The Effect of Customer Service on Firm Performance: Developing Scales for Performance Measurement of Customs Clearance Firms

This research has three objectives: one is to develop measuring criteria for ascertaining performance of customs clearance firms, another is to test reliability and validity of the factors, and the third is to analyze the relationship between customer service and firm performance. This research gathered the data from customs clearance firms. Reliability and validity concerned with the collected data are tested by exploratory factor analysis and confirmatory factor analysis and the relationship between variables is tested by analyzing structural equation modeling. The results are as follows. There are no problems in reliability and validity. According to the result of the analysis, customer service is divided into customer focus, customer needs, customer response and flexibility and performance is classified into customer performance and financial performance. The result of empirical tests is as follows. Customer focus has a positive effect on customer performance and financial performance. Flexibility has a positive effect on both types of performance. This means that firms which have discriminative services and a high level of flexibility through collaboration with customers can achieve high levels of customer performance and financial performance.