chinese restaurants in Hong Kong limits generalisation of the findings to other contexts. Replication of the research in different contexts will enhance generalizability. In terms of implications, the discussion highlights the importance of sommeliers’ service performance on customers’ SQ perceptions SQ, CS and loyalty, all of which are important variables for restaurateurs. Originality/value To the best of the authors’ knowledge, this is the first study of the influence of the quality of sommelier’s SQ on CS and loyalty in upscale Chinese restaurants in Hong Kong. Given the lack of attention to this service role in the literature, the study contributes theory from which further understanding can develop.

Analisis Pengaruh System Quality, Information Quality, Service Quality Terhadap Net Benefit Pada SI-PMB

2021 ◽  
Vol 10 (2) ◽  
pp. 259-263
Author(s):  
Agustinus Suradi ◽  
Marina Windarti ◽  
Syams Kurnaiawan Hidayat
Keyword(s):  
Service Quality ◽  
Information Quality ◽  
Partial Least Square ◽  
Least Square ◽  
Quality Information ◽  
Quality Service ◽  
System Quality ◽  
Net Benefit ◽  
Is Success

Strategi pengembangan sistem informasi perlu dievaluasi untuk mendukung keberhasilan dan kualitas layanan sistem informasi penerimaan mahasiswa baru. Ada ketidakpuasan pengguna SI-PMB dalam mendapatkan informasi yang mereka inginkan. Tujuan dari penelitian ini adalah untuk mengetahui pengaruh kualitas informasi, kualitas sistem, kualitas layanan terhadap manfaat bersih SI-PMB. Model DeLone McLean IS Success digunakan dalam penelitian ini, dengan komponen variabel: kualitas informasi, kualitas sistem dan kualitas layanan. Analisis data menggunakan model struktural dengan alat analisis Partial Least Square. Hasil penelitian ini menunjukkan bahwa tidak terdapat hubungan yang positif dan signifikan antara variabel kualitas informasi dengan kepuasan pengguna nilai statistik T sebesar 0,426. Ada hubungan yang positif dan signifikan antara variabel kualitas sistem dan kepuasan pengguna dengan statistik T 3,103. Terdapat hubungan yang positif dan signifikan antara variabel kualitas pelayanan dengan kepuasan pengguna, nilai T statistic sebesar 2,604. Hubungan antara variabel kepuasan pengguna dan manfaat bersih, nilai statistik t sebesar 9,294 menyatakan bahwa terdapat hubungan yang positif dan signifikan antara variabel kepuasan pengguna dengan manfaat bersih.

scholarly journals PATIENT CENTEREDNESS IN HEALTH CARE: PERSPECTIVES FROM AN EMPIRICAL INVESTIGATION

2018 ◽  
Vol 11 (8) ◽  
pp. 450
Author(s):  
Rejikumar G ◽  
Archana Ks
Keyword(s):  
Health Care ◽  
Patient Satisfaction ◽  
Service Quality ◽  
Structural Equation ◽  
Partial Least Square ◽  
Least Square ◽  
Equation Modeling ◽  
Patient Centeredness ◽  
Personalized Health

Objectives: The objective of this study was to examine the formation of wellness perceptions and satisfaction from antecedents that explain various attributes regarding service quality perceptions about doctors by patients. The topic is of contemporary relevance as health-care firms are reengineering their competencies to deliver personalized health services to for unmatched experience to develop long-term relationships with patients.Methods: Responses from 280 patients about service quality attributes of doctors, wellness perceptions, and their satisfaction are collected using a structured questionnaire. An exploratory factor analysis was performed using SPSS. 20 to identify significant dimensions of doctor’s service quality. The theoretical model developed with these dimensions, wellness perceptions, and patient satisfaction was estimated using partial least square-based structural equation modeling approach to test hypotheses about linkages among these constructs.Results: The dimension structure of doctor’s service quality contained constructs such as “price affordability of medicines,” “quality of diagnosis,” “interaction quality of doctor,” “appropriateness of tests prescribed,” and “quality of usage prescriptions.” These service quality dimensions of doctor significantly develop wellness perceptions and satisfaction among patients. Wellness perceptions act as a mediator in satisfaction development.Conclusions: Patient satisfaction and wellness perceptions are of primary importance in improving service quality in health care and to remain competitive. The health-care firms should train their professionals to interact with the patients more efficiently by adhering to the philosophy of patient centeredness in their service process.

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