Omni-Channel Capability and Customer Satisfaction: Mediating Roles of Flexibility and Operational Logistics Service Quality

Abstract

Purpose This study aims to reveal how omni-channel capability leads to customer satisfaction by examining the mediating roles of flexibility and operational logistics service quality (LSQ). Design/methodology/approach Consumers who had previously shopped from any particular retailer's both online and physical stores were surveyed to collect data on research constructs. Structural equation modelling and bootstrapping were employed to test research hypotheses. Findings This study shows the double mediation of flexibility and operational LSQ in the effect of omni-channel capability on customer satisfaction. Despite this indirect effect, omni-channel capability does not directly affect customer satisfaction, implying the full mediations of flexibility and operational LSQ. However, these mediating effects could not be verified for certain types of retailers (e.g. electronic retailers). Originality/value By using the theoretical lens of capability-service quality-performance triad (C-SQ-P), this study shows how omni-channel capability and flexibility affect customer satisfaction through operational LSQ. Hence, an original finding is that developing omni-channel capability may not be sufficient for customer satisfaction and that it may need to be supported by flexibility and operational LSQ. It additionally reveals that the mediations of flexibility and operational LSQ hinge on the type of retailing industry examined. Thus, this study draws on the necessity of investigating the contingent roles of flexibility and operational LSQ in omni-channel retailing for customer satisfaction.