CRM, service quality and organizational performance in the banking industry: a comparative study of conventional and Islamic banks

2020 ◽  
Vol 38 (5) ◽  
pp. 1081-1106 ◽  
Author(s):  
Hind Lebdaoui ◽  
Youssef Chetioui
Keyword(s):  
Service Quality ◽  
Organizational Performance ◽  
Customer Service ◽  
Structural Equation ◽  
Banking Industry ◽  
Positive Impact ◽  
Equation Modeling ◽  
Islamic Banks ◽  
Content Type ◽  
Conventional And Islamic Banks

PurposeThis paper aims to examine a model that uses customer service quality as an intervening mechanism in the relationship between customer relationship management (CRM) practices and organizational performance in two different banking structures: conventional and Islamic. The study focuses on organizational and technological practices of CRM, as both have been demonstrated to be critical to CRM success.Design/methodology/approachThe analysis is based on responses from 247 managers from conventional banks and 141 managers from Islamic banks operating in Morocco using a self-administered questionnaire. The partial least squares structural equation modeling (PLS-SEM) technique is employed for data analysis.FindingsFindings demonstrate that customer service quality plays a mediating role between CRM practices (organizational and technological) and organizational performance in both conventional and Islamic banks. Our results confirm the positive impact of CRM practices on organizational performance in the two banking structures.Practical implicationsThis study enhances our understanding of how CRM practices contribute to improving customer service quality and organizational performance in both conventional and Islamic banks. Bank managers, who aim to deliver superior service quality and achieve customer satisfaction and retention, should capitalize on the benefits of implementing CRM organizational and technological practices.Originality/valueThe present paper bridges a gap pertaining to key practices and factors that impact CRM success in the banking industry. It is the first of its kind to investigate the effect of CRM practices on organizational performance with customer service quality as a mediating variable. The study also contributes to the field of CRM literature, as CRM has rarely been addressed in an Islamic banking context.

The effects of knowledge creation process on organizational performance using the BSC approach: the mediating role of intellectual capital

2018 ◽  
Vol 22 (4) ◽  
pp. 802-823 ◽  
Author(s):  
Gholamhossein Mehralian ◽  
Jamal A. Nazari ◽  
Peivand Ghasemzadeh
Keyword(s):  
Organizational Performance ◽  
Intellectual Capital ◽  
Knowledge Creation ◽  
Structural Equation ◽  
Positive Impact ◽  
Equation Modeling ◽  
Success Factor ◽  
Content Type ◽  
Key Dimensions ◽  
The Relationship

PurposeKnowledge is a key success factor in achieving competitive advantage in the current fast-paced and uncertain economic environment. Several studies in the literature have analyzed the relationship between knowledge creation (KC) and organizational success; however, the mechanisms by which KC leads to accumulation of intellectual capital (IC) and thereby affects various dimensions of organizational performance are understudied. The purpose of this paper is to examine how KC and IC and their relationship influence key dimensions of organizational performance.Design/methodology/approachA research model was developed and tested based on the literature in the areas of KC, IC and organizational performance. This study uses a survey sent to companies in an intensive knowledge-based industry. The balanced scorecard (BSC) approach was used to measure the key dimensions of organizational performance.FindingsThe results from structural equation modeling (SEM) on 470 completed questionnaires received from the pharmaceutical companies in Iran reveal that KC activities lead to the accumulation of organizational IC and IC has a crucial and positive impact on the BSC. Furthermore, the results from the path analysis indicate that IC mediates the effects of KC on the BSC.Practical implicationsThe findings of this study contribute to the extant literature on the relationship between knowledge and organizational performance by demonstrating that knowledge and KC lead to performance when organizations utilize KC activities and leverage them to accumulate IC. Once used effectively, IC will result in a better performance in the knowledge-intensive environments.Originality/valueThis is the first study that investigates how KC contributes to firm performance by incorporating the mediating impact of IC on the BSC. The proposed model and results will help organizations to identify the mechanisms through which KC initiatives improve organizational performance.

Does service quality increase the level of banks performance

2019 ◽  
Vol 38 (6) ◽  
pp. 442-454 ◽  
Author(s):  
Syed Faraz Ali ◽  
Muhammad Naeem
Keyword(s):  
Service Quality ◽  
Multiple Regression ◽  
Positive Impact ◽  
Quality Parameters ◽  
Cluster Sampling ◽  
Islamic Banks ◽  
Content Type ◽  
Banking Systems ◽  
Conventional Banks ◽  
Conventional And Islamic Banks

