Effect of internal measures of service quality on business performance: a case of hotel industry in Penang.
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Date
2005
Authors
Saari Hj. Din
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Abstract
Hotel industry in Penang has a long history since the establishment of E&O Hotel 120 years ago in Penang. Hotel industry and tourism sector is to be seen as symbiotic interrelated. They have played a significant role in transformation of business activities that share the bulk of today’s economy and also account for most of the growth in new jobs in many developed and developing countries. Service quality is a key factor for success in any service industry. Many studies and researches on service quality have been conducted however, only few on internal factor such as from management perspectives. This study is focused on how internal service quality can affect the performance with the objective to investigate the effect of internal measures of service quality on business performance in Malaysian hotel industry and also to validate the model INTQUAL developed from Caruana and Pitt (1997). Data were gathered from 61 hospitality providers in Penang state. The percentage respondents between star-rated and non-rated star is almost balance. The study adapted the literature on management of expectation and service reliability as underlying theoretical framework and had found four factors that the items are most corresponding to each other namely training programmes, customer expectations, cross-training and ethical services. The study findings supported the hypotheses that there is positive relationship between internal service quality in the hotel and their business performance. It also validate Caruana and Pitt (1997) INTQUAL model in Malaysian perspective. The study open opportunity for the hotel management to plan and test all aspects of their operation activities through internal service quality management check list.
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Keywords
Business Administration , Service Quality , Hotel Industry