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... Customer satisfaction is a strong predictor for behavioral variables in the telecommunications industry, such as re-purchase intentions, word-of-mouth recommendation, and loyalty [20,65]. Prior studies have also highlighted the importance of customer satisfaction factors for mobile service providers to maintain or improve their market share, customer retention, and profitability [19,20,60,[65][66][67][68][69]. ...
... Understanding customers and establishing long-term profitable relationships is essential for a firm to enhance sustainability and profitability. RBV and innovation literature emphasize customers' loyalty (brand loyalty) as an intangible valuable resource and a key factor for a firm's sustainable competitive advantage and superior performance [20,26,65,66,[68][69][70][71][72]. Diaw and Asare [68] showed a positive relationship between innovation, customer satisfaction, and customer retention in the telecommunications industry. ...
... RBV and innovation literature emphasize customers' loyalty (brand loyalty) as an intangible valuable resource and a key factor for a firm's sustainable competitive advantage and superior performance [20,26,65,66,[68][69][70][71][72]. Diaw and Asare [68] showed a positive relationship between innovation, customer satisfaction, and customer retention in the telecommunications industry. According to Lin and Wang [65], attaining new customers is considerably more expensive than retaining existing customers, which can render many customer relationships unprofitable in the early years. ...
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The telecommunications industry has recognized innovation as the key to growth and survival. Globalization, liberalization, and privatization, the terms most commonly associated with this sector, have resulted in fierce competition, making it more difficult for telecommunications firms to increase their market share and, as a result, their customer base, sales volume, and, ultimately, profits. The new success strategy is differentiation through innovation, with the aim of breaking out of the competition and creating an uncontested market. This can be accomplished by providing high-value, innovative services that result in customer satisfaction and promote customer loyalty. The primary goal of this study was to create and validate a conceptual model of value innovation and its impact on firm performance and long-term growth by examining the mediation effect of customer satisfaction and loyalty. The empirical analysis results were based on 304 respondents who completed a paper-based survey provided to employees of Yemeni mobile service providers using a convenience non-probability sampling technique. SmartPLS 3 was used to test the hypothesized relationships using partial least squares structural equation modeling (PLS-PM). As a result, the findings empirically validated the theoretical research model, confirming the importance of the value innovation approach to achieving company performance and long-term growth by promoting customer satisfaction and loyalty. Finally, we have provided a discussion of the study’s theoretical contributions, managerial implications, and future research directions.
... Also, Owano et al. (2014) illustrated that first mover innovative firms can reach higher level of customers' satisfaction along with higher profit. In the same vein, many studies revealed a significant positive relationship between service innovation and customers' satisfaction (Diaw and Asare, 2018;Kanwal and Yousaf, 2019;Naveed et al., 2012;Weng et al., 2012). Based on reviewing the previous literature the following hypothesis is developed as follows: ...
... To analyze the mediation effect of university reputation (mediator), the authors follows the following criteria: first, illustrate the existence of significant direct path between the predictor (service innovation) and the criterion variable (students' satisfaction). Whereby, previously discussed literature revealed a significant relationship between service innovation and students satisfaction (Diaw and Asare, 2018;Kanwal and Yousaf, 2019;Naveed et al., 2012;Weng et al., 2012). Second, the authors demonstrate the indirect path IJDIG between the predictor and criterion variables, through elaborating the significance for the following two relationships: ...
... Hence, continuous improvement in service innovation, allows universities to overcome problems facing their students in a satisfactory manner. This finding goes in line with the results of many studies (such as Diaw and Asare, 2018;Kanwal and Yousaf, 2019;Naveed et al., 2012;Weng et al., 2012). Furthermore, this study reveals a significant positive relationship between service innovation and corporate reputation in Lebanese universities, whereby H2 is supported. ...
Article
Purpose This paper aims to examine the moderated mediation effect of the lack of students’ socialization (as one of the COVID-19 consequences) and the university reputation on the relationship between the service innovation and students satisfaction. The relationship between students satisfaction and their loyalty is also examined. Design/methodology/approach This study adopts a quantitative research approach, whereas the study population consists of all universities’ students in Lebanon. Data were collected from 201 students, elected depending on snowballing sample technique. A questionnaire was used to gather data, whereby partial least squares structural equation modeling was used to check the proposed scales validity and the relationships between the study variables. Findings The findings reveal a significant direct effect for university’s service innovation on students satisfaction and an indirect effect through the mediation role for university reputation. Moreover, an evidence for weak negative significant effect for lack of socialization on students satisfaction exists. Whereby, lack of socialization does not moderate the relationship between university service innovation and students satisfaction. Finally, students satisfaction has a significant positive effect on their loyalty. Originality/value This paper advances the service innovation literature in the higher education sector. In addition, the paper might be the first paper to address the influence of lack of socialization as one of the COVID-19 consequences on students satisfaction. Furthermore, areas for future research are suggested.
