The Effect of Service Orientation on Financial Performance: The Mediating Role of Job Satisfaction and Customer Satisfaction

Abstract

Scholars and business executives have become increasingly interested in the concept of an organizational service orientation. Service excellence is a strategic priority and that service significantly affects the creation of superior value, customer satisfaction, competitive advantage, growth, and profitability. The aim of the study is to explore relationships between organizational service orientation, job satisfaction, customer satisfaction and financial performance in banking industry in Turkey. Hypotheses are developed in due course. Next, hypotheses are tested with data collected from a sample of 745 branch managers and employees of banks operating in Turkey. Using structural equation modelling (SEM), results reveal that service orientation is significantly related to job satisfaction, which in turn impacts customer satisfaction, ultimately leading to higher financial performance. Beside service orientation is directly related to customer satisfaction and also to financial performance. At the end, the research findings are discussed and also managerial implications and future research opportunities are presented.