The moderation effect of customer orientation variable on the influence of professional competence toward the quality of strategy implementation

Abstract

Purpose

This paper aims to investigate the moderation effect of customer orientation variable on the influence of professional competence toward the quality of strategy implementation.

Design/methodology/approach

This research is quantitative explanative associative, which is trying to explain the causality relationship between exogenous and endogenous variables. The research was conducted in the Shariah banking office in Central Java Province. The population of this research is all top and middle levels of Shariah Commercial Bank in Central Java region. The sampling technique used in this research is non-probability sampling, that is, purposive sampling, which is the method of determining the sample based on certain criteria and the research sample obtained is 113 respondents. The research approach used is quantitative with the analysis tool of Generalized Structure Component Analysis.

Findings

There is influence of professional competence variable and customer orientation on quality of implementation strategy. The higher the professional competence and customer orientation, the higher the quality of strategy implementation. It is also found that customer orientation moderates the influence of professional competence variables, which are quasi-moderating and reinforcing.

Originality/value

This research has two sources of problems, which are research gap and business phenomenon. Research on Drucker’s business purpose (1954) is realized when a firm identifies the relationship between strategic methods and its ability to generate profits. This research attempts to solve the problem or gap between market orientation and business performance, which has been widely researched by marketing experts, but still shows controversial results. In this research, the researcher takes the definition of Narver and Slater (1990) to examine market orientation because the mostly found empirical research on market orientation and innovation (Han, et.al. 1998; Subin and Workman, 2004; Ferrel and Luke, 2000) has used this conceptualization and its associated operations. Therefore, to compare and distinguish the results of this research with the results of previous research, this research uses the definition of Narver and Slater (1990). No previous study has comprehensively studied the moderating effects of customer orientation on the relation between profesional competence toward quality of strategy implementation, especially in a commercial bank in Central Java region.

Citation

, W. (2018), "The moderation effect of customer orientation variable on the influence of professional competence toward the quality of strategy implementation", International Journal of Law and Management, Vol. 60 No. 6, pp. 1432-1447. https://doi.org/10.1108/IJLMA-10-2017-0247