... This study indicates a significant effect of product innovation on customer satisfaction for Honda motorcycles in the Kampar Regency. This study is in line with the research results conducted by Antanegoro et al. (2017) and Diaw and Asare (2018), which state that product innovation significantly affects customer satisfaction. Product innovation can have a significant impact on customers. ...
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This study aims to determine the effect of product innovation and service quality on customer satisfaction and customer loyalty at Honda motorcycle customers in Kampar Regency. Data collection was obtained through questionnaires collected from 105 consumers of Honda motorcycles in the Kampar Regency. The technique of sampling uses non-probability sampling and sample selection by purposive sampling. The data processing methods in this research are validity, reliability, the goodness of fit using Structural Equation Model (SEM) with Amos, and path analysis using the Sobel test. This study found that product innovation and service quality significantly affected customer satisfaction. Customer satisfaction has a significant effect on customer loyalty. Product innovation and service quality have no direct effect on customer loyalty. Product innovation and service quality significantly affect customer loyalty through customer satisfaction.
... Furthermore, one of the goals of e-commerce innovation is to make it easier for the customers to use online shopping websites/applications, such as the ease of finding products, ease of purchase, and ease of transactions. In theory, the results of this study reinforce the idea that innovation is an antecedent factor of customers' satisfaction and loyalty, both in the e-commerce and conventional industries (Bersali and Guermat, 2014;Victorinoet al., 2005;Diaw and Asare, 2018). ...
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The purpose of this study is to develop new knowledge related to innovations in e-commerce, which we call e-commerce innovation, and how this affects customers' satisfaction and loyalty, along with the e-service quality, in the context of an online shop in Indonesia. Several measurement items of e-commerce innovation were adopted and modified from the existing literature. To answer how this affected the customers' satisfaction and loyalty, partial least squares structural equation modeling was used to analyze the data from 400 respondents. Empirical test results found that e-commerce innovation and e-service quality can increase customers' satisfaction and loyalty, respectively. It is also known that in the context of online shopping customers in Indonesia, it is easier to generate customers' satisfaction than customers' loyalty. This study contributes to the novelty related to e-commerce innovation, which focuses on innovation of the application or website, not of the company as a whole.
... Mercado (2013) in Kurniawan et al. (2019) stated that focusing on SI process and setting higher innovation efforts leads to CS. In the telecommunications service industry in Ghana, Diaw and Asare (2018) proved a relationship between innovation and satisfaction and customer retention. Therefore, it is hypothesized that: H2. ...
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Indonesia's fast-growing digital payment industry is encouraging the emergence of new players. In a highly competitive industry and accompanied by COVID-19, e-wallet service providers compete to attract consumers and seller partners to use their services. This study aims to examine the effect of service innovation (SI), service delivery (SD), and customer satisfaction (CS) on customer loyalty (CL) of ShopeePay e-wallet users in Indonesia, especially during the COVID-19 outbreak. This study uses a quantitative method with non-probability sampling, namely judgment sampling, in which respondents are users of ShopeePay e-wallet service in Indonesia. Samples analyzed was 303 respondents with questionnaire data collection technique. The results shows that SI and SD mediated by CS, and CS itself has a positive and significant effect on CL of ShopeePay users in Indonesia. These findings indicate that ShopeePay Indonesia needs to develop SI and SD that meets customer needs and expectations to achieve CL. Keywords: Delivery; Indonesian e-wallet; Innovation; Loyalty; Satisfaction
... Customers and the covering of their expectations is crucial for the survival and sustainability of the companies (Daragahi, 2017). The innovations are crucial for the satisfaction of the consumers especially in services (Diaw and Asare, 2018;Mahmoud, Hinson and Anim, 2017). ...
