Understanding the Relationships of Logistics Service Quality, Satisfaction and Loyalty in Manufacturing Supply Chains

5th Annual EuroMed Conference of the

EuroMed Academy of Business

Building New Business Models For Success Through Competitiveness and Responsibility

Edited by: Demetris Vrontis,

Yaakov Weber, Rudi Kaufmann, Shlomo Tarba

Published by: EuroMed Press

5th Annual EuroMed Conference of the EuroMed Academy of Business 1

Building New Business Models For Success ISBN: 978-9963-711-07-9 Through Competitiveness and Responsibility

5th Annual EuroMed Conference of the EuroMed Academy of Business

CONFERENCE READINGS BOOK PROCEEDINGS

October 4th-5th, 2012 Glion-Montreux, Switzerland

Copyright © The materials published in this Readings Book may be reproduced for instructional and non-commercial use. Any use for commercial purposes must have the prior approval of the Executive Board of the EuroMed Research Business Institute (EMRBI). All full papers and abstracts submitted to the EMRBI Conference are subject to a peer reviewing process, using subject specialists selected because of their expert knowledge in the specific areas. ISBN: 978-9963-711-07-9 Published by: EuroMed Press

Building New Business Models For Success Through Competitiveness and Responsibility



FOREWORD The Annual Conference of the EuroMed Academy of Business aims to provide a unique international forum to facilitate the exchange of cutting-edge information through multidisciplinary presentations on building new business models for success through innovation, competitiveness and responsibility. It is acknowledged that the conference has established itself as one of the major conferences of its kind in the EuroMed region, in terms of size, quality of content, and standing of attendees. Many of the papers presented contribute significantly to the business knowledge base. The conference attracts hundreds of leading scholars from leading universities and principal executives and politicians from all over the world with the participation or intervention of Presidents, Prime Ministers, Ministers, Company CEOs, Presidents of Chambers, and other leading figures. This year the conference attracted over 200 people from over 50 countries. Academics, practitioners, researchers and Doctoral students throughout the world submitted original papers for conference presentation and for publication in this Book. All papers and abstracts were double blind reviewed. The result of these efforts produced empirical, conceptual and methodological papers and abstracts involving all functional areas of business.



ACKNOWLEDGEMENT Many people and organizations are responsible for the successful outcome of the 5th Annual Conference of the EuroMed Academy of Business. Special thanks go to the Conference Chairs (Dr Ruth Rios Morales and Dr Ian Jenkins), the Conference Organising Committee and the Faculty of Les Roches-Gruyere, University of Applied Sciences and Glion Institute of Higher Education, in Switzerland, for accomplishing an excellent job. It is acknowledged that a successful conference could not be possible without the special co-operation and care of the Track Chairs and Reviewers for reviewing the many papers that were submitted to this conference. Special thanks to the Session Chairs and Paper Discussants for taking the extra time to make this conference a real success. The last but not the least important acknowledgment goes to all those who submitted their work to be considered for presentation at the conference.



Table of Papers

AN EXPLORATORY STUDY ON SWITCHING COSTS IN FAMILY T AKAFUL ................................. 19

Ab Ghani, Hartini1; Abd Rahman, Sofiah2 .................................................................................... 19

THE EFFECT OF STRUCTURAL DESIGN ON EXPORT STRATEGY IN THE WINE INDUSTRY .. 28

Afxentiou, Georgios1 ..................................................................................................................... 28

ASSESSING THE IMPLEMENTATION OF E-GOVERNANCE IN ARA B COUNTIES ........................ 45

Al Athmay, Alaa-Aldin Abdul Rahim A.1 ....................................................................................... 45

THE QUALITY OF FINANCIAL SERVICE DELIVERY IN KUWAIT ’S FINANCIAL INSTITUTIONS .............................................................................................................................................................................. 65

Alghanim, Bashar.......................................................................................................................... 65

IN THE SHADOW OF OFFSHORING: AN EXPLORATORY STUDY O F THE EXPECTATIONS OF PROVIDERS ....................................................................................................................................................... 76

Almeida, Mariana1; Meneses, Raquel2 .......................................................................................... 76

TIME VALUE MANAGEMENT IN THE ITALIAN HEALTH SYSTEM: PROBLEM ANALYSIS AND ECONOMIC BUSINESS PROSPECTS ........................................................................................................... 91

Amatucci, Fabio Michele1; Esposito, Paolo2 ................................................................................ 91

CONSUMERS’ REACTIONS AFTER CRISES IN THE HOTEL INDU STRY: BEING ABLE OR SOCIAL RESPONSIBLE? .............................................................................................................................. 106

Assiouras, Ioannis1; Skourtis, George2; Besir, Janet3; Koniordos, Michalis4; Athanassopoulou, Pinelopi5

.................................................................................................................................................... 106

DESTINATIONS UNDER ATTACK: THE IMPACT OF DIFFERENT TYPES OF TOURISM CRISES ............................................................................................................................................................................ 113

Assiouras, Ioannis1; Liapati, Gina2; Skourtis, George3 ; Athanassopoulou, Pinelopi4; Koniordos, Michalis5 ..................................................................................................................................... 113

THE INNOVATIVE MODEL OF QUALITY MANAGEMENT IN TELEC OMMUNICATION SERVICES SECTOR ....................................................................................................................................... 120

Babenko, Ekaterina1 .................................................................................................................... 120

LEGITIMACY AND REPUTATION: KEY FACTORS FOR CORPORAT E SOCIAL STATUS AND COMPETITIVE ADVANTAGE ..................................................................................................................... 129

Basile, Gianpaolo1; Kaufmann, Hans Ruediger2 ....................................................................... 129

DO FIRMS MANAGE THEIR SOCIAL NETWORK REPUTATION? AN INTERNATIONAL FACEBOOK AND TWITTER STUDY ......................................................................................................... 142

Becker, Kip1; Nobre, Helena2 ..................................................................................................... 142

MONEY KNOWLEDGE AMONG MALAY CHILDREN: AN EXPLORATO RY STUDY IN MALAYSIA ...................................................................................................................................................... 158

Bin Dahari, Zainurin1; Khurshid, Asif2 ....................................................................................... 158

FOREIGN OWNERSHIP AND FINANCIAL INFORMATION ....... ......................................................... 174

Bolak, Mehmet1; Süer, Ömür2; Diyarbakirlioglu, Erkin3 ........................................................... 174

MULTINATIONAL FIRMS R&D CENTERS IN PIEDMONT ....... .......................................................... 191

Bresciani, Stefano1; Ferraris, Alberto2 ....................................................................................... 191



THE DETERMINANTS OF PERFORMANCE IN THE ITALIAN HOTE L INDUSTRY. AN EMPIRICAL ANALYSIS. ............................................................................................................................... 200

Bresciani, Stefano1; Thrassou, Alkis2; Vrontis, Demetris3 .......................................................... 200

REASONS FOR THE LOW ACCEPTANCE OF ETHICALLY SUSTAIN ABLE INVESTMENTS – AN EMIRICAL STUDY ......................................................................................................................................... 212

Britzelmaier, Bernd1; Burger, Sabine2 ........................................................................................ 212

VALUE-BASED MANAGEMENT IN SMES – A CRITICAL ANALYSI S OF THE APPLICABILITY AND DETERMINATION OF THE COST OF CAPITAL .......... ................................................................ 225

Britzelmaier, Bernd1; Kraus, Patrick2; Häberle, Michael3; Mayer, Benjamin4; Beck, Valentin5225

CULTURAL TOURISM IN WORLD HERITAGE SITES: AN EMPIRI CAL STUDY ON AN ITALIAN MARGINAL AREA ......................................................................................................................................... 239

Buonincontri, Piera1; Simeon, Maria I.2 .................................................................................... 239

TECHNIP’S INTERNATIONALIZATION TOWARDS MECS AND SMC S. THE KEY ROLE OF CULTURAL COMPETENCE ........................................................................................................................ 254

Calza, Francesco1; Cannavale, Chiara2 ..................................................................................... 254

TOWARDS A CONCEPTUAL DEFINITION OF ACADEMIC ENTERPR ENEURSHIP ..................... 271

Cantaragiu, Ramona1 .................................................................................................................. 271

IS CELLAR DOOR AN OPPORTUNITY FOR BAG-IN-BOX? A CON SUMER PREFERENCES ANALYSIS IN THE ITALIAN WINE MARKET ............... ......................................................................... 282

Capitello, Roberta1; Begalli, Diego2; Agnoli, Lara3 ................................................................... 282

KNOWLEDGE AGENT FORMATION FOR ORGANISATIONAL LEARNI NG: A MULTIPLE-CASE STUDY IN A STOCHASTIC DEMAND INDUSTRY .................................................................................. 296

Chan, Yan Yu 1; Chan, Chee Kooi2; Ip, W H3 ............................................................................. 296

FDI IN INDIAN RETAIL-AND ITS IMPLICATIONS ......... ....................................................................... 308

Chandrasekhar, N.1 ..................................................................................................................... 308

CAUSE-RELATED MARKETING AND STRATEGIC AGILITY: AN I NTEGRATED FRAMEWORK FOR THRIVING IN A DYNAMIC ENVIRONMENT. ............ .................................................................... 326

Christofi, M.1; Leonidou, E.2 ....................................................................................................... 326

LABOUR COSTS AND ECONOMIC DEVELOPMENT IN POLAND IN YEARS 2000 – 2008 ............ 342

Cieślak, Iwona1 ; Kucharczyk, Małgorzata2 ............................................................................... 342

FINANCIAL DIFFICULTIES OF ITALIAN LOCAL AUTHORITIES : PREDICTION AND DIAGNOSIS MODELS ................................................................................................................................... 370

Civitillo, Renato1 ......................................................................................................................... 370

PRIVATIZATION OF STATE-OWNED ASSETS THROUGH THE LEN S OF ACCOUNTING: COMPARING GREEK GOVERNMENTAL ACCOUNTING STANDARDS A ND INTERNATIONAL PUBLIC SECTOR ACCOUNTING STANDARDS ...................................................................................... 386

Cohen, Sandra1; Karatzimas, Sotiris2; Venieris, George3 .......................................................... 386

THE EFFECT OF EMIRATI CULTURE ON WESTERN COSMETICS BUYING DECISION: A STRATEGIC MARKETING ANALYSIS ...................... ............................................................................... 398

Contardo, Ianna F.1; Patwa, Nitin2; Dhoot, Abha3; Sundaram, Akshay4 ................................... 398



AGRI-FOOD TRADE INTENSITY IN THE MEDITERRANEAN SCEN ARIO ..................................... 429

Crescimanno, Maria1; Galati, Antonino2; Farruggia, Domenico3; Siggia, Dario4 .................... 429

DETERMINANTS OF ITALY’S AGRI-FOOD TRADE FLOWS WITH THE MEDITERRANEAN NON-EU PARTNER COUNTRIES................................................................................................................ 441

Crescimanno, Maria1;Galati, Antonino2; Yahiaoui, Dorra3; Borsellino, Valeria4 ..................... 441

CORPORATE GOVERNANCE AND PERFORMANCE IN LISTED ITAL IAN FAMILY FIRMS ..... 453

Culasso, Francesca1; Broccardo, Laura2; Giacosa, Elisa3, Mazzoleni, Alberto4 ....................... 453

ECO- LABELS: CAN CARBON LABELS WIN CONSUMER’S SUPPO RT? ......................................... 479

D’Souza, Clare1; Hota, Saeed2 ................................................................................................... 479

