The concept of relationship quality in Government Linked Companies (GLCs): Evidence from Malaysian automotive industry

• Main Authors: Saidin, Zainil Hanim, Olayemi, Abdullateef Aliyu, Yusoff, Rushami Zien
• Format: Conference or Workshop Item
• Language: English
• Published: 2013
• Subjects: HD28 Management. Industrial Management
• Online Access: http://repo.uum.edu.my/16307/1/11.pdf; http://repo.uum.edu.my/16307/

Government Linked Companies (GLCs) represent 36% of total market capitalization in Bursa Malaysia. This percentage contributes a significant role in Malaysian economic backbone.Some GLCs are not performing well and their poor performance has tainted the public perceptions on GLC specifically Proton Holdings Berhad as one of the non performing GLC in automotive industry.Alarming weak performance and declining market share has diverged from the main purpose of its existence and consequently impact public confidence on its ability to preserve the country’s asset.Product quality and customer service are the means to capture the further weakening in Proton’s market share. Although previous literatures have established the importance of quality towards business profitability, this study has further explored another aspect of quality which is the role of relationship as an important ingredient to strengthen the long term bonding between customer and firms.This study examines relationship quality (RQ) and proposed a conceptual model linking quality performance dimension, customer value especially the price as mediating variable between product quality dimension and RQ. The model was developed based on observed practical gap, industry reports and review of empirical literatures on RQ in multi-dimensional disciplines using RELQUAL measurement technique.Findings from this research revealed a significant relationship between quality performance measurements, customer value and RQ.It finally recommends that in order to increase level of customer retention and business profitability, firms specifically automotive industry should strengthen their customer relationship, quality performance and simultaneously increase customer value to remain competitive in the industry.