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Dyadic data were collected from 210 high\u2010contact service shops and were analysed using structural equation modelling.<\/jats:p><\/jats:sec><jats:sec><jats:title content-type=\"abstract-heading\">Findings<\/jats:title><jats:p>The results confirm that market competitiveness has a direct impact on service quality, not employee satisfaction. The findings also reveal that service quality affects customer satisfaction, which in turn leads to employee satisfaction, forming a \u201cquality\u2010customer satisfaction\u2010employee satisfaction cycle\u201d.<\/jats:p><\/jats:sec><jats:sec><jats:title content-type=\"abstract-heading\">Practical implications<\/jats:title><jats:p>The results recommend that firms take a long\u2010term perspective towards investment in understanding the competitiveness of the market. Such an understanding helps managers identify and implement appropriate quality\u2010improvement activities, such as establishing quality standards, providing appropriate job description to service employees, and adopting a customer\u2010oriented strategy, leading to enhanced customer satisfaction and employee satisfaction in a cyclic manner.<\/jats:p><\/jats:sec><jats:sec><jats:title content-type=\"abstract-heading\">Originality\/value<\/jats:title><jats:p>This study contributes to a detailed understanding of how service firms should strategically respond to market competitiveness.<\/jats:p><\/jats:sec>","DOI":"10.1108\/02635571311322801","type":"journal-article","created":{"date-parts":[[2013,4,18]],"date-time":"2013-04-18T12:32:56Z","timestamp":1366288376000},"page":"573-588","source":"Crossref","is-referenced-by-count":12,"title":["Market competitiveness and quality performance in high\u2010contact service industries"],"prefix":"10.1108","volume":"113","author":[{"given":"Rachel W.Y.","family":"Yee","sequence":"first","affiliation":[],"role":[{"role":"author","vocabulary":"crossref"}]},{"given":"Andy C.L.","family":"Yeung","sequence":"additional","affiliation":[],"role":[{"role":"author","vocabulary":"crossref"}]},{"given":"T.C.","family":"Edwin Cheng","sequence":"additional","affiliation":[],"role":[{"role":"author","vocabulary":"crossref"}]},{"given":"Peter K.C.","family":"Lee","sequence":"additional","affiliation":[],"role":[{"role":"author","vocabulary":"crossref"}]}],"member":"140","reference":[{"key":"key2022012719481384400_b1","doi-asserted-by":"crossref","unstructured":"Anderson, J.C. and Gerbing, D.W. 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