The Influence of Service Quality, Work Efficiency, and Innovation on Loyalty through Satisfaction

M Bagus Prima Setiawan; Anton Mulyono Azis; Khairani Ratnasari Siregar; Karmilah Abdullah

doi:10.37641/jimkes.v13i5.3815

Authors

M Bagus Prima Setiawan Universitas Telkom, Indonesia
Anton Mulyono Azis Universitas Telkom, Indonesia
Khairani Ratnasari Siregar Universitas Telkom, Indonesia
Karmilah Abdullah Universiti Putra Malaysia, Malaysia

DOI:

https://doi.org/10.37641/jimkes.v13i5.3815

Keywords:

Digital Innovation, Service Innovation, Service Loyalty, Service Quality, Shipyard Satisfaction, Work Area Efficiency

Abstract

The shipyard industry in Batam plays a vital role in supporting Indonesia's maritime economy. PT Biro Klasifikasi Indonesia (BKI) Batam Branch, as a national classification body, faces challenges in new ship supervision, including inefficient work areas and limited surveyor resources. This study aims to analyze the influence of service quality, work area efficiency, and service innovation on service loyalty through shipyard satisfaction. A quantitative method using PLS-SEM was employed, involving 129 shipyard respondents. Results show that all three independent variables significantly and positively affect satisfaction, which in turn mediates their influence on service loyalty. The results of the study indicate that service quality, work area efficiency, and service innovation significantly contribute positively to shipyard satisfaction levels, which in turn substantially influence loyalty to the service. Customer satisfaction has been proven to play a significant mediating role in bridging the influence of these three variables on loyalty. These findings support the validity of the Disconfirmation of Expectations theory and underscore the urgency of digital innovation as a strategic approach to enhancing competitive advantage. Therefore, this study recommends improving operational efficiency, conducting continuous technical training, and accelerating digital transformation as priority policies to strengthen the service performance of PT BKI Batam Branch.

Downloads

Download data is not yet available.

References

Ali, B. J., Gardi, B., Othman, B. J., Ahmed, S. A., Ismael, N. B., Hamza, P. A.,... & Anwar, G. (2021). Hotel service quality: The impact of service quality on customer satisfaction in hospitality. International Journal of Engineering, Business and Management, 5(3), 14–28.

Amalia, E. V., Hernawati, R. I., Durya, N. P. M. A., & Isthika, W. (2023). The influence of tax sanctions, taxpayer awareness, and tax service quality on individual taxpayer SPT reporting compliance. Jurnal Ilmiah Akuntansi Kesatuan, 11(3), 521–530.

Arora, P., & Banerji, R. (2024). The impact of digital banking service quality on customer loyalty: An interplay between customer experience and customer satisfaction. Asian Economic and Financial Review, 14(9), 712–733.

Barney, J. B., Ketchen, D. J., & Wright, M. (2021). Resource-based theory and the value creation framework. Journal of Management, 47(7), 1936–1955.

Chaudhary, M. K., Ghimire, D. M., Dhungana, M., Chaudhary, R. K., Adhikari, M., & Thapa, S. (2025). Service innovation in telecommunication: The path to customer loyalty through enhanced customer satisfaction. Innovative Marketing, 21(1), 37–49.

Cohen, S., & Wills, T. A. (1985). Stress, social support, and the buffering hypothesis. Psychological Bulletin, 98(2), 310–357.

Danial, J. N., & Hendayani, R. (2022). Pengaruh kualitas layanan terhadap loyalitas pelanggan restoran Jepang yang beroperasi di Kota Bandung. Fair Value: Jurnal Ilmiah Akuntansi dan Keuangan, 5(3), 1507–1522.

Dwivedi, R. K., Lohmor Choudhary, S., Dixit, R. S., Sahiba, Z., & Naik, S. (2024). The customer loyalty vs. customer retention: The impact of customer relationship management on customer satisfaction. Web Intelligence, 22(3), 425–442.

Femina, E. P., & Santhi, P. (2024). Effects of perceived value dimensions on customer brand loyalty towards luxury cars. Rajagiri Management Journal, 18(4), 274–286.

Fitriadi, F., & Ayob, A. F. M. (2023). Optimizing traditional shipyard industry: Enhancing manufacturing cycle efficiency for enhanced production process performance. International Journal of Industrial Engineering, Technology & Operations Management, 1(1), 15–24.

Fitzsimmons, J. A., & Fitzsimmons, M. J. (2001). Service management: Operations, strategy, information technology with student CD. New York: McGraw-Hill.

Gazi, M. A. I., Masud, A. A., Sobhani, F. A., Islam, M. A., Rita, T., Chaity, N. S.,... & Senathirajah, A. R. B. S. (2025). Exploring the mediating effect of customer satisfaction on the relationships between service quality, efficiency, and reliability and customer retention, loyalty in E-banking performance in emerging markets. Cogent Business & Management, 12(1), 243–257.

Henseler, J., Ringle, C. M., & Sarstedt, M. (2015). A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the Academy of Marketing Science, 43(1), 115–135.

Hussain, M., Javed, A., Khan, S. H., & Yasir, M. (2025). Pillars of customer retention in the services sector: Understanding the role of relationship marketing, customer satisfaction, and customer loyalty. Journal of the Knowledge Economy, 16(1), 2047–2067.

