Please use this identifier to cite or link to this item: http://hdl.handle.net/10397/28952
Title: Market competitiveness and quality performance in high-contact service industries
Authors: Yee, RWY 
Yeung, ACL 
Cheng, TCE 
Lee, PKC 
Keywords: Competitive strategy
Customer satisfaction
Customer services quality
Employee satisfaction
Hong Kong
Market competitiveness
Service industries
Service quality
Issue Date: 2013
Publisher: Emerald Group Publishing Limited
Source: Industrial management and data systems, 2013, v. 113, no. 4, p. 573-588 How to cite?
Journal: Industrial management and data systems 
Abstract: Purpose - The purpose of this paper is to explore conceptually and examine empirically the impact of market competitiveness on employee satisfaction, service quality, and customer satisfaction in high-contact service industries. Design/methodology/approach - An empirical study was conducted in high-contact service shops in Hong Kong. Dyadic data were collected from 210 high-contact service shops and were analysed using structural equation modelling. Findings - The results confirm that market competitiveness has a direct impact on service quality, not employee satisfaction. The findings also reveal that service quality affects customer satisfaction, which in turn leads to employee satisfaction, forming a 'quality-customer satisfaction-employee satisfaction cycle'. Practical implications - The results recommend that firms take a long-term perspective towards investment in understanding the competitiveness of the market. Such an understanding helps managers identify and implement appropriate quality-improvement activities, such as establishing quality standards, providing appropriate job description to service employees, and adopting a customer-oriented strategy, leading to enhanced customer satisfaction and employee satisfaction in a cyclic manner. Originality/value - This study contributes to a detailed understanding of how service firms should strategically respond to market competitiveness.
URI: http://hdl.handle.net/10397/28952
ISSN: 0263-5577
EISSN: 1758-5783
DOI: 10.1108/02635571311322801
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