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

Author

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  • Sung-Joon Yoon
  • Dong-Choon Choi
  • Jong-Won Park

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.

Suggested Citation

  • Sung-Joon Yoon & Dong-Choon Choi & Jong-Won Park, 2007. "Service Orientation: Its Impact on Business Performance in the Medical Service Industry," The Service Industries Journal, Taylor & Francis Journals, vol. 27(4), pages 371-388, June.
  • Handle: RePEc:taf:servic:v:27:y:2007:i:4:p:371-388
    DOI: 10.1080/02642060701346375
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    Citations

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    Cited by:

    1. Li-Chun Hsu, 2018. "Investigating Effect of Service Encounter, Value, and Satisfaction on Word of Mouth: An Outpatient Service Context," IJERPH, MDPI, vol. 15(1), pages 1-15, January.
    2. Agus Usman & Yudi Azis & Budi Harsanto & Anton Mulyono Azis, 2023. "The Impact of Service Orientation and Airport Service Quality on Passenger Satisfaction and Image: Evidence from Indonesia," Logistics, MDPI, vol. 7(4), pages 1-18, December.
    3. Wei Tung & Austin Rong-Da Liang & Su-Chang Chen, 2014. "The influence of service orientation and interaction orientation on consumer identification," The Service Industries Journal, Taylor & Francis Journals, vol. 34(5), pages 439-454, March.
    4. Munawar Javed Ahmad & Norzieirani bt. Ahmad & Nazlina Zakaria, 2018. "Service Recovery Performance: A Critical Review of Literature," Pakistan Journal of Humanities and Social Sciences, International Research Alliance for Sustainable Development (iRASD), vol. 6(3), pages :390-411, September.
    5. Briggs, Elten & Deretti, Sandro & Kato, Heitor Takashi, 2020. "Linking organizational service orientation to retailer profitability: Insights from the service-profit chain," Journal of Business Research, Elsevier, vol. 107(C), pages 271-278.
    6. DonHee Lee, 2020. "Impact of organizational culture and capabilities on employee commitment to ethical behavior in the healthcare sector," Service Business, Springer;Pan-Pacific Business Association, vol. 14(1), pages 47-72, March.
    7. Matthew Wood & Julie Fowlie, 2010. "Community Cohesion in the London Borough of Barking and Dagenham," Local Economy, London South Bank University, vol. 25(4), pages 293-304, June.
    8. Kwan Soo Hong & DonHee Lee, 2018. "Impact of operational innovations on customer loyalty in the healthcare sector," Service Business, Springer;Pan-Pacific Business Association, vol. 12(3), pages 575-600, September.

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