The effects of customer service management on business performance in Malaysian banking industry: an empirical analysis

Purpose – The aim of this paper is to examine the degree of how customer service management (CSM) affects perceived business performance measures (PBPM) in Malaysian banks and finance companies.Design/methodology/approach – The aim was achieved through an empirical study involving a survey. Of 700 questionnaires sent out, 128 were returned. The dataset from the sample underwent series of statistical analyses, i.e. reliability test, factor analyses (exploratory and confirmatory) and structural equation modelling (SEM).Findings – Factor analyses extracted two dimensions, i.e. CSM and perceived business performance. All related indicators manifested their constructs respectively. Although there were expectations where CSM would diverged into more dimensions via exploratory factor analysis (i.e. market research, customer assessment, customer satisfaction and customer relationship management), the results show that CSM were encapsulated as a single construct by respondents. The findings confirmed that CSM had ...

[1]  L. Harlow,et al.  Effects of estimation methods, number of indicators per factor, and improper solutions on structural equation modeling fit indices , 1995 .

[2]  N. Bontis.  Intellectual capital: an exploratory study that develops measures and models , 1998 .

[3]  John C. Narver,et al.  Market orientation, customer value, and superior performance , 1994 .

[4]  Arawati Agus,et al.  A linear structural modelling of Total Quality Management practices in manufacturing companies in Malaysia , 2001 .

[5]  Paul R. Yarnold,et al.  Reading and understanding MORE multivariate statistics. , 2000 .

[6]  N. Bontis,et al.  Intellectual capital ROI: a causal map of human capital antecedents and consequents , 2002 .

[7]  John W. Mullins,et al.  Marketing Strategy: A Decision Focused Approach , 1991 .

[8]  Nick Bontis,et al.  A MODEL OF THE IMPACT OF MISSION STATEMENTS ON FIRM PERFORMANCE , 2001 .

[9]  M. Hammer,et al.  REENGINEERING THE CORPORATION: A MANIFESTO FOR BUSINESS REVOLUTION , 1995 .

[10]  Marjorie A. Lyles,et al.  Knowledge acquisition from foreign parents in international joint ventures: an empirical examination in the Hungarian context , 1996 .

[11]  Gregory G. Dess,et al.  Measuring organizational performance in the absence of objective measures: The case of the privately-held firm and conglomerate business unit , 1984 .

[12]  Gilbert A. Churchill,et al.  Marketing Research: Methodological Foundations , 1976 .

[13]  Arawati Agus,et al.  The structural impact of total quality management on financial performance relative to competitors through customer satisfaction: A study of Malaysian manufacturing companies , 2000 .

[14]  C. Fornell,et al.  Foundations of the American Customer Satisfaction Index , 2000 .

[15]  M. Zairi,et al.  Benchmarking quality implementation in a service context: A comparative analysis of financial services and institutions of higher education: Part II , 1998 .

[16]  Stanley Richardson,et al.  Business process re-engineering in Malaysian banks and finance companies , 2003 .

[17]  Edward G. Carmines,et al.  Reliability and Validity Assessment , 1979 .

[18]  Chris Styles.  Book Review: Introduction to Marketing: A Value Exchange Approach , 2004 .

[19]  K. H. Tang,et al.  Benchmarking quality implementation in a service context: A comparative analysis of financial services and institutions of higher education. Part I: Financial services sector , 1998 .

[20]  N. Bontis,et al.  Intellectual capital and business performance in Malaysian industries , 2000 .

[21]  Peter Jackson,et al.  Market Research: A Guide to Planning, Methodology and Evaluation , 1999 .