THE NEW “PUBLIC-PRIVATE” NEXUS: URBAN AND ECONOMIC ASPECTS ............................... 489

de Biase, Claudia1; Fabiana, Forte2 ........................................................................................... 489

INFORMATION SOURCES PREFERRED WHEN SELECTING AN INS TITUTION OF HIGHER LEARNING - A COMPARISON BETWEEN SELECTED AFRICAN CO UNTRIES ............................. 501

de Jager, Johan1; du Plooy, Therese2 ......................................................................................... 501

TOWARDS A BETTER UNDERSTANDING OF FAMILY BUSINESS G ROUPS FROM A CROSS-CULTURAL PERSPECTIVE ......................................................................................................................... 514

Della Piana, Bice1; Vecchi, Alessandra2; Cacia, Claudia3 ........................................................ 514

GENDER PERSPECTIVE IN MANAGEMENT: THE ISRAELI CASE OF TOP MANAGEMENT TEAMS .............................................................................................................................................................. 528

Desivilya Syna, Helena1; Palgi, Michal2 ..................................................................................... 528

ECOTOURISM MANAGEMENT IN PERIODS OF CRISIS: LESSONS FROM THE BIOSPHERE RESERVES IN CENTRAL AND EASTERN EUROPE .............................................................................. 544

Diamantis, Dimitrios1 ................................................................................................................. 544

WAYS OF IMPROVEMENT OF INNOVATIVE ACTIVITY OF THE I NDUSTRIAL ENTERPRISES IN THE REPUBLIC OF KAZAKHSTAN ..................... ................................................................................ 560

Dosmanbetova, Aliya1 ................................................................................................................. 560

CRITICAL SUCCESS FACTORS AS DRIVERS TO QUALITY AND SUSTAINABLE IN HIGHER EDUCATION INSTITUTIONS ...................................................................................................................... 566

dos Santos Martins, Harley1; Correia Loureiro, Sandra Maria2; Castro Amorim, Marlene Paula3566

DEVELOPING INTERCULTURAL COMPETENCE – THE CASE OF C YPRUS COLLEGE LECTURERS .................................................................................................................................................... 586

Englezou, Maria1 ........................................................................................................................ 586

TAX EVASION AND ACCOUNTING REGULATION IN ITALIAN FI SCAL SYSTEM ...................... 597

Esposito, Paolo1 .......................................................................................................................... 597

THE ROAD TO AUDIT REFORM IN EUROPE: EVIDENCE FROM T HE PAST CHALLENGES FOR THE FUTURE .................................................................................................................................................. 607

Evripidou, Loukia ........................................................................................................................ 607

ACCOUNTING INFORMATION SYSTEM AND CLINICAL DECISION -MAKING ........................... 619

Ferreira-Da-Silva, Amélia1; Fernandez-Feijoo, Belen2; Rodriguez, Susana Gago3 ................ 619



COMPETITIVENESS, GROWTH AND CHANGE PROCESS IN THE P ERSPECTIVE OF THE ORGANIZATIONAL CULTURE .................................................................................................................. 628

Flores, Alejandro1 ....................................................................................................................... 628

TOURISTS’ PERCEPTIONS OF WORLD HERITAGE DESTINATION S: THE CASE OF GUIMARÃES ................................................................................................................................................... 640

Freitas Santos, J.1; Cruz Vareiro, Laurentina2; Remoaldo, Paula Cristina3; Cadima Ribeiro, J.4640

THE ROLE OF ORGANISATIONAL CULTURE ON THE OCCURRENC E OF WORKPLACE BULLYING: EFFECTS ON ORGANISATIONAL COMMITMENT AND JOB SATISFACTION ...... 656

Galanak, Eleanna1 ...................................................................................................................... 656

PPP LAW AND RISK MANAGEMENT ....................................................................................................... 671

Galiotou ,V.1; Maniatis, A.2......................................................................................................... 671

IMPACT OF RELATIONAL PARADIGM AND EMPLOYEE DEMOGRAP HICS ON STAFF COMMITMENT: EVIDENCE FROM INDIAN CALL CENTRES ..... ...................................................... 683

Gaur, Sanjaya S.1; Quazi, Ali2; Goswami, Manish3 .................................................................... 683

WINE SECTOR DEVELOPMENT: A CONCEPTUAL FRAMEWORK TOW ARDS SUCCESSION EFFECTIVENESS IN FAMILY WINERIES .................. .............................................................................. 691

Georgiou, Thoukis1; Vrontis, Demetris2...................................................................................... 691

THE IMPACT OF POST-MERGER INTEGRATION ON COST SAVIN GS: THE CASE OF GREECE ............................................................................................................................................................................ 712

Giannopoulos, Marinos1; Koufopoulos, Dimitrios N.2 ............................................................... 712

UNDERSTINDING THE RELATIONSHIPS OF LSQ, SATISFACTIO N AND LOYALTY IN MANUFACTURING SUPPLY CHAINS ....................................................................................................... 727

Giovanis, Apostolos N.1; Tsoukatos, Evangelos2; Athanasopoulou, Pinelopi3 ........................... 727

INNOVATION IN TIMES OF FINANCIAL CRISES ........... ...................................................................... 744

Gorovaia, Nina1; Zenios, Stavros2 .............................................................................................. 744

GREEN ENTREPRENEURS – AN ITALIAN PERSPECTIVE ................................................................. 751

Greig, Karen 1; Reitano, Antonella2; Sposato, Carla2;Taylor, David1 ........................................ 751

THE RELATIONSHIP BETWEEN TECHNOLOGICAL CHANGE AND E CONOMIC GROWTH IN LESS ADVANCED EUROPEAN REGIONS ................................................................................................ 763

Guadalupi, Luigi 1; Tutore, Aniello Valerio2; Matricano, Diego 3; Andreottola, Francesco4 ..... 763

EXAMINING THE SEGMENTATION AND POSITIONING STRATEGI ES FOR HIGHER EDUCATIONAL INSTITUTIONS IN CYPRUS ................ .......................................................................... 774

Hadjiphanis, Lycourgos1; Evripidou, Loukia Ch.2 ...................................................................... 774

WHY AND HOW DO THE POLITICAL ACTIONS OF A PRODUCT’S COUNTRY OF ORIGIN AFFECT THE POLITICALLY CONCERNED CONSUMER PURCHASE DECISION? ...................... 789

Halimi, Tariq1; D’Souza, Clare2 ................................................................................................. 789

THE CONCEPTUAL RELATIONSHIP BETWEEN GREEN SUPPLIER DEVELOPMENT AND ORGANIZATIONAL PERFORMANCE ...................................................................................................... 805

Hamid, Abu Bakar Abdul1; Dawei, Zhang2; Said, Fazila3; Chin, Thoo Ai4; Sukati, Inda5 ......... 805



BENEFIT PERCEPTIONS AND PREFERENCES OF ORGANIC FOOD CUSTOMERS: AN EMPIRICAL ANALYSIS OF URBAN CUSTOMERS ............. ................................................................... 814

Heggde, Githa1; Mekoth, Nandakumar2 ...................................................................................... 814

COSMOPOLITANISATION, LIQUID TIMES AND TRUST: A GUI DE FOR MANAGERS TO UNDERSTAND THE COSMOPOLITAN GENERATION ............ ............................................................. 828

Illum-Engsig, Rolf1 ...................................................................................................................... 828

TOUR OPERATING COMPANIES: ANALYSIS OF MARKETING STR ATEGIES AND ACTUAL CRITICAL BUSINESS IN THE ITALIAN CONTEST .......... ..................................................................... 845

Invernizzi, Anna Chiara1 ; Passarani, Diana Anna2 ................................................................... 845

KNOWLEDGE CREATION IN ORGANIZATIONS: THE INFLUENCE OF INTERNAL AND EXTERNAL NETWORKS.............................................................................................................................. 860

Izunwanne, Pamela C.1 ............................................................................................................... 860

RIGHTING THE RIGHT OF PPP ................................................................................................................. 868

Kalogirou, Sofia1; Maniatis, Antonios2 ....................................................................................... 868

VALCA: VALIDATING CONJOINT ANALYSIS – EVIDENCE FROM THE GERMAN TELECOMUNICATION MARKET ........................... ................................................................................... 876

Kaltenborn, Tim1 ......................................................................................................................... 876

AUTOTELIC CAPABILITIES AND THEIR IMPACT ON TECHNOLO GICAL CAPABILITIES: A FOCUS ON PRODUCTION TECHNOLOGIES .......................................................................................... 889

Karagouni, Glykeria1; Protogerou, Aimilia2; Caloghirou, Yannis3 ............................................ 889

CORPORATE SOCIAL RESPONSIBILITY: THE VISITORS’ VIEW .................................................... 906

Kuokkanen, Henri1; Macdonald, Michael2 ................................................................................. 906

RELATIONSHIPS BETWEEN INFORMATION AND COMMUNICATION S TECHNOLOGY, ECONOMIC GROWTH, AND THE ENVIRONMENT: EVIDENCE FROM THE G20 ........................ 920

Lee, Jung-Wan1; Becker, Kip2 ..................................................................................................... 920

ACTION RESEARCH CASE STUDY ........................................................................................................... 931

Leonidou, E.1; Christofi, M.2 ....................................................................................................... 931

REFLECTING ON A DBA JOURNEY ......................................................................................................... 946

Leonidou, E.1; Christofi, M.2 ....................................................................................................... 946

INTERNATIONAL BUSINESS OF BANKING: THE PRICING EXAM PLE OF RETAIL CURRENCY SPREADS .......................................................................................................................................................... 960

Listra, Enn1 ................................................................................................................................. 960

CASE STUDY: PERUVIAN TELECOM INDUSTRY ................................................................................. 973

Lizarzaburu, Edmundo R.1; Moysidis, Anastasios2 .................................................................... 973

THE IMPACT OF ONLINE ATMOSPHERIC CUES ON EMOTIONS A ND WORD-OF-MOUTH: GENDER DIFFERENTIATION..................................................................................................................... 992

Loureiro, Sandra Maria Correia1; Ribeiro, Lara2 ...................................................................... 992

SUSTAINABILITY ATTITUDES AND BEHAVIOURS IN HIGHER E DUCATION: A CROSS-CULTURAL COMPARISON ....................................................................................................................... 1009

Loureiro, Sandra Maria Correia1; Pires, Ana Regina2; Ruediger, Kaufmann Hans3 .............. 1009



POWER TO THE PEOPLE!? THE ROLE OF PROCEDURAL FAIRNE SS WITHING DECISION PROCESSES OF COMMUNITY-BASED NATURAL RESOURCE MANAG EMENT IN NAMIBIA 1028

Mai, Daria1; Wetzel, Fabienne2; Lanwehr, Ralf3 ...................................................................... 1028

THE BREAK-OUT PROCESS: EVIDENCES FROM THE SOUTH OF ITALY .................................. 1040

Matricano, Diego1; Sorrentino, Mario2 .................................................................................... 1040

RELATIONSHIP MODELS OF HEALTHCARE MARKET ENTITIES I N VIRTUAL ENVIRONMENT ........................................................................................................................................... 1051

Matysiewicz, Justyna1; Smyczek, Slawomir2 ............................................................................ 1051

THE MANAGEMENT OF SOCIAL AND CULTURAL IMPACTS OF TO URISM DEVELOPMENT IN CYPRUS IN THE PERIOD 1960-1996 ........................................................................................................ 1062

Mavris, Chris I.1 ........................................................................................................................ 1062

