Relational capital, service quality and organizational performance in the Egyptian telecommunication sector
International Journal of Emerging Markets
ISSN: 1746-8809
Article publication date: 28 September 2020
Issue publication date: 21 January 2022
Abstract
Purpose
The purpose of this paper is to empirically investigate the mediating effect of service quality (SQ) in the relationship between relational capital (RC) and organizational performance (OP) within the Egyptian mobile telecommunication setting.
Design/methodology/approach
A valid research instrument was utilized to conduct a survey of 384 top- middle- and supervisory- level managers from three Egyptian mobile telecommunications companies. The hypothesized direct relationships were tested through multiple linear regression, and the mediating effect was tested using a structural equation modeling technique.
Findings
The results revealed that the firm's “customer and supplier relations” and “marketing capability” positively affect both OP and SQ, “customer knowledge” positively affects SQ only, while “strategic alliances, licensing and agreements” do not have an association with SQ or OP. Moreover, SQ was found fully mediating the effect of RC on OP.
Research limitations/implications
This is an empirical research applied in the Egyptian telecommunication setting. Its results need further investigation in other settings and countries. Also, traditional limitations of a cross-sectional study apply with respect to the attribution of causality and the time lag effects.
Practical implications
The optimal procedure for the Egyptian telecommunications companies is to focus their efforts on leveraging all four components of RC in order to improve SQ and consequently enhance their OP. The telecommunications companies must do all they can to connect the unconnected. As the current COVID-19 pandemic crisis has shown, connectivity is a public good.
Originality/value
This is the first research that merges the concepts of RC, SQ and OP in an integrated model, and tests this model empirically in the Egyptian mobile telecommunications setting.
Keywords
Acknowledgements
The researchers would like to express their deepest gratitude and appreciation for the reviewers’ effort, devotion and constructive comments that were immensely helpful in improving the positioning and overall presentation of the paper.
Citation
Abd-Elrahman, A.-E.H. and Ahmed Kamal, J.M. (2022), "Relational capital, service quality and organizational performance in the Egyptian telecommunication sector", International Journal of Emerging Markets, Vol. 17 No. 1, pp. 299-324. https://doi.org/10.1108/IJOEM-11-2019-0983
Publisher
:Emerald Publishing Limited
Copyright © 2020, Emerald Publishing Limited