Correlations between external knowledge and the knowledge chain as impacting service quality

Service Quality continues to be a major concern amongst consumers. As a result, in order to provide the continuous improvement of service quality that will lead to consumer satisfaction, this study explores the impact of external knowledge and knowledge chain on service quality. The results of this study found that absorptive capacity of the external knowledge is indeed an important source of competitive advantage. Hence, enterprises should apply the knowledge chain in order to gather external knowledge from customers, suppliers and competitors, as well as transforming the knowledge to enhance their service quality.