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Examining the influence of organizational capability in innovative business operations and the mediation of profitability on customer satisfaction: An application in intermodal transport operators in Taiwan

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  • Lun, Y.H. Venus
  • Shang, Kuo-chung
  • Lai, Kee-hung
  • Cheng, T.C.E.

Abstract

Implementation of business model innovation to meet customer needs and market requirements is closely linked with organizational capability. However, the literature remains unclear about the influence of different categories of organizational capability on performance outcomes. While organizational capability enhancement may generate higher revenues, it may also incur higher operating costs. As profitability comprises both cost and revenue components, it is imperative that profitability be taken into consideration in exploring the relationship between organizational capability and customer satisfaction. Using empirical data collected from intermodal transport operators in Taiwan, the relationship between organizational capability and customer satisfaction as well as the mediating role of profitability in this relationship is examined. Our findings suggest that organizational capability is positively associated with firm profitability and customer satisfaction. The findings suggest that profitability mediates the relationship between organization capability and customer satisfaction.

Suggested Citation

  • Lun, Y.H. Venus & Shang, Kuo-chung & Lai, Kee-hung & Cheng, T.C.E., 2016. "Examining the influence of organizational capability in innovative business operations and the mediation of profitability on customer satisfaction: An application in intermodal transport operators in ," International Journal of Production Economics, Elsevier, vol. 171(P2), pages 179-188.
    • Handle: RePEc:eee:proeco:v:171:y:2016:i:p2:p:179-188
    DOI: 10.1016/j.ijpe.2015.02.019
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