Exploring the impact of customer orientation over Jordanian banks performance: The mediating role of competitive advantage

Abstract

This paper aims to use a dual-process of direct and indirect use of competitive advantage (CA) for investigation of the contribution of customer orientation (CO) in affecting organizational performance (OP) of Jordanian banks. The current empirical research is based on the survey conducted on 16 banks from Jordan. Structural equation modeling was employed along with confirmatory factor analysis for easy comprehension of correlation among the three latent constructs. The results showed that (OP) experienced a partial reconciliation effect of (CO) in the presence of (CA). The study also established the significant immediate impact on performance of organization because of (CO). Moreover, significant indirect positive effect of (CO) over (OP) was evident in presence of (CA). Theoretical and managerial inferences of the outcomes are explained in the last section.