An Empirical Study on the Applicability of the Customer Satisfaction Index Model in Guiding the Adoption of Supply Chain Management Systems Among Businesses in Saudi Arabia

Hassen H Altalhi; Abdullah F Basiouni

doi:10.17485/IJST/v16i43.2147

Article

An Empirical Study on the Applicability of the Customer Satisfaction Index Model in Guiding the Adoption of Supply Chain Management Systems Among Businesses in Saudi Arabia

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Indian Journal of Science and Technology

DOI: 10.17485/IJST/v16i43.2147

Year: 2023, Volume: 16, Issue: 43, Pages: 3948-3958

Original Article

An Empirical Study on the Applicability of the Customer Satisfaction Index Model in Guiding the Adoption of Supply Chain Management Systems Among Businesses in Saudi Arabia

Hassen H Altalhi¹, Abdullah F Basiouni^2*

¹Associate Professor, Management Sciences Department, Yanbu Industrial College, Saudi Arabia
²Professor, Management Sciences Department, Yanbu Industrial College, Saudi Arabia

*Corresponding Author
Email: [email protected]

Received Date:23 August 2023, Accepted Date:12 October 2023, Published Date:17 November 2023

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

Objectives: This research aimed to identify the factors that influence the effective adoption of supply chain management systems, specifically focusing on customer satisfaction in the context of Saudi Arabia. Methods: Data was collected through convenience sampling, targeting a proposed sample size of 1000 individuals representing diverse nationalities and areas. A total of 629 valid responses were obtained. Path analysis was conducted using the Structural Equation Modeling (SEM) method and the AMOS 21 analytical tool. Findings: The results of the analysis showed a reasonably good fit between the model and the data, as indicated by the following statistics: Chi-square (2701.069), Chi-square / DF (5.204), RMSEA (0.042), PCFI (0.757), and TLI (0.848). The findings confirmed all hypothesized relationships, except for the relationships between customer expectations and customer satisfaction, as well as perceived quality and customer satisfaction, which lacked significant statistical associations. Additionally, the study revealed that customer expectations strongly predict perceived performance, perceived performance strongly predicts customer satisfaction, and customer satisfaction strongly predicts customer retention. Novelty: The research provides novel insights into the factors influencing the adoption of supply chain management systems and their impact on customer satisfaction and retention in the Saudi Arabian market. The study also highlights the relationships between customer expectations, perceived performance, customer satisfaction, and customer retention, contributing to the existing body of knowledge in this field. Implications: These findings have practical implications for decision-makers, offering guidance for enhancing the successful implementation of supply chain management systems. By improving customer satisfaction and retention, businesses can refine their product and service quality, ultimately leading to customer referrals and potential client acquisition. Overall, the study emphasizes the importance of adopting efficient supply chain management systems in achieving customer satisfaction and retention goals in the Saudi Arabian market.

Keywords: Customer Satisfaction Index (CSI), Technology Adoption, Supply Chain Management Systems, Driving Forces, Challenges, Saudi Arabia

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Copyright

© 2023 Altalhi & Basiouni. This is an open-access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited. Published By Indian Society for Education and Environment (iSee)