THE EFFECT OF SERVICE QUALITY ON CUSTOMER SATISFACTION TOWARDS LOYALTY AND HAPPINESS IN SHARED SERVICE COMPANY: A STUDY ON GLOBAL BUSINESS SERVICE HUB IN MALAYSIA

Ahamed KamarulIkhsan Bin Ahamed Zaki and Masri Bin Abdul Lasi City Graduate School, City University, Malaysia. ...................................................................................................................... Manuscript Info Abstract ......................... ........................................................................ Manuscript History Received: 10 July 2020 Final Accepted: 14 August 2020 Published: September 2020


Service Quality
The quality of service has traditionally been described as the variance between the customer's expectations regarding the services to be delivered and the perception of the services to be provided (Rahim Hussain et al. 2015). In earlier research, service quality refers to the degree whereby the service is capable of satisfying customers ' needs or desires (Solimun et al., 2018). This is often conceptualize as a whole customer experience in relation to inferiority or superiority of operation. . G Kurian et al. (2016) concluded after a complete analysis of the service quality study that the number of quality measurements for service differs from one sector to another.
The service industry defines the quality of the service as interpreted by the 'eyes' of the clients, which is complex and difficult. (Arora & Arora, 2015). The ability to provide better service quality can help trade in services to achieve aggressive improvement. Essentially the customer's expectations of the service. In addition, how they perceive the performance of the service are not comparable to the quality of the service. The idea of service quality emerged as a topic of marketing research as it provides highly valued insights into customer conceptions of services. (Joshi & Chadha, 2016;Kiumarsi, 2015). . It is the physical image of the service that customers will use to met the standards. Tangibles is associated with the physical equipment, software tools , and machines used to include the service, as well as service models such as website service portal, chat box, website efficiency, and efficient use of resources. Multiple privileges include video call, hotline call, service request ticketing system, work hours, and feedback speed and efficiency of operations. D Maric et al. (2016) He said that tangible things are of the same relevance as empathy. The authors asserted that it is wise to consider such as emphatic activities in the customer service; in addition, the reliability may include the privileges of knowledge sharing. D Maric et al. (2016) also perceives tangibles to be a distinguishable component that received recognition across cultural practices.

Responsiveness
Responsiveness includes timely service. In addition, responsiveness is also link to the wishes, needs and desires of the customers, to the staff's consideration of the customers, to appropriate hours of operation, to attending and resolving the problems of the customers in an appropriate manner, as well as safety and ease of operations. (Izogo& Ogba, 2015). Responsiveness was seen as the commitment of service providers to provide help and support. This encompasses the flexibility and scalability (El Saghier& Nathan, 2013). In addition, it involves seeing customer demands and requires, productive hours of labor, substantial staff care and the well-being of customers. In their previous research, Izogo& Ogba (2015) has revealed that responsiveness exhibits a major relationship with customer satisfaction.
John Murray et al. (2019) said the responsiveness of companies came involved asking customers exactly when things are going to be done, giving them complete attention, offering relevant and respond appropriately to their demands. Responsibility defined as "the eagerness to provide immediate support and advice clients" (John Murray et al., 2019). More specifically, responsiveness characterized as the desire or tendency of the employees to provide assistance. Requires the punctuality and pace of service delivery. Responsiveness is pace, proactive customer service, less time required and a brief queuing.

Reliability
The truthful ability of providers to deliver dedicated goods and services can be define as reliability for the term (Ngo & Nguyen, 2016). Reliable services offered can help satisfy customers. Reliability refers to the efficient achievement of additional benefit assurance in the right way, e.g. prompt and secure encounters, a variety of products and the opening of extra counters at busy times. The pace of exchange is the main factor affecting customer satisfaction (Janahi&Almubarak, 2017).
John Murray et al. (2019) found that reliability indicates the first time organizations are performing a service correctly. This also demonstrates that companies are working to deliver on expectations and pay attention to the results. Reliability is to provide expected, effective, precise and accurate services to the clients. However, reliability depends on the dealing with customer service problems, executes the services first ever time, organizes on time and keeps an error-free record ( (M Choudhury, 2016) in their studies they claimed that it was the competence and convey trust and confidence to provide solutions and to create customer confidence. In fact, professional workers who treat clients with dignity and makes customers aware as if they can associate the brand are examples of assurance. Service providers can also define security and guarantee as assurance. Also included, as elements of assurance are kindness, validity, security and capability. Knowledge and politeness of employees are critical factors of assurance when customer gets services. Moreover, the ability of employees to build confidence and trust in customers also counts (Izogo& Ogba, 2015).

