Speaking to the hearts of the customers! The mediating effect of customer loyalty on customer orientation, technology orientation and business performance

Abstract

PurposeThis paper examined mediating effect of customer loyalty on the influence of customer orientation and technology orientation on the performance of small and medium-sized enterprises (SMEs).Design/methodology/approachThis study adopted and modified items from previous studies. Also, data were analyzed using structural equation modeling (SEM). Additionally, a PROCESS Macro mediation test was used.FindingsThe study's findings indicated that customer orientation and technology orientation positively and significantly affect customer loyalty. Moreover, the findings indicated that customer loyalty has a positive and significant effect on the performance of SMEs. Finally, customer loyalty was found to mediate the influence of customer orientation and technology orientation on the performance of SMEs.Practical implicationsThe study recommends on business performance improvement through enhancing customer and technology orientations and customer loyalty. So, SMEs should make sure their internal environment is conducive to accommodate customer and technology orientations, which will help them come up with effective ways to get loyal customers and improve their business.Originality/valueThe study adds value to the existing literature by introducing customer loyalty as an intervening variable between the effect of customer orientation and technology orientation on business performance of SMEs.