Share:


Customer orientation and office space performance: assessing the moderating effect of building grade using PLS-MGA

    Jun-Hwa Cheah Affiliation
    ; Siew-Imm Ng Affiliation
    ; Hiram Ting Affiliation
    ; Mumtaz Ali Memon Affiliation
    ; Siat Ching Stephanie Loo Affiliation

Abstract

This study presents a framework to measure and empirically validate the relationship between customer orientation and office space performance. The framework uses two types of customer orientation (i.e., responsive customer orientation and proactive customer orientation) and two types of office space performance metrics (i.e., tenant satisfaction and tenant loyalty). Moreover, the building grade (Grade A and Non-grade A) is incorporated into the framework to assess its moderating effect on the relationships. 380 usable responses were collected from building managers in Grade A and Non-grade A buildings using a questionnaire survey. Partial least squares structural equation modeling was utilized to perform latent variable and multi-group analyses. The findings indicate that proactive customer orientation enhances satisfaction to a level not reached by responsive customer orientation as well as suggesting the applicability of both customer orientations in different scenarios. While proactive customer orientation practices lead to higher satisfaction in Non-grade A office ten-ants, responsive customer orientation practices lead to greater satisfaction in grade A office tenants. The latter tend to be more satisfied with Grade A office and thus loyal. Theoretical and managerial implications are discussed.

Keyword : customer orientation, office space performance, attention based view, office building grade, satisfaction, loyalty, PLS-SEM

How to Cite
Cheah, J.-H., Ng, S.-I., Ting, H., Memon, M. A., & Loo, S. C. S. (2019). Customer orientation and office space performance: assessing the moderating effect of building grade using PLS-MGA. International Journal of Strategic Property Management, 23(2), 117-129. https://doi.org/10.3846/ijspm.2019.7437
Published in Issue
Jan 18, 2019
Abstract Views
2616
PDF Downloads
1914
Creative Commons License

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

References

Adnan, Y. M., Nasir Daud, M., & Najib Razali, M. (2012). Property specific criteria for office occupation by tenants of purpose built office buildings in Kuala Lumpur, Malaysia. Property Management, 30(2), 114-128. https://doi.org/10.1108/02637471211213389

Anderson, E. W., & Sullivan, M. W. (1993). The antecedents and consequences of customer satisfaction for firms. Marketing Science, 12(2), 125-143. https://doi.org/10.1287/mksc.12.2.125

Appel-Meulenbroek, R. (2008). Managing “keep” factors of office tenants to raise satisfaction and loyalty. Property Management, 26(1), 43-55. https://doi.org/10.1108/02637470810848886

Atuahene‐Gima, K., Slater, S. F., & Olson, E. M. (2005). The contingent value of responsive and proactive market orientations for new product program performance. Journal of Product Innovation Management, 22(6), 464-482. https://doi.org/10.1111/j.1540-5885.2005.00144.x

Beverland, M., Farrelly, F., & Woodhatch, Z. (2004). The role of value change management in relationship dissolution: hygiene and motivational factors. Journal of Marketing Management, 20(9-10), 927-939. https://doi.org/10.1362/0267257042405295

Birkeland, B., & Bettini, L. (1995). Finetuning tenant surveys. Journal of Property Management, 60(3), 26-30.

Blankson, C., & Crawford, J. C. (2012). Impact of positioning strategies on service firm performance. Journal of Business Research, 65(3), 311-316. https://doi.org/10.1016/j.jbusres.2011.03.013

Blocker, C. P., Flint, D. J., Myers, M. B., & Slater, S. F. (2011). Proactive customer orientation and its role for creating customer value in global markets. Journal of the Academy of Marketing Science, 39(2), 216-233. https://doi.org/10.1007/s11747-010-0202-9

Cheah, J. H., Ng, S. I., Lee, C., & Teoh, K. G. C. (2014). Assessing technical and functional features of office buildings and their effects on satisfaction and loyalty. International Journal of Economics and Management, 8(S), 137-176.

Cheah, J. H., Ng, S. I., Teoh, K. G. C., & Lee, C. (2015). Factors affecting office rent in Kuala Lumpur (KL). International Journal of Economics and Management, 9(S), 115-134.

Cohen, J. (1988). Statistical power analysis for the behavioural sciences New York. NY: Academic.

Cropanzano, R., & Mitchell, M. S. (2005). Social exchange theory: an interdisciplinary review. Journal of Management, 31(6), 874-900. https://doi.org/10.1177/0149206305279602

Day, G. S. (2011). Closing the marketing capabilities gap. Journal of Marketing, 75(4), 183-195. https://doi.org/10.1509/jmkg.75.4.183

Doney, P. M., & Cannon, J. P. (1997). An examination of the nature of trust in buyer-seller relationships. The Journal of Marketing, 61(2), 35-51.