Customer Satisfaction
Customer satisfaction is defined as the happiness or unhappiness of a customer resulting from the assessment of perceived service-quality results and exact services received (Kotler et al., 2017). This evaluation was also concentrated on a customer's expectation of a real service carried out (Chung-Sub Shin et al., 2015). Therefore, 314 when a service provided meets the needs of a customer, fulfilment is form, whereas dissatisfaction is caused by failings in the productivity of a service provider rather than the customer expectations. (Chung-Sub Shin et al., 2015). Customer satisfaction is a crucial long-term success for companies (Kotler et al., 2017). Organizations are encouraged to pay quality products or services to retain and satisfy customers and to sustain market shares (Muala, 2016). The delivery of quality services to customers offers companies the opportunity to assess and differentiate themselves in competitive market environment (Muala, 2016).

Research Methodology:-
This study utilized a quantitative method and data analysis has been perform by using SPSS Statistics software version 17.0. A questionnaire survey composed of questions, which were developed for study purposes. The questionnaire was circulated to public and private employees around Malaysia and all the respondents answered.
The independent variables for this research has been identified as the effect of service quality on customer satisfaction towards loyalty and happiness in shared service companies in Malaysia while dependent variable studied as customer satisfaction. These factors were categorized into five variables namely, service quality, responsiveness, reliability, assurance and tangibility. The research framework illustrated as shown in Figure 1.

Research Hypothesis
The following hypothesis was developed as below, based on the research: H1: There is relationship between customer satisfaction and service quality H2: There is relationship between customer satisfaction and responsiveness. H3: There is relationship between customer satisfaction and reliability. H4: There is relationship between customer satisfaction and assurance. H5: There is relationship between customer satisfaction and tangibility. In this study, the five research hypotheses were discuss and perform based on the factor analysis that are being considered in line of the literature review. H1: There is relationship between customer satisfaction and service quality.

Correlations
Hypothesis 1: Service Quality stated that the service quality factor have significant positive effect on customer loyalty of shared service company's service in Malaysia is accepted. The acceptance of the hypothesis 1 indicated by a positive Pearson correlation coefficient value of 0.574. Shared service company customer satisfaction in Malaysia has a strong positive influence on shared service company customer satisfaction and happiness in Malaysia and alternatively the lesser shared service company in Malaysia satisfaction of customers will decrease customer loyalty and happiness. Fulfilled customers will tend to use the service, even trying to convince others about the benefits of those services on the basis of feedback with using the service. To establish and sustain customer loyalty 316 and happiness, customer satisfaction should be maintained and enhanced. Customer loyalty is an evidence of dedication that customers generally hold to use a specific product or service in the future again.
Based on the survey, 61.5% of respondents are happy with the service quality provided by the shared service companies' service representatives in Malaysia. Over 60.5% of respondents satisfied with the solution and service given. In addition, 55.5% of respondents also agree that the provided solution and services met their expectations. According to the survey results, majority of respondents (57%) received the correct solution and services. Furthermore, 53.5% of respondents agreed with the friendliness rate of their service representatives.
Service quality has been recognized as a vital issue in many industries, as it assists a company boost its earnings, also fulfils and attracting customers. By delivering superior service quality, a company can create benefits that differentiates more from other companies and organizations (RadithaHapsaria et al., 2015). Research on service quality measurement and improvement has thus become essential (RadithaHapsaria et al., 2015). Despite general recognition of the importance of service quality, but academics have yet to consent on how to measure the tools, aspects and methodologies (RadithaHapsaria et al., 2015). The result of Pearson correlation coefficient test at Table 1 are receiving hypothesis 2, stated responsiveness factor has a large positive impact on customer satisfaction in a shared service company in Malaysia. The positive path coefficient of 0.511 can be verified. This finding meant that the stronger the responsiveness factor, as per the respondents, the larger the customer satisfaction will be and the less the responsiveness factor, the lesser the customer satisfaction will be. Consequently, responsiveness has an impact on customer satisfaction, since it can be use by customers to measure the quality of service provided by a company.
Based on the survey, 60% of respondents are agree with the service representatives' clear manner communication in the shared service companies in Malaysia. Over 56.5% of respondents agree that the given solution and answer are resolved in timely manner. In addition, 58.5% of respondents also agree that the service representatives always in good response and willing to help. According to the survey results, majority of respondents (59.5%) received the feedback from service representatives. Furthermore, 62% of respondents agreed with the responsiveness rate of their service representatives.
According to Iberahim et al. (2016), defined responsiveness as being able to efficiently and in a timely and flexible manner to customer needs. He said the IT increased responsibilities incredible changes in the economy that technological advances influenced no other sector as much as the shared customer service centers and financial institutions. Shared service centers must adopt strategies to achieve their services while reducing the cost to customers of developing value-added services (Flavio Corradini et al., 2018). Shared service centers need to better understand changing customer needs and implement the latest IT system to achieve a competitive edge with organizations worldwide (Flavio Corradini et al., 2018). Through technology, Shared service centers can function consistently and react appropriately and promptly to customer demands, which will bring customer satisfaction to a higher level.