Purpose The purpose of this paper is to unfold the relationship between service quality and level of performance of conventional and Islamic banks. Also, it intends to uncover what are the features of service quality which can raise the level of performance either in conventional banks or Islamic banks. There is rare literature available that focused on comparative study between above stated banking systems based on emerging parameters of SERVQUAL model. Design/methodology/approach To meet the objectives of this investigation, research data has been from 450 customers who have had accounts and dealings with conventional and Islamic banks in the previous five years. The customers are selected based on cluster sampling from regional offices of conventional and Islamic banks. Findings The collected data have been analyzed by using confirmatory factor analysis (CFA) technique followed by common method variance (CMV), multiple regression test and independent sample t-test used to examine the parameters of service quality in the context of banks performance. The purpose of CFA is to find the model validity, while multiple regression and t-test is performed in order to examine the influence of service quality parameters on banks performance. Originality/value The study used compliance as a one of the emerging and unique dimension of service quality. This dimension is rarely investigated in the context of measuring the level of bank performance of conventional and Islamic banking systems. Findings reveal responsiveness and assurance is the strongest predictor of conventional banking performance. Compliance and reliability has significant and positive impact on the level of performance of Islamic banks. Moreover, the study has practical implications for the top management and stakeholders of conventional and Islamic banks to increase the level of performance by using SERVQUAL model.

scholarly journals Business intelligence and organizational performance

2020 ◽  
Vol 26 (6) ◽  
pp. 1709-1730
Author(s):  
Dalia Suša Vugec ◽  
Vesna Bosilj Vukšić ◽  
Mirjana Pejić Bach ◽  
Jurij Jaklič ◽  
Mojca Indihar Štemberger
Keyword(s):  
Organizational Performance ◽  
Business Intelligence ◽  
Structural Equation ◽  
Process Management ◽  
Positive Impact ◽  
Measurement Instrument ◽  
Business Value ◽  
Equation Modeling ◽  
Content Type ◽  
The Impact

PurposeOrganizations introduce business intelligence (BI) to increase their performance, but often, this initiative is not aligned with the business process management (BPM) initiative, which also aims to improve organizational performance. Although some findings from the literature indicate that BI implementation has a positive impact on organizational performance, the impact seems to be indirect. Therefore, the purpose of this study is to enhance the understanding of how BI maturity is translated into organizational performance. Alignment of BI and BPM initiatives seems one possible way for creating business value with BI, particularly because BI enables process performance measurement and management, which allows the BI initiative to become more business focused.Design/methodology/approachA questionnaire was prepared and used to collect data in Croatian and Slovenian organizations with more than 50 employees. A BI–BPM alignment measurement instrument was developed for the purpose of this study using the recommended process of scale development and validation. A total of 185 responses were analyzed by the structural equation modeling technique.FindingsOur results provide evidence that the effect of BI on organizational performance is fully mediated by alignment of BI and BPM initiatives, and therefore, BI business value can be generated through the use of common terminology and methodologies, as well as a strong communication between BI and BPM experts, managers and teams in order to coordinate the two initiatives.Originality/valueThis study has responded to the call for better understanding of how the impact of BI on organization performance is realized. It confirmed that BI and BPM initiatives should be aligned in order to give BI a business value.

Attitudes and behaviors as predictors of service quality in the telecommunications sector context

2018 ◽  
Vol 35 (3) ◽  
pp. 656-677 ◽  
Author(s):  
Zeyad H. Almutawa ◽  
Nuttawuth Muenjohn ◽  
Jiaying Zhang
Keyword(s):  
Service Quality ◽  
Organizational Performance ◽  
Structural Equation ◽  
Causal Effect ◽  
Mediating Effect ◽  
Citizenship Behavior ◽  
Equation Modeling ◽  
Content Type ◽  
Attitudes And Behaviors ◽  
And Behaviors

Purpose Service quality (SQ) is considered an organizational performance indicator that largely depends on employees’ attitudes and behaviors. Therefore, the purpose of this paper is to examine the mediating effect of employees’ citizenship behavior (OCB) on the relationship between affective commitment (AC) and SQ. Design/methodology/approach The current study has relied on two questionnaire surveys to gather cross-sectional data from 800 employees and 400 customers of telecommunications companies in Kuwait. Structural equation modeling via AMOS22 was used to build and test the hypothesized model. Findings The results show that OCB significantly and positively affects SQ dimensions except empathy which demonstrates insignificant association. Also, AC was found to be a strong predictor of OCB. More interestingly, the results show that AC does not show any effect on either responsiveness or empathy, while a partial mediation was found between AC and tangibles, reliability, and assurance. Practical implications The findings of the current study provide managers and practitioners with empirically validated model of how SQ can be achieved. The model indicates that managers need to increase the level of citizenship behavior through leveraging their employees’ AC, which in turn can result in a positive perception of SQ. Originality/value This study is considered among the first to investigate the causal effect of both OCB and AC on achieving high SQ. Also, the findings of this study further support the indirect relationship of AC and SQ. Moreover, this study is unique in its attempt to link both AC and OCB to the dimensions of SQ. Finally, this study is considered the first empirical investigation of SQ in the telecommunication sector in Kuwait.