Eggert, A., Ulaga, W., & Schultz, F. (2006). Value creation in the relationship life cycle: a quasi-longitudinal analysis. Industrial Marketing Management, 35(1), 20-27. https://doi.org/10.1016/j.indmarman.2005.07.003

Faul, F., Erdfelder, E., Lang, A. G., & Buchner, A. (2007). G* Power 3: a flexible statistical power analysis program for the social, behavioral, and biomedical sciences. Behavior Research Methods, 39(2), 175-191. https://doi.org/10.3758/BF03193146

Flint, D. J., & Woodruff, R. B. (2001). The initiators of changes in customers’ desired value: results from a theory building study. Industrial Marketing Management, 30(4), 321-337. https://doi.org/10.1016/S0019-8501(99)00117-0

Flint, D. J., Woodruff, R. B., & Gardial, S. F. (2002). Exploring the phenomenon of customers’ desired value change in a business-to-business context. Journal of Marketing, 66(4), 102-117. https://doi.org/10.1509/jmkg.66.4.102.18517

Fornell, C., & Cha, J. (1994). Partial least squares. Advanced Methods of Marketing Research, 407(3), 52-78.

Gambero, D. (2014). The “Propenomics” of economic performance and commercial property market: gentrification of office space. Kuala Lumpur: REI Group of Companies. Retrieved from http://www.malaysiapropertyinc.com/presentation slides2/Daniel Gambero.pdf

Geisser, S. (1975). The predictive sample reuse method with applications. Journal of the American Statistical Associa-tion, 70(350), 320-328. https://doi.org/10.1080/01621459.1975.10479865

Gold, A. H., & Arvind Malhotra, A. H. S. (2001). Knowledge management: an organizational capabilities perspective. Journal of Management Information Systems, 18(1), 185-214. https://doi.org/10.1080/07421222.2001.11045669

Hair, Jr., J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2017). A primer on Partial Least Squares Structural Equation Modeling (PLS-SEM). Thousand Oaks, CA: Sage Publications, Inc.

Hair, J. F., Gabriel, M. L. D. S., & Patel, V. K. (2014). AMOS covariance-based structural equation modeling (CB-SEM): guidelines on its application as a marketing research tool. Brazilian of Journal of Marketing, 13(2), 43-55. https://doi.org/10.5585/remark.v13i2.2718

Henseler, J., Dijkstra, T. K., Sarstedt, M., Ringle, C. M., Diamantopoulos, A., Straub, D. W., Ketchen, D. J., Hair, J. F., Hult, T. M., & Calantone, R. J. (2014). Common beliefs and reality about PLS: comments on Rönkkö and Evermann (2013). Organizational Research Methods, 17(2), 182-209. https://doi.org/10.1177/1094428114526928

Henseler, J., Ringle, C. M., & Sarstedt, M. (2015). A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the Academy of Marketing Science, 43(1), 115-135. https://doi.org/10.1007/s11747-014-0403-8

Henseler, J., Ringle, C. M., & Sarstedt, M. (2016). Testing measurement invariance of composites using partial least squares. International Marketing Review, 33(3), 405-431. https://doi.org/10.1108/IMR-09-2014-0304

Hu, L. T., & Bentler, P. M. (1999). Cutoff criteria for fit indexes in covariance structure analysis: conventional criteria versus new alternatives. Structural Equation Modeling: a Multidisciplinary Journal, 6(1), 1-55. https://doi.org/10.1080/10705519909540118

Isa, M. Z., & Ismail, M. (2016). Customer satisfaction in the management of public office buildings: evidence from Malaysia. In International Real Estate Research Symposium (IRERS) 2006 (pp. 1-25). Kuala Lumpur.

Jaworski, B. J., & Kohli, A. K. (1993). Market orientation: antecedents and consequences. The Journal of Marketing, 57(3), 53-70. https://doi.org/10.1177/002224299305700304

Jaworski, B., Kohli, A. K., & Sahay, A. (2000). Market-driven versus driving markets. Journal of the Academy of Marketing Science, 28(1), 45-54. https://doi.org/10.1177/0092070300281005

Jones, B. D., & Baumgartner, F. R. (2005). The politics of attention. How government prioritizes problems. University of Chicago Press.

Kline, R. B. (2011). Principles and practice of structural equation modeling. Guilford Publications Press.

Kohli, A. K., & Jaworski, B. J. (1990). Market orientation: the construct, research propositions, and managerial implications. The Journal of Marketing, 54(2), 1-18. https://doi.org/10.1177/002224299005400201

Lam, S. Y., Shankar, V., Erramilli, M. K., & Murthy, B. (2004). Customer value, satisfaction, loyalty, and switching costs: an illustration from a business-to-business service context. Journal of the Academy of Marketing Science, 32(3), 293-311. https://doi.org/10.1177/0092070304263330

Lawler, E. J. (2001). An affect theory of social exchange1. American Journal of Sociology, 107(2), 321-352. https://doi.org/10.1086/324071

McCarthy, I. P., & Gordon, B. R. (2011). Achieving contextual ambidexterity in R&D organizations: a management control system approach. R&D Management, 41(3), 240-258. https://doi.org/10.1111/j.1467-9310.2011.00642.x

