Purpose – The aim of this paper is to examine the degree of how customer service management (CSM) affects perceived business performance measures (PBPM) in Malaysian banks and finance companies. Design/methodology/approach – The aim was achieved through an empirical study involving a survey. Of 700 questionnaires sent out, 128 were returned. The dataset from the sample underwent series of statistical analyses, i.e. reliability test, factor analyses (exploratory and confirmatory) and structural equation modelling (SEM). Findings – Factor analyses extracted two dimensions, i.e. CSM and perceived business performance. All related indicators manifested their constructs respectively. Although there were expectations where CSM would diverged into more dimensions via exploratory factor analysis (i.e. market research, customer assessment, customer satisfaction and customer relationship management), the results show that CSM were encapsulated as a single construct by respondents. The findings confirmed that CSM had significant association on PBPM, i.e. 0.83 standardised regression weights. Research limitations/implications – One limitation was the size of the sample. Although the permissible threshold of sample size was met, the research would not be jeopardized with larger sample size. Future research can entail foreign banks so that the results can be compared in contrast with the ones gathered in this paper. Practical implications – The results can help bankers enhance their competitiveness with more emphasis on CSM through market research, customer satisfaction, customer assessment and handling of customer. These aspects are important key drivers towards successful implementation of CSM. Originality/value – Although CSM is multi faceted, it was viewed by the respondents as a single construct. The paper empirically justified the effectiveness of CSM on PBPM. Bankers may find this paper useful as perceptual measures can be empirically substantiated using SEM.
- Business performance
- Customer service management
- Linear structure equation modelling
ASJC Scopus subject areas
- Business and International Management
- Strategy and Management