Causal Relationship Between Strategic Plan, Managerial Performance, and Product/Service Quality and I’ts Implication on Satisfaction of Credit Union Members

Abstract

The present study’s objectives were to analyze the impact of strategic plan on managerial performance and product/service quality and its implication on satisfaction of PCU members. Ten PCUs within BKCUK (i.e.,8 in Western Kalimantan and 2 in Central Kalimantan) were selected as objects of this study. Approximately 305 respondents consisting of managers, adminitrative staff, activists, and members of the selected PCUs were randomly selected and used as sources of primary data. Path analysis was applied to estimate the magnitude of causal relationships between exogenous variables and endogenous variables. Results of the study showed that strategic plan directly and indirectly affects member’s satisfaction. Strategic plan indirectly affects member’s satisfaction through three paths: (i) strategic plan-managerial performancemember’s satisfaction; (ii) strategic plan-product/service quality-members satisfaction; and (iii) strategic plan-managerial performance-products/services quality-member’s satisfaction. Based on its standardized path coefficients, the third path is found as the most important path. Causal relationship between the four investigated variables is better explained by the third path.