Services and Customer Satisfaction with Innovation Perceptions as Moderating Variable in Indonesia Libraries

Purpose – This study examines the impact of service quality dimensions on customer satisfaction in public libraries and examine the role of innovation both as a direct predictor and as a potential moderating variable. While libraries must adapt their services to meet evolving user needs in the digital era. The study reveals innovation directly influences customer satisfaction rather than strengthening the relationship between service quality and satisfaction. Design/methodology/approach – This research employs Structural Equation Modeling (SEM) with data collected via questionnaires from 250 active library users across the multiple cities in East Java Indonesia, including Surabaya, Malang, Kediri, Nganjuk, and Ponorogo. Findings – The analysis shows that the Tangibility (X2) and Empathy (X5) dimensions significantly affect customer satisfaction (Y), and Innovation (Z) also exhibits a significant direct effect. However, Reliability (X1), Responsiveness (X3), and Assurance (X4) do not significantly impact satisfaction. Originality/value – The study contributes to the understanding of innovation's role in public service settings, demonstrating that innovation functions as a direct antecedent to satisfaction rather than a moderator between service quality dimensions and customer satisfaction.