Book
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This Book deems to summarize essential and critical statements from genuine publications of the Members of the Project. In fact, this Book shall be taken to stand as a Research Compendium – a special class of intellectual product that combines texts, references, and excerpts of selected project publications and professional expertise of the Members of the Research Team. Thus, this Research Compendium serves as the Final Reporting Product of the Research. The collection of concise but detailed information about innovation practices is aimed at private stakeholders to summarize and systematize the key points that are considered the product of the research study. Executive Summary This book explores innovation performance of the Bulgarian wine industry private stakeholders. The research study deals with an essential economic problem, related to whether innovation businesses may play key role in European and Bulgarian business practice. The study takes into consideration that Bulgaria is an emerging market economy, which transited from a centrally planned economy in the early 1990s to a social market economy since its accession to EU in 2007. The aim of this milestone research for the wine industry sector of Bulgaria is to find dependencies among non-examined phenomena from the economic, social, and political spheres being not investigated up to this date. The expected effects of the research is to generate new knowledge about the investigated economic and socio-political phenomena as well as to explain the relations between the socio-political environment, on the one hand, and the opportunities for innovation practices of SMEs, on the other. Human interrelations are the engine for application of innovations. Thus, this study is focused upon wine industry as a specific sector of the Bulgarian economy. Only SMEs positioned in Bulgaria are included in this research, as main limitation of the scope of the study. Wine industry is a traditional sector of Bulgaria’s economy, but the political processes in the late 1980s affected negatively every aspect of wine production in the country. The research methodology is of a survey-descriptive type. A wide range of research methods are used to successfully achieve the goals and tasks of the research. The method of expert assessment is used, and it is conducted with the support of scholars from listed economic universities as consultants (see the Appendix List). There were conducted in-person verbal interviews with stakeholders of wine industry enterprises in Bulgaria to test the ideas, build knowledge, and gain insightful comments to the investigated research ideas. In addition, Two Focus Groups were held to produce a single agreed platform for communicating in an objective way how companies work. The focus groups were tested through in-depth interviews, as it follows: Focus Group I  In-depth Interviews with 5 CEOs, who participated in the Pilot Study.  In-depth Interviews with 25 professionals of the wine industry, who participated in the Pilot Study. Focus Group II  In-depth Interviews with 15 CEOs, who participated in the Final Research.  In-depth Interviews with 15 professionals of the wine industry, who participated in the Final Research. Based on the professional opinions collected, it was constructed within the research a conceptual model of how to establish an Innovative Enterprise. The survey used simple random sampling: 156 questionnaires were distributed, and 67 questionnaires were finally received. Analysis of collected data was made using the Statistical Package for the Social Sciences (SPSS). The goal of the study was achieved as the undertaken research of the wine industry enterprises and stakeholders, positioned in Bulgaria, discovered new methodological approaches for studying the following three applicable business dimensions: - level of implementation of innovations by wine industry stakeholders; - innovation activities of the SMEs and - applied innovation strategies by the SMEs. In summation, this book shall be taken to stand as a basic up-to-date study for further investigation of the innovation phenomena discussed. KEY WORDS Innovations, Competitiveness, Wine Industry, Bulgaria.
... Small-and-Medium Enterprises need to use innovation to provide new products (Ismanu & Kusmintarti, 2019). Product innovation is only possible if SMEs use up-to-date technology (Aksoy, 2017; Diaw & Asare, 2018;Ungerman et al., 2018). Small-and-Medium Enterprises that have up-to-date technology and apply this technology to respond to consumer demands are those that have technology orientation (Ali et al., 2016;Lo et al., 2016). ...
Article
The research was aimed to uncover the effect of market orientation and technology orientation on entrepreneurship orientation with education as a moderator variable. This research used the quantitative approach and the causal relationship between variables was investigated through Structural Equation Modeling-Partial Least Squares (SEM-PLS). The research population included Small-and-Medium Enterprises (SMEs) in East Java, Indonesia, and 168 SMEs were selected as the sample. The findings of the research revealed that education attainment levels could reduce the effect of market orientation on entrepreneurship orientation and could increase the effect of technology orientation on entrepreneurship orientation. Based on the findings, it is recommended that SMEs in East Java must improve their entrepreneurship orientation by intensifying the variation of the market’s supply and demand, upgrading technology, and hiring workers who have the required educational background, and then training them on the latest technology
... The results of this study, obtained findings that are different from the findings of previous researchers [16], [17], [18], [19], which showed that the Product Innovation variable had a significant effect on Customer Satisfaction. In contrast, the results of this study provide findings that Product Innovation has no effect on Customer Satisfaction. ...
... In this environment, customer satisfaction is a critical factor for mobile service providers to maintain or improve their market share and profitability". Previous studies have pointed out that customer satisfaction contributes to firms' profitability and customer retention (Lin andWang 2006, Kuo, Wu et al. 2009 Moreover, prior studies have examined the mobile phone market and found that customer satisfaction has a positive effect on customer loyalty (Lin and Wang 2006, Kuo, Wu et al. 2009, Lee 2010, Zhao, Lu et al. 2012, Verma and Singh 2017, Diaw and Asare 2018. Understanding customers and establishing long term profitable relationships is essential for mobile service providers to enhance sustainability and profitability (Hajar, Ibrahim and Darun 2019). ...
