HOW DOES ORGANIZATIONAL STRUCTURE IMPACT THE RELATIONSHIP BETWEEN ORGANIZATIONAL AGILITY AND CUSTOMER SATISFACTION?

Year 2023, Volume: 5 Issue: 2, 88 - 109, 29.10.2023

Raghad Darweesh Mohammad Abuareish

Abstract

By applying organizational agility practices, organizations, especially, banks can achieve better customer satisfaction and centricity along with the ability to adapt their structure. This study investigates the direct relationship between organizational agility and customer satisfaction as well as the moderating effect of organizational structure on the organizational agility and customer satisfaction relationship. The study is cross-sectional based on using 33 Likert-scale items to design a questionnaire, which is distributed to 430 employees and managers working in the commercial banks of Jordan. By adopting SPSS, exploratory factor analysis is used to validate the study’s variables; multiple linear regression and process macro tool are used to test the study’s hypotheses. The findings show that organizational agility in terms of sensing, responsiveness, acting, and reconfiguration affects customer satisfaction. Moreover, all organizational agility factors affecting customer satisfaction are moderated by formalization while organic structure moderates only the relationship between two factors of organizational agility and customer satisfaction. Overall, the study found that while organizational agility may impact customer satisfaction, ultimately, its potential to achieve superior customer satisfaction is conditioned by the organizations' ability to adjust their internal structures. The contribution of this study lies in the moderation effect of organizational structure, which provides researchers and practitioners with an insight into competitively utilizing organizational structure.

Keywords

Organizational Agility, Organizational Structure, Customer Satisfaction, Jordanian Commercial Banks, Organic Structure, Formalization

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