SUCCESSION – A WINDOW OF OPPORTUNITY FOR INTERNATIO NALIZATION? .................. 1082

Meneses, Raquel1; Coutinho, Ricardo2 ..................................................................................... 1082

CONVERGENCE INDEX FOR GROUPS OF DATA RELATIVE TO A “TARGET” GROUP: APPLICATION ON THE FINANCIAL DATA OF A SAMPLE OF GR EEK AGRICULTURAL COOPERATIVES .......................................................................................................................................... 1095

Menexes, G1; Aggelopoulos, S2; Sergaki, P3; Chioteris, C4 ...................................................... 1095

FISCAL PRESSURE IMPACT ON BANK LABOR IN THE EUROZON E ............................................ 1108

Mihai Yiannaki, Simona1; Rios-Morales, Ruth2 ........................................................................ 1108

CITIES AS CORPORATE ENTITIES (IN INTERNATIONAL MARK ETS) ........................................ 1123

Mišič, Katja Udir1; Podnar, Klement2 ...................................................................................... 1123

TECHNOLOGY MANAGEMENT AS A DYNAMIC CAPABILITY STRAT EGIC MANAGEMENT -DYNAMIC CAPABILITIES AND DYNAMIC FLEXIBILITY. ..... .......................................................... 1139

Mohammadi, Hanieh1; Arasti, Mohammadreza2; Mashayekhi, Ali N.3 ................................... 1139

CONCEPTUAL FRAMEWORK FOR CORPORATE ACCOUNTABILITY I N THE CONTEXT OF SUSTAINABILITY – A LITERATURE REVIEW .............. ...................................................................... 1153

Mohammed, Munif1 ................................................................................................................... 1153

HIGH PERFORMANCE HUMAN RESOURCE MANAGEMENT PRACTICE S AND ORGANIZATIONAL PERFORMANCE: STUDY OF A PUBLIC SECTO R TELECOMMUNICATION COMPANY OF INDIA .................................................................................................................................. 1163

Muduli, Ashutosh1; Datta, Saroj K.2; Verma, Sunita3 ............................................................... 1163

MISMATCHES OF SUPPLY AND DEMAND OF SKILLS AND QUALI FICATIONS IN THE TRANSITIONAL ECONOMY: THE CASE OF BUSINESS AND MANA GEMENT QUALIFICATIONS IN LITHUANIA .............................................................................................................................................. 1174

Nazelskis, Eugenijus1; Tūtlys, Vidmantas2 ................................................................................ 1174

PROMOTING INNOVATIVE ENTREPRENEURSHIP BY DEVELOPING KNOWLEDGE ASSETS: AN ASSESSMENT OF THE SITUATION IN WESTERN BALKAN CO UNTRIES ............................. 1199

Ndou, Valentina1; Del Vecchio, Pasquale2 ............................................................................... 1199

PRIVATE INVESTMENTS IN HUMAN CAPITAL: THE PROBLEM OF EFFICIENCY VALUATION .......................................................................................................................................................................... 1210

Nedospasova, Olga ................................................................................................................... 1210



BIKE USAGE AND CYCLE TOURISM: THE PATTERN OF PORTUG UESE ASSOCIATED BIKE RIDERS ........................................................................................................................................................... 1218

Neves, Joana Maria de Oliveira1; Esperança, José Paulo2 ...................................................... 1218

THE PUBLIC PARTNER IN PPP CONTRACTS ...................................................................................... 1231

Nikolopoulou, Marina1 .............................................................................................................. 1231

TECHNOLOGY-BASED SERVICE ENCOUNTER – AN EMPIRICAL S TUDY OF THE PROPENSITY TO USE E-MAIL AS A BOOKING TOOL IN HOTEL INDUSTRY ............................ 1242

Osarenkhoe, Aihie1; Bennani, Az-Eddine2; Komunda, Mabel Birungi3 .................................... 1242

PREDICTING ENTREPRENEURIAL TEAM FORMATION INTENTION ALITY: APPLYING THE THEORY OF PLANNED BEHAVIOUR ..................................................................................................... 1253

Palamida, Eftychia1; Papagiannidis, Savvas2; Xanthopoulou, Despoina3; Stamati, Teta4 ..... 1253

CROSS COUNTRY CONTAGION OF ECONOMIC CRISIS AT FIRM LEVEL. EVIDENCE FROM CYPRIOTE AND GREEK FURNITURE AND WOOD ENTERPRISES . .............................................. 1265

Papadopoulos, Ioannis1, Trigkas, Marios2, Papadopoulou, Aikaterini3 ................................... 1265

STRATEGIC HRM IN THE 21ST CENTURY: IS ‘CORE PLUS CO NTEXT SPECIFIC’ THE ANSWER?....................................................................................................................................................... 1283

Pavlou, Fotis1 ............................................................................................................................ 1283

PROPOSAL FOR A PREDICTIVE MODEL OF BUSINESS FAILURE FOR THE TEXTILE INDUSTRY USING SURVIVAL ANALYSIS ............................................................................................. 1295

Pereira, José Manuel Teixeira1; Ribeiro, Humberto Nuno Rito2; da Silva, Amélia Cristina Ferreira3; Ocejo, José Luís Sáez4............................................................................................................... 1295

CONSUMER ATTITUDES TOWARDS KEY ETHICAL RETAILING IS SUES: A CROSS- CULTURAL COMPARATIVE STUDY OF BANGLADESH AND THE UK ......................................... 1311

Pervin, Shahina1; Wilman, Mike2; Macdonald, Lesley3; Ranchhod, Ashok4............................. 1311

CORPORATE GOVERNANCE: ASPECTS AND PROBLEMS IN UNIVE RSITY SPIN-OFFS ......... 1324

Piccarozzi, Michela1 ................................................................................................................. 1324

CAPABILITIES ALLOCATION AND STRATEGIC CHOICES. THE CASE OF ITALY’S COSMETIC SECTOR .......................................................................................................................................................... 1335

Pucci, Tommaso1; Rabino, Samuel2; Zanni, Lorenzo3 ............................................................. 1335

TAYLOR TO YAMASHINA – EMPLOYEE INVOLVEMENT IN INDUS TRIAL ENGINEERING PROJECTS ..................................................................................................................................................... 1349

Rao, Kambhampati Venkata Satya Surya Narayana1 ............................................................... 1349

POST-MERGER & ACQUISITIONS (M&A) RETURNS: ARE BUYER S WINNERS? EVIDENCE FROM PORTUGAL ...................................................................................................................................... 1357

Ribeiro, Humberto Nuno Rito1; Carvalho, Preciosa da Conceição Sampaio2; Pereira, José Manuel Teixeira3; da Silva, Amélia Cristina Ferreira4.......................................................................... 1357

CONSUMER BEHAVIOUR ERASMUS NETWORK (COBEREN)....... ................................................. 1369

Rodríguez Santos, Carmen1 ...................................................................................................... 1369

COMPETITION AND PERFORMANCE OF AGRO FOOD FIRMS: STR ATEGIC AND FINANCIAL CHOICES OF CAMPANIA FIRMS’ ........................................................................................................... 1394

Rossi, Matteo1; Vrontis, Demetris2; Thrassou, Alkis3 ............................................................... 1394



THE IMPORTANCE OF THE WEB MARKETING STRATEGIES FOR THE NURSERIES AND GARDENING COMPANIES IN THE SOUTHERN ITALY ......... ........................................................... 1406

Schimmenti, Emanuele1;Borsellino, Valeria2; Galati, Antonino3 ............................................ 1406

EFFICIENCY OF THE JUDICIAL SYSTEM AND MEDIATION: TH E ITALIAN EXPERIENCE .. 1417

Sensini, Luca1; Marino, Luigi2; Pellecchia, Alfonso3 ............................................................... 1417

INTERNATIONAL JOINT VENTURES' EFFECTIVENESS: A PROJ ECT-MANAGEMENT AND TEAM-THEORY CONTRIBUTION ........................................................................................................... 1429

Shetach, Ana1 ............................................................................................................................ 1429

THE RELATIONSHIP BETWEEN SERVICE QUALITY AND CUSTOM ER SATISFACTION: AN EMPIRICAL CASE ....................................................................................................................................... 1441

Silvestri Cecilia1 ........................................................................................................................ 1441

CUSTOMERS’ FINANCIAL EXCLUSION AS RESULT OF ECONOMI C VOLATILITY ................ 1457

Smyczek, Slawomir1; Matysiewicz, Justyna2 ............................................................................. 1457

AN EXPLORATORY STUDY OF BRAND MANUFACTURERS’ PERCEI VED VALUE OF THE “TRIPLE POLE” APPROACH IN BARGAINING FOR VERTICAL C OOPERATIVE SALES PROMOTION CAMPAIGN: A PILOT STUDY IN GREECE AND CYP RUS....................................... 1467

Spais, George S.1; Papakonstantinidis, Leonidas2 .................................................................... 1467

IMPACT OF INNOVATIVE TECHNOLOGIES IN TRANSPORT SERV ICE ON CONSUMER BEHAVIOR– AN INDIAN CASE STUDY .................................................................................................. 1505

Srinivasan, R.1; Priyadarshini, S.2; Shrisha,S.3 ........................................................................ 1505

TOOLS AND MODELS IN OUTDOOR MANAGEMENT DEVELOPMENT APPROACHES: A REAPPRAISAL OF THE LITERATURE FROM THE FIELD ...... ......................................................... 1515

Stokes, Peter1; Hickman, Mark2; Wisser, Max3; Scott, Peter4; Moore, Neil5; Russell, Natalie61515

APPLYING PORTER'S COMPETITVENESS MODEL ON SMES: THE CASE OF OCCUPIED PALESTINIAN TERRITORY (OPT) .......................................................................................................... 1535

Sultan, Suhail Sami1 .................................................................................................................. 1535

QUALITY IMPROVEMENT THROUGH CAPACITY MANAGEMENT: TH E CASE OF HEBRON GOVERNMENTAL HOSPITAL .................................................................................................................. 1550

Sultan, Suhail Sami1; Sultan, Waseem Idris2............................................................................. 1550

THAI UNION FROZEN: THE SUCCES OF THAI FIRMS IN GLO BAL SEAFOOD VALUE CHAIN .......................................................................................................................................................................... 1567

Suthikorn, Kingkaew1 ................................................................................................................ 1567

CORRELATES OF THE ECOLOGICALLY CONSCIOUS CONSUMER B EHAVIOUR IN GREECE .......................................................................................................................................................................... 1580

Tilikidou, Irene1 ........................................................................................................................ 1580

MUTUAL STRATEGY RELATIONSHIP OF EILAT VS. AQABA AS TOURISM DESTINATION . 1592

Tirosh, Nathan1 ......................................................................................................................... 1592

MANAGEMENT CONTROL IN UNCERTAINTY ................. .................................................................. 1609

van der Wiele, Ton1; van Iwaarden, Jos2; Eldridge, Steve3; Williams, Roger4 ......................... 1609

PPP IN FRENCH LAW AND PRACTICE .................................................................................................. 1618

Vassilakou, Athina1; Maniatis, Antonios2 ................................................................................. 1618



PENETRATION AND EXPANSION OF FOREIGN BANKS IN SOUTH EASTERN EUROPE: THE CASE OF GREEK BANKS ........................................................................................................................... 1632

Vasiliadis, Labros1 .................................................................................................................... 1632

FLEXIBILITY IN DISTRIBUTION FOR MAXIMIZING CUSTOMER SATISFACTION ................. 1642

Verma, Sanjeev1 ........................................................................................................................ 1642

