Impact of Service Quality and Customer Satisfaction on Financial Performance with Customer Satisfaction as Moderation in BPD Kaltim Kaltara

H Hairuzzaman

doi:10.7176/ejbm/11-21-14

Abstract

The study aims to investigate the effects of service quality and customer satisfaction on financial performance with customer satisfaction moderation in Bank Pembangunan Daerah Kalimantan Timur Kalimantan Utara. Based on a sample of 165 respondent and using structural equation modeling with PLS approach, and moderating effect. The results to show that service quality has a positive and significant effect on financial performance and customer satisfaction and shows that customer satisfaction has a positive and signicant effect on financial performance. Another result of this study indicate that work satisfaction is able to moderate the service quality to financial performance.Similarly, work satisfaction is also able to moderate customer satisfaction with financial performance. Thus it was found that financial performance can be achieved better through achieving work satisfaction for employees to create better service quality and customer satisfaction, esspecially in the baking industry. Finally, customer satisfaction partially moderate the relationship between service quality and customer satisfaction on financial performance. Moreover, the managerial and theoretical implications of the study along with limitations and suggestions for future research have also been discussed. Keywords: Service quality, customer satisfaction, work satisfaction, financial performance DOI : 10.7176/EJBM/11-21-14 Publication date :July 31 st 2019

Highlights

Every organization has a interst in the best performance that can be produced by a systems series applied in the organization
Human capital in this study is defined as a set of skills, competencies, experiences, values, attitudes held by employees to create added value and improve organizational effectiveness and performance
The Service-Profit Chain forms the relationship between profitability, customer loyalty, and customer satisfaction, loyalty and employee productivity

Summary

Introduction

Every organization has a interst in the best performance that can be produced by a systems series applied in the organization. Gonzales (2007) defines human capital as a series of capabilities and competencies that each person has both through format education and experience, human capital is the ability, experience, competence, values, attitudes tha add value to organization Supporting these statements, Benevene (2010) states that human capital is formed by the attitudes, competencies, experiences and skills of internal members of an organization. Based on the various definitions that have been stated previously, basically all define human capital as a set of skills or competencies (Becker, 1993; Bontis, 1999; Baron, 2013) that provide added value to the organization. Human capital in this study is defined as a set of skills, competencies, experiences, values, attitudes held by employees to create added value and improve organizational effectiveness and performance. In turn, mainly comes from services and policy support allowing employees to deliver results to customers and the as financial performance to company for the service provider concerned

Objectives

Methods

Results