Internal Measure of Service Quality and Its Relation to Firm Performance: A Case of Hotel Industry in Addis Ababa
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Date
2013-10
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Addis Ababa University
Abstract
The general objective of this research was to assess the effects of internal service quality on firm performance. It was an undertaking to verify the hypothesis that dictate the influence of each specific internal service quality dimension on firm’s performance. The research aimed at testing the influence of independent variables such as management of expectation (including training programmes, customer expectations) and service reliability (including cross training and ethical services) on firm performance in case of hotel industry in Addis Ababa. Regarding the research methodology, deductive approach or quantitative research inquiry was utilized as a research design. Sample of 100 participants out of 119 hotels were selected using random sampling technique, 92 completely filled questionnaires were returned. The questionnaires and recorded documents served as data collection instruments. The collected data were analyzed using descriptive and inferential statistics such as correlation, analysis of variance and other descriptive statistics. In conclusion, the dependent and independent variables scored a positive and significant correlation. The results of the study come up with new findings that greater portion of hotel performance for last five years was due to service quality performance. The result shows the level of internal service quality and its dimensions had significant influence on firm performance. The research have faced major limitations including existence of non-responses questionnaires, inclusion of positively worded items, limited research existed in service quality and unwilling of the respondents.
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Service Quality and Its Relation to Firm Performance