A MODEL FOR ASSESSING THE IMPACT OF SAAS ATTRIBUTES ON TELECOM CUSTOMER LOYALTY: A SOCIAL CAPITAL THEORY APPROACH/ Abdelrahman Naguib Abdelaal

Supervisor:
Tarek Khalil

Thesis (PH.D)—Nile University, Egypt, 2023 .

"Includes bibliographical references"

Contents:
Table of Contents
Acknowledgement .......................................................................................................................................... iii
Abstract........................................................................................................................................................... iii
Declaration.......................................................................................................................................................vi
Chapter One: The Introduction ......................................................................................................................1
1.1. Research Background .........................................................................................................................2
1.1.1. Telecom Industry New Market Dynamics.........................................................................................2
1.1.2. The Recent Telecom Development in The MENA Region...............................................................6
1.1.3. The Economic Aspects of Telecom Industry in MENA Region.......................................................8
1.2. Preliminary Literature Review ..........................................................................................................8
1.2.1. Telecom Strategies Towards Revenue Diversification .....................................................................8
1.2.2. Telecom Diversifications Focus on Financial Services...................................................................10
1.2.3. Telecom Operators’ Invasion into Other Markets.........................................................................12
1.2.4. Financial Technology in The Egyptian Market..............................................................................13
1.2.4.1. Key Challenges Hindering the FinTech Landscape Growth in Egypt..........................................14
1.2.4.2. Digital Solutions Development Program .........................................................................................16
1.3. Research Outline ...............................................................................................................................19
Chapter Two: The Impact of SaaS Quality on Social Capital and Customer Loyalty.............................20
2.1. Software-as-a-Service........................................................................................................................20
2.1.1. Success Factors of SaaS ....................................................................................................................24
2.1.2. Continuance Use Intention in Software-as-a-Service.....................................................................27
2.2. Social Capital Theory........................................................................................................................28
2.2.1. Forms of Social Capital.....................................................................................................................31
2.3. Customer Loyalty (CL).....................................................................................................................33
2.3.1. Defining Loyalty Initiatives in SaaS ................................................................................................34
2.3.2. The Model of The Customer Loyalty Construct.............................................................................38
2.4. SaaS Quality and Loyalty .................................................................................................................39
2.5. SaaS Quality and Social Capital ......................................................................................................42
2.6. Social Capital and Loyalty................................................................................................................43
2.7. Research Gab and Questions............................................................................................................48
2.7.1. Research Gab.....................................................................................................................................48
2.7.2. Research Questions ...........................................................................................................................49
Chapter Three: Research Methodology .......................................................................................................50
3.1. Research Problem Statement ...........................................................................................................51
3.2. Research Objectives..........................................................................................................................53
3.2.1. Main Objective ..................................................................................................................................53
3.2.2. Sub-objectives....................................................................................................................................53
3.3. The Problem Significance .................................................................................................................54
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3.4. Research Conceptual Framework....................................................................................................56
3.5. Research Hypotheses.........................................................................................................................58
3.6. Research Method...............................................................................................................................58
3.6.1. Research Paradigm ...........................................................................................................................58
3.6.2. Research Philosophy .........................................................................................................................59
3.6.2.1. Research Epistemology .....................................................................................................................60
3.6.2.2. Research Ontology ............................................................................................................................61
3.6.3. Research Approach ...........................................................................................................................61
3.6.4. Research Design Strategy .................................................................................................................62
3.6.4.1. Unit of Analysis..................................................................................................................................64
3.6.4.2. Time Horizon.....................................................................................................................................64
3.6.5. Choices ...............................................................................................................................................64
3.6.6. Data Collection ..................................................................................................................................65
3.6.6.1. Questionnaire.....................................................................................................................................65
3.6.6.2. Questionnaire Validity and Reliability ............................................................................................66
3.6.6.3. Questionnaire Development .............................................................................................................70
3.6.6.4. Operationalization of Research Variables ......................................................................................71
3.6.6.5. Instrumentation.................................................................................................................................73
3.6.7. Research Population and Sample.....................................................................................................76
3.6.8. Data Analysis.....................................................................................................................................78
3.6.9. Pilot Study..........................................................................................................................................78
3.6.9.1. Research Validity ..............................................................................................................................79
3.6.9.2. Research Reliability ..........................................................................................................................83
Chapter Four: Research Findings and Discussion ......................................................................................85
4.1. Descriptive Statistics .........................................................................................................................85
4.1.1. Demographics Analysis.....................................................................................................................86
Variables..................................................................................................................................... 87
Description.................................................................................................................................. 87
Frequency.................................................................................................................................... 87
Percentage (%) ........................................................................................................................... 87
4.1.2. Research Variables............................................................................................................................87
4.1.2.1. Independent Variables: SaaS Quality .............................................................................................88
4.1.2.2. Mediator Variable: Social capital ....................................................................................................95
4.1.2.3. Dependent Variable: Customer Loyalty..........................................................................................97
4.2. Structural Equation Modelling (SEM)............................................................................................99
4.2.1. Measurement’ Model ........................................................................................................................99
4.2.2. Model Fit..........................................................................................................................................106
4.2.3. Structural model..............................................................................................................................108
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4.2.4. The Structural Model Validity - Final Result...............................................................................113
4.2.5. Direct and Indirect (Mediating) Effects ........................................................................................113
Chapter Five: The Impact of SaaS Attributes on Telecom Customer Loyalty Model ...........................119
5.1. The Impact of SaaS Quality on Customer Loyalty.......................................................................120
5.2. The Impact of SaaS Quality on Social Capital..............................................................................121
5.3. The Impact of Social Capital on Customer Loyalty .....................................................................122
5.4. The Impact of Social Capital on The Relation Between SaaS Quality and Customer Loyalty as
a Mediating Variable....................................................................................................................................123
5.5. Research Contribution....................................................................................................................123
Chapter Six: Conclusion ..............................................................................................................................125
6.1. Research Results Summary............................................................................................................129
6.2. Research Limitations ......................................................................................................................133
6.3. Recommendations ...........................................................................................................................134
6.3.1. Recommendations For Telecom Industry .....................................................................................135
6.3.2. Operational Recommendations......................................................................................................137
6.4. Recommendations for Future Research ........................................................................................141
References..........................................................................................143
Appendix I Research Questionnaire
Appendix II Published Paper