THE OEM-OBM DEBATE: FACTORS INFLUENCING CHINESE FIR MS’ BRANDING DECISIONS IN THEIR INTERNATIONALISATION PROCESS ............. .................................................................... 1646

Wilson, Ian1 ............................................................................................................................... 1646

AN INVESTIGATION OF TALENT MANAGEMENT (TM) IN PRIVA TE ELECTRONICS ENTERPRISES IN WENZHOU, P.R. CHINA ........................................................................................... 1657

Ye, Hongkai1; Zhang, Crystal2 .................................................................................................. 1657

MANAGEMENT TRAINING AND DEVELOPMENT PROGRAMMES NEED S ASSESSMENT (MTDPNA) IN NON-OIL INTERNATIONAL ORGANISATIONS IN LIBYA ..................................... 1666

Younes, Ahmed Mustafa1; Stewart, Jim2; Kyriakidou, Niki3 ..................................................... 1666



Table of Abstracts

DOES FEAR OF A CRISIS HAVE AN IMPACT ON A HOTEL’S C RISIS PREPARATION OR CRISIS MANAGEMENT? .......................................................................................................................................... 1686

Almeida, Maria del Mar Alonso1; Bremser, Kerstin2 ............................................................... 1686

A HOLISTIC APPROACH IN IMPLEMENTING ISO MANAGEMENT SYSTEM STANDARDS ... 1688

Al Rashed, Husam1; Elmeligy, Osama2 ..................................................................................... 1688

SOCIAL MEDIA DIFFUSION ACROSS ITALIAN TOURISTIC CO MPANIES: REPUTATION AND PERFORMANCE ANALYSIS. ..................................................................................................................... 1690

Aiello, Lucia1; Cacia, Claudia2; Ferri, Maria Antonella3; Singer, Pierpaolo4 ......................... 1690

RELIGIOUS AND SUSTAINABLE TOURISM IN CATHOLIC TIBET (CHINA) ............................... 1694

Ambrósio, Vitor1 ........................................................................................................................ 1694

MOBILE MARKETING: A NEW PROMOTIONAL CHANNEL ....... .................................................... 1695

Amirkhanpour, Monaliz1 ........................................................................................................... 1695

AN EXAMINATION OF THE EFFECT OF GENDER BALANCE GUID ELINES ON THE NUMBER OF WOMEN DIRECTORS ON AUSTRALIAN CORPORATE BOARDS . ........................................... 1697

Ayson, Sharon1 .......................................................................................................................... 1697

TRANSFER PRICING AUDITS PERFORMED AT COMPANIES GRAN TING INVESTMENT INCENTIVES IN THE FORM OF A TAX RELIEF (CASE OF THE CZECH REPUBLIC) ............... 1699

Baluchova, Daniela1 ................................................................................................................. 1699

A CHALLENGE TO BALANCE INTERESTS OF BUSINESS, STATE AND SOCIETY IN BRIC ECONOMIES ................................................................................................................................................. 1702

Belyaeva, Zhanna1; Kazakov, Alexander2 ................................................................................. 1702

THE IMPORTANCE OF TRUST FOR CROSS CULTURAL COMMUNIC ATION IN LARGE CONSTRUCTION PROJECTS .................................................................................................................... 1704

Bengoa, Dolores Sanchez1; Neuhauser, Andreas2 .................................................................... 1704

ECONOMIC DEVELOPMENT IN THE RURAL REGION OF THE WES TERN NEGEV THE CLUSTER ANCHORED NETWORKED VALUE CHAIN MODEL: THE C ASE OF THE TOURISM SECTOR .......................................................................................................................................................... 1705

Bijaoui, Ilan1; Regev, David2 .................................................................................................... 1705

SMALL-ENTERPRISE NETWORKING IN NETIVOT AND THE PROX IMATE REGION: IMPLEMENTATION OF THE HYBRID OPEN INCUBATOR-TIPPING POINT MODEL IN THE JEWELRY SECTOR ..................................................................................................................................... 1721

Bijaoui, Ilan1; Regev, David2 .................................................................................................... 1721

BUSINESS MODEL CHARACTERISTICS AND EVOLUTION: THE CASE OF HIGH-TECH FIRMS FOR CULTURAL GOODS ........................................................................................................................... 1741

Casprini, Elena1; Pucci, Tommaso2; Zanni, Lorenzo 3 ............................................................. 1741

THE IMPLEMENTATION OF A TRANSNATIONAL STRATEGY OF I NNOVATION: TOWARDS A MULTI-COUNTRY PROCESS .................................................................................................................... 1743

Chebbi, Hela1; Yahiaoui, Dorra2 .............................................................................................. 1743



MARKET PERFORMANCE OF ORGANIC FOOD BRANDS IN DENMAR K .................................... 1745

Chrysochou, Polymeros1; Vassilev, Boyan ............................................................................... 1745

THE EFFECT OF EMIRATI CULTURE ON COSMETICS BUYING D ECISION: A STRATEGIC MARKETING ANALYSIS............................................................................................................................ 1747

Contardo, Ianna F.1; Patwa, Nitin2 ........................................................................................... 1747

WIRELESS SENSOR TECHNOLOGY USED TO ENHANCE QUALITY OF LIFE AMONGST THE ELDERLY WITH DEMENTIA IN FRANCE AND SWITZERLAND: UN DERSTANDING CAREGIVER PERCEPTIONS TO IMPROVE TECHNOLOGY TAKE-UP AND BUSINESS MODELS .......................................................................................................................................................................... 1750

Delbreil, Elizabeth1; Zvobgo, Gilbert2 ...................................................................................... 1750

THE RELATIONSHIP BETWEEN WORK-FAMILY BALANCE AN D CONTINUANCE COMMITMENT: ORGANIZATIONAL ENGAGEMENT AS A MEDIA TOR .................................. 1752

Dimitriades, Zoe1; Gkorezis, Panagiotis2 ................................................................................. 1752

INNOVATIONS IN BUSINESS EDUCATION FOR SUSTAINABILIT Y AND SYSTEMS THINKING: THE USE OF PROBLEM-BASED CONSULTING PROJECTS ............................................................. 1756

Drew, Stephen1; Segal, Gerry2 .................................................................................................. 1756

STRATEGIC LEADERSHIP FOR INNOVATIONS IN HEALTHCARE MANAGEMENT ............... 1757

Drew, Stephen1 .......................................................................................................................... 1757

MEASURING ETHICAL LEADERSHIP POTENTIAL AMONG HOSPIT ALITY STUDENTS ........ 1759

Ebersole, Jon1 ........................................................................................................................... 1759

RESTRUCTURING AN AGRICULTURAL SECTOR - THE CASE OF FIELD CROPS IN ISRAEL .......................................................................................................................................................................... 1762

Edom, Sara1 .............................................................................................................................. 1762

INFLUENCE OF LEADERSHIP STYLE ON THE USE OF ACCOUNT ING INFORMATION SYSTEM .......................................................................................................................................................................... 1767

Ferreira-da-Silva, Amélia1; Fernandez-Feijoo, Belen2; Rodriguez, Susana Gago3 ................. 1767

REGIONAL DIFFERENCES IN THE LINK BETWEEN EURO-MEDIT ERRANEAN MIGRATION AND BILATERAL TRADE .......................................................................................................................... 1769

Fouad, Amir Alexander1 ............................................................................................................ 1769

DISCRIMINANT ANALYSIS AND LOGISTIC REGRESSION IN PR EDICTING BUSINESS FAILURE: A COMPARATIVE STUDY ..................................................................................................... 1771

Garcia-Gallego, Ana1; Mures-Quintana, Maria-Jesus2; Vallejo-Pascual, M. Eva3 ................. 1771

TOURISM PLANNING, CULTURAL VALUES AND COMMUNICATION STYLE ......................... 1775

Gerritsen, Marinel1 ................................................................................................................... 1775

THE SALSA DANCE CONSUMPTION EXPERIENCE .......................................................................... 1778

Ghariani, Ghofrane1; Smaoui, Fatma2 ..................................................................................... 1778

THE DETERMINANTS OF EXPOSURE AT DEFAULT: EVIDENCE F ROM THE ITALIAN MARKET ........................................................................................................................................................ 1782

Gibilaro, Lucia1; Mattarocci, Gianluca2 .................................................................................. 1782

GEO-TEMPORAL TRACKING (GTT) OF TOURIST FLOWS USING MOBILE PHONE NETWORK DATA ............................................................................................................................................................... 1784

Goedtkindt, Peter1 ..................................................................................................................... 1784



CORPORATE SOCIAL RESPONSIBILITY IN CYPRIOT COMPANIE S ............................................ 1786

Gorovaia, Nina1 ........................................................................................................................ 1786

“PERCEPTIONS AND DRIVERS OF INDIVIDUAL AND INSTITUT IONAL WINE INVESTORS”1788

Granier, Emmanuelle1; Rios-Morales, Ruth2, Huh, Pia3 .......................................................... 1788

SUSTAINABLE INITIATIVES IN EVENT MANAGEMENT AN ANAL YSIS OF VISITORS’ LEVEL OF ACCEPTANCE AND AWARENESS .................................................................................................... 1790

Imboden, Alain1 ......................................................................................................................... 1790

MANAGING BUSINESS MODEL CREATION PROCESS: KIRZNERIA N ENTREPRENEURSHIP AND ROLES OF ORGANIZATION IN CASES OF A JAPANESE CO MPANY ................................... 1791

Ishii, Masamichi1; Ueda, Kanji2; Takeda, Hideaki3; Takenaka, Takeshi4; Nishino, Nariaki5; Utahara, Akihiko6 ..................................................................................................................................... 1791

SUSTAINABLE BUSINESS FUTURES FOR ADVENTURE TOURISM ACTORS IN UK’S ENVIRONMENTALLY PROTECTED AREAS: THE CASE OF PEMBRO KESHIRE COASTAL AND BRECON NATIONAL PARKS .................................................................................................................... 1793

Jenkins, Ian1; Rios-Morales, Ruth2; Cevera, Ralph3 ................................................................. 1793

ENTREPRENEURIAL MARKETING: A SMALL BUSINESS PERSPEC TIVE .................................. 1796

Jones, Rosalind1; Suoranta, Mari2 ............................................................................................ 1796

WHEN IS A SUPERVISORY RECOGNIZED EXTERNAL RATING WO RTHWHILE FOR A MEDIUM-SIZED ENTERPRISE AND ITS BANK? – AN EMPIRICA L ANALYSIS AGAINST THE BACKGROUND OF BASEL III ................................................................................................................... 1799

Kaltofen, Daniel1; Stein, Stefan2 ............................................................................................... 1799

KNOW YOUR LABEL! THE IMPACT OF INTRODUCTORY WINE ED UCATION ON THE ASSESSMENT OF WINE LABEL INFORMATION BY NOVICES ENR OLLED IN A FOUNDATION WINE COURSE ............................................................................................................................................. 1800

Kammer, Christian1; Rios-Morales, Ruth2 ................................................................................ 1800

EXPLORING THE IMPACT OF AN ADVENTURE TRAINING PROGR AM ON LEADERSHIP AND TEAMWORK COMPETENCIES OF BANK TOP SENIOR MANAGERS . .......................................... 1802

Kourtesopoulou, Anna1; Papaioannou, Alkistis2 ; Kriemadis,Thanos3; Dalakis, Antonis4 ....... 1802

ACHIEVING EXCELLENCE IN STRATEGIC PLANNING USING TH E EFQM EXCELLENCE MODEL CRITERIA ...................................................................................................................................... 1805

