The Relationship Between Strategic Management Practices, Customer Satisfaction, and Performance Outcomes in Modern Direct Selling Business
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Abstract
This study examined strategic management practices, customer satisfaction, and performance outcomes in modern direct selling businesses, as well as their relationships, and proposed development guidelines to enhance customer satisfaction and performance. A mixed methods approach was used. Quantitative data were collected from 400 customers and members using purposive sampling. The questionnaire showed high reliability (Cronbach’s Alpha = 0.952–0.992). Data were analyzed using descriptive statistics and PLS-SEM. Qualitative data were obtained from 10 senior executives through in-depth interviews and analyzed thematically. Findings showed all variables were rated at a high level: strategic management practices (M = 4.06), customer satisfaction (M = 4.21), and performance outcomes (M = 4.12). Structural analysis indicated that strategic management practices significantly influenced customer satisfaction (β = 0.838, p < 0.01), and customer satisfaction significantly affected performance outcomes (β = 0.619, p < 0.01). Customer satisfaction partially mediated the relationship between strategic management and performance, with an indirect effect (β = 0.519) greater than the direct effect (β = 0.346), yielding a total effect of 0.865. The model explained 70.2% of customer satisfaction and 86.3% of performance outcomes. Qualitative results identified 3 key pillars: data-driven decision-making, ethics, customer focus, and human resource development. The proposed framework includes three dimensions: data-driven digital strategic management, customer-centric marketing practices, and sales team and learning culture development. Overall, the study confirms that effective strategic management is a key driver of customer satisfaction and organizational performance in modern direct selling businesses
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