scholarly journals The influence of cost of quality on the performance of food manufacturing companies: an empirical study

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Niveen Mohammed Ghunaim ◽  
Ayham A.M. Jaaron
Keyword(s):  
Organizational Performance ◽  
Structural Equation ◽  
Quantitative Research ◽  
Positive Impact ◽  
Equation Modeling ◽  
Manufacturing Companies ◽  
Food Manufacturing ◽  
Content Type ◽  
Cost Of Quality ◽  
Business Environments

PurposeDue to the ever-increasing competitive and complex business environments, food manufacturing companies have to maintain high-quality products while simultaneously minimizing customers' costs. Cost of quality (COQ) plays a crucial role in enhancing companies' efficiency and reducing expenditures that can contribute to companies' competitive performance. This paper investigates the underlying relationship between the level of COQ practices adoption (prevention, appraisal, internal and external failure costs) and organizational performance in Palestinian food manufacturing companies (PFMCs).Design/methodology/approachA quantitative research methodology using a structured questionnaire collected data from 119 PFMCs. Partial least squares structural equation modeling was used to analyze collected data.FindingsResults indicated that COQ adoption has a significant positive effect on the organizational performance of PFMCs. Besides, prevention, external and internal failure costs were all associated with a positive impact on organizational performance of PFMCs, whereas appraisal cost did not affect organizational performance.Originality/valueThis study is considered one of the first studies to investigate COQ practices' effect on organizational performance in food manufacturing companies in a developing country context. Thus, it adds significant value to the literature responding to calls to tackle competitiveness issues in current complex business environments.

Corporate foresight and its effect on innovation, strategic decision making and organizational performance (case study: Iranian banking industry)

foresight ◽  
2017 ◽  
Vol 19 (6) ◽  
pp. 559-576
Author(s):  
Mahdi Joneidi Jafari ◽  
Seyed Akbar NiliPourTabataba’i
Keyword(s):  
Decision Making ◽  
Organizational Performance ◽  
Structural Equation ◽  
Banking Industry ◽  
Strategic Decision ◽  
Equation Modeling ◽  
Strategic Decision Making ◽  
Content Type ◽  
Corporate Foresight

Purpose This paper aims to examine the capability of corporate foresight in the organizations and its impacts on innovation, quality of managers’ strategic decision-making and organizational performance in the banking industry of Iran. Design/methodology/approach In the first part, upon introducing corporate foresight from the two process and content perspectives, influential elements in this construct are discussed. Then, corporate foresight’s relationship with innovation and strategic decision-making is examined and its effect on organizational performance is analyzed within a structural model. Using interview and questionnaire, the data research were collected from the banking industry of Iran including 30 banks (state-commercial banks, specialist-state banks, interest-free loan funds and private banks). Through descriptive, inferential statistical analyses and structural equation modeling using SPSS and Smart PLS software, reliability of the measurement model with 576 samples was confirmed. Findings The results show that the corporate foresight playing three roles of initiator, strategist, and opponent affects the innovation. Moreover, the research results suggest that using the data from the foresight and identifying the weak signals, we can reduce the uncertainty and issue prior warnings in order to enhance the quality of manager’s strategic decision making and promote the organizational performance. Originality/value This paper is one of the articles from the sources of the doctoral thesis of Futures Studies as “The relationship between knowledge absorption capacity, corporate foresight and its effect on the performance of the banking industry in Iran”.

Reducing service sabotage and improving employee commitment to service quality

2019 ◽  
Vol 33 (5) ◽  
pp. 615-625 ◽  
Author(s):  
Charles H. Schwepker, Jr ◽  
Christina K. Dimitriou ◽  
Todd McClure
Keyword(s):  
Service Quality ◽  
Customer Service ◽  
Structural Equation ◽  
Ethical Climate ◽  
Employee Commitment ◽  
Equation Modeling ◽  
Customer Contact ◽  
Content Type ◽  
Service Sabotage ◽  
The Impact

Purpose The purpose of this paper is to investigate the impact of formal [ethics training (ET)] and informal [psychological ethical climate (EC)] controls in reducing service sabotage (SS) and increasing employee commitment to service quality. Design/methodology/approach Data were electronically collected from a national survey of hotel/motel customer contact employees leading to a usable sample of 316 employees. Structural equation modeling was used to analyze the data. Findings The findings indicate that ET can be used to positively influence the EC of customer contact service employees, which, in turn, reduces their SS behavior and increases their commitment to service quality. Practical implications Management should incorporate both formal (ET) and informal (EC) controls to bring about less SS and greater commitment to service quality among customer contact employees in service settings. Originality/value This research furthers the understanding of SS by finding an important variable, EC that may be used to reduce its incidence in service settings. Further, it shows that EC is an important contributor to improving ECSQ. As such, this research gives important direction for companies wishing to improve the customer service experience.

