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The impact of service quality on business commitment in B2B segment of agribusiness: an exploratory study of HORECA sector in Malaysia

In competitive markets, agribusiness firms have embarked on improving their service quality for building and maintaining a profitable relationship with their customers. However, such impact of service quality on business commitment has not been empirically investigated. To fill this gap, this study...

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Main Authors: Tey, Yeong Sheng, Brindal, Mark Kennion, Mohamed Arshad, Fatimah, Mohd Noh, Kusairi, Abdul Hadi, Ahmad Hanis Izani, Darham, Suryani
Format: Article
Language:English
Published: Faculty of Food Science and Technology, Universiti Putra Malaysia 2014
Online Access:http://psasir.upm.edu.my/id/eprint/40779/1/6%20IFRJ%2021%20%2803%29%202014%20Tey%20519.pdf
http://psasir.upm.edu.my/id/eprint/40779/
http://www.ifrj.upm.edu.my/21%20%2803%29%202014/6%20IFRJ%2021%20%2803%29%202014%20Tey%20519.pdf
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spelling my.upm.eprints.407792015-10-08T08:14:34Z http://psasir.upm.edu.my/id/eprint/40779/ The impact of service quality on business commitment in B2B segment of agribusiness: an exploratory study of HORECA sector in Malaysia Tey, Yeong Sheng Brindal, Mark Kennion Mohamed Arshad, Fatimah Mohd Noh, Kusairi Abdul Hadi, Ahmad Hanis Izani Darham, Suryani In competitive markets, agribusiness firms have embarked on improving their service quality for building and maintaining a profitable relationship with their customers. However, such impact of service quality on business commitment has not been empirically investigated. To fill this gap, this study explores the relationship between service quality and commitment, using a case of supplier selection of fresh produce by hotel, restaurant, and catering (HORECA) sector in Malaysia. Using SERVQUAL as the main component of the conceptual framework, the relevant information was collected from 195 random HORECA operators and analyzed using partial least squares. The results indicate that service quality explains little of HORECA's decision to stay with their current suppliers. While most service quality factors were insignificant, "responsiveness" in term of providing delivery service had a statistically significant positive impact on HORECA's contractual arrangement with their current suppliers. These findings imply that quality service is being seen as a supplement; economic factors (e.g., prices and their stability, credit term) are likely to be the key drivers affecting buyer-seller relationships. If suppliers want to stay on course, they have to improve their service quality and focus more on delivery service. In addition, more research is needed in this relatively new area. Faculty of Food Science and Technology, Universiti Putra Malaysia 2014 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/40779/1/6%20IFRJ%2021%20%2803%29%202014%20Tey%20519.pdf Tey, Yeong Sheng and Brindal, Mark Kennion and Mohamed Arshad, Fatimah and Mohd Noh, Kusairi and Abdul Hadi, Ahmad Hanis Izani and Darham, Suryani (2014) The impact of service quality on business commitment in B2B segment of agribusiness: an exploratory study of HORECA sector in Malaysia. International Food Research Journal, 21 (3). pp. 883-889. ISSN 1985-4668; ESSN: 2231-7546 http://www.ifrj.upm.edu.my/21%20%2803%29%202014/6%20IFRJ%2021%20%2803%29%202014%20Tey%20519.pdf
institution Universiti Putra Malaysia
building UPM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Putra Malaysia
content_source UPM Institutional Repository
url_provider http://psasir.upm.edu.my/
language English
description In competitive markets, agribusiness firms have embarked on improving their service quality for building and maintaining a profitable relationship with their customers. However, such impact of service quality on business commitment has not been empirically investigated. To fill this gap, this study explores the relationship between service quality and commitment, using a case of supplier selection of fresh produce by hotel, restaurant, and catering (HORECA) sector in Malaysia. Using SERVQUAL as the main component of the conceptual framework, the relevant information was collected from 195 random HORECA operators and analyzed using partial least squares. The results indicate that service quality explains little of HORECA's decision to stay with their current suppliers. While most service quality factors were insignificant, "responsiveness" in term of providing delivery service had a statistically significant positive impact on HORECA's contractual arrangement with their current suppliers. These findings imply that quality service is being seen as a supplement; economic factors (e.g., prices and their stability, credit term) are likely to be the key drivers affecting buyer-seller relationships. If suppliers want to stay on course, they have to improve their service quality and focus more on delivery service. In addition, more research is needed in this relatively new area.
format Article
author Tey, Yeong Sheng
Brindal, Mark Kennion
Mohamed Arshad, Fatimah
Mohd Noh, Kusairi
Abdul Hadi, Ahmad Hanis Izani
Darham, Suryani
spellingShingle Tey, Yeong Sheng
Brindal, Mark Kennion
Mohamed Arshad, Fatimah
Mohd Noh, Kusairi
Abdul Hadi, Ahmad Hanis Izani
Darham, Suryani
The impact of service quality on business commitment in B2B segment of agribusiness: an exploratory study of HORECA sector in Malaysia
author_facet Tey, Yeong Sheng
Brindal, Mark Kennion
Mohamed Arshad, Fatimah
Mohd Noh, Kusairi
Abdul Hadi, Ahmad Hanis Izani
Darham, Suryani
author_sort Tey, Yeong Sheng
title The impact of service quality on business commitment in B2B segment of agribusiness: an exploratory study of HORECA sector in Malaysia
title_short The impact of service quality on business commitment in B2B segment of agribusiness: an exploratory study of HORECA sector in Malaysia
title_full The impact of service quality on business commitment in B2B segment of agribusiness: an exploratory study of HORECA sector in Malaysia
title_fullStr The impact of service quality on business commitment in B2B segment of agribusiness: an exploratory study of HORECA sector in Malaysia
title_full_unstemmed The impact of service quality on business commitment in B2B segment of agribusiness: an exploratory study of HORECA sector in Malaysia
title_sort impact of service quality on business commitment in b2b segment of agribusiness: an exploratory study of horeca sector in malaysia
publisher Faculty of Food Science and Technology, Universiti Putra Malaysia
publishDate 2014
url http://psasir.upm.edu.my/id/eprint/40779/1/6%20IFRJ%2021%20%2803%29%202014%20Tey%20519.pdf
http://psasir.upm.edu.my/id/eprint/40779/
http://www.ifrj.upm.edu.my/21%20%2803%29%202014/6%20IFRJ%2021%20%2803%29%202014%20Tey%20519.pdf
_version_ 1643832812469485568
score 13.211869

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