Kriemadis,Thanos1; Papaioannou, Alkistis2; Kourtesopoulou, Anna3 ..................................... 1805

TRANSNATIONAL EDUCATION AND CROSS CULTURAL TRAINING : A CASE STUDY OF A BUSINESS SCHOOL IN THE UK ............................................................................................................... 1808

Kyriakidou, Niki1; Mahtab, Nehal2; Nisa Shakiya3 ................................................................... 1808

INTRAPRENERSHIP AS A PRECONDITION FOR ENTREPRENEURSHIP: CONCEPTUAL CONSIDERATIONS ...................................................................................................................................... 1810

Lauzikas, Mindaugas1; Vaiginiene, Erika2; Miliute, Aiste3; Batuleviciute, Skaiste4; Rosinaite, Vikinta5

.................................................................................................................................................. 1810

ANALYZING EFFICIENCY AND PRODUCTIVITY CHARACTERISTI CS OF BANK BRANCHES: EVIDENCE FROM GREECE ...................................................................................................................... 1812

Lemonakis, Christos1; Voulgaris, Fotini2 .................................................................................. 1812



CRITICAL FACTORS AFFECTING BANK PROFITABILITY AND F INANCIAL STABILITY: THE CASE OF THE MIDDLE EAST AND NORTH AFRICA COUNTRIES ................................................. 1814

Lemonakis, Christos1; Voulgaris, Fotini2 .................................................................................. 1814

THE EFFECTS OF TELEWORK ON NON-TELEWORKERS: AN EXPL ORATORY CASE IN FRANCE ......................................................................................................................................................... 1816

Lewis, Robert A.1 ....................................................................................................................... 1816

SUCCESSFUL TRANSFORMATION OF SMALL COUNTRIES: THE C ASES OF ESTONIA AND SLOVENIA ..................................................................................................................................................... 1817

Listra, Enn1 ............................................................................................................................... 1817

HOW MANAGERS USE MANAGEMENT TOOLS TO IMPROVE PERFOR MANCE IN PUBLIC HOSPITALS: EMPIRICAL EVIDENCE FROM PORTUGAL ....... ........................................................ 1819

Macedo, Isabel Maria1; Silva, Anabela Martins2 ..................................................................... 1819

CONTRIBUTION TO THE THEORY OF CORPORATE GOVERNANCE OF NON-PROFIT ORGANIZATIONS (CASE OF HOSPITALS IN THE CZECH REPUB LIC) ........................................ 1821

Maly, Milan1.............................................................................................................................. 1821

MISSED OPPORTUNITIES: HOW EVENT SPONSORS OVERLOOK POTENTIAL TARGET CUSTOMERS ................................................................................................................................................. 1824

Marshall, Thomas1; Mottier, Ewa2 ........................................................................................... 1824

THE EFFECT OF INTERACTION QUALITY ON PERCEIVED PERF ORMANCE EXCELLENCE AND LOYALTY ............................................................................................................................................. 1825

Melanthiou, Yioula1; Ioannou, Myria2; Korombilias, Demetris3 .............................................. 1825

EMOTIONS, PATIENT BEHAVIOR AND THE MODERATORS TO IM PACT OF SOCIAL SUPPORT ON EMOTIONS AMONG CONSUMERS OF HEALTHCARE SERVICES .......................................... 1827

Mesquita e Noronha, Aruna1; Mekoth, Nandakumar2 .............................................................. 1827

THE CHALLENGES OF INITIATING DISTANCE LEARNING IN H IGHER EDUCATION .......... 1828

Miri, Barak1 .............................................................................................................................. 1828

THE USE OF CLOUD APPLICATIONS FOR IDENTIFYING 21ST CENTURY SKILLS IN HIGHER EDUCATION .................................................................................................................................................. 1831

Miri, Barak1; Sigal, Morad2 ...................................................................................................... 1831

A FRAMEWORK FOR IDENTIFICATION OF DYNAMIC CAPABILIT IES ...................................... 1835

Mohammadi, Hanieh1; Mashayekhi, Ali N.2; Arasti, Mohammadreza3 .................................... 1835

SOCIAL RESPONSIBILITY AND THE O-ZONE EXPERIENCE OF A LUXURY HOTEL IN BANGKOK, THAILAND .............................................................................................................................. 1836

Mottier, Ewa1; Lewis, Robert A.2 .............................................................................................. 1836

BUSINESS MODEL THINKING: A STRATEGIC FRAMEWORK FOR ACADEMICIANS AND PRACTITIONERS ......................................................................................................................................... 1838

Newth, Francine1 ...................................................................................................................... 1838

INTERNATIONAL SERVICES MARKETING STRATEGIES: CUSTOM ER ATTITUDES TOWARDS CASHFREE BANKING ................................................................................................................................ 1841

Nilvander, Frida1 ...................................................................................................................... 1841

TECHNOLOGY ACCEPTANCE ATTITUDES TOWARDS CASHFREE BA NKING......................... 1843

Nilvander, Frida1 ...................................................................................................................... 1843



A HYBRID CURRICULUM DEVELOPMENT .................. ...................................................................... 1845

Orphanidou, Yianna1; Melanthiou, Yioula2 .............................................................................. 1845

THE RELATIONSHIP BETWEEN HUMAN RESOURCE EMPOWERMENT AND BUSINESS PERFORMANCE: A CASE STUDY IN THE BANKING SECTOR ... .................................................... 1847

Papaioannou, Alkistis1; Kourtesopoulou, Anna2; Kriemadis, Thanos3; Dalakis, Antonis4 ....... 1847

A CROSS-CULTURAL ANALYSIS ABOUT WHY YOUNG PEOPLE DR INK ALCOHOL .............. 1850

Pertejo, Ana R. 1; Kaufmann, Hans Ruediger2; Santos, Carmen3 ............................................. 1850

THE DE-INTERNATIONALIZATION PROCESS: EVIDENCES FROM PORTUGUESE FIRMS ... 1853

Pinho, Hélder1; Meneses, Raquel2 ........................................................................................... 1853

COOPERATION IN WINE TOURISM AND ITS ROLE IN THE DEV ELOPMENT OF DISAVANTAGED AND ISOLATED AREAS ............................................................................................ 1855

Pitoska, Electra1; Charitoudi, Georgia2 ................................................................................... 1855

“ECONOMIC CRISIS AND ITS RESULTS ON ENTREPRENEURSHI P OF PERIFERAL & LOCAL ECONOMIES” ............................................................................................................................................... 1856

Pitoska, Elektra1; Broni, Georgia2 ............................................................................................ 1856

THE EXPORT MARKETING OF GREEK AGRICULTURE PRODUCTS: THE CASE OF “FETA” CHEESE. ......................................................................................................................................................... 1857

Pitoska, Electra1 ........................................................................................................................ 1857

THREE SEGMENTATION METHODS OF ORGANIC PRODUCTS CONS UMERS - ROMANIA CASE STUDY ................................................................................................................................................. 1858

Roșca, Mihai Ioan1; Tănase, Laura Daniela2 ........................................................................... 1858

MERGERS AND ACQUISITIONS: REVISITING THE ISSUE OF V ALUE CREATION FOR TARGET COMPANIES FROM NEW EUROPEAN UNION MEMBER STATES ... .............................................. 1862

Saikevičius, Darius1 .................................................................................................................. 1862

SOCIAL PROTESTS IN ISRAEL IN 2011 AND THEIR EFFECTS ON THE ISRAELI ECONOMY 1864

Schein, Andrew1 ........................................................................................................................ 1864

CORPORATE FINANCIAL DISTRESS IN THE EUROPEAN CONSTR UCTION INDUSTRY: A LOGIT APPROACH ..................................................................................................................................... 1866

Sensini, Luca1; Amendola, Alessandra2; Restaino, Marialuisa3; Pellecchia, Alfonso4 ............. 1866

A COMPARISON OF FACTORS INFLUENCING MALE AND FEMALE STUDENTS’ ENTREPRENEURIAL INTENTIONS ........................................................................................................ 1867

Shneor, Rotem1; Jenssen, Jan Inge2 .......................................................................................... 1867

ANALYZING THE IMPACT OF CULTURE ON AVERAGE TIME SPE NT ON SOCIAL NETWORKING SITES ................................................................................................................................. 1872

Shneor, Rotem1; Efrat, Kalanit2 ................................................................................................ 1872

THE IMPACT OF THE SOCIAL PROTEST ON CONSUMER BEHAVI OR ....................................... 1877

Shuv-Ami, Avichai1 .................................................................................................................... 1877

CO-CREATION OF VALUE FROM THE CUSTOMER VIEWPOINT: E MPIRICAL AND THEORETICAL CONSIDERATIONS ....................................................................................................... 1879

Silva, Joaquim1; Simões, Cláudia2 ............................................................................................ 1879



THE AGED WORKER: AN ADDED VALUE IN THE PRIVATE AND IN THE PUBLIC SECTOR 1883

Spanò, Isabella1 ........................................................................................................................ 1883

THE ACTION-REACTION IN THE GLOBAL TRADE: THE HIGHLY TRADE-RESTRICTED GLOBAL AGRO-FOOD MARKET IN DEVELOPED COUNTRIES IS T HE CAUSE OF THE STRONG SUPPORT FROM DEVELOPING COUNTRIES’ GOVERNMEN TS FOR THEIR LOCAL AGRO-FOOD SECTORS .............................................................................................................................. 1886

Suthikorn, Kingkaew1 ................................................................................................................ 1886

WORK AND FAMILY ARTICULATION : WORK-LIFE CHALLENGE S IN LAWYERS’S CAREERS ....................................................................................................................................................... 1888

Tremblay, Diane-Gabrielle1; Mascova, Elena2......................................................................... 1888

GENDER AND CULTURAL STEREOTYPES ON ENTREPRENEURIAL REQUISITE CHARACTERISTICS: AN EMPIRICAL STUDY AMONG BUSINESS STUDENTS IN GREECE. .. 1889

Tsoukatos, Evangelos1............................................................................................................... 1889

DETERMINANTS OF USER ADOPTION OF E-GOVERNMENT SERVI CES: THE CASE OF GREEK LOCAL GOVERNMENT.............................................................................................................................. 1892

Voutinioti, Anastasia1 ................................................................................................................ 1892

THE IMPACT OF ERP SYSTEMS ON FIRM PERFORMANCE: THE CASE OF THE GREEK MANUFACTURING INDUSTRY ................................................................................................................ 1896

Voulgaris, Fotini1, Papoutsakis, Emmanouil2; Lemonakis, Christos3 ....................................... 1896

REVEWING THE RELATIONSHIP BETWEEN INDIVIDUAL IDENTI TY, VOICE CONTRIBUTION AND MENTORING ....................................................................................................................................... 1898

Whitehead, Lisa1 ....................................................................................................................... 1898

DRIVING (ORGANIZATIONAL) BRAND REPUTATION FROM INS IDE-OUT: STRATEGIC HUMAN RESOURCE MANAGEMENT IN AN EMERGENT ECONOMY .. ........................................ 1900

Yüksel, Müberra1 ....................................................................................................................... 1900



UNDERSTINDING THE RELATIONSHIPS OF LSQ, SATISFACTION AND

LOYALTY IN MANUFACTURING SUPPLY CHAINS

Giovanis, Apostolos N.1; Tsoukatos, Evangelos2; Athanasopoulou, Pinelopi3

1 Dept. of Business Administration, TEI of Athens, Greece, E-mail: [email protected]

2 Dept. of Finance and Insurance, TEI of Crete, Greece, E-mail: [email protected]

3 Dept. of Sport Management, Univ. of Peloponnese, Greece, E-mail: [email protected]

Abstract

Logistics services quality (LSQ) is currently considered as a differentiation factor enhancing

companies’ competitive advantage. Nevertheless, there is neither consensus about its

dimensions, or on how they affect customer satisfaction and loyalty in the business relations

context. The present paper aims at identifying the main dimensions of logistics service quality

and analyzing their effects on supplier’s performance in terms of customer satisfaction and

loyalty. The proposed structural equations model is tested empirically in a sample of 213

manufacturing companies in Greece. The results show that: 1) business customers’ appraisal of

their supplier’s physical distribution quality is based on its technical/outcome and

functional/process elements and that technical/outcome quality is further affected by

functional/process quality, 2) both LSQ dimensions have a positive impact on customer

satisfaction with technical/outcome quality being the main driver followed by

functional/process quality, and 3) LSQ dimensions and customer satisfaction are all directly

related to customer loyalty, while their indirect effects, through satisfaction, enhance their

impact on customer loyalty. Finally, the theoretical and practical implications of the results

within the framework of logistics management are discussed.

