12th Annual International Conference on Industrial Engineering and Operations Management

The Importance of Customer Focus for Organizational Performance: A Study Focus to an Information, and Communication Technology Company based in Indonesia

Arif Setiyaji, Gertrudes Maria De Fatima Frans Alves & Lianna Wijaya
Publisher: IEOM Society International
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Track: Operations Management

Information and Communication Technology (ICT) companies are critical to the economic growth in the developing country such as Indonesia. The essence of customer focus is to develop strategies and to establish lasting and profitable relationships with the customers. The purpose of this paper is to examine the influence between the organizational customer orientation, the customer relationship practices, and the organizational outcomes. This research was a quantitative study, with the sampling frame of the study consists of 150 customers of the ICT company in Eastern Indonesia. The structured online questionnaires were used to obtained data from respondents. Data obtained was analyzed through exploratory and the confirmatory factor analyses, while the hypothesized relationships were determined through regression analyzes using SMART-PLS. The current study contributes to the literature by examined the customer focus influence to organizational outcomes. It is found that the organizational customer orientation influence customer relationship practices positively and significantly which subsequently influence to production performance and customer satisfaction as well. However, the interesting part found in this study that customer satisfaction is not directly influence to financial performance of the organization. While production performance has positive and significant influence to customer satisfaction and financial performance of the organization.

Published in: 12th Annual International Conference on Industrial Engineering and Operations Management, Istanbul, Turkey

Publisher: IEOM Society International
Date of Conference: March 7-10, 2022

ISBN: 978-1-7923-6131-9
ISSN/E-ISSN: 2169-8767