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Timeliness can then be defined as the quality or habit of arrival or ready on time or in time. Timeliness occurs at a time that is appropriate, seasonable, timely and well timed. The setting of operating speeds, which reduces long waits, is a critical aspect in the quality of services provided by the shared service center. (Flavio Corradini et al., 2018). PC Richter (2016) recognized that components contributing to the timeliness of the shared service centers included speed, high response time, inconsistencies, system cloud storage and quality of service at affordable price.
H3: There is relationship between customer satisfaction and reliability.
The result of the correlation in Table 1 above indicates that hypothesis 3, which specifies that the reliability factor have a considerable positive impact on customer satisfaction in Malaysia, is accepted. The significant path coefficient value of 0.509 proves this result. It means the better reliability factor in customer feedback the higher customer satisfaction has a significant and conversely the poor reliability factor will degrade customer satisfaction of the shared service company. A best reliability factor will enhance the customer satisfaction, which can tighter relationship and happiness for customers.
Based on the survey, 56% of respondents are agree with the service representatives resolved their issue competently. Over 59.5% of respondents agree that service representative are knowledgeable about the ad-hoc issue handling on functional and technical issue troubleshooting or policies and product. In addition, 60% of respondents also agree that they are satisfied with how their service representatives handled their inquiry. According to the survey results, majority of respondents (55.5%) answered the response promised in a certain period. Furthermore, 56.5% of respondents felt confident in their service representative's ability to help them.
According to Nguyen Hue Minh et al. (2015), he also reinforced the fact by highlighting the relatively strong customer expectation regarding the aspects of reliability and assurance, which relate to reliable and timely services, swiftly resolved issues, skilled personnel, competent staff and customer-friendly feelings. Moreover, Nguyen Hue Minh et al. (2015), Similar results reflecting significant influence were obtained from the dimensions of the employee's fast delivery, eagerness to assist, trust in service delivery, courteous, competent, knowledgeable, compassionate, knowledge, honest, smooth and professional staff, and aspects of reliability referring to the fulfillment of promises, accurate and timely service, safe and secure service. In addition, in the research on shared service center of analysis of PC Richter's (2016) past, present and future also highlighted the reliability aspect, staff outlook and quality as essential service dimensions influencing customer satisfaction.
H4: There is relationship between customer satisfaction and assurance. Hypothesis 4, which states the insurance factor for the service provided by the shared service company in Malaysia, also has a positive effect on customer satisfaction. Acceptance by a positive Pearson correlation coefficient of 0.583 of hypothesis 4 in indicated. This result gives the impression that the assurance factor for the service provided by the shared service company in Malaysia is getting better, in turn enhancing customer satisfaction, and on the contrary, the worst the assurance factor of shared service company's service in Malaysia will decrease the customer loyalty and happiness.
Based on the survey, 58% of respondents are agree with service representative are professional and courteous. Over 53.5% of respondents agree that service representative communication was smooth. In addition, 58% of respondents also agree that after the implementation of the service representative company's quality improvement program, services quality has improved. According to the survey results, majority of respondents (55%) answered their service representative are sincere and patient in resolving their problems. Furthermore, 60% of respondents are satisfied with service rate provided by the service representative company.
According to Nguyen Hue Minh et al. (2015), reliability requires qualities relating to timely and reliable delivery of facilities, a genuine solution to the problem, and confidentiality of records is the next great aspect of impact. Preceded by assurance about customer health and protection, awareness of the staff's surrounding areas, technical skills of the staff and the courteous attitude of the staff.
This result is outlined in A Kumar's research (2017), which also endorsed this discovering by highlighting the relatively strong customer expectations regarding the aspects of reliability and assurance, relating to reliable and timely services, quick problem solving, qualified staff, competent staff and customer-friendly feelings. Moreover, 318 Nguyen Hue Minh et al. (2015), similar results reflecting significant influence have been obtained from the employee's dimensions of quick delivery, desire to assist, trust in service delivery, courteous, competent, compassionate, knowledge, honest, smooth and professional staff, and reliability aspects referring to promise fulfillment, complete and accurate service, stable and sound stay. In addition, in the research on shared service center a review of the past, present, and future by PC Richter (2016), also highlighted the reliability aspect, staff outlook and quality as essential service dimensions influencing customer satisfaction.
H5: There is relationship between customer satisfaction and tangibility.
Depending on the results of the Pearson correlation coefficient, hypothesis 5 stated that tangibility has a positive significant customer satisfaction relationship of 0.546 in both variables. This may imply that the better tangibility factor in the shared service company's service, the higher customer satisfaction shared service company will increase and on the contrary, the lesser the tangibility factor, the lower customer satisfaction will lessen. The results mean that tangible performance delivered by shared service companies in Malaysia matches customer needs.
Based on the survey, 45% of respondents are agree that they find their company service request website portal is easy to use. Over 51% of respondents agree that their company's service request web portal information are clear and useful. In addition, 48.5% of respondents also agree that they are able to find the support/information they needed easily. According to the survey results, majority of respondents (48%) have answered, they are able to locate products, services, or information without assistance. Furthermore, 52% of respondents are agree with level of satisfaction with the variety of options offered.
According to Miklos Pakurar et al. (2019), in the customer service sector, the tangible dimension becomes intrinsic to the quality of service; obviously, it depends on the service environment's tangible aspects, such as devices, facilities and equipment and overall appearance. Thereafter, it can be say in the shared service company sector that tangibility has a positive influence on customer satisfaction. In this respect, many researchers have also found a positive influence. A Kumar (2017) have defined tangibility as devices, facilities, equipment, personnel, and communications tools appear. It could be defined as the perfect accuracy of the resources required to provide customer service, the appearance of the leadership team and dedicated staff, advertisements and pamphlets that will affect customer satisfaction. A Kumar (2017) found that desirability, physical facility and overall appearance could be seen as important outcomes of customer satisfaction tangible to the customer service sector. In addition, various researchers have revealed that the correlation between customer satisfaction and tangibility in the customer service sector has a positive impact. Moreover, John Murray et al. (2019) stressed that tangibility has a significant effect on customer services customer satisfaction. A Kumar (2017) has shown that sophisticated equipment and an attractive atmosphere seen in the shared service company sector as impacting tangibility on customer satisfaction.