Keywords: Logistics service quality (LSQ) dimensions, Satisfaction, Loyalty, Hierarchical

constructs modeling, Logistics management

Introduction

The importance of effective supply chain management (SCM) has become more and more evident

in recent years. Businesses continue to identify the role of SCM in creating and maintaining a strategic

competitive advantage through close customer relationships, increased satisfaction and improved

business profitability (Mentzer, 2001; Stank et al., 2003). An essential aspect of SCM is reliable, high-

quality logistics services. The main objective of logistic services is the design and implementation of

inter-organizational systems operations that allows products to overcome time and space constraints

(Bienstock et al., 2008).

Logistics service quality is one of the basic business operations, since it significantly affects the

value that buyers receive along with product quality and price (Gil-Saura et al., 2008). LSQ has gained

popularity and has become an important research topic in the last two decades, mainly due to its

close relationship with customer satisfaction. It has now been realized that companies can obtain



increased business (Zeithaml et al., 2006) and market share (Daugherty et al., 1998; Innis and La

Londe, 1994; Stank et al., 2003) through maintaining loyalty among customers by increased customer

satisfaction, which can only be achieved by better customer service. Zeithaml et al. (2006) point out to

the importance of word-of-mouth communication in new customers’ acquisition. Post-experience

evaluations of LSQ would significantly affect what customers tell others about the supplier’s

performance; this means that customers who are satisfied with the service they received can easily

influence other customers to purchase form the same supplier, or avoid that particular firm if they

were dissatisfied.

The literature provides several approaches regarding the measurement of LSQ. However, there is

no consensus on its components, or on their role on the LSQ-Satisfaction-Loyalty chain system which

is considered an appropriate tool for service evaluation (Brady et al., 2002; Huang et al., 2009).

With respect to the first issue, most previous studies adopt an aggregate measure for LSQ

operationalization (Gil-Saura et al., 2008, 2010; Davis-Sramek et al., 2008) or they consider LSQ as a

second-order construct with the nine constructs proposed by Mentzer et al. (1999) as subdimensions

(Bienstock and Royne, 2010; Huang et al., 2009). However, Bienstock et al. (2008) pointed out that

considering the outcome and process elements of LSQ separately in comprehensive models is an

important step in advancing the understanding of how customer perception are formed. Following

the perspective proposed by Grönroos (1984) as adopted by Mentzer et al. (1999, 2001) for the logistics

context, they proposed that logistics service quality evaluation is based on two dimensions:

technical/outcome quality, which addresses whether the supplier delivers the core benefit and

functional/process quality, which addresses the process of service delivery.

As far as the links between LSQ and performance outcomes such customer satisfaction and loyalty

are concerned, most of the previous studies follows the structure type known as “satisfaction” model

(Cronin et al., 2000), where the primary and direct link is from customer satisfaction to outcome

measures such as loyalty (Gil-Saura et al., 2008, 2010; Bienstock et al., 2008; Davis-Sramek et al., 2008,

2009), while the only determinant of customer satisfaction is service quality. Theoretical justification

for these links can be attributed to Bagozzi’s (1992) appraisal → emotional response → coping

framework However, several studies, especially in the field of B2C service marketing, proved that

service quality directly affects loyalty except of being indirectly related with it through satisfaction

(Cronin et al., 2000; Brady et al., 2002). The operational literature has been lacking in research that

follows an integrative approach in modeling the relationships between LSQ, satisfaction and loyalty.

The current research effort proposes and tests an integrative model of service performance

evaluation effects on customer satisfaction and loyalty in manufacturing supply chains. In the

proposed model 213 business customers, operating in Greece, assess the technical/outcome and

functional/process elements of LSQ of their supplier as well as their own satisfaction with and loyalty

to these providers.



The major contributions of the paper is that it is trying to fill the gap in the literature concerning

either the conceptualization of LSQ dimensions as well as their role in the LSQ – Satisfaction –

Loyalty chain, since customer satisfaction is an important performance outcome in B2B industry and

is considered as an important driver, among others, of loyalty, which in turn is related to increased

market shares and profitability (Innis and La Londe, 1994).

The paper is organized as follows. In the sections that follow, a brief literature review, an overview

of the proposed model and the relevant hypotheses are provided. Then the methodology is described,

including the sample and the measurement model. Finally, the results of the structural equation

model are presented, followed by discussions, implication and directions for further research.

Theoretical Background and Hypotheses Development

Logistics service quality (LSQ)

According to Perreault and Russ (1976), logistics’ activities create time, place, and form utility,

thereby enhancing product value. This was further proved by Coyle et al., (1992), Shapiro and

Heskett, (1985), and Stock and Lambert, (1987) in describing the seven Rs of utility creation by

logistics services: delivering the right amount, the right product, at the right place, in the right

condition, at the right time, with the right information, and at the right price.

In this regard, further contributions have been made by several authors including Mentzer et al.

(1989) who proposed that service quality deliverables comprised of “customer service quality” and

“physical distribution service quality”. The marketing customer service component has been

researched by Mentzer et al. (1989). They proposed that understanding perceptions of physical

distribution service from a customer’s point of view was an essential input in marketing management

decisions.

A commendable effort has been carried out by Bienstock et al. (1997) to develop a valid and reliable

multidimensional scale for measuring physical distribution service quality combining the logistics

and marketing service quality research streams. As part of this endeavor, they examined the

marketing service quality measurement literature, particularly the development of SERVQUAL and

subsequent attempt at replication of SERVQUAL’s dimensions in industrial service contexts

(Parasuraman et al., 1988). Bienstock et al. (1997) elaborated that the problems faced in applying this

scale to an industrial service context were based on the relative importance of technical/outcome

versus functional/process dimension that significantly affects the evaluation of industrial service

transactions. Technical/outcome quality determines whether the service delivers the core benefit or

outcome that is promised, while functional/process quality addresses the process of service delivery

(Grönroos, 1984; Parasuraman et al., 1988). The SERVQUAL dimensions are heavily oriented toward

the functional/process aspects of service quality and cannot address the validity of the LSQ construct

(Bienstock et al., 2008).



Based on these findings and LSQ literature, Bienstock et al. (1997) developed and validated a 15-

item BDSQ scale based on the value-added utilities of time, place, and form, and comprised of three

technical/outcome dimensions of physical distribution service quality: timeliness, availability, and

condition.

Mentzer et al. (1999) and Mentzer et al. (2001) tried to broaden LSQ concept by encompassing

BDSQ’s technical/outcome dimensions of timeliness, accuracy and condition, as well as additional

dimensions of a functional/process nature such as personnel contact quality, order release quantities,

information quality, ordering procedures, and order discrepancy handling.

In addition to the notion of a multidimensional perspective of service quality, Dabholkar et al.

(1996) and Brady and Cronin (2001) proposed that perceptions of service quality are multilevel. Kang

(2006) and Collier and Bienstock (2006) followed a similar approach to identify the dimensions

(technical and functional) of service quality and the components thought to make up each dimension

in mobile telecommunications and e-retailing respectively. The present study adopts a similar

approach to represents LSQ technical/outcome and functional/process dimensions as higher-order

constructs, since the separation of functional/process and technical/outcome service quality

dimensions, in a comprehensive model, is a significant step in advancing the sophistication of the

understanding of how customer perceptions of service quality are formed (Bienstock et al., 2008).

Customer satisfaction and loyalty

Given the increased emphasis on SCM has turned interest on understanding how business

processes affect supply chain’s performance. However, the performance outcomes, which are

appropriate in measuring the effectiveness of such initiatives, are still under discussion. Anderson

and Oliver (1987) suggested that performance is classified into dimensions of actual behavior or

outcomes of that behavior. According to Stank et al. (1999, p. 433), “performance based on the

behaviors of supply chain members involves determination of the effect of operational activities such

as manufacturing, inventory management, and delivery on perceptual factors such as customer

satisfaction”.

According to McDougal and Levesque (2000), customer satisfaction is defined by the degree to

which there is a match between customer expectations of the service offered and the actual usage

experience. Customer satisfaction is considered by either using the transaction-specific perspective

(cognitive dimension) or the cumulative perspective (affective dimension) (Söderlund, 1998).

However, many studies in the field of service marketing support the affective perspective arguing

that customer satisfaction is the customers’ total response to the purchase and after sales experience,

since this perspective is more capable of evaluating the service performance of firms and predicting

customers’ post-purchase activities (Parasuraman et al., 1988; Cronin et al., 2000).

Literature in service marketing management suggests the existence of a strong link between service

evaluation and loyalty (Fornell, 1992; Anderson and Sullivan, 1993; Jones and Sasser, 1995, Cronin et

al., 2000). Customer loyalty is defined as a long-term commitment to repurchase involving both a



favorable attitude toward the selling firm and repeated patronage. Thus, loyalty is demonstrated by

the purchasing pattern over time (Dick and Basu, 1994). Although many customers’ psychological

processes may be associated with customer loyalty, customer satisfaction with company’s capabilities

has been shown to have significant and positive impact on cognitive attitudes and repurchase

intentions in the supply chains context (Innis and La Londe, 1994; Daugherty et al., 1998; Hu and Jen,

2010). Customer loyalty is considered as a very significant determinant for suppliers’ long-term

financial prosperity (Jones and Sasser, 1995), since their profits can be improved substantially upon

high customer loyalty rates maintenance (Reichheld and Sasser, 1990). Zeithaml et al. (1996) noted

that increasing customer retention, or lowering the rate of customer defection, is a major key to the of

service providers’ ability to produce profits. The benefits of customer loyalty have been discussed in

many studies and include among others increased repurchase volume (Heskett et al., 1997), better

acquisition rates from positive word-of-mouth, and lower sensitivity to price increase (Zeithaml et al.,

1996). The relationship between physical distribution performance and demand was validated by

Innis and La Londe (1994) by investigating the impact of customer service, satisfaction, and attitudes

on repurchase intentions which were considered as a proxy for market share. From the other side,

both customer loyalty and positive referrals also contributes to the reduction of costs and capital

investments requirements (Oliver, 1999; Crosby and Johnson, 2005).

Conceptual model and research hypotheses

The model examined in this study is presented in Fig. 1. The theoretical foundations for the

relationships depicted in this figure are summarized below based on the preceding review of relevant

literature.

