Service Orientation: Its Impact on Business Performance in the Medical Service Industry

Abstract

From the viewpoint of internal marketing, employees who are content in their job may be motivated to satisfy their customers better than ones who are not content. Another relevant premise is that the content employees, because of their work motivation, would eventually help improve the performance of their firm. To verify these relationships, some previous studies looked into the effects of organisational service orientation on employee's satisfaction. But only few of them investigated the mediating effects of variables such as service value and customer orientation for their role in linking service orientation to business performance. This study examines how an organisation's service orientation had an effect on its performance at hospitals. For this purpose, verification of the mediating role of service value perceived by employees as well as the role of customer orientation on the firm's performance was attempted. For this study, a total of 292 usable questionnaires were collected from hospital staffs located in metropolitan cities of Korea. The hypotheses concerning relationships among service orientation, service value, employee satisfaction and customer orientation were verified by covariance structural modelling, using SPSS 10.0 and AMOS 4.0 programs. The result is as follows. First, organisational service orientation had a positive effect on both employee satisfaction and service value perceived by hospital staff. Second, employee satisfaction had a positive impact on service value and customer orientation. Finally, service value as well as employee's customer orientation were found to exert positive influence on the medical firm's performance.

Effects of retail employees' behaviours on customers' service evaluation

“…Previous work has linked service orientation to courtesy from and competence of employees (Schneider and Bowen, 1985), customers' overall quality perceptions (Schneider et al, 1980), customers behavioural intentions (Beatson et al, 2008), and overall business performance (Yoon et al, 2007). We expect service orientation behaviours to be positively related to customers' service encounter quality perceptions and service quality perceptions.…”

“…Employee service orientation is argued to have a positive influence upon the quality of service delivery (Yoon et al, 2007). Previous work has linked service orientation to courtesy from and competence of employees (Schneider and Bowen, 1985), customers' overall quality perceptions (Schneider et al, 1980), customers behavioural intentions (Beatson et al, 2008), and overall business performance (Yoon et al, 2007).…”

The Effect of Organizational Service Orientation, Strategic Leadership and Strategic Competence on the Organizational Performance of Private University.

“…This paper showed that there is strong relationship between Organizational Service Orientation and Organizational Performance. Service orientation influenced the characteristics of performance such as repeat buying, positive word of mouth (Yoon et al, 2007). Organizational Service Orientation plays an important role to achieve business performance, especially at service organization.…”

The Influence of Organisational Culture on Mainstreaming Monitoring and Evaluation in Public Entities Revenue Services

“…Business performance characteristics such as employee satisfaction, service value and customer may have an impact on service orientation and that shows that service orientation is related to business performance as it is the manner in which service is rendered to customers (Yoon, Choi, and Park, 2007). Organizational service orientation is being described in the context of service organization climate (Lytle and Timmerman, 2006;Lynn, Lytle, and Bobek, 2000;Lytle, Hom, and Mokwa, 1998).…”

“…The functionality offered by the organization is viewed from within the organization which focuses on employees, resources, policies, practices, and procedures intended to foster the creation and delivery of service excellence. The service excellence is as a result of monitoring and evaluation which has been operationalized and managed, and Monitoring involves collecting, analyzing, and reporting data on inputs, activities, outputs, outcomes and impacts as well as external factors, in a way that supports effective management, while Evaluation may assess relevance, efficiency, effectiveness, impact and sustainability (www.thepresidency.dpme.gov.za) Yoon, Choi and Park (2007). Service orientation is of relevance in a democratic state such as the Republic of South Africa.…”