Determinants of customer satisfaction in a B2B IT context – A structural equation modeling approach

Abstract

Customer satisfaction studies in a business-to-business (B2B) information technology (IT) industry have primarily focused on assessing satisfaction at the project level. However, software organizations are unique due to the complex nature of the supplier-customer relationships; therefore, the requirements of customers at the project and engagement levels are quite different and convoluted. This research identifies the determinants of customer satisfaction in an IT scenario, at an engagement level, and proposes a measurement instrument for the same. Furthermore, the relationships among the various determinants of customer satisfaction and their effect on overall customer satisfaction are investigated using the structural equation modeling (SEM) approach. The SEM model was tested for model fit and adequacy through various indices and measures, thereby confirming the theory behind the proposed model. The present research will help practitioners better understand the relationships among the various elements in customer satisfaction measurement and management in software organizations. This study is perhaps the first of its kind in applying the SEM approach for evaluating customer satisfaction in the B2B IT industry.