Impact of Financial Factors on Social and Financial Sustainability in Banking Sector: A Mediating Role of Financial Literacy

2021 ◽  
pp. 257-280
Author(s):  
Sarfaraz Javed ◽  
Uvesh Husain
Keyword(s):  
Financial Literacy ◽  
Banking Sector ◽  
Financial Sustainability ◽  
Mediating Role ◽  
Financial Factors

Organizational Justice and Employee Sustainability: The Mediating Role of Organizational Commitment

2020 ◽  
Vol 3 (3) ◽  
pp. 12-22
Author(s):  
Mehreen Fatima ◽  
Zeeshan Izhar ◽  
Zaheer Abbas Kazmi
Keyword(s):  
Organizational Commitment ◽  
Organizational Justice ◽  
Developing Country ◽  
Design Methodology ◽  
Direct Relationship ◽  
Banking Sector ◽  
Mediating Role ◽  
Research Gap ◽  
The Impact

Purpose- The primary purpose of the study is to determine the impact of organizational justice (OJ) on employee sustainability. Along with that, it also describes how organizational commitment mediates this direct relationship. This study includes all dimensions of OJ which are distributive, procedural and interactional (interpersonal & informational) within the context of a developing country (Pakistan). Design/Methodology- This study has considered employees working in the banking sector of Pakistan. Two hundred ten questionnaires were received back from employees. Regression analysis was used to analyze direct relationships between variables, while smart partial least squares (PLS) were used for mediation analysis. Findings- Results demonstrated that all hypothesis were accepted and it was also confirmed that organizational commitment (OC) mediates the direct relationship between OJ and employee sustainability (ES). Originality/value- Multidimensional construct of organizational justice was tested in this study, in the context of a developing country (Pakistan), to address the research gap.

Linking ethical leadership to administrative innovation in Ethiopian banks: the mediating role of knowledge process capabilities

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Gedif Tessema Sinshaw ◽  
Atul Shiva ◽  
Manjit Singh
Keyword(s):  
Ethical Leadership ◽  
Structural Equation ◽  
Banking Sector ◽  
Organizational Capabilities ◽  
Equation Modeling ◽  
Mediation Model ◽  
Knowledge Process ◽  
Content Type ◽  
Mediating Role

PurposeThis paper aims to examine the mediating role of knowledge process capability (KPC) between ethical leadership (EL) and administrative innovation (AI) in the banking sector of Ethiopia.Design/methodology/approachThe study was conducted by a standardized questionnaire survey to collect the data from 266 employees of Commercial Bank of Ethiopia in 93 branches. The study employed structural equation modeling approach with Analyzing Moment of Structures 23.0 to test the hypothesized mediation model.FindingsThe results of this investigation disclose that EL has a significant and direct effect on AI and KPC. KPC also influences AI significantly.Originality/valueThe study revealed that KPC plays a partial mediating role in linking EL to AI, which is a new contribution to the existing literature of EL. This dimension can provide new dimensions to design organizational leadership which is based on sustainability paradigm. This can strengthen the organizational capabilities aiming to increasing innovative behaviors in order to have a deep-seated strategy.

scholarly journals Impact of Emotional Needs on Intention to Stay and the Mediating Role of Perceived Organizational Support.an Empirical Study of Gen Y Employees’ in the Banking Sector in Malaysia

2019 ◽  
Vol 8 (2S9) ◽  
pp. 86-94
Keyword(s):  
Organizational Support ◽  
Perceived Organizational Support ◽  
Banking Sector ◽  
Positive Impact ◽  
Survey Method ◽  
Emotional Needs ◽  
Intention To Stay ◽  
Gen Y ◽  
Mediating Role

It is anticipated that over the next 10 years, the banking sector would require a workforce of about 200,000. Gen Y employees makes up about 40% of the current workforce in Malaysia. This number is expected to increase to 75% within a relatively short span of time. The present study examined the influence of emotional needs of Gen Y employees towards intention to stay and the mediating role of perceived organizational support. This was a quantitative research that used a survey method. Data was collected from a sample of 470 Gen Y employees in the banking sector in Malaysia. The findings revealed that emotional needs had a significant impact on intention to stay. Perceived organizational support was found to mediate the relationship between the two. The findings have significantly contributed to the advancement of knowledge in the emotional needs and intention to stay of Gen Y employees in the banking sector. The significant and positive impact of emotional needs and perceived organizational support suggests the importance of these factors in retention of Gen Y employees. The paper's primary contribution is that it provides an understanding that emotional needs and the mediating role of perceived organizational support have an impact on improving the intention to stay of Gen Y employees in the banking sector in Malaysia. From the practical implications perspective, organizations need to implement policies and procedures to help lessen employees quitting intentions. The results of this study suggest that organizations can implement policies covering the employee emotional needs and employees’ perception that their work and contributions are valued. With current trends of globalizations and diversity, the finding of this study can be beneficial to improve retention of Gen Y employees in other countries

scholarly journals Role of Business Intelligence in Banking Sector for Achieving Competitive Advantage- An Empirical Analysis

