Examining the effects of customer service management (CSM) on perceived business performance via structural equation modelling

Structural equation modelling (SEM) is a useful multivariate technique to investigate the causal relationships between variables. This paper uses SEM to model the relationships between critical success factors (CSFs) of business process reengineering (BPR) implementations, customer service management (CSM) and perceived business performance (PBP) in Malaysian banking institutions. SEM results show that Management Competence has significant positive effects on PBP and CSM. Information technology (IT) infrastructure capabilities has significant effects on CSM but statistically insignificant (but positive) effect on PBP. Similarly Effective Process Redesign has statistically insignificant (but positive) effect on CSM and PBP. Results also show that CSM has a positive and significant association with PBP.