IDEAS home Printed from https://ideas.repec.org/a/eco/journ3/2017-02-10.html
   My bibliography  Save this article

Banks Performance and Impact of Market Orientation Strategy: Do Employee Satisfaction and Customer Loyalty Augment this Relationship?

Author

Listed:
  • Hamada Fawzy Thabet Abuzid

    (Department of Business Administration, Community College, Prince Sattam Bin Abdulaziz University, Alkharj, Saudi Arabia,
    Benha University, Egypt,)

  • Muzaffar Abbas

    (Department of Business Administration, Community College, Prince Sattam Bin Abdulaziz University, Alkharj, Saudi Arabia.)

Abstract

Banking sector performance directly reflectsthe manifestation of a government vision to facilitate in infrastructure support to economic performance of a country. How efficient a banking sector is and how good the sector takes care of customers, it triggers the economic growth. This research is an effort to measure the impact of market orientation strategy adopted by Saudi Arabia banks on their business performance under the influence of mediating variable such as employee and customer satisfaction.A number of banks listed on the Saudi financialmarket in SaudiArabia were included in this research and a randomly selected sample consisted of banks managers, banks employees and the bank’s customers participated in the study. 66 managers, 253 employees and 288 customers were contacted and a total of 51 managers, 201 employees and 265 customers responded accurately to form part of the research. Thereby, the response rate was 77%, 79.4% and 92% respectively. Various SPSS andAmos tools were applied to perform statistical analysis of the model and variables. Considering the results of the data, the researchers are able to draw a conclusion which is also consistent with the past similar researches that market orientation strategy has a direct and positive influence on the banks financial, operational and functional outcomes provided that employee and customer satisfaction are properly taken care of. The findings also confirmed the positive mediating role of both variables i.e., employee and customer satisfaction in this relationship

Suggested Citation

  • Hamada Fawzy Thabet Abuzid & Muzaffar Abbas, 2017. "Banks Performance and Impact of Market Orientation Strategy: Do Employee Satisfaction and Customer Loyalty Augment this Relationship?," International Review of Management and Marketing, Econjournals, vol. 7(2), pages 60-66.
  • Handle: RePEc:eco:journ3:2017-02-10
    as

    Download full text from publisher

    File URL: http://www.econjournals.com/index.php/irmm/article/download/4085/pdf
    Download Restriction: no

    File URL: http://www.econjournals.com/index.php/irmm/article/view/4085/pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Gounaris, Spiros P., 2006. "Internal-market orientation and its measurement," Journal of Business Research, Elsevier, vol. 59(4), pages 432-448, April.
    2. Homburg, Christian & Stock, Ruth, 2004. "The Link Between Sales People’s Job Satisfaction and Customer Satisfaction in a Business-to-Business Context: A Dyadic Analysis," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 35550, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    3. Arbore, Alessandro & Busacca, Bruno, 2009. "Customer satisfaction and dissatisfaction in retail banking: Exploring the asymmetric impact of attribute performances," Journal of Retailing and Consumer Services, Elsevier, vol. 16(4), pages 271-280.
    4. Charles J. Corbett & María J. Montes-Sancho & David A. Kirsch, 2005. "The Financial Impact of ISO 9000 Certification in the United States: An Empirical Analysis," Management Science, INFORMS, vol. 51(7), pages 1046-1059, July.
    5. Homburg, Christian & Stock, Ruth, 2004. "The Link between Sales People’s Job Satisfaction and Customer Satisfaction in a Business-to-Business Context: A Dyadic Analysis," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 60486, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    6. Jeevan Jyoti & Jyoti Sharma, 2012. "Impact of Market Orientation on Business Performance: Role of Employee Satisfaction and Customer Satisfaction," Vision, , vol. 16(4), pages 297-313, December.
    7. Lloyd C. Harris, 2001. "Market Orientation and Performance: Objective and Subjective Empirical Evidence from UK Companies," Journal of Management Studies, Wiley Blackwell, vol. 38(1), pages 17-43, January.
    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. Yunisyaaf Yunizal Arif, 2019. "Back to Basics in the Importance of Market Orientation and Corporate Strategy to Bank Performances in Indonesia," American Journal of Economics and Business Administration, Science Publications, vol. 11(1), pages 78-85, December.

    More about this item

    Keywords

    Performance; Satisfaction; Market Orientation; Saudi Arabia;

    JEL classification:

    • G2 - Financial Economics - - Financial Institutions and Services
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance

    Statistics

    Access and download statistics

    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:eco:journ3:2017-02-10. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ilhan Ozturk). General contact details of provider: http://www.econjournals.com .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.