Abstract:
The traditional telecommunication business model is basically concerned with providing
connectivity services to their retail and corporate customers whether with voice or data
services. Despite which, many of today’s telecom operators are approaching different
market verticals (such as financial markets) through new services such as Fintech, IoT and
so on that are mostly software products or Software-as-a-Service (SaaS) which are not
telecom services in nature. Hence, this dissertation aims to investigate the impact of such
SaaS quality on customer loyalty in the Egyptian telecom market, drawing on a social
capital theory approach. Specifically, the study aims to explore the relationship between
SaaS quality and loyalty, the relationship between social capital and customer loyalty, and
customers' internal behavior as a social capital in the context of non-core telecom SaaS
services in Egypt. The proposed model assesses the impact of SaaS quality on customer
loyalty, with a mediating role of social capital.
The study employed a quantitative research design, and data was collected through a survey
questionnaire distributed via google forms to a sample of Egyptian telecom customers. The
data was analyzed using structural equation modeling (SEM) techniques.
The findings of the study indicate a positive relationship between SaaS quality and social
capital, as well as between SaaS quality and customer loyalty. Additionally, there was a
positive relationship between social capital and customer loyalty.
The study also validated the proposed model, demonstrating the mediating role of social
capital in the relationship between SaaS quality and customer loyalty in the context of noncore telecom SaaS services in Egypt. The proposed model provides a comprehensive
understanding of the complex relationship between SaaS quality, social capital, and
customer loyalty in the non-core telecom SaaS in Egypt.
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The contribution of this thesis lies in the development and validation of the proposed model,
which provides a framework for assessing the impact of SaaS quality on customer loyalty
in the context of non-core telecom SaaS services in Egypt. The findings provide valuable
insights for telecom companies and policymakers to take a strategic direction towards noncore telecom SaaS and design effective strategies for enhancing customer loyalty via the
introduction of new technology in non-core businesses.

Text in English, abstracts in English.