IDEAS home Printed from https://ideas.repec.org/a/eee/joreco/v55y2020ics0969698919311725.html
   My bibliography  Save this article

Triadic relationship between customers, service providers and government in a highly regulated industry

Author

Listed:
  • Quach, Sara
  • Thaichon, Park
  • Hewege, Chandana

Abstract

This study investigates the triadic interplay among the government, service providers and customers in a highly regulated environment in a centrally planned economy influenced by communist political ideology. In order to answer the research question, we conducted two studies: Study 1 is a qualitative study aiming at exploring various aspects of the triadic interplay among customers, service providers and the regulatory framework, and Study 2 employed a quantitative approach to validate some findings in Study 1. It was found that the relationships between the three main entities in the market were not balanced. Service providers were more passive in their relationship with regulators. In addition, communications between customers and regulators were limited and not well-established. Customers had not been sufficiently engaged and thus, had little voice in the formulation of regulations. Furthermore, the perception of a firm's service quality and innovativeness was different among customers with different levels of perceived regulatory control and regulatory knowledge. As regulatory control and knowledge increased, customers were more likely to perceive a higher level of service quality and innovativeness. The research extends the domain of relationship marketing by incorporating the influence of the government or regulatory framework in the relationship between customers and service providers. The findings of this study can provide practical insights for policymakers and help service providers to effectively manage the relationships with their customers and regulatory bodies.

