The Effect of Value Innovation in the Superior Performance and Sustainable Growth of Telecommunications Sector: Mediation Effect of Customer Satisfaction and Loyalty

Abstract

The telecommunications industry has recognized innovation as the key to growth and survival. Globalization, liberalization, and privatization, the terms most commonly associated with this sector, have resulted in fierce competition, making it more difficult for telecommunications firms to increase their market share and, as a result, their customer base, sales volume, and, ultimately, profits. The new success strategy is differentiation through innovation, with the aim of breaking out of the competition and creating an uncontested market. This can be accomplished by providing high-value, innovative services that result in customer satisfaction and promote customer loyalty. The primary goal of this study was to create and validate a conceptual model of value innovation and its impact on firm performance and long-term growth by examining the mediation effect of customer satisfaction and loyalty. The empirical analysis results were based on 304 respondents who completed a paper-based survey provided to employees of Yemeni mobile service providers using a convenience non-probability sampling technique. SmartPLS 3 was used to test the hypothesized relationships using partial least squares structural equation modeling (PLS-PM). As a result, the findings empirically validated the theoretical research model, confirming the importance of the value innovation approach to achieving company performance and long-term growth by promoting customer satisfaction and loyalty. Finally, we have provided a discussion of the study’s theoretical contributions, managerial implications, and future research directions.

Influence of Corporate Differentiation Strategies on Organizational Performance of Mobile Service Providers: A Comparative Analysis of Safaricom Plc and Airtel (K) Ltd in Kenya

“…As of December 2022, Safaricom remained the dominant player with 43 million subscribers, Airtel Kenya 18 million and Telkom 3 million. Safaricom commands 64 percent market share on mobile data, 70.4 percent on voice traffic and 37 percent on fixed data market (CA, 2023) Maintaining the performance of these mobile service providers in the current, fiercely competitive business climate is getting increasingly difficult (Hajar et al, 2022). It is becoming more crucial for these providers to guarantee they deliver expected performance as they work to fulfill the shifting demands and rising expectations of consumers for the success and survival of their operations (Ullah et al, 2019).…”

Pengaruh Pengelolaan Risiko Dan Perilaku Inovatif Terhadap Keberlangsungan Usaha Umkm Yang Dimoderasi Oleh Kapabilitas Jejaring

“…Di satu sisi, inovasi memberikan perusahaan kesempatan untuk membedakan diri dari pesaing (Dereli, 2015) dan memperoleh keuntungan yang lebih baik Linton & Kask, 2017). Memang, inovasi memungkinkan perusahaan untuk mengatasi permintaan pelanggan yang berubah dan dengan demikian mencapai kinerja yang unggul (Hajar et al, 2022;Al Mamun et al, 2022;Iqbal et al, 2021;Brannon & Wiklund, 2016). Di sisi lain, inovasi dapat berdampak negatif bagi UKM karena mereka sering kekurangan sumber daya, kemampuan, dan pengalaman dalam melakukan kegiatan inovasi (Safrianti et al, 2021;Adam & Alarifi, 2021) Dengan demikian, mengejar tingkat inovasi yang tinggi dapat "mengkompromikan kemampuan UKM untuk memenuhi kewajiban keuangan jangka pendek" karena investasi di muka yang diperlukan untuk mengembangkan kemampuan inovasi spesifik perusahaan (Hermundsdottir & Aspelund, 2021;Kuncoro & Suriani, 2018) .…”

The relationships among the logic of value innovation, strategic decisions and market-driven factors

“…In this respect, examining the specific strategic choices and superior customer value creation, as more proximal market-driven considerations, for the relationship between the logic of value innovation and new market space further enhances the current understanding of how value innovation fosters the development of new market space. Although not clearly mentioned and empirically proven, several scholars have provided hints that the logic of value innovation is likely to impact market success via strategic choices and customer value creation (Hajar et al , 2022; Christodoulou and Langley, 2020). For example, Wollmann and Tortato (2019) implicitly proposed that value innovation functions well via quantum strategy and customer value for market-based opportunities such as generation of new markets.…”

“…In terms of customer value creation, previous studies have implicitly and theoretically argued that there is a fragmented relationship between various innovation capabilities such as marketing capability and customer value creation (Sánchez-Gutiérrez et al , 2019), value innovation and the superior customer value (Hajar et al , 2022) and value innovation and measurable returns like profitability, firms’ growth and market domination (Mele et al , 2010). The literature lacks a research examining how value innovation, as a firm’s strategic mindset, can create customer value for new market spaces.…”