MEDIATING ROLE OF CUSTOMER SATISFACTION ON THE EFFECT OF SERVICE QUALITY AND INNOVATION STRATEGY TOWARD LOYALTY AT PT BANK PEMBANGUNAN DAERAH BALI

• Putu Piska Pradnya Paramitha Suamba

  Magister Management Innovation, Faculty of Economic and Business, Mahendradatta University, Indonesia

• Wayan Ardani

  Magister Management Innovation, Faculty of Economic and Business, Mahendradatta University, Indonesia

• Luh Ketut Ayu Sudha Sucandrawati

  Magister Management Innovation, Faculty of Economic and Business, Mahendradatta University, Indonesia

Objective: This study aims to analyze the influence of service quality and strategic innovation on customer loyalty, with customer satisfaction as a mediating variable. Method: Employing a quantitative approach, this research utilized a survey design with 100 BPD Bali customers selected through purposive sampling. Data were collected via questionnaires and analyzed using Structural Equation Modeling (SEM) with SmartPLS. Variables were measured based on SERVQUAL indicators for service quality, Innovation Diffusion Theory for strategic innovation, and Expectation-Confirmation Theory for satisfaction and loyalty. Results: The findings reveal that service quality and strategic innovation significantly and positively affect customer satisfaction and loyalty. Satisfaction partially mediates the relationship between service quality, strategic innovation, and loyalty. Indicators of service quality, particularly empathy, and the adoption of new technology in strategic innovation exhibited the strongest contributions. Novelty: These results underscore the importance of enhancing empathy-based services and adopting digital technologies to strengthen customer satisfaction and loyalty. PT Bank Pembangunan Daerah Bali should prioritize service reliability and product innovation to meet customer expectations.

[1] M. Rasidi and M. S. Arifin, “Pengaruh Kualitas Pelayanan Terhadap Loyalitas Nasabah Dengan Kepuasan Sebagai Variabel Intervening Pada Bmt Kampoeng Syariah,” KEADABAN: Jurnal Sosial dan Humaniora, vol. 1, no. 2, 2020.

[2] M. H. U. Rashid, M. Nurunnabi, M. Rahman, and M. A. K. Masud, “Exploring the relationship between customer loyalty and financial performance of banks: Customer open innovation perspective,” Journal of Open Innovation: Technology, Market, and Complexity, vol. 6, no. 4, pp. 1–19, 2020, doi: 10.3390/joitmc6040108.

[3] R. Ramadani and A. Azhar, “Correlation study between service quality and customer loyalty in hotels omacasa in bengkulu city,” Pedagogic Research-Applied Literacy Journal, vol. 2, no. 1, pp. 169–175, 2025, doi: 10.70574/3fprta52.

[4] C. Purnama, M. Rahmah, D. Fatmah, S. Hasani, Y. Rahmah, and Z. Z. Rahmah, “Customer Satisfaction as a Mediator between Service Quality and Customer Loyalty: Evidence from Islamic Banks in Indonesia,” Journal of Economic Cooperation and Development, vol. 46, no. 3, pp. 175–206, 2025, [Online]. Available: https://www.scopus.com/inward/record.uri?eid=2-s2.0-105021514363&partnerID=40&md5=5adcec6831329c4fea6ee37421822b7e

[5] S. D. Putra, “Pengaruh Kualitas Produk Dan Pelayanan Terhadap Loyalitas Kepuasan Nasabah Tabungan Prioritas Bank Negara Indonesia,” Universitas Bina Darma, 2022.

[6] D. M. J. Prasetya, “Peran kepuasan pelanggan dalam memediasi pengaruh inovasi layanan dan kualitas produk terhadap loyalitas pelanggan pada produk pertanian,” in Seminar Nasional Pariwisata Dan Kewirausahaan (SNPK), 2023, pp. 307–317. doi: 10.36441/snpk.vol2.2023.136.

[7] D. Prasetya, “Peran kepuasan pelanggan dalam memediasi pengaruh inovasi layanan dan kualitas produk terhadap loyalitas pelanggan pada produk pertanian,” in Seminar Nasional Pariwisata Dan Kewirausahaan (Snpk), 2023, pp. 307–317. doi: 10.36441/snpk.vol2.2023.136.

[8] T. D. Pramitasari and A. Y. A. Nanggala, “Dampak mobile banking terhadap kinerja dan stabilitas keuangan perbankan di Indonesia,” Jurnal Manajemen Dan Bisnis Indonesia, vol. 9, no. 2, pp. 241–252, 2023, doi: 10.32528/jmbi.v9i2.855.

[9] S. K. Panigrahi, N. B. Azizan, and I. R. Al Shamsi, “Product innovation, customer satisfaction, and brand loyalty of using smartphones among university students: PLS - SEM approach,” Indian Journal of Marketing, vol. 51, no. 1, pp. 8–25, 2021, doi: 10.17010/ijom/2021/v51/i1/156931.

[10] M. W. Nyadzayo, C. Leckie, and L. W. Johnson, “Customer participation, innovative aspects of services and outcomes,” Marketing Intelligence and Planning, vol. 41, no. 1, pp. 1–15, 2023, doi: 10.1108/MIP-03-2022-0090.

[11] C. Nwachukwu and H. M. Vu, “Service Innovation, Marketing Innovation and Customer Satisfaction: Moderating Role of Competitive Intensity,” Sage Open, vol. 12, no. 2, pp. 1–19, 2022, doi: 10.1177/21582440221082146.

[12] R. Nurcholis and R. Susanti, “Pengaruh Kepercayaan Merek dan Kualitas Pelayanan Terhadap Loyalitas Pelanggan Shopee dengan Kepuasan Pelanggan Sebagai Pemediasi,” PENG: Jurnal Ekonomi dan Manajemen, vol. 2, no. 2, pp. 3014–3032, 2025.

[13] Sugiyono, Metodologi Penelitian Bisnis. Bandung: Alfabeta, 2021.

[14] R. Novendra, S. Umar, F. Syam, M. Yulfina, A. Afriansyah, and E. Yanti, “Analisis kualitas layanan mobile banking terhadap kepuasan nasabah bank,” Intecoms Journal of Information Technology and Computer Science, vol. 5, no. 1, pp. 164–173, 2022.

[15] I. Ghozali, Aplikasi Analisis Multivariate dengan Program IBM dan SPSS 24. Semarang: Bandan Penerbit Universitas Diponegoro, 2021.

• View Article

• Economic Integration

Copyright (c) 2026 Putu Piska Pradnya Paramitha Suamba , Wayan Ardani, Luh Ketut Ayu Sudha Sucandrawati

This work is licensed under a Creative Commons Attribution 4.0 International License.