Today, organizations are seeking for new methods to increase customer satisfaction and gain competitive advantages to survive in a competitive environment. One of the methods of gaining competitive advantage is flexibility that helps organizations to respond changes in customer demands, competitor organizations and technology. It should be noted that, environmental conditions are diverse for different industries. This study indicates that the level of flexibility in organizations largely depends on environmental conditions. This is an appliedcasual survey. All of the 38 banks and financial institutes of the city of Mashhad (Iran), as the most important service organizations constitute the population of this study. The effect of flexibility dimensions (functional, structural, and strategic) on customer satisfaction with the fit of required flexibility dimensions are compared. The findings indicate that the effect of fit of required flexibility on all the three dimensions is greater than the effect of management flexibility.

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