Academic journal article Asian Social Science

A Structural Equation Modeling of Perceived Justice in Malaysian Telecommunication Sector

Academic journal article Asian Social Science

A Structural Equation Modeling of Perceived Justice in Malaysian Telecommunication Sector

Article excerpt

Abstract

Perceived justice is one of important factor in previous studies of service recovery that influences satisfaction of service recovery. It can be assessed in two method namely uni or multi-dimensional. The objective of this research is to examine perceived justice measurement as uni or multi-dimensional towards mobile phone users in the telecommunications industry. Data analysis technique used was Structural Equation Model (SEM). The multi-dimensional nature of justice and satisfaction was verified based on confirmatory factor analysis. The measurement model of the hypothesized model confirmed the non-multicollinearity results among the variables. The findings show that the perceived justice measurement fits the data better in terms of multi-dimensional. The limitations of this studied noted and further research suggestions are also included.

Keywords: structural equation modeling, perceived justice, service recovery

1. Introduction

Perceived justice is a variable viewed very important in the study of service recovery related to satisfaction with service recovery understanding. The variable was presented as uni or multidimensional in most of the studies done by researchers in western countries. In Malaysia past researches on justice are limited to human resource areas only. There is limited study associated with service recovery in term of perceived justice variable measurement as uni or multi-dimensional context being carried out. This studied will verify whether perceived justice can be measured as uni or multi-dimensional toward mobile phone users in the telecommunications industry.

Customer right awareness has significantly increased in Malaysia The customers that have not satisfied with service raised the complaints to organizations and also highlighted to authorities or to third parties for instance the consumer association. For example Communications and Multimedia Consumer Forum of Malaysia had recorded nearly double the number of complaints from telecommunication subscribers in 2012 at over 1,100 cases compared with the 498 cases in 2011 (Tam, 2013). Competition among service providers in Malaysia telecommunication industry is severe. Therefore the service providers need to be continued inspire towards satisfying the customers (Business Monitor International, 2009). This is by building and maintaining high quality customer relationship to ensure continued loyalty (Shapiro & Nieman-Gonder, 2006).

In Malaysia mobile market the main mobile network operators are CELCOM, MAXIS, DIGI and U-MOBILE. All the mobile network operators are regulated by the Malaysia Communication Multimedia Commission (MCMC). Based on MCMC report mobile usage penetration rate have increased from 9.8/100 per population in 1996 to 117.6/100 per population in 2011 (Soo, 2009; Business International Monitor, 2011). Recently there are 40 million subscribers with the penetration rate of mobile phone usage are 140/ 100 per population in beginning of 2013 (retrieved from http://www.budde.com.au). This penetration rate has reached above saturation point. Therefore the service providers have opportunities to offer a wide range of incentives to the mobile phone users. As the result change of present mobile network operators when the customer is not happy with the service will be reduced (Maxham & Netemeyer, 2003). Furthermore the Malaysian mobile users are considered medium scale related to customer satisfaction and loyalty (Frank & Sullivan, 2005). Medium scale refers to the mobile users that willing to change when required the mobile providers. The customers had put it off unless it was the last choice due to problem in changing numbers and notifying contacts when changing to another network (Seth, Momaya, & Gupta, 2005).

Mobile Number Portability (MNP) introduction in late 2008 allow the mobile users to select or change mobile provider while maintaining their mobile number at any time (Business Monitor International, 2009). …

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