Prof. Yitbarek Takele Bayiley; Abel Aragaw Zeleke
Purpose: An emerging perspective on market orientation suggests that strategic insights can be gained if firms take into account customers’ views in their market orientation approaches. The study examined the relationship between market orientation and customer satisfaction using frontline employee expertise as a mediating variable.
Design/methodology/approach: A sample of 323 business and premium customers from four commercial banks established the study setting. The research followed a deductive approach, explanatory design, survey method, and questionnaire as a data collection instrument. The study adopted MKTOR market orientation measurement model and employed a regression-based bootstrapping approach. Also, Hayes PROCESS Macro was used to analyze mediation. Findings: The results revealed market orientation and only two of its dimensions: customer and inter-functional influence customer satisfaction. The study conclude, frontline employee expertise partially mediates the relationship between market orientation and customer satisfaction implying banks with proper market orientation strategies and competent frontline employees are well-positioned to satisfy their customers and perform better in a developing market context.
Originality/value: The study empirically contributed by introducing and testing frontline employee expertise as a mediating variable in the relationship between market orientation and customer satisfaction in banking.
[ FULL TEXT PDF 1-12 ] DOI: 10.30566/ijo-bs/2022.02.80