Measuring Customers' Intimacy? Evidence from Indonesian Service-Based Companies
International Journal for Economic Theory and Practice and Social Science (Journal Ekonomika, Serbia), Vol. 61, No. 2, Edition April-June 2015, ISSN # 0350-137X/eISSN # 2334-9190
64 Pages Posted: 29 Sep 2015
Date Written: April-June 2015
Leadership is often regarded as the fuel to jump-start changes and improvement in organizations. At the same time, innovation is widely discussed as an important element in organizational development. In numerous theoretical discussions and stories of companies across the globe, successful organizational innovation depends on leadership. As the leadership pushes for innovation, company’s internal branding is expected to improve. This is particularly true for transformation leadership, perhaps. Such an internal branding is expected to shape much stronger employee-based brand equity (EBBE). Likewise, the company’s innovation should enhance the customer intimacy by means of word of mouth. The relationships may not have been widely researched though the presence of technology has allowed increasing popularity in electronic communication and information sharing. Electronic word of mouth (eWOM), like testimonies, spreads insights and experiences for others. This affects customers’ reactions toward products and services. Service-based companies may have relied on eWOM to keep the traffic-inflows while maintaining intimacy with customers.
The purpose of this research is to analyze the relationship among transformational leadership, product/service innovation, internal branding, electronic word of mouth, employee-based brand equity, and customer intimacy in Indonesian service-based companies, such as; hotels and restaurants. Relying mainly on quantitative approach, based on questionnaire distributions, a structural equation modeling is incorporated to note the simultaneous relationships. The simultaneous relationship is aimed since the selected variables are most-likely present within service-based companies. Separations of any of those variables, or may widely regarded as partial relationships, may not be portraying the actual condition in companies.
Since the theoretical discussions reveal the favorable relationships among variables, undoubtedly this research expects to provide the necessary empirical evidence to support the theories.
Keywords: leadership, product innovation, internal branding, electronic word of mouth, employee-based brand equity, customer intimacy
JEL Classification: a10, c10, c5, l20, m1, m30
Suggested Citation: Suggested Citation