Mittal, V., & Kamakura, W. A. (2001). Satisfaction, repurchase intent, and repurchase behavior: investigating the moderating effect of customer characteristics. Journal of Marketing Research, 38(1), 131-142. https://doi.org/10.1509/jmkr.38.1.131.18832

Narver, J. C., & Slater, S. F. (1990). The effect of a market orientation on business profitability. The Journal of Marketing, 20-35. https://doi.org/10.1177/002224299005400403

Narver, J. C., Slater, S. F., & MacLachlan, D. L. (2004). Responsive and proactive market orientation and new product suc-cess. Journal of Product Innovation Management, 21(5), 334-347. https://doi.org/10.1111/j.0737-6782.2004.00086.x

Norwell, W. D., & Stevens, V. A. (1992). Tracking retention efforts. Journal of Property Management, 57(2), 24-28.

Nunnally, J. C., & Bernstein, I. H. (1994). Psychometric theory. New York, NY: McGraw Hill.

Ocasio, W. (1997). Towards an attention-based view of the firm. Strategic Management Journal, 18(S1), 187-206. https://doi.org/10.1002/(SICI)1097-0266(199707)18:1+<187::AID-SMJ936>3.3.CO;2-B

Ocasio, W. (2011). Attention to attention. Organization Science, 22(5), 1286-1296. https://doi.org/10.1287/orsc.1100.0602

Oliver, R. L. (1980). A cognitive model of the antecedents and consequences of satisfaction decisions. Journal of Marketing Research, 17(4), 460-469. https://doi.org/10.1177/002224378001700405

Oliver, R. L. (2014). Satisfaction: A behavioral perspective on the consumer. New York: Routledge. https://doi.org/10.4324/9781315700892

Oliver, R. L., Rust, R. T., & Varki, S. (1997). Customer delight: foundations, findings, and managerial insight. Journal of Retailing, 73(3), 311-336. https://doi.org/10.1016/S0022-4359(97)90021-X

Parasuraman, A., Zeithaml, V. A., & Berry, L. L. (1994). Reassessment of expectations as a comparison standard in measuring service quality: implications for further research. Journal of Marketing, 58, 111-124. https://doi.org/10.1177/002224299405800109

Podsakoff, P. M., & Organ, D. W. (1986). Self-reports in organizational research: problems and prospects. Journal of Management, 12(4), 531-544. https://doi.org/10.1177/014920638601200408

Ringle, C. M., Wende, S., & Becker, J. M. (2015). SmartPLS 3. Boenningstedt: SmartPLS GmbH. Retrieved from http://www. smartpls.com

Rust, R. T., & Zahorik, A. J. (1993). Customer satisfaction, customer retention, and market share. Journal of Retailing, 69(2), 193-215. https://doi.org/10.1016/0022-4359(93)90003-2

Sanderson, C. D., & Edwards, M. V. (2016). Determinants of satisfaction amongst tenants of UK offices. Journal of Corporate Real Estate, 18(2), 102-131. https://doi.org/10.1108/JCRE-09-2015-0022

Sarstedt, M., Henseler, J., & Ringle, C. M. (2011). Multigroup analysis in Partial Least Squares (PLS) path modeling: alternative methods and empirical results. Advances in International Marketing, 22, 195-218. https://doi.org/10.1108/S1474-7979(2011)0000022012

Schiffman, L. G., & Kanuk, L. L. (2007). Customer behavior. New Jersey: Pearson Education, Inc.

Slater, S. F., & Narver, J. C. (1998). Research notes and communications customer-led and market-oriented: let’s not confuse the two. Strategic Management Journal, 19(10), 1001-1006. https://doi.org/10.1002/(SICI)1097-0266(199810)19:10<1001::AID-SMJ996>3.0.CO;2-4

Song, Y., & Yan, Z. (2006). Customer satisfaction theory applied in the housing industry: an empirical study of low-priced housing in Beijing. Tsinghua Science & Technology, 11(6), 667-674. https://doi.org/10.1016/S1007-0214(06)70249-8

Stone, M. (1974). Cross-validatory choice and assessment of statistical predictions. Journal of the Royal Statistical Society. 36(1), 111-147.

Thornton, P. H., & Ocasio, W. (2008). Institutional logics. The Sage Handbook of Organizational Institutionalism, 840, 99-128. https://doi.org/10.4135/9781849200387.n4

Ting, K. H. (2002). Kuala Lumpur class-a office rent index. The Research and Consultancy Bureau, University of Technology MARA: Malaysia.

Vargo, S. L., & Lusch, R. F. (2004). Evolving to a new dominant logic for marketing. Journal of Marketing, 68(1), 1-17. https://doi.org/10.1509/jmkg.68.1.1.24036

Woodruff, R. B. (1997). Customer value: the next source for competitive advantage. Journal of the Academy of Marketing Science, 25(2), 139-153. https://doi.org/10.1007/BF02894350