Suggested Citation

  • Quach, Sara & Thaichon, Park & Hewege, Chandana, 2020. "Triadic relationship between customers, service providers and government in a highly regulated industry," Journal of Retailing and Consumer Services, Elsevier, vol. 55(C).
    • Handle: RePEc:eee:joreco:v:55:y:2020:i:c:s0969698919311725
    DOI: 10.1016/j.jretconser.2020.102148
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0969698919311725
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jretconser.2020.102148?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Holt, Lynne, 2005. "Utility service quality--Telecommunications, electricity, water," Utilities Policy, Elsevier, vol. 13(3), pages 189-200, September.
    2. Vu-Thanh, Tu-Anh, 2014. "The political economy of industrial development in Vietnam: Impact of state-business relationship on industrial performance, 1986-2012," WIDER Working Paper Series 158, World Institute for Development Economic Research (UNU-WIDER).
    3. Chen, Wenhong, 2007. "Does the Colour of the Cat Matter? The Red Hat Strategy in China's Private Enterprises," Management and Organization Review, Cambridge University Press, vol. 3(1), pages 55-80, March.
    4. Birke, Daniel & Swann, G.M. Peter, 2010. "Network effects, network structure and consumer interaction in mobile telecommunications in Europe and Asia," Journal of Economic Behavior & Organization, Elsevier, vol. 76(2), pages 153-167, November.
    5. George J. Stigler, 1971. "The Theory of Economic Regulation," Bell Journal of Economics, The RAND Corporation, vol. 2(1), pages 3-21, Spring.
    6. Zahirul Hoque & Trevor Hopper, 1997. "Political and Industrial Relations Turbulence, Competition and Budgeting in the Nationalised Jute Mills of Bangladesh," Accounting and Business Research, Taylor & Francis Journals, vol. 27(2), pages 125-143.
    7. Olivier Boylaud & Giuseppe Nicoletti, 2003. "Regulation, market structure and performance in telecommunications," OECD Economic Studies, OECD Publishing, vol. 2001(1), pages 99-142.
    8. Bhimani, Alnoor, 1999. "Mapping methodological frontiers in cross-national management control research," Accounting, Organizations and Society, Elsevier, vol. 24(5-6), pages 413-440, July.
    9. Stephen Littlechild, 2012. "Regulation and Customer Engagement," Economics of Energy & Environmental Policy, International Association for Energy Economics, vol. 0(Number 1).
    10. Franceys, Richard W.A. & Gerlach, Esther, 2011. "Consumer involvement in water services regulation," Utilities Policy, Elsevier, vol. 19(2), pages 61-70, June.
    11. Yu, Liangchun & Berg, Sanford & Guo, Qing, 0. "Market performance of Chinese telecommunications: new regulatory policies," Telecommunications Policy, Elsevier, vol. 28(9-10), pages 715-732, October.
    12. Esteban García‐Canal & Mauro F. Guillén, 2008. "Risk and the strategy of foreign location choice in regulated industries," Strategic Management Journal, Wiley Blackwell, vol. 29(10), pages 1097-1115, October.
    13. Richard A. Posner, 1974. "Theories of Economic Regulation," Bell Journal of Economics, The RAND Corporation, vol. 5(2), pages 335-358, Autumn.
    14. Jerry A. Hausman, 1997. "Valuing the Effect of Regulation on New Services in Telecommunications," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 28(1997 Micr), pages 1-54.
    15. Thaichon, Paramaporn & Lobo, Antonio & Prentice, Catherine & Quach, Thu Nguyen, 2014. "The development of service quality dimensions for internet service providers: Retaining customers of different usage patterns," Journal of Retailing and Consumer Services, Elsevier, vol. 21(6), pages 1047-1058.
    16. Martin Peitz, 2005. "Asymmetric Regulation of Access and Price Discrimination in Telecommunications," Journal of Regulatory Economics, Springer, vol. 28(3), pages 327-343, November.
    17. Wenhong Chen, 2007. "Does the Colour of the Cat Matter? The Red Hat Strategy in China's Private Enterprises," Management and Organization Review, The International Association for Chinese Management Research, vol. 3(1), pages 55-80, March.
    18. Tu-Anh Vu-Thanh, 2014. "The Political Economy of Industrial Development in Vietnam: Impact of State-Business Relationship on Industrial Performance, 1986-2012," WIDER Working Paper Series wp-2014-158, World Institute for Development Economic Research (UNU-WIDER).
    19. Choi, Seon-Kyou & Lee, Myeong-Ho & Chung, Gyu-Hwa, 2001. "Competition in Korean mobile telecommunications market: business strategy and regulatory environment," Telecommunications Policy, Elsevier, vol. 25(1-2), pages 125-138, February.
    20. Haucap, Justus & Klein, Gordon J., 2012. "How regulation affects network and service quality in related markets," Economics Letters, Elsevier, vol. 117(2), pages 521-524.
    21. Rauf Gönenç & Giuseppe Nicoletti, 2003. "Regulation, market structure and performance in air passenger transportation," OECD Economic Studies, OECD Publishing, vol. 2001(1), pages 183-227.
    22. Ai, Chunrong & Sappington, David E M, 2002. "The Impact of State Incentive Regulation on the U.S. Telecommunications Industry," Journal of Regulatory Economics, Springer, vol. 22(2), pages 133-159, September.
    23. Kunz, Werner & Schmitt, Bernd & Meyer, Anton, 2011. "How does perceived firm innovativeness affect the consumer?," Journal of Business Research, Elsevier, vol. 64(8), pages 816-822, August.
    24. Quach, Sara & Hewege, Chandana & Le, Viet, 2019. "Expression and transformation of loyalty in a contractual service setting: A processual view," Australasian marketing journal, Elsevier, vol. 27(2), pages 66-77.
    25. Witold J. Henisz & Bennet A. Zelner, 2001. "The Institutional Environment for Telecommunications Investment," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 10(1), pages 123-147, March.
    26. World Bank, 2016. "Making Politics Work for Development," World Bank Publications - Books, The World Bank Group, number 24461, December.
    27. Quach, Thu Nguyen & Thaichon, Paramaporn & Jebarajakirthy, Charles, 2016. "Internet service providers' service quality and its effect on customer loyalty of different usage patterns," Journal of Retailing and Consumer Services, Elsevier, vol. 29(C), pages 104-113.
