DESIGN THINKING CAPABILITIES AND CUSTOMER LOYALTY IN THE NIGERIAN MANUFACTURING INDUSTRY

Abstract

The continuous inclination of Nigerian consumers to products and services of foreign owned manufacturing firms is worrisome hence the need for a customer centric innovative approach to enhance customer loyalty. Design thinking is a proven innovative approach but the availability of design capabilities in employees is critical to the integration of the approach in the innovation process. This study examines the role of design thinking capabilities in enhancing customer loyalty. Cross-sectional survey was adopted to collect data from employees and customers of selected manufacturing companies in Nigeria. Multiple regression was used to analyze the data. The result of analysis reveals a significant positive relationship between employees' customer orientation, experimentation capabilities and customer loyalty. The relationship between employees' integrative thinking was significant but negatively correlated to customer loyalty. Design thinking significantly impacted customer loyalty positively. It was concluded that for companies to stand out and beat the competition; they must be open to new approaches like design thinking to enhance customer loyalty. By identifying the most critical design thinking capabilities has formed a framework for management to attract, promote and developing innovative capabilities of employees to influence customer loyalty. The study provokes organizational change and provides a road map which organizations can use as a base for improving their customer
experiences.