Jahmani, A., Bourini, I., & Jawabreh, O. A. (2020). The relationship between service quality, client satisfaction, perceived value and client loyalty: A case study of fly emirates. Cuadernos de Turismo, (45), 219–238.

Jebbor, I., Benmamoun, Z., & Hachimi, H. (2023). Optimizing manufacturing cycles to improve production: Application in the traditional shipyard industry. Processes, 11(11), 3136-3153.

Ketchen, D. J. (2013). A primer on partial least squares structural equation modeling. Long Range Planning, 46(1–2), 184–185.

Kiumarsi, S., Isa, S. M., Jayaraman, K., Amran, A., & Hashemi, S. (2020). The effect of service innovation on service loyalty in post offices. International Journal of Business Innovation and Research, 21(1), 108–127.

Kosasih, O., Hidayat, K., Hutahayan, B., & Sunarti. (2024). Achieving sustainable customer loyalty in the petrochemical industry: The effect of service innovation, product quality, and corporate image with customer satisfaction as a mediator. Sustainability (Switzerland), 16(16), 1–10.

Kowalkowski, C., Wirtz, J., & Ehret, M. (2024). Digital service innovation in B2B markets. Journal of Service Management, 35(2), 280–305.

Luhulima, R. B., Tukan, M., Hutapea, G., & Napitupulu, H. (2022). Analysis the efficiency and productivity measurement of PT Mariana Bahagia Shipyard using OMAX Method. International Journal of Progressive Sciences and Technologies, 35(1), 326–333.

Mahmoud, M. A., Hinson, R. E., & Anim, P. A. (2018). Service innovation and customer satisfaction: The role of customer value creation. European Journal of Innovation Management, 21(3), 402–422.

Moreira, A., Navaia, E., & Ribau, C. (2024). Innovation capabilities and their dimensions: A systematic literature review. International Journal of Innovation Studies, 8(3), 313–333.

Nguyen, H. T., Nguyen, H., Nguyen, N. D., & Phan, A. C. (2018). Determinants of customer satisfaction and loyalty in Vietnamese life-insurance setting. Sustainability (Switzerland), 10(4), 1–16.

Parasuraman, A., Zeithaml, V. A., & Berry, L. L. (2008). SERVQUAL: A multiple-item scale for measuring consumer perceptions of service quality. Journal of Retailing, 64(1), 12–35.

Prasetio, A., Hananto, B. A., Adiningtyas, H., & Liew, T. W. (2025). The role of service quality, customer perceived value, and trust in enhancing customer satisfaction of expedition service. Decision Science Letters, 14(1), 193–204.

Rane, N., Choudhary, S., & Rane, J. (2023). Metaverse for enhancing customer loyalty: Effective strategies to improve customer relationship, service, engagement, satisfaction, and experience. SSRN Electronic Journal, 1(2), 1–10.

Rasheed, R., & Rashid, A. (2024). Role of service quality factors in word of mouth through student satisfaction. Kybernetes, 53(9), 2854–2870.

Riswandi, D. I., Krisprimandoyo, D. A., Sufa, S. A., Afniar, R., Aulia, & Murtadlo, A. (2024). Digital marketing transformation optimization: Building superior brand awareness for hydroponic products. Sinergi: Jurnal Ilmiah Ilmu Manajemen, 14(1), 8–19.

Sekaran, U., & Bougie, R. (2011). Business research methods: A skill-building approach. New York: Wiley.

Setiawan, E. B., Wati, S., Wardana, A., & Ikhsan, R. B. (2020). Building trust through customer satisfaction in the airline industry in Indonesia: Service quality and price fairness contribution. Management Science Letters, 10(5), 1095–1102.

Slack, N., Chambers, S., & Johnston, R. (2010). Operations management. New York: Pearson Education.

Sugiantari, I. G. A. D. A., Merta, I. K., & Widiantara, I. K. (2023). Enhancing service quality through innovation: A study of sucofindo Indonesia’s strategies in global competition. Jurnal Ilmiah Manajemen Kesatuan, 11(2), 203–212.

Surya, V., Purwati, W. D., & Pamungkas, R. A. (2023). Work engagement as mediator of competence and self-efficacy of service quality. Riset, 5(1), 055–071.

Ummah, M. S., Heizer, J., Render, B., & Munson, C. (2017). T Welf T H Edit Ion Oper At Ions. Sustainability (Switzerland), 11(2), 1–10.

Usman, A., Azis, Y., Harsanto, B., & Azis, A. M. (2023). The role of innovation and airport service quality on airport image: Mediated effect of passenger satisfaction. African Journal of Hospitality, Tourism and Leisure, 12(3), 1111–1126.

Wardhana, A., & Si, M. (2024). Teori organisasi di era digital. Purbalingga: Penerbit CV. Eureka Media Aksara.

Yum, K., & Yoo, B. (2023). The impact of service quality on customer loyalty through customer satisfaction in mobile social media. Sustainability (Switzerland), 15(14), 23–33.

Zhang, X. (2024). Applied Sciences Shipbuilding 4.0: A systematic literature review. Applied Sciences, 14(14), 6363–6378.

Zhou, Q., Lim, F. J., Yu, H., Xu, G., Ren, X., Liu, D., Wang, X., Mai, X., & Xu, H. (2021). A study on factors affecting service quality and loyalty intention in mobile banking. Journal of Retailing and Consumer Services, 60(6), 2424–2435.