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

Author

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  • Mohammed A. Hajar

    (Institute of Sustainable Energy (ISE), Universiti Tenaga Nasional, Kajang 43000, Malaysia)

  • Ammar Ahmed Alkahtani

    (Institute of Sustainable Energy (ISE), Universiti Tenaga Nasional, Kajang 43000, Malaysia)

  • Daing Nasir Ibrahim

    (Faculty of Industrial Management, Universiti Malaysia Pahang, Lebuhraya Tun Razak, Kuantan 26300, Malaysia)

  • Mohammed A. Al-Sharafi

    (Department of Information Systems, Azman Hashim International Business School, Universiti Teknologi Malaysia, Skudai 81310, Malaysia)

  • Gamal Alkawsi

    (Institute of Sustainable Energy (ISE), Universiti Tenaga Nasional, Kajang 43000, Malaysia)

  • Noorminshah A. Iahad

    (Department of Information Systems, Azman Hashim International Business School, Universiti Teknologi Malaysia, Skudai 81310, Malaysia
    Information Systems, Faculty of Science and Technology, Universitas Airlangga, Surabaya 60115, Indonesia)

  • Mohd Ridzuan Darun

    (Faculty of Industrial Management, Universiti Malaysia Pahang, Lebuhraya Tun Razak, Kuantan 26300, Malaysia)

  • Sieh Kiong Tiong

    (Institute of Sustainable Energy (ISE), Universiti Tenaga Nasional, Kajang 43000, Malaysia)

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.

Suggested Citation

  • Mohammed A. Hajar & Ammar Ahmed Alkahtani & Daing Nasir Ibrahim & Mohammed A. Al-Sharafi & Gamal Alkawsi & Noorminshah A. Iahad & Mohd Ridzuan Darun & Sieh Kiong Tiong, 2022. "The Effect of Value Innovation in the Superior Performance and Sustainable Growth of Telecommunications Sector: Mediation Effect of Customer Satisfaction and Loyalty," Sustainability, MDPI, vol. 14(10), pages 1-20, May.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:10:p:6342-:d:821773
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    References listed on IDEAS

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    Cited by:

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    3. Al-Momani, Ala'a M. & Ramayah, T. & Al-Sharafi, Mohammed A., 2024. "Exploring the impact of cybersecurity on using electronic health records and their performance among healthcare professionals: A multi-analytical SEM-ANN approach," Technology in Society, Elsevier, vol. 77(C).
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    5. Xi Chen & Shaopeng Yu, 2024. "Synergizing Culture and Tourism Talents: Empowering Tourism Enterprises for Success," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(3), pages 12439-12471, September.
    6. Angel Sevil & Alfonso Cruz & Tomas Reyes & Roberto Vassolo, 2022. "When Being Large Is Not an Advantage: How Innovation Impacts the Sustainability of Firm Performance in Natural Resource Industries," Sustainability, MDPI, vol. 14(23), pages 1-20, December.
    7. Yaser Khaled Al Harazi & Gang Tian & Syed Ahsan Ali Shah & Ahmed Khaled Al Harazi & Saleh Yahya Alwan & Amr Mohammed Ali Amer, 2023. "Unlocking the Potential of E-Commerce in Yemen: Identifying Key Impacting Factors and Exploring Strategic Solutions," Sustainability, MDPI, vol. 15(18), pages 1-24, September.

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