Page 1 of 11
Journal for Studies in Management and Planning
Available at http://edupediapublications.org/journals/index.php/JSMaP/
e-ISSN: 2395-0463
Volume 02 Issue 1
January 2016
Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 151
The Study of the Impact of Effective Internal Strategic
Factors on Customer Satisfaction at Private Banks in
Batticaloa District
Musthafa Lebbai Fathima Haseena,
Assistant Lecturer, Easter University,Srilanka.
Email:haseefathima96@yahoo.com
Abstract
Banks are vital institutions in any society as
they significantly contribute to the
development of an economy through
facilitation of business at the same time they
are facing high competition and therefore it
is important that they have to consider more
on their internal strategic factors to ensure
and capture their competitive advantage.
In Sri Lanka, Private banks are playing
major role in providing services to the public
using modern IT. The study attempts to assess
the impact of effective internal strategic
factors on customer satisfaction at private
banks in Batticaloa district focusing on four
selected internal strategic factors
categorized into: (i) Information
Technology; (ii) Human Resource; (iii)
Marketing Strategy; and (iv)Customer
Service. The quantitative data were obtained
through distributing questionnaires,
discussion. The findings revealed that the
level of customer satisfaction as at high level.
Concerning detailed assessment, the results
proved that IT, HR and Customer Service
were at high level, whereas Marketing
Strategy was at moderate level. The findings
further exposed that all four variables have a
significant impact on Customer Satisfaction
and also have a positive correlation with
Customer satisfaction.
Key Words:
Customer Satisfaction, Information
Technology, Human Resource, Marketing
Strategy and Customer Service.
1. Introduction
An organizational strategy is the sum of the
actions a company intends to take to achieve
long-term goals. Today services are fastest
growing part of the world, and trade account
for the largest share of gross domestic in
almost every country. Especially in Sri
Page 2 of 11
Journal for Studies in Management and Planning
Available at http://edupediapublications.org/journals/index.php/JSMaP/
e-ISSN: 2395-0463
Volume 02 Issue 1
January 2016
Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 152
Lanka, the service sector has contributed
57% of total GDP. However, the service
companies have to identify and understand
how to achieve competitive advantage and
maintenance of this has become one of the
most important organization challenges
nowadays because of the high competition.
Therefore, identification and understanding
of the impact of affecting factors on customer
satisfaction has been more important for its
managers and shareholders and they are
looking for a way for the company's internal
and external factors and use current
opportunities in order to achieve competitive
advantage against their competitors.
The affective external factors of the
organization are uncontrolled or very limited
control and often the only ways are to
determine and give appropriate response to
these factors. However, external
environmental forces influence the success of
the organization, but sustainable competitive
advantage result by focusing on internal
strategic factors. So, managers should
identify and focus on internal strategic
factors such as Information technology,
Human resources, marketing and customer
service which lead to the achievement of a
competitive advantage.
Services are not small part of the economy
anymore, but also it is as the heart of value
creation in the economy. Nowadays a direct
consequence of the economic services sector
receives considerable attention. Complex
nature of the services that have common
features (intangibility, perishability, high
customer involvement and intervention,
Simultaneous Production and consumption,
and variability).
Satisfied customers repeat their consumption
and informed others about their good
experience. The key factor of competitive
advantage is satisfying customer expectation.
Because not only commitment is offering
service or product, but also it is offering
something more than their commitment.
Customers who are kept satisfied with the
particular services for a long period of time
effect on corporate profitability in several
ways.
The banks are very important sector in a
country. Specially the private banks are
mostly contribute to the economic growth.
Also they are facing most challenges
nowadays, such as stability, market share,
high competition and act. Even the sustaining
competitive advantage will be a key
challenge for private banks. The research
Page 3 of 11
Journal for Studies in Management and Planning
Available at http://edupediapublications.org/journals/index.php/JSMaP/
e-ISSN: 2395-0463
Volume 02 Issue 1
January 2016
Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 153
Journal of Recent Sciences (2013) conducted
a study titled “Effective Internal Strategic
factors on Customer Satisfaction from the
perspective of Organization’s Managers in
Tabriz travel agencies” mentioned the role of
involvement of organization’s internal
strategic factors and its relationship
performance. Which research mentioned the
private banks have one of the most important
challenges nowadays. That is they have to
identify and understand, and how to achieve
and maintain competitive advantage. And
also bank managers have found that their
survival and stability depended on its
relationships with the environment. They are
looking forward to search and adjust the
effective internal factors in order to achieve
competitive advantage.
So this study seeks level of satisfaction
among the customer through the private
bank’s internal strategic factors
While organizations have a little control over
external factors, and often can have reaction
to these factor, internal strategic factors are
the only factor enable the company to achieve
sustainable competitive advantage and
thereby participate in path to success.
In this respect a study is undertaken to
identify the impact of internal strategic
factors that lead to customer satisfaction in
private banks in Batticaloa district?
Objectives of the Study
1. To assess the level of customer
satisfaction of private banks in
Batticaloa District.
2. To identify the level of internal
strategies of private banks in
Batticaloa District.
3. To identify the relationship and
direction of internal strategies on
customer satisfaction
4. To identify to what extent internal
strategic factors impact on customer
satisfaction at private banks in
Batticaloa district
2. Methodology
The study was conducted among the
customers of the private banks in Batticaloa
district, Sri Lanka. sample of 210 employees
was chosen by using the technique of simple
random sampling.
The study was based on the primary data
collected by administering a questionnaire on
the sample, and secondary data were obtained
