Annual International Conference on
Innovation and Entrepreneurship
(IE 2011)
研討會心得報告
指導教授：莊立民、劉春初
博士生 ：蔡文甲
2011年10月27日
Annual International Conference on Innovation and Entrepreneurship (IE 2011)
The Relationship among Flexible Manufacturing
Capability, Relationship Marketing and
Customer Satisfaction on Customer Loyalty
-A study of Semiconductor Industry in Taiwan
Adviser：Li-Min Chuang Chun-Chu Liu
Phd Student：Wen-Chia Tsai
2011/07/26 Singapore
Annual International Conference on Innovation and Entrepreneurship (IE 2011)
Outline
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Introduction
Literature Review
Research Design
Research Analysis and Results
Conclusions and Suggestions
Annual International Conference on Innovation and Entrepreneurship (IE 2011)
Introduction
• International Data Corporation (IDC) report forecasts that
the Taiwanese semiconductor market will increase at a
gradual pace, reaching $2.16 billion by 2012, which is a
compound annual growth rate (CAGR) of 1.3%. China,
Hong Kong, and the United States account for 33.4%,
24.5%, and 21.2%, respectively, of Taiwan's exports.
• Flexible manufacturing capability is the ability of the
organization to manage production resource and
uncertainty to meet various customer requests (Zhang,
Vonderembse, & Lim, 2003)
• Flexible manufacturing capability as a core competence
of company (Das & Nagendra, 1993; Koste & Malhotra, 1999; Upton,
1995).
Annual International Conference on Innovation and Entrepreneurship (IE 2011)
Introduction
• The organization’s relationships with its key business
partners are now seen as an important part of strategy and
competitive advantage (Hibbard, Brunel, Dant & Iacobucci, 2001).
• Many scholars indicated that relationship marketing would
keep customer’s satisfaction and loyalty to organizations
(Assael, 2004; Hennig-Thurau et al., 200; Ndubisi, 2006; Palmatier, Dant,
Grewal & Evans, 2006a).
• Therefore, an organization owns high flexible
manufacturing capability and relationship marketing are
willing to provide better services and products to customer.
Annual International Conference on Innovation and Entrepreneurship (IE 2011)
Introduction
• The main objectives of this study are as follows:
• To verify the causal relationship among flexible
manufacturing capability, relationship marketing,
customer satisfaction and customer loyalty
• To examine the mediating effects of customer
satisfaction on flexible manufacturing capability and
customer loyalty
• To investigate the mediating effects of customer
satisfaction on relationship marketing and customer
loyalty
Annual International Conference on Innovation and Entrepreneurship (IE 2011)
Literature Review
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According to previous literature review we have the
following Hypothesis development .
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Hypothesis 1:
Flexible manufacturing capability has positive effect on
customer satisfaction.（Zhang, Q., Vonderembse, M. A., & Caoc, M.
2007）
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Hypothesis 2:
Flexible manufacturing capability has positive effect on
customer loyalty.（Chang, S. C., Yang, C. L., Cheng, H. C., & Sheu, C.
2003）
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Hypothesis 3:
Relationship marketing has positive effect on customer
satisfaction. (Palmatier et al., 2006a; 2006b; 2007; Hennig-Thurau et al.,
2002).
Annual International Conference on Innovation and Entrepreneurship (IE 2011)
Literature Review
• Hypothesis 4:
• Relationship marketing has positive effect on customer
loyalty.（Ndubisi, .N O.,2007）
• Hypothesis 5:
• Customer satisfaction has positive effect on customer
loyalty. （Hennig-Thurau, T.,2004）
• Hypothesis 6:
• The customer satisfaction mediates the relationship
between flexible manufacturing capability and customer
loyalty .（Dimitriades, 2006）
• Hypothesis 7:
• The customer satisfaction mediates the relationship
between relationship marketing and customer loyalty .
（Chaffey et al., 2006）
Annual International Conference on Innovation and Entrepreneurship (IE 2011)
Research Design
• Based on the literature review, numerous sets of research
hypothesis were developed in this study as Figure 1.
