Service Quality, Reputation and Performance: Prioritisation for Sustainable Growth and Innovation

Research has shown that there is a strong relationship between service quality and reputation on the one hand and organisational performance on the other. However, because service quality and reputation are usually measured separately, little is known about the relationship with performance when service quality and reputation are measured simultaneously. Building on that notion, this study introduces the quality, reputation, performance (QRP) model, which simultaneously measures attributes in service quality, reputation, and performance. This allows a better understanding of the interplay between quality and reputation and how these attributes explain variation in organisational performance. Findings are based on data gathered from guests (n = 319) who stayed at a hotel chain in Iceland in June 2023. The main result shows that the overall QRP model explains 57% (R2 = 0.567) of the variance in performance. When comparing the two independent variables, results shows that reputation (β = 0.51; P2 = 0.14) has a stronger unique contribution to explaining the variability than quality (β = 0.31; P2 = 0.05). The two independent variables are reasonably strongly correlated (r = 0.68), which indicates that they are both important when predicting organisational performance, although reputation has a greater unique contribution than service quality.