    28. D'Cruz, Joseph R. & Rugman, Alan M., 1994. "Business network theory and the Canadian telecommunications industry," International Business Review, Elsevier, vol. 3(3), pages 275-288, September.
    29. Vachon, Stephan & Klassen, Robert D., 2008. "Environmental management and manufacturing performance: The role of collaboration in the supply chain," International Journal of Production Economics, Elsevier, vol. 111(2), pages 299-315, February.
    30. Prakash Sethi, S. & Sama, Linda M., 1998. "Ethical Behavior as a Strategic Choice by Large Corporations: The Interactive Effect of Marketplace Competition, Industry Structure and Firm Resources," Business Ethics Quarterly, Cambridge University Press, vol. 8(1), pages 85-104, January.
    31. MB Sarkar & S Tamer Cavusgil & Preet S Aulakh, 1999. "International Expansion of Telecommunication Carriers: The Influence of Market Structure, Network Characteristics, and Entry Imperfections," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 30(2), pages 361-381, June.
    32. Yang, Anhyuk & Lee, Daeho & Hwang, Junseok & Shin, Jungwoo, 2013. "The influence of regulations on the efficiency of telecommunications operators: A meta-frontier analysis," Telecommunications Policy, Elsevier, vol. 37(11), pages 1071-1082.
    33. Peitz, Martin, 2005. "Asymmetric access price regulation in telecommunications markets," European Economic Review, Elsevier, vol. 49(2), pages 341-358, February.
    34. Henisz, Witold J, 2000. "The Institutional Environment for Multinational Investment," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 16(2), pages 334-364, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Barbara Tchórzewska-Cieślak & Katarzyna Pietrucha-Urbanik & Emilia Kuliczkowska, 2020. "An Approach to Analysing Water Consumers’ Acceptance of Risk-Reduction Costs," Resources, MDPI, vol. 9(11), pages 1-16, November.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Stöhr, Annika, 2021. "Price effects of horizontal mergers: A retrospective on retrospectives," Ilmenau Economics Discussion Papers 151, Ilmenau University of Technology, Institute of Economics.
    2. Yang, Anhyuk & Lee, Daeho & Hwang, Junseok & Shin, Jungwoo, 2013. "The influence of regulations on the efficiency of telecommunications operators: A meta-frontier analysis," Telecommunications Policy, Elsevier, vol. 37(11), pages 1071-1082.
    3. Tomaso Duso, 2005. "Lobbying and regulation in a political economy: Evidence from the U.S. cellular industry," Public Choice, Springer, vol. 122(3), pages 251-276, March.
    4. Morrison, William G. & de Wit, Jaap, 2019. "US open skies agreements and unlevel playing fields," Journal of Air Transport Management, Elsevier, vol. 74(C), pages 30-38.
    5. Weiguo Zhong & Ya Lin & Danxue Gao & Haibin Yang, 2019. "Does politician turnover affect foreign subsidiary performance? Evidence in China," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(7), pages 1184-1212, September.
    6. Jensen, Olivia & Wu, Xun, 2017. "The hybrid model for economic regulation of water utilities: Mission impossible?," Utilities Policy, Elsevier, vol. 48(C), pages 122-131.
    7. Mark Armstrong & Julian Wright, 2009. "Mobile Call Termination," Economic Journal, Royal Economic Society, vol. 119(538), pages 270-307, June.
    8. Carlo Cambini & Yossi Spiegel, 2016. "Investment and Capital Structure of Partially Private Regulated Firms," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 25(2), pages 487-515, April.
    9. Jahn, Eric & Prüfer, Jens, 2008. "Interconnection and competition among asymmetric networks in the Internet backbone market," Information Economics and Policy, Elsevier, vol. 20(3), pages 243-256, September.
    10. Agiakloglou, Christos & Gkouvakis, Michail, 2015. "Causal interrelations among market fundamentals: Evidence from the European Telecommunications sector," The Quarterly Review of Economics and Finance, Elsevier, vol. 55(C), pages 150-159.
    11. Juelin Yin & Yuli Zhang, 2012. "Institutional Dynamics and Corporate Social Responsibility (CSR) in an Emerging Country Context: Evidence from China," Journal of Business Ethics, Springer, vol. 111(2), pages 301-316, December.
    12. Tan, Justin & Yang, Jun & Veliyath, Rajaram, 2009. "Particularistic and system trust among small and medium enterprises: A comparative study in China's transition economy," Journal of Business Venturing, Elsevier, vol. 24(6), pages 544-557, November.
    13. Mountain, Bruce R., 2019. "Ownership, regulation, and financial disparity: The case of electricity distribution in Australia," Utilities Policy, Elsevier, vol. 60(C), pages 1-1.
    14. Riham Ahmed Ezzat, 2015. "Paving the way for better telecom performance: Evidence from the telecommunication sector in MENA countries," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-01164199, HAL.
    15. Liao, Tsai-Ju, 2015. "Local clusters of SOEs, POEs, and FIEs, international experience, and the performance of foreign firms operating in emerging economies," International Business Review, Elsevier, vol. 24(1), pages 66-76.
    16. Benjamin A. T. Graham & Noel P. Johnston & Allison F. Kingsley, 2018. "Even Constrained Governments Take," Journal of Conflict Resolution, Peace Science Society (International), vol. 62(8), pages 1784-1813, September.
    17. Ando, Amy, 1998. "Delay on the Path to the Endangered Species List: Do Costs and Benefits Matter," RFF Working Paper Series dp-97-43-rev, Resources for the Future.
    18. William C. Mitchell, 1990. "Interest Groups: Economic Perspectives and Contributions," Journal of Theoretical Politics, , vol. 2(1), pages 85-108, January.
    19. Wallsten, Scott, 2005. "Regulation and Internet Use in Developing Countries," Economic Development and Cultural Change, University of Chicago Press, vol. 53(2), pages 501-523, January.
    20. Phares, Jonathan & Dobrzykowski, David D. & Prohofsky, Jodi, 2021. "How policy is shaping the macro healthcare delivery supply chain: The emergence of a new tier of retail medical clinics," Business Horizons, Elsevier, vol. 64(3), pages 333-345.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:joreco:v:55:y:2020:i:c:s0969698919311725. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/journal-of-retailing-and-consumer-services .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.