In terms of LSQ’s dimensions specification, both technical/outcome quality and functional/process

quality are specified as second-order latent constructs, to model a level of abstraction higher than

first-order constructs (Wetzels et al., 2009). According to MacKenzie et al. (2005), the utilization of

higher-order constructs allow for more theoretical parsimony and reduce the model’s complexity.

Following the studies of Mentzer et al. (2001) and Bienstock et al. (2008), technical/outcome quality

dimension has 4 sub-dimensions: order availability, timeliness, order accuracy, and order condition,

while functional/process quality dimension has also 4 sub-dimensions: ordering procedures,

personnel contact quality, information quality, and order discrepancy handling. Based on the above

theoretical propositions, this study hypothesizes the following:

H1: Technical/outcome quality is a second-order construct having product availability (H1a), order

accuracy (H1b), timeliness (H1c), and order condition (H1d) as its sub-dimensions.

H2: Functional/process quality is a second-order construct having ordering procedures (H2a), personnel

contact quality (H2b), information quality (H2c), and order discrepancy handling (H2d) as its sub-dimensions.



Empirical studies in operations, marketing, and logistics provide considerable support for links

between technical/outcome quality and functional/process quality performance and customer

satisfaction (Crosby et al., 1990; Cronin and Taylor, 1992; Innis and La Londe, 1994; Youngdahl and

Kellogg, 1997; Daugherty et al., 1998; Gil-Saura et al., 2008; Davis-Sramek et al., 2008, 2009).

Figure 1: Conceptual Model

In marketing, Cronin and Taylor (1992) identified service quality as an antecedent of customer

satisfaction. In logistics, elements of technical/outcome quality and functional/process quality

performances relative to logistical services were found to positively affect customer satisfaction

(Mentzer et al., 1999, 2001). A synthesis of these findings leads to the next two model hypotheses:

H3: In supply chains relationships technical/outcome quality performance positively affects customer

satisfaction.

H4: In supply chains relationships functional/process quality performance positively affects customer

satisfaction.



Mentzer et al. (2001) conceptualized LSQ as a process in an effort to increase the understanding of

how logistics service customers form their perceptions of LSQ and satisfaction with logistics services.

In their process model of LSQ, customers’ perceptions of logistics process quality affect both directly

and indirectly customer satisfaction. The indirect effects occur through customer perceptions of

logistics outcome quality. Bienstock et al. (2008), Stank et al. (1999) and Hu and Jen (2010) confirmed

this relationship in the operations management literature, finding that once a supplier learns about

customer needs it can be better handle the operational means to cover them. This lead to the

following hypothesis:

H5: In supply chains relationships functional/process quality performance positively affects

technical/outcome quality performance

The literature reveals a strong link between customer satisfaction and loyalty in B2C and B2B

contexts (Fornell, 1992; Anderson and Sullivan, 1993; Innis and La Londe, 1994; Jones and Sasser,

1995; Bienstock et al., 2008; Gil-Saura et al., 2008). Customer satisfaction with companies’ performance

has been shown to have a significant and positive effect on repurchase intentions, and positive

referrals (Cronin and Morris, 1989; Youngdahl and Kellogg, 1997; Daugherty et al., 1998). These

findings provide the theoretical basis for the following hypothesis:

H6: In supply chains relationships customer satisfaction positively affects customer loyalty.

Although there are a lot of evidence about the existence of significant, bivariate relationships

between service evaluations and their outcomes such as WOM, referral and retention, the links

between service quality and outcome measures is still unclear. Cronin et al.’s (2000) review reveals

little uniformity on whether service quality directly or indirectly affects customer’s post-purchase

behavior. The majority of previous studies in the B2B relationships are categorized in the structure

type known as “satisfaction” model (Cronin et al., 2000), where the primary and direct link is from

customer satisfaction to outcome measures such as loyalty (Gil-Saura et al., 2008, 2010; Bienstock et

al., 2008; Davis-Sramek et al., 2008, 2009). Partial examination of the simple bivariate links between

the service quality dimensions and customer loyalty may either mask or overestimate the true

relationship due to omitted variable bias. To address this issue Cronin et al. (2000) proposed a model

where service quality and satisfaction directly lead to customer loyalty simultaneously. This leads the

final two hypotheses:



H7: In supply chains relationships technical/outcome quality performance positively affects customer

loyalty

H8: In supply chains relationships functional/process quality performance positively affects customer

loyalty

Research Methodology

Research instrument development

In order to collect empirical data to assess the scales’ properties and for testing the proposed

hypotheses, a self-administrated questionnaire was prepared according to related literature and

users’ and experts’ contribution. The items of the questionnaire were adapted from existing and well

tested scales offered by the extant literature. More specifically the items used to assess LSQ

dimensions were adapted from the items investigated and validated in Bienstock et al. (2008, 2010)

and not from those proposed by Mentzer et al. (2001). More specifically the process dimension of

order release quantities in the Mentzer et al. (2001) measurement scale has been omitted as it is

concerned that there is an overlap between this dimension and the logistics outcome dimension of

availability. Similarly, the outcome quality dimension of order quality found in Mentzer et al. (2001)

model has been omitted as it is considered to have the same meaning with order accuracy. Customer

satisfaction and loyalty measures were drawn from used and validated by Stank et al. (1999) and Gil-

Saura et al. (2010). Likert scales (1–5), with anchors ranging from “strongly disagree” to “strongly

agree” were used for all items to ensure statistical variability among survey responses for all items

measured. Finally, a series of classification variables are included such company’s size, respondent’s

duties, and company’s yearly revenues.

In order to maintain the technical and conceptual equivalence of these instruments, a translation

and back-translation strategy was applied during the development of the Greek version of the

questionnaire. Finally, a factor analysis was performed on the data collected from a pilot study with

60 participants. The results were satisfactory, given that the nine expected LSQ factors, corresponding

to the intended constructs, clearly emerged and all factors’ Cronbach’s alpha values were well above

the commonly accepted threshold value of 0.70.

Data collection and sample profile

The universe consists of Greek manufacturing companies operating in the Attica region (the region

around Athens, the capital of Greece), which are engaged in purchasing activities. The database of

eligible companies, including 1,006 entries, was retrieved from the http://www.icapbusiness.gr by

selecting the appropriate NACE (National Classification of Economic Activities) codes. The fieldwork

was conducted during the last two months of 2011. Initially an e-mail, along with the questionnaire,

was sent to operations/purchasing managers of all eligible companies, where the research objective



was described and their participation necessity was explained. The initial invitation yielded 184

usable responses (18%). After a reminder, 29 more usable responses were received for a total of 213

useable responses and an overall response rate of 21%.

Most of the respondents (54%) reported that their position is related to purchasing activities. A

relatively big proportion of the respondents (18%) refused to report their duties, while the rest

respondents (28%) reported their titles as senior managers, middle managers, or business owners. The

majority of the respondents (88%) are industrial goods companies and the rest are consumer goods

companies. The largest percentage of organizations (71%) were SME, since they reported between 10

and 250 employees, 18% of the participants reported more than 250 employees and 11% did not

report the number of their employees. Finally, 49% of the participants reported that their annual

revenues are less than €1.000.000, 38% are between €1.000.000 and €50.000.000, and 6% are more

€50.000.000. 7% of the respondents failed to report their annual revenues.

Data Analysis and Results

The method of Partial Least Squares (PLS) analysis (Gefen et al., 2000), an implementation of

Structural Equation Modeling (SEM), was applied to test the measurement model by determining the

internal consistency, reliability and construct validity of the multiple-item scales used to

operationalize the study variables. PLS is a component-based SEM technique that helps in testing the

psychometric properties of the scales used to estimate the parameters of the structural model (Fornell,

1987). PLS-PM is preferred over covariance-based SEM techniques such as AMOS and Lisrel because

(1) it has less strict requirements on sample size and residual distributions (Chin et al., 2003), and (2) it

is especially capable in testing large and complex models (Bollen and Lenox, 1991), such as the

proposed model, which has eleven first-order and two second-order reflective constructs.

The sample size of 213 respondents considered as adequate for PLS implementation. In general, the

most complex regression in PLS implementation will involve either the indicators of the most

complex formative construct or the largest number of antecedent constructs leading to an endogenous

construct. Based on Barclay et al. (1995), sample size requirements should be at least ten times the

number of predictors from either of the above rules, whichever is greater. In our case, since there are

no formative constructs, 60 cases are adequate for PLS implementation.

The data analysis employed a two-phase approach suggested by Anderson and Gerbing (1988) in

order to assess the reliability and validity of the measures before using them in the research model.

The first phase includes the analysis of the measurement model, while the second phase examines the

structural relationships among latent constructs.

Assessment of the measurement scales

The test of the measurement model involves the estimation of internal consistency, convergent and

discriminant validity of the study constructs, which indicates the strength measures used to test the

proposed model (Fornell, 1987). As shown in Table 1, all reliability measures (i.e. Cronbach’s alpha



and Composite Reliability-CR) are well above the recommended level of 0.70 as an indicator for

adequate internal consistency (Gefen et al., 2000).

Latent variable Item Mean Std.

deviation

Standardized

loadings

Critical

ratio

Cronbach's

alpha CR AVE

Ordering

Procedures OP

OP1 4.202 0.823 0.906 79.246 0.741 0.885 0.794

OP2 4.155 0.855 0.875 35.649

Personnel Contact

Quality PQ

PQ1 4.047 0.865 0.867 47.828

0.815 0.890 0.730 PQ2 3.972 0.872 0.894 62.273

PQ3 3.934 0.957 0.800 22.554

Information

Quality IQ

IQ1 4.235 0.834 0.876 46.861

0.836 0.902 0.753 IQ2 4.042 0.863 0.842 35.642

IQ3 4.221 0.824 0.885 51.382

Order Discrepancy

Handling OD

OD1 3.803 0.908 0.875 48.432

0.847 0.907 0.765 OD2 3.892 0.824 0.856 33.201

OD3 4.014 0.825 0.892 61.172

Product

Availability OQ

OQ1 3.413 1.233 0.692 11.738

0.735 0.850 0.645 OQ2 3.653 0.950 0.859 38.155

OQ3 3.568 1.066 0.847 31.496

Order Accuracy OA

OA1 4.385 0.733 0.819 34.267

0.817 0.879 0.644 OA2 4.404 0.723 0.843 38.284

OA3 4.061 0.955 0.772 20.040

OA4 4.019 1.061 0.772 16.287

Timeliness T

T1 3.732 1.039 0.808 22.137

0.839 0.904 0.757 T2 3.953 0.938 0.900 49.363

T3 3.948 0.989 0.899 57.466

Order Condition OC

OC1 4.009 1.025 0.754 11.061

0.793 0.880 0.710 OC2 4.066 0.972 0.909 67.646

OC3 4.056 0.928 0.857 34.143

Satisfaction S

S1 4.047 0.749 0.928 74.509

0.910 0.943 0.847 S2 4.028 0.731 0.928 66.216

S3 3.981 0.893 0.904 68.447

Loyalty L

L1 3.667 1.038 0.786 21.234

0.915 0.934 0.703

L2 3.714 0.933 0.762 15.522

L3 3.638 1.095 0.844 39.363

L4 4.042 0.946 0.889 45.554

L5 4.000 0.914 0.877 43.778

L6 3.967 0.916 0.865 47.565

Table 1: Psychometric Properties of the Constructs

As it can also be seen in Table 1, latent constructs show adequate convergent validity. Based on

Fornell and Larcker (1981), convergent validity is adequate when constructs present an average

variance extracted (AVE) which is greater or equal to 0.5. Convergent validity can also be verified



when items loading on their associated factors are well above 0.7, which is true in our case (Gefen et

al., 2000).

