Employees’ customer orientation and customer satisfaction in the public utility sector: The mediating role of service quality

Abstract

Purpose

The purpose of this paper is to ascertain how perceived service quality mediates employees’ customer orientation and customer satisfaction in the public utility sector.

Design/methodology/approach

The study focused on the commercial customers (small and medium-scale enterprises– (SMEs)) of Electricity Company of Ghana Ltd. There were 350 SMEs sampled for the study, and each had no more than 99 employees. Respondents were either owner-managers or employee-managers. Structural equation model (SEM) was used in estimating the effects among the variables studied.

Findings

Most public institutions have a built-in customer base, and therefore places less emphasis on employees’ customer orientation. This notwithstanding, findings revealed that employees’ customer orientation behaviors significantly impacted customers’ perceived service quality and satisfaction toward public institutions. Similarly, customers’ perceived service quality influenced their satisfaction toward public institutions. SMEs serve as an engine for economic growth in an economy, and therefore public institutions must consider their peculiar needs in the delivery of service to them.

Originality/value

This study pointed out that, employees’ customer orientation behaviors of public institutions have an influence on customers’ perceived service quality and satisfaction. Previous studies on these concepts have largely focused on the private sector, where there are lots of competition. This study also specifically studied commercial customers (SMEs) of public institution, which is quite novel, especially in relation to the concepts studied. And the contribution of SMEs to economic growth makes their study even much more important.

Citation

Li, W., Pomegbe, W.W.K., Dogbe, C.S.K. and Novixoxo, J.D. (2019), "Employees’ customer orientation and customer satisfaction in the public utility sector: The mediating role of service quality", African Journal of Economic and Management Studies, Vol. 10 No. 4, pp. 408-423. https://doi.org/10.1108/AJEMS-10-2018-0314