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Mobile Value-Added Services (MVAS) is a general expression for any services added to mobile phone networks other than voice services. However, the difficulty of identifying and promoting the appeal MVAS to the individual customer is vague and often confusing. This empirical study aims to reduce this vague by assisting service providers in targeting the right customer with the right services. The purpose of this paper is to propose guidelines to efficiently improve the value-added services of Mobile Companies in Yemen through the promotion of customer satisfaction and loyalty. Accordingly, a questionnaire survey was conducted, and data were collected over 1000 mobile users in the Republic of Yemen. Also, market observations were undertaken to define difficulties and limitations. The results showed that MVAS has positive effects on customer satisfaction and loyalty, and hence on company’s performance and profitability. Finally, the study provides some recommendations to improve MVAS in Yemen telecommunications companies.
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The positive effects of the innovations on the performance of the companies is inevitable. However, these effects can be numerous and it is important the entrepreneurs to be aware what they can expect. Thus, the aim of the current study is to identify the results, expected by the Bulgarian wine producers from the application of innovations and if their choice is associated to some factors. The object of the study is Bulgarian SMEs wine producers. The focus is their opinion as regards the expected results from the application of innovations. The results are obtained through survey, conducted from December 2019 to January 2020. The results show that the most expected results by the Bulgarian wine producers are the increase of competitiveness and efficiency of their enterprises.
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At the firm level, intense competition under the global economic framework requires small and medium enterprises to reconsider their competitive position vis-Ã -vis their rivals, amongst others, through innovation. This justifies why innovation, in the last two decades, becomes a centre stage in small business literature, reports and government policy. Little attention, however, has been given to the possible impact of various dimensions of innovation on firm performance. Enriching the literature, this paper evaluates the impact of various innovation dimensions on the performance of SMEs. A total of 284 samples were collected from SMEs in the food and beverage, textiles and clothing and wood-based sub-industries throughout Malaysia. The data were analysed using a hierarchical regression analysis. The findings confirmed the hypotheses that product innovation and process innovation influenced firm performance significantly, where the impact of the former was stronger than the latter. Besides consolidating the existing theory on the importance of innovation for explaining a variation in firm performance, the findings also inform SMEs and policy makers that innovation is a critical factor in today’s entrepreneurial activities. Further studies should look into how SMEs could calculate cost-benefit ratio of innovation and how they could opt for internal or external sources of innovation before actual innovation is undertaken.
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The purpose of research is to find out how innovation affects customer satisfaction and brand loyalty in mobile phones used by its users in Pakistan. Data was collected from the users of cellular products in vicinity of Rawalpindi and Islamabad. The data was collected from 300 users through questionnaires. Results indicate that innovation has impact on customer satisfaction and brand loyalty.
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Purpose – In recent years, organizations have been forced to compete in a new environment and to become more innovative, provide more quality and respond more effectively to consumers' needs and preferences. Within this context, the main objectives of this research are to propose scales and study the existing relationships among innovation, Management System Standards (MSSs) Integration and customer satisfaction in order to help organizations to manage these elements and increase their performance. Design/methodology/approach – Data for this study derives from a survey carried out in 76 Spanish organizations registered to at least both ISO 9001:2008 and ISO 14001:2004. An Exploratory Factor Analysis (EFA) and Structural Equation Modelling (SEM) are utilised to assess and confirm the proposed scales validity and the relationships of the research model. Findings – The conceptual model finds significant support based on the empirical study. Three of the four dimensions of innovation and the four dimensions of MSs Integration are confirmed. Besides, the findings show that the integration characteristics are positively related to innovation and satisfaction, whereas, innovation is only partially linked to satisfaction. Originality/value – This study, which aims to shed light on the integration characteristics, is the first to propose a model that links the three concepts of integration, customer satisfaction and innovation together. These are relevant issues for the competitiveness of companies, willing to increase their performance, especially for companies which have implemented several ISO based systems, which have become a key part of the organisation's lifeline and a prerequisite for survival in the twenty-first century.
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Innovation is widely regarded as one of the most important sources of sustainable competitive advantage in an increasingly changing environment, because it leads to product and process improvements, makes continuous advances that helps firms to survive, allows firms to grow more quickly, be more efficient, and ultimately be more profitable than non-innovators. The main purpose of this study is to examine the relationships between innovation and firm performance. The survey of this study is conducted on top level managers of 113 firms operating in the automotive supplier industry which is one of the most innovative industries in Turkey, as of the year 2011. The obtained data from the questionnaires are analyzed through the SPSS statistical package program. Analysis results demonstrated that technological innovation (product and process innovation) has significant and positive impact on firm performance, but no evidence was found for a significant and positive relationship between non- technological innovation (organizational and marketing innovation) and firm performance.
