Customers’ perception of telecommunication businesses: Non-financial performance measures in organizational success

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Abstract

Performance measures drive an organization’s success. The measures improve strategic communication with stakeholders. Based on customer survey data, this study aimed to examine the association between the use of non-financial performance measures (NPMs) and organizational success (OS) in the Nepalese telecommunication business. The study used a descriptive strategy and a structured survey questionnaire to collect data from the targeted respondents. It gathered 385 responses based on the convenience sampling technique. The questionnaire contained two items relating to the respondent’s demographics, 19 items relating to NPMs, and seven items on organizational success. The NPMs were grouped into three constructs by employing confirmatory factor analysis. The analysis indicated that the technological and innovation performance measures had the most significant contribution, followed by the social and environmental performance measures and the customers’ performance measures to the organizational success. The study found that NPMs explained 62.9% of telecommunication business’s success, indicating more reliance on NPMs increases performance and success. Such findings would provide crucial information for comprehending the NPMs and validate Adhikari and Chalise’s (2021) conclusions that the performance evaluation system for the Nepalese telecommunications business has changed to reflect strategic goals by adding NPMs.

Keywords: Environmental, Innovation, Technology, Telecommunication, Social

Authors’ individual contribution: Conceptualization — R.K.D.; Methodology — R.K.D.; Validation — R.K.D.; Formal Analysis — R.K.D., B.R., B.J.S., and B.G.; Resources — R.K.D., B.R., B.J.S., and B.G.; Data Curation — B.R., B.J.S., and B.G.; Writing — Original Draft — R.K.D., B.R., B.J.S., and B.G.; Writing — Review & Editing — R.K.D., B.R., B.J.S., and B.G.; Supervision — R.K.D.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: L25, L84

Received: 31.10.2022
Accepted: 14.07.2023
Published online: 18.07.2023

How to cite this paper: Dahal, R. K., Rai, B., Shahi, B. J., & Ghimire, B. (2023). Customers’ perception of telecommunication businesses: Non-financial performance measures in organizational success. Journal of Governance & Regulation, 12(3), 72–80. https://doi.org/10.22495/jgrv12i3art8