Business Process Outsourcing Sector: The Effect of Relationship Marketing Strategy and Legal Environment on Ethical Values

Abstract

This paper presents empirical evidence and argument against the notion that the effectiveness of the relationship marketing (RM) strategy (or the strength of firm-customer relationship) may be dependent on the legal environment in which it is being practised. This paper investigates the role of the legal environment in the association of relationship marketing underpinnings (namely trust, competence, commitment, communication and conflict handling) with ethical values of customer service officers (CSO) in Malaysia's outsourcing sector. Data for the research was collected through a survey of customer service officers of outsourcing firms in the Klang Valley, Malaysia. Hierarchical Multiple Regression Analysis (HMRA) was used to estimate the moderation effect of the legal environment in the RM-ethical value relationship. The findings of the study are discussed.