Book
The services sector now accounts for over 70% of employment and value added in OECD economies. It also accounts for almost all employment growth in the OECD area. But despite its growing weight in OECD economies, productivity growth and employment rates in services remain low in many OECD countries. This report provides an overview of the role of services in economic performance, and the factors that affect services sector performance. This includes the role of labour and product markets, the impact of barriers to trade in services, the role of innovation in services and the impacts of information and communications technology (ICT) on the services sector. The report also includes a paper presenting case studies of successful services firms, which help illustrate the broader analysis from OECD data.
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Service innovativeness, or the propensity to introduce service innovations to satisfy customers and improve firm value at acceptable risk, has become a critical organizational capability. Service innovations are enabled primarily by the Internet or people, corresponding to two types of innovativeness: E- and p-innovativeness. The authors examine the determinants of service innovativeness and its interrelationships with firm-level customer satisfaction, firm value, and firm risk and investigate the differences between e- and p-innovativeness in these relationships. They develop a conceptual model and estimate a system of equations on a unique panel data set of 1049 innovations over five years, using zeroinflated negative binomial regression and seemingly unrelated regression approaches. The results reveal important asymmetries between e- and p-innovativeness. Whereas e-innovativeness has a positive and significant direct effect on firm value, p-innovativeness has an overall significantly positive effect on firm value through its positive effect on customer satisfaction but only in human-dominated industries. Both e- and p-innovativeness are positively associated with idiosyncratic risk, but customer satisfaction partially mediates this relationship for pinnovativeness to lower this risk in human-dominated industries. The findings suggest that firms should nurture e-innovativeness in most industries and p-innovativeness in human-dominated industries.
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The purpose of this paper is to investigate whether innovation novelty has an impact on the firms' performance in selected service industries. The principal interest in this paper lies in incorporating two different dimensions of innovation radicalness – market-entry and originality of the innovation – to assess firms' commercialization performance. The results show that to derive more sales from innovation, service firms need to enter the market early (world-first and to some extent, Canada-first) or to introduce new products with high level of novelty. Importance of early-entry (world-first) or novel content in commercialization performance differs by industries.
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Innovation and knowledge creation—these two concepts have a strong relationship but this relationship has not been examined systematically. This paper reviews the important theoretical work in both streams of research, highlighting the fundamental similarities and differences. Four major models of innovation are compared, and the distinction between radical and incremental innovation is examined. The nature of organizational knowledge and the process of knowledge creation are presented. We then compare the principal findings of the research on innovation and knowledge creation, and conclude with a new framework that differentiates types of innovation based on a knowledge creation perspective.
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Purpose – The purpose of this paper is to examine empirically the antecedents and consequences of innovativeness or innovation capability of logistics service providers (LSPs). In particular relationship orientation is examined as an antecedent to innovativeness that will in turn lead to higher levels of logistics service quality and firm performance. The outcomes aim at contributing towards understanding the main drivers of innovativeness and the outcomes of developing the capability to innovate. Design/methodology/approach – Data to empirically analyze the four research hypotheses on the relationships between relationship orientation, innovativeness, logistics service quality and firm performance are collected via a survey of a random sample of LSPs in Hong Kong and analyzed using structural equation modelling via LISREL 8.52. The LISREL diagnostics indicated good fit of the measurement and structural models, providing supporting evidence to the hypothesized causal relationships. Findings – The empirical findings indicate that relationship orientation in the LSP-client relationship will lead to higher levels of innovativeness, improvement in the quality of logistics service and improved performance for the LSP. Research limitations/implications – The study has indicated that innovativeness is influenced by relationship orientation between two partners in a business-to-business setting. The findings add credence to the relational paradigm, which suggests beneficial performance outcomes of strong relational ties. In addition, that innovativeness is an important determinant of logistics service quality and in consequence customer value and firm performance. Future research may address the issue by adopting a longitudinal rather than a cross-sectional approach and also extend the study to other industrial and cultural contexts. Practical implications – Managers should emphasize the development of client relationships and inter-organisational capabilities that can lead towards higher levels of innovativeness. The study supports the notion that the ability to provide high quality logistics services and fulfil customer requirements requires building client relationships and introducing innovations in processes and techniques. Originality/value – The originality of the paper arises from the fact that innovativeness is examined for the first time as a consequence of relationship orientation and a contributing factor to logistics service quality and performance. In this regard, the paper extends theoretical knowledge and also provides valuable managerial implications to LSPs.