Table 2 illustrates the discriminant validity of the constructs, with correlation among constructs and

the square root of AVE on the diagonal. All values on the diagonal were greater than those in

corresponding rows meaning that all measurement variables load more highly on their own

constructs than on the other constructs (Fornell and Larcker, 1981).

Thus, it was concluded that logistics service evaluation is explained sufficiently by the revealed

latent variables’ structure (convergent validity), and this structure includes all unique manifest

variables (discriminant validity).

Assessment of the higher-order constructs

In Table 3, the composite reliability (CR) and AVE measures of the second-order constructs are

provided. These show CRs equal to or greater to 0.856 and AVE greater than 0.599, which are well

above the recommended thresholds of 0.7 and 0.5 respectively, providing evidence of reliable second-

order constructs (Wetzels et al., 2009). Finally all the loadings of the second-order constructs on the

first-order constructs are equal to or exceed 0.704 and are significant at a=0.01. All the above supports

the validity of H1 and H2 that customer’s perception of LSQ dimensions performances is based on

their perception about their pre-specified sub-dimensions performances.

L S OC T OA PA OD IQ PCQ OP

Loyalty 0.838

Satisfaction 0.745 0.920

Order Condition 0.526 0.587 0.842

Timeliness 0.545 0.617 0.532 0.870

Order Accuracy 0.579 0.596 0.532 0.489 0.802

Product Availability 0.493 0.548 0.389 0.419 0.419 0.803

Order Discrepancy Handling 0.475 0.507 0.452 0.513 0.429 0.466 0.875

Information Quality 0.465 0.537 0.486 0.408 0.523 0.366 0.529 0.868

Personnel Contact Quality 0.543 0.606 0.495 0.557 0.558 0.468 0.572 0.518 0.855

Ordering Procedures 0.618 0.559 0.468 0.533 0.585 0.473 0.544 0.549 0.599 0.891

Table 2: Discriminant Validity Assessment

Results of hypotheses testing

The PLS method was also used to confirm the hypothesized relations between constructs in the

proposed model. The significance of the paths included into the proposed model was tested using a

bootstrap resample procedure with 500 replications. Smart-PLS software was used to conduct the PLS

analysis (Ringle et al., 2005). In assessing the PLS model, the squared multiple correlations (R2) for

each endogenous latent variable were initially examined and the significance of the structural paths

was evaluated.



The assessment of the proposed SEM is presented in Table 4 where the standardized path

coefficients, representing the direct effects of the constructs, their statistical significance, and the

proportion of explained variance for each endogenous constructs are given. Moreover, the

significance of all possible indirect effects in the proposed structural model was also given in Table 5.

The product of coefficients strategy (Preacher and Hayes, 2004) was preferred for the indirect path

coefficients calculation, over Baron and Kenny’s (1986) approach, because of its better statistical

validity.

PROCESS QUALITY OUTCOME QUALITY

Sub-

Dimension

CR = 0.888 AVE = 0.664

Sub-

Dimension

CR = 0.856 AVE = 0.599

Loadings Critical

Ratio

95% Confidence

Interval Loadings

Critical

Ratio

95% Confidence

Interval

OD 0.801 30.778 [0.753-0.861] OC 0.793 24.472 [0.720-0.861]

IQ 0.785 23.378 [0.697-0.839] T 0.795 22.517 [0.711-0.852]

CQ 0.835 37.454 [0.785-0.879] OA 0.799 25.591 [0.711-0.854]

OP 0.837 35.471 [0.780-0.881] PA 0.704 15.229 [0.581-0.774]

Table 3: Assessment of the higher-order constructs of the LSQ dimensions

As can be seen, both outcome and process quality influence on customer’s satisfaction from their

supplier. However, outcome quality presents stronger influence on satisfaction than process quality,

as indicated by model’s coefficients of β = 0.583 (t = 8.406) for outcome quality, and β = 0.227 (t =

3.277). Moreover, process quality affects customer’s perception about outcome quality (β = 0.775, t =

17.838). Therefore hypotheses H3, H4, and H5 are confirmed. Moreover, process quality not only

directly affects customer satisfaction but also indirectly through outcome quality, since the relevant

path coefficient (β = 0.452, p < 0.05) is statistically significant. As far as the direct determinants of

customer’s loyalty are concerned, both LSQ dimensions and customer’s satisfaction affects business

customer’s attitudinal loyalty, confirming the validity of proposed hypotheses H6, H7, and H8. More

specifically, satisfaction is the most important factor of customer loyalty (β = 0.481, t = 7.027), followed

by outcome quality (β = 0.197, t = 2.476), and process quality (β = 0.168, t = 2.383). In terms of the

indirect effects of LSQ dimensions on loyalty, both found to be statistical significant, as indicated by

the relevant coefficients of β = 0.480 (p < 0.05) for process quality, and β = 0.281 (p < 0.05) for outcome

quality.

The proposed model accounted for 59.7% of the variance in technical/outcome quality, 60.1% of the

variance in satisfaction, and 60.5% of the variance in loyalty. The relatively high values of coefficients

of determination (R2) indicate that sizeable portions of the variances in the endogenous variables were

explained by the chosen independent variables.



Discussion of findings and implications

Discussion of results

The aim of this study is to advance the understanding of the role of LSQ dimensions on business

customer’s satisfaction and loyalty. The major contributions of this study is the investigation of LSQ

dimensions and the applicability of an integrative model investigating the relations between the

concepts of the quality-satisfaction-loyalty chain in the manufacturing supply chain context (Cronin

et al., 2000). A comprehensive framework was developed and PLS-PM analysis was conducted to

empirically validate the propose model.

The proposed framework of this study confirmed a reliable and valid conceptualization of logistics

service quality consisting of two second-order dimensions of LSQ: outcome quality and process

quality. This basic dichotomy parallels technical versus functional B2C service quality proposed by

Grönroos (1984) and is found as well in other studies (Bienstock et al., 2008; Stank et al., 1999).

Path Value Std. error t Pr > |t| R² Hypotheses

Validation

Outcome Quality → Satisfaction 0.583 0.069 8.406 0.000 0.597

H3 supported

Process Quality → Satisfaction 0.227 0.069 3.277 0.001 H4 supported

Process Quality → Outcome Quality 0.775 0.043 17.838 0.000 0.601 H5 supported

Satisfaction → Loyalty 0.481 0.069 7.027 0.000

0.605

H6 supported

Outcome Quality → Loyalty 0.197 0.080 2.476 0.014 H7 supported

Process Quality → Loyalty 0.168 0.071 2.383 0.018 H8 supported

Table 4: Assessment of the Structural Equation Model

From To Effects Std. error Lower bound (95%) Upper bound (95%)

Process Quality Satisfaction 0.452** 0.055 0.346 0.570

Process Quality Loyalty 0.480** 0.053 0.399 0.588

Outcome Quality Loyalty 0.281** 0.054 0.179 0.390

Note: Values are calculated through a bootstrapping routine with 1000 samples

** p < 0.05 - If confidence interval does not contain 0, then the estimate is significant at the 5% level

Table 5: Bootstrap results for indirect effects

Our results show that both technical/outcome and functional/process LSQ dimensions impact

satisfaction, while outcome quality partially mediates the relationship between process quality and

satisfaction. These results are consistent with the findings in Stank et al. (1999), Davis-Sramek et al.

(2009) and Bienstock et al. (2008).

The results also revealed that the most important factor of business customers’ loyalty is customer

satisfaction, but in contrast with most previous studies (Bienstock et al., 2008, 2010; Stank et al., 1999;

Gil-Saura et al., 2008; Stank et al. 1999), it is not the only one. Both LSQ dimensions directly affect



customer loyalty except of being indirectly related with it through satisfaction. These results are in

accordance with the studies of Cronin et al. (2000) in the context of B2C service marketing, Collier and

Bienstock (2006) in the e-retailing context, and Huang et al. (2009) in LSQ evaluation for online

shopping, which have proved that customer loyalty is better predicted/explained by comprehensive

modeling approaches. However, it should be mentioned that despite the statistical significance of

LSQ dimensions’ direct effects of on customer loyalty, they are much lower that their indirect ones.

Managerial Implications

There are several important implications of the results for supply chain managers. Logistics service

quality is currently an important element of strategic management for companies wishing to

outperform, since it could be a differentiator for manufacturers in market conditions characterized by

changing supply chains, global competition, products similarity, and intense price completion (Davis-

Sramek et al., 2009). This study provides a clear conceptualization of LSQ considering its process and

outcome dimensions separately. This confederation is crucial for practitioners in advancing their

understanding of how customer’s perception of service quality is shaped.

The results of the present study show that outcome quality is the main driver of customer

satisfaction followed by process quality. As manufacturing companies recognize that customer

satisfaction from order delivery effectiveness represents a significant element in the buying process,

they should respond appropriately by developing their technical capabilities. This will produce value

to the suppliers by performing the relevant activities better than their competitors. However, these

suppliers should not disregard the importance of LSQ soft elements’ development, because 1)

business customers’ evaluation of process quality can bias future evaluations of outcome quality, and

2) its total effect on customer satisfaction (0.679) is greater than the relevant effect of technical

elements (0.583). Moreover, given the fact that LSQ’s technical elements could be easily copied by

competitors, the consideration of functional elements of quality in suppliers strategic positioning will

offer them significant opportunities in improving their customers attitudes about the services they

receive (Huang et al., 2009).

In terms of business customers’ loyalty, the suppliers are suggested to improve both LSQ elements

and satisfaction collectively rather than improve only one variable, since the strategy considering the

improvement of only one variable and ignore the effects of the others will be incomplete (Cronin et

al., 2000). Suppliers need to know that gaining customer loyalty needs more than simply deliver the

order. They need to be concerned with how the order is received by the customer and how the

customer interacts with them. When business customers make an order to their supplier, they are

expecting that their products will be delivered to the specifications denoted by them and will be able

interact effectively with supplier’s available contact points. If one or both LSQ’s dimensions fail to

meet customers’ expectations, then not only will service evaluation be affected but also satisfaction

and ultimately future behavioral intention.



Limitations and future research

The current study has a number of limitations that have to be addressed in the future research.

First, rigorous tests for non-response bias are necessary, although appropriate comparisons were

conducted across the two wave responses. These could be achieved by contacting a random sample of

non-respondents and asking them to respond to selected survey items and comparing these to those

answers of actual responses. Second, the fact that the study sample includes manufacturing

companies operating in the Attica region may affect the generality of the results. There are different

territories in Greece exhibiting different problems which might alter the results. Third, the findings

and the implications of this study were obtained using a cross-sectional study, which reduces its

ability to reflect the temporal changes in the research constructs.

In future research efforts, other constructs related to relationship quality (i.e. trust, commitment)

showing significant explanation power of loyalty could be incorporated into the proposed model, so

as to enhance its predictive performance and provide better understanding of business customer’s

decision-making process. Moreover, it should be investigated whether the relationships reported here

are generalizable across different industrial segments such as wholesaling, retailing, TPL etc.,

different companies’ sizes, and companies’ technology level. The understanding of the above

moderators’ effects in the proposed model relations will help suppliers in their efforts to improve the

effectiveness of their logistics services.

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Documents

Understanding the Relationships of Logistics Service Quality, Satisfaction and Loyalty in Manufacturing Supply Chains