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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
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    References listed on IDEAS

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    Cited by:

    1. Mokoena Bakae Aubrey, 2019. "The Relationship Between Selected Market Orientation Dimensions and Organizational Performance within Universities in South Africa," Studia Universitatis Babeș-Bolyai Oeconomica, Sciendo, vol. 64(3), pages 54-68, December.
    2. Songsong Cheng & Qunpeng Fan & Minghao Huang, 2023. "Strategic Orientation, Dynamic Capabilities, and Digital Transformation of Commercial Banks: A Fuzzy-Set QCA Approach," Sustainability, MDPI, vol. 15(3), pages 1-19, January.
    3. 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.

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    More about this item

    Keywords

    Performance; Satisfaction; Market Orientation; Saudi Arabia;
    All these keywords.

    JEL classification:

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

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