Conclusion:-
Derived from the findings of the research all hypotheses supported. The results of the analysis show that tangibility influences customer satisfaction strongly and substantially. Responsibility positively and significantly affects customer satisfaction. Reliability impacts customer satisfaction significantly and positively. In addition, assurance has positive and significant effect on customer satisfaction as well. Additionally, quality of service has a positive and significant influence on customer satisfaction. Customer satisfaction has significant and positive effect on customer loyalty and happiness. These findings indicate that the service quality, responsiveness, reliability, assurance and tangibility plays a key role in enhancing customer satisfaction and consequently will make customers loyal and happy using the services offered by the Malaysian shared services companies. Shared services companies in Malaysia should be more concerned with promoting great tangibility, building responsiveness, establishing reliability, providing strong assurance, creating good quality of service, providing satisfaction with their services, and making customers loyal and happy.
The findings of this study contribute to the effectiveness of marketing services studies and signify that the tangibility, responsiveness , reliability , assurance and quality of service are not only appropriate for use in hotels, restaurants and large-scale service industries can, however, be implemented to the small and medium-sized shared service business. Focusing on the finding of this research, a shared service company can maximize customer relations by taking into account factor influencing customer satisfaction and loyalty. Tangibility, responsiveness, reliability, assurance and service quality will be essential in upholding the strength of relationship between customers and customers of shared service companies. Analysis results show that customer satisfaction is influenced 319 by tangibility, responsiveness, reliability, assurance and service quality. Tangibility, responsiveness, reliability, assurance and service quality also impacts customer loyalty and happiness. The results of the study suggest that customer satisfaction and loyalty will impact business resilience in Malaysia's shared service companies.
This research can provide perspectives into further research in this field of service marketing and allow shared service firms in Malaysia taking the role of tangibility, responsiveness, reliability, assurance and quality of service as the key cause of consumer satisfaction and loyalty. The results from this research have various limitations. First of, the data gathered from the client only and customers who had received services from shared service companies in Malaysia; so that findings cannot be applied to all current Malaysian clients and customers. Second, this study used cross-sectional data to determine cause and effect; it suggested a structural and conformation should be used for even farther research in order to make the result more acceptable. For any further studies, this research can be developed in various settings using a possibility-sampling method, so that it can be more broadly defined. Eventually, even more research paper could also use other different factors such as empathy, perceived value for the customer, perceived quality for the customer, customer expectation and corporate image to measure its impact on customer satisfaction towards customer loyalty and happiness.
From those limitations, there are ample of possibilities to expand and or to refine the future research in order to clarify and enforce these research findings for a basis of corporate strategy especially for shared service companies in Malaysia to gain reputation and enjoy higher market profit. To significantly boost the generalization of results and to examine the meaningful difference of service quality to customer satisfaction in Malaysian shared service business sector, an effort to expand the scope of studies to a wider geographic region or city may also be sseen as an attempt to change factors and apply an advanced model.