Annual International Conference on Innovation and Entrepreneurship (IE 2011)
Research Design
• The measurement items of this study contain four
constructs: flexible manufacturing capability (12 items),
relationship marketing (10 items), customer satisfaction
(6 items), customer loyalty (8 items)
• The sample firms were obtained the top 1000 Taiwanese
manufacturers issued by Commonwealth magazine of
Taiwan in 2009 to precede an empirical study.
• In order to test our hypothesis, we applied SPSS 17.0
and Amos 18.0 statistics analysis software to help us
analyze the data.
• In the pre-test, factor analysis was mainly focused to find
the significance of each variable of the four constructs.
Annual International Conference on Innovation and Entrepreneurship (IE 2011)
Research Analysis and Results
• A total of 500 survey questionnaires were mailed to the
sample firms for the final survey
• A total of 265 survey questionnaires were collected
• 57 missing data among the 265 questionnaires
• 208 of the questionnaires were usable, producing a final
response rate of 41.6%
• The basic attributes of the respondents, including four
major items: Gender；Education；Age, and Seniority.
• More than 58% of respondents are female
• Over 47% of the respondents are university (include
Junior College)
• More than 70% of the respondents are 31-40 years old
• More than 85% of the respondents work years more than
1 year
Annual International Conference on Innovation and Entrepreneurship (IE 2011)
Research Analysis and Results
• Seven criterions in this study were used to test the fit of research
model. （ Table 1： Overall Model Fit of Research Model）
Annual International Conference on Innovation and Entrepreneurship (IE 2011)
Research Analysis and Results
• In this study, there are five direct paths in
research model. The structural coefficients for
the research model were shown in Table 2 and
Figure 2
• Most coefficient of the path are significant (pvalue less than the 0.001 level) except for the
path：Flexible manufacturing capability →
customer loyalty (p-value more than the 0.05
level).
Annual International Conference on Innovation and Entrepreneurship (IE 2011)
Research Analysis and Results
Table 2 Path Results of Research Model
Annual International Conference on Innovation and Entrepreneurship (IE 2011)
Research Analysis and Results
Figure 2 Path Results of Research Model
Note: VF = volume flexibility; MF = mix flexibility; SORM = social RM programs; FRM = financial RM programs;
STRM = structural RM programs; CS = customer satisfaction; CL = customer loyalty
Annual International Conference on Innovation and Entrepreneurship (IE 2011)
Research Analysis and Results
• Total effect is equal to sum of direct and indirect effects.
（ Table 3 ）
• The effect result of research constructs, has significant
effect on customer satisfaction, and indirectly has
significant effect on customer loyalty through the
mediating effect by customer satisfaction.
• Relationship marketing has significant effect on
customer satisfaction and customer loyalty, and indirectly
has significant effect on customer loyalty through the
mediating effect by customer satisfaction.
Annual International Conference on Innovation and Entrepreneurship (IE 2011)
Research Analysis and Results
Table 3 Effect Results of Research Constructs
Annual International Conference on Innovation and Entrepreneurship (IE 2011)
Conclusions and Suggestions
• There are managerial implications for managers working
at Taiwan semiconductor firms, if they:
• (a) build and own better and appropriate flexible
manufacturing capability that would, in turn, help in
increasing customer satisfaction and customer loyalty .
• (b) adopt customer relationship marketing that would
help in increasing customer satisfaction and customer
loyalty .
• (c) put more emphasis on customer satisfaction, that
would get more customer loyalty.
Annual International Conference on Innovation and Entrepreneurship (IE 2011)
REFERENCES
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Hunghton Mifflin.
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Annual International Conference on Innovation and Entrepreneurship (IE 2011)
REFERENCES
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Annual International Conference on Innovation and Entrepreneurship (IE 2011)
REFERENCES
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Annual International Conference on Innovation and Entrepreneurship (IE 2011)
• Thanks for Your Attention
• e-mail：
wenchtsai@gmail.com