Impact of Service Digitalization on Operational Efficiency and Company Performance: Mediating Effect of Customer Satisfaction in Perumda Tirta Benteng
Keywords:
Service Digitalization, Operational Efficiency, Customer Satisfaction, Company Performance, Public Utilities, Structural Equation Modelling.Abstract
This study is of critical significance as it addresses the increasing demand for digital transformation within public utilities, where operational efficiency and performance are essential. It explores the transformative impacts of service digitalisation on operational efficiency and corporate performance, with a particular emphasis on the mediating role of customer satisfaction within the context of Perumda Tirta Benteng, a leading public utility in Indonesia. Employing a quantitative research design, the study utilises a structured survey methodology, drawing on responses from a stratified random sample of n=100 employees. Through the application of advanced statistical analyses, including Partial Least Squares Structural Equation Modelling (PLS-SEM), the study operationalises the constructs of service digitalisation, operational efficiency, customer satisfaction, and corporate performance, thereby ensuring rigor and validity in measurement. The findings indicate that service digitalisation significantly enhances both operational efficiency and corporate performance directly. Notably, customer satisfaction emerges as a crucial mediator, amplifying the impact of digitalisation efforts on organisational outcomes. These results not only underscore the necessity of integrating digital technologies within public utilities but also illuminate the central role of customer satisfaction in translating digital advancements into measurable performance gains. The implications of the study extend to both theory and practice, suggesting that public utilities can achieve substantial improvements in operational efficiency and performance by prioritising customer-centric digital service initiatives. For policymakers and managers within the public utilities sector, this study presents a compelling case for adopting a holistic approach to digital transformation, emphasising the strategic significance of customer satisfaction in realising the full potential of digitalisation efforts.