Assessing the Impact of SaaS Quality on Telecom Customer Loyalty: A Social Capital Theory Approach

Purpose: The main purpose of this research is to empirically draw on social capital theory to examine SaaS post-adoption in relation to the clients’ intentions to explore new SaaS service features in order to be loyal clients to the Egyptian telecom operators. Design/methodology/approach: The methodology is based on quantitative approach using a questionnaire tool to gather required data in which a selection of customers from the four Egyptian telecommunication companies have been invited to participate. Structural equation modeling analyses (SEM) using AMOS software version 25 used to analyze data gathered. Findings: The findings of this study included the direct effect between SaaS service quality and customer loyalty is statistically significant, the direct effect between SaaS service quality and social capital is statistically significant, the direct effect between social capital and customer loyalty is statistically significant, and there is partial mediation effect of the social capital in the relationship between SaaS service quality and customer loyalty. Research limitations: The research is undertaken on a single industry and therefore is not necessarily representative of other industries. This research relied on self-reported data from participants in a cross-sectional sample. Empirical implications: Telecom operators should think about strategic initiatives to strengthen the related service quality aspects in order to sustain or even increase their customer loyalty.