{"title":"The effect of customer orientation on financial performance in service firms: The mediating role of service innovation","authors":"M. Z. Islam, Zhang Zhe","doi":"10.5267/j.msl.2021.10.003","DOIUrl":null,"url":null,"abstract":"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.","PeriodicalId":30205,"journal":{"name":"Management Science Letters","volume":null,"pages":null},"PeriodicalIF":0.0000,"publicationDate":"2022-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"1","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Management Science Letters","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.5267/j.msl.2021.10.003","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"","JCRName":"","Score":null,"Total":0}
引用次数: 1
Abstract
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.
期刊介绍：
Management Science Letters is a peer reviewed, monthly publication dedicated to create a forum for scientists in all over the world who wish to share their experiences and knowledge in the field of management skills in the form of original, high quality and value added articles. The journal''s policy is to perform a peer review on all submitted articles and the papers will be appeared in a form of online on our website as soon as the review result becomes positive. The journal covers both empirical and theoretical aspects of management and gives the chance on sharing knowledge among practitioners. Management Science Letters is dedicated for publishing in the following areas: • Quality Management • Production Management (Scheduling, Production management, etc.) • Total Quality Management (TQM) • Six Sigma • Production Efficiency • Just in Time Inventory • Data Envelopment Analysis • Balanced Score Card • Activity Based Cost (ABC) • Technology Acceptance Model • Marketing planning and Customer Relationship Management • Critical Success Factors • e-learning • Customer satisfaction, Job satisfaction, Job turnover, • Organizational commitment, Employee Commitment • Knowledge Management • Knowledge sharing • Human Resources Management (Employee training, Employee Performance, Work achievements,) • Small and medium-sized enterprises (SMEs) issues and Economic development • Innovation, Creativity, Productivity and Performance • Multi-Criteria Decision Making Applications in Management Science (AHP, BWM, TOPSIS, …) • Education Management, Social development, Public Policy • Tourism Industry, Tourism promotion, Tourism directorates • Business performance and financial performance
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