2021 ◽  
Vol 19 (1) ◽  
Keyword(s):  
Competitive Advantage ◽  
Business Intelligence ◽  
Quantitative Research ◽  
Banking Sector ◽  
Statistical Tests ◽  
Firm Strategy ◽  
Middle Level ◽  
Mediating Role ◽  
The Impact

With recent advancements in information technology, organizations’ capability to acquire and analyze data for efficient decision making has increased. Good strategies promote alignment among processes and technology in use, which may result in better firm performance. However, there has been little focus on how firm strategies and business intelligence (BI) systems might play their part in forming organizational information and getting a competitive edge. Therefore, the purpose of conducting this study is to investigate the impact of firm strategy on firm competitive advantage with mediating role of BI adoption and moderating role of BI capabilities. For this, a quantitative research methodology was used, and data was collected from 300 middle-level managers in Pakistan's telecom sector. Statistical tests such as descriptive statistics, correlation, reliability analysis, one-way ANOVA, confirmatory factor analysis, and mediation analysis through Hayes process were performed using SPSS and AMOS. The findings revealed a positive link between firm strategy and competitive advantage, with business intelligence adoption serving as a mediating factor. Business intelligence capabilities positively moderate the relationship between BI adoption and competitive advantage. Hence, all proposed hypotheses (H1, H2, and H3) were approved. The contribution and Limitation of the study are also discussed.

Frontline employees’ engagement and business performance: the mediating role of customer-oriented behaviors

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Behrooz Ghlichlee ◽  
Fatima Bayat
Keyword(s):  
Business Performance ◽  
Banking Sector ◽  
Retail Banking ◽  
Mediating Effect ◽  
Business Trend ◽  
Frontline Employees ◽  
Content Type ◽  
Mediating Role ◽  
The Relationship

Purpose Within the retail banking sector, the customer-centric business model has become an important and new business trend in recent years. The enhancement of the frontline service employees’ engagement and their customer-oriented behaviors are among the key factors affecting business performance (BP) in this sector of the banking industry. The purpose of this paper is to improve management decisions to enhance BP through examining the relationship between the frontline employees’ engagement and BP while taking into account the mediating effect of customer-oriented behaviors on this relationship. Design/methodology/approach A quantitative approach was adopted to conduct the present study, and the respondents were sampled from a large commercial bank in Iran using a structured questionnaire. Overall, 50 branch managers and 90 frontline employees were selected using random sampling. A confirmatory factor analysis was conducted to ascertain the validity and reliability of the observed items and a structural equation model was used for testing the proposed hypotheses and research framework. Findings The findings showed that customer-oriented behaviors mediated the relationship between the frontline employees’ engagement and bank’s branches’ BP. Higher levels of the frontline employees’ engagement enhance the customer-oriented behaviors. It was revealed that the frontline employees are engaged in their job and organization. Moreover, the engaged frontline employees listen carefully to customers, the customer’s problem is important to them and they complete their tasks precisely for customers. It has been confirmed that customer-oriented behaviors enhance branches’ BP. The bank frontline employees’ engagement and customer-oriented behaviors, in turn, affected the bank’s branches’ financial performance, process performance and employee performance compared with the bank’s key competitors. Research limitations/implications This study highlights the value of empirically establishing how employee customer-oriented behaviors are affected by employee engagement as an integrative construct bringing together BP. Practical implications This study can help improve BP by increasing the frontline employees’ engagement and their customer-oriented behaviors. This study suggests that organizations using the findings of this study could effectively assess their frontline employees’ engagement and their customer-oriented behaviors and then plan for improving them. Social implications This study offers a customer-oriented initiative as a social responsibility to be considered by retail banks. In light of the social exchange theory, the banks valuing customer-oriented can provide employees with knowledge, skills, values and support to develop motivation and abilities to demonstrate customer-oriented organizational citizenship behaviors. Originality/value Previous studies demonstrated that the employees’ engagement affects their customer-oriented behaviors. In addition, studies have referred to the effect of employees’ customer-oriented behaviors on BP. However, to the best of the knowledge, key questions regarding how the employees’ engagement at the branch level fosters customer-oriented behaviors and, in turn, the bank’s branches’ BP, remain unanswered. Hence, this study contributes to the investigation of the mediating role of the frontline employees’ customer-oriented behaviors in the relationship between their engagement and branches’ BP in the retail banking sector.

