Customer service management and organization performance: Moderating effect of strategic drift

Abstract

This research investigates the link between customer service management, strategic drift, and organizational performance in manufacturing and merchandising organizations in Dodoma and Dar es Salaam regions of Tanzania, aiming to examine how customer  service practices and strategic adaptation influence organizational success, with a particular focus on the moderating role of strategic  drift. The hypothesis development section establishes three key hypotheses: customer service positively influences organization  performance; strategic drift has an influence on organization performance; and strategic drift moderates the relationship between  customer service and organizational performance. Data was collected from 210 participants using a cross-sectional research design, and  structural equation modeling (SEM) was employed for analysis. The results confirm the hypotheses, indicating a significant positive  relationship between customer service management and organization performance, as well as a moderate influence of strategic drift on  organization outcomes. The findings emphasize the importance of prioritizing customer service excellence and strategic alignment within  organizations. Recommendations are provided for practitioners to enhance customer service practices, embrace strategic  adaptability, and cultivate a customer-centric culture. Theoretical implications highlight the contribution of this study to the understanding of customer service management and strategic drift in organizational performance literature. Limitations are  acknowledged, including sample size constraints and the cross-sectional design, suggesting avenues for future research such as  longitudinal studies, comparative analyses, and investigations into moderating factors and mediating mechanisms. Overall, this research  contributes to the existing knowledge base and offers valuable insights for both academia and industry practitioners.