Mediating Effects of Organizational Capabilities on the Relationship between Institutionalization and Customer Value: A Field Research in Construction Sector

Abstract

In contemporary world we observe a just globalization of economic, scientific, commercial, and political affairs. With rapid growth of communication technologies the distances become shorter, accessibility increases and satisfaction of the needs eases. Within recent years, developments in construction sector requires the local construction firms to mature themselves and implement faster differentiation to keep up with the competition. Thus, the companies have to keep up with the changes of information age and go through structural changes. For instance, the way jobs are done and the duration of processes have changed. Organizational structures are becoming adapted to team dynamics. In the meantime, customer expectations of service quality are increasing.   Management literature indicates there is a link between institutionalization and organizational capabilities. Therefore, in this dissertation the effect of institutionalization factors on customer value is investigated through organizational capabilities. This study was conducted in the city of Istanbul.

In the last part of the dissertation, companies producing public housing and real assets are evaluated by their institutionalization, organizational capability  and the effects of aforementioned factors on customer value is shown. The data collected in this respect is analyzed using Factor analysis, Reliability analysis, Independent Sample t-test, Multiple Variance analysis, Sobel and Regression tests.

As a result, it is revealed that there is a relationship between institutionalization and organizational capabilities, as well as the relationship between institutionalization and customer value.  Besides, organizational capabilities act as a mediator between institutionalization and customer value. In this respect, institutionalization increases organizational capabilities and those capabilities contribute positively to customer value. Suggestions for the actors of construction and real asset sectors are discussed.