Study of banking sector in Ghana shows importance of HRD training practices in developing employee effectiveness through the mediating role of employee competencies

2020 ◽  
Vol 28 (5) ◽  
pp. 23-24
Keyword(s):  
Human Resource Development ◽  
Organizational Effectiveness ◽  
Banking Sector ◽  
Training And Development ◽  
Content Type ◽  
Impact Performance ◽  
Mediating Role ◽  
Employee Competencies ◽  
The Relationship

Purpose The purpose was to examine the mediating role of employee competencies in the relationship between human resource development (HRD) practices and organizational effectiveness. Design/methodology/approach Data were collected through questionnaire from 550 employees of the selected banks. The author tested four hypotheses Findings The results confirmed Hypothesis One, indicating training and development have a big influence on employee competencies. There was also support for Hypothesis Two, revealing employee involvement influences employee competencies. But the results did not support Hypothesis Three, which stated that career development has a significant influence on employee competencies. Finally, there was support for Hypothesis Four, which said HRD practices influence organizational effectiveness through the mediating role of employee competencies. Originality/value The author chose to focus on the banking sector because of its significance to a country’s economy. A further justification was that similar studies have focused on Western banks and there is a paucity of research into HRD practices in the West African banking industry. More broadly, there have been very few studies of the mediating processes through which HR practices impact performance.

scholarly journals The Mediating Role of Customers' Satisfaction on the Effect of CRM on Long-Term Customers Loyalty in the Banking Sector in the Palestinian Territory

2018 ◽  
Vol 14 (8) ◽  
pp. 76 ◽  
Author(s):  
Raed A. M. Iriqat ◽  
Mohannad A. M. Abu Daqar
Keyword(s):  
System Integration ◽  
Banking Sector ◽  
Accurate Information ◽  
Direct Impact ◽  
Mediating Role ◽  
Crm System ◽  
Palestinian Territory ◽  
The Impact

This study aims to investigate the mediating role of customers' satisfaction on the effect of customer relationship management on long-term customers' loyalty in the banking sector in the Palestinian Territory. Using advanced statistical methods. This study supports that there is a high level in implementing the CRM, customers' satisfaction, and long-term customers' loyalty. It showed that these three variables: CRM, customers' satisfaction, and long-term customers' loyalty have a significant role on the Banking sector. CRM and its dimensions, and both of customers' satisfaction, and long-term customers' loyalty are positively significant correlated. Also, finds that there is no role for customers' satisfaction as a mediator variable in enhancing the impact of CRM on long-term customers' loyalty. Moreover, based on SEM the study shows that there is a direct impact of CRM system integration and customers satisfaction on long-term customers' loyalty, whereas there is a direct impact for customers' database and CRM system integration on customers' satisfaction. The scholars find that the Palestinian local banks should pay more efforts to improve their competences to enhance the quality of service and their employees' behavior level. On the other side, they need to keep their customers database updated and to be aligned with the cutting edge technologies to provide better service for customers, which is appropriate and meet their needs by obtaining the accurate information about their preferences in order to build a strong competitive advantage that is hard to imitate, this leads to build a strong relationship with customers.

scholarly journals How Does Technological and Financial Literacy Influence SME Performance: Mediating Role of ERM Practices

Information ◽  
2020 ◽  
Vol 11 (6) ◽  
pp. 297
Author(s):  
K.M.M.C.B. Kulathunga ◽  
Jianmu Ye ◽  
Saurabh Sharma ◽  
P.R. Weerathunga
Keyword(s):  
Financial Literacy ◽  
Structural Model ◽  
Sri Lankan ◽  
Mediating Role ◽  
Knowledge Based ◽  
Enterprise Risk ◽  
Managerial Implications ◽  
Essential Knowledge ◽  
The Relationship

The knowledge-based view (KBV) in the development of small and medium-sized enterprises (SMEs) is a debatable topic in the current literature. Although convergence of technological and financial literacy (techno-finance literacy) is an essential knowledge-based tool to address rapid digitalization of business, the influence of techno-finance literacy in the development of SMEs is still not adequately researched. Drawing upon KBV, we developed a single-mediator structural model with an aim to explore the effect of techno-finance literacy and enterprise risk management (ERM) practices (applications) on the performance of SMEs. A self-administered structured questionnaire was employed to collect data from 319 chief financial offers (CFOs) in Sri Lankan SMEs. The outcome of our study highlights that techno-finance literacy is a significant determinant of two endogenous constructs, namely, SME performance and ERM practices. Furthermore, ERM practices of SMEs were also positively affected to the SME performance. Moreover, ERM practices were observed to have a partial mediation on the relationship between financial literacy and SME performance. These findings form the basis for theories in techno-finance literacy and SME performance, as well as present managerial implications to enhance the performance of SMEs.

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