A sustainable e-service quality model

2015 ◽  
Vol 25 (4) ◽  
pp. 414-442 ◽  
Author(s):  
Gjoko Stamenkov ◽  
Zamir Dika
Keyword(s):  
Quality Management ◽  
Customer Satisfaction ◽  
Service Quality ◽  
Organizational Performance ◽  
Structural Equation ◽  
Quality Management System ◽  
Equation Modeling ◽  
Quality Model ◽  
Content Type ◽  
The Republic

Purpose – Providing high service quality is a necessary but insufficient criterion for success. Service quality must be sustained longitudinally. The purpose of this paper is to propose a sustainable e-service quality model by presenting results from a mixed-method study conducted in the Republic of Macedonia’s banking industry. Sustainable e-service quality is the ability to deliver services continually with sustainable high quality, and the ability to manage and maintain customer satisfaction and loyalty. The authors scrutinized sustainable quality from an e-services perspective. Design/methodology/approach – Based on interview data, a theoretical model is developed. The model is examined empirically using exploratory factor analysis and structural equation modeling. As a sample, the authors chose one bank, with internal, e-services customers as a unit of analysis. Findings – Results support a sustainable e-service quality model, confirming that it captures the effect of the internal domain (i.e. quality management system, business/ICT alignment, ICT capabilities, ICT service climate, and e-service quality), and predicts the external domain (satisfaction and loyalty). Research limitations/implications – This study was conducted in one bank that is among the best in the country. This limitation implies a need for validation across varying contexts, markets, and countries. Practical implications – Practitioners can deploy the model as a diagnostic tool for organizational root-cause analysis of reduced performance and decreased customer satisfaction. The model answers a question regarding unfulfilled expectations of many companies that implement quality management systems: Why did the system fail to improve organizational performance or service quality? Originality/value – The result of this research is a sustainable e-service quality model. The model highlights relationships among factors, and provides a research foundation for elaboration in other contexts.

Factors influencing consumer loyalty: evidence from the Ghanaian retail banking industry

2019 ◽  
Vol 37 (3) ◽  
pp. 798-820 ◽  
Author(s):  
Osaretin Kayode Omoregie ◽  
John Agyekum Addae ◽  
Stanley Coffie ◽  
George Oppong Appiagyei Ampong ◽  
Kwame Simpe Ofori
Keyword(s):  
Service Quality ◽  
Structural Equation ◽  
Banking Sector ◽  
Banking Industry ◽  
Retail Banking ◽  
Corporate Image ◽  
Equation Modeling ◽  
Design Data ◽  
Cross Sectional ◽  
Content Type

PurposeThe increasing number of banks in the Ghanaian banking industry has brought about intense competition in the industry. The purpose of this paper is, therefore, to examine the factors that influence retail banking customers’ loyalty intentions.Design/methodology/approachIn order to validate the proposed research model, the study adopts a survey design. Data were collected from 565 customers of the top performing banks in terms of customer deposits. Data analysis employed the partial least squares structural equation modeling (PLS–SEM) using SmartPLS version 3.FindingsResults from the PLS–SEM analysis indicated that satisfaction, service quality and trust had significant effect on loyalty, with satisfaction having the most significant effect. Interestingly corporate image was found to have a significant effect on both satisfaction and trust but not on loyalty. In all, the proposed model accounted for 63.3 percent of the variation in loyalty.Research limitations/implicationsThe current study samples customers from only the top performing banks in Ghana. The use of cross-sectional data makes it impossible to study how customers’ perceptions change over time. Results from this study could, however, help managers of banks in designing strategies aimed at improving customer loyalty in order to consolidate their market share.Originality/valueThis paper adds to existing works that focus on loyalty in the retail banking sector, especially from the context of a developing economy. The study draws attention to the interrelationship among service quality, perceived value, satisfaction, image, trust and loyalty.

Diversity management and OCB: the connection evidence from the Lebanese banking sector

2018 ◽  
Vol 37 (3) ◽  
pp. 233-253 ◽  
Author(s):  
Rima Bizri
Keyword(s):  
Organizational Performance ◽  
Social Exchange ◽  
Organizational Citizenship Behavior ◽  
Structural Equation ◽  
Management Practices ◽  
Banking Sector ◽  
Positive Impact ◽  
Diversity Management ◽  
Equation Modeling ◽  
Content Type

PurposeResearch has shown that organizational citizenship behavior (OCB) has a positive and significant impact on organizational performance at a time when traditional monitoring and supervision practices are showing a declining influence. This has triggered numerous research undertakings exploring the antecedents of OCB, and how it can best be enhanced. Though many variables have been identified as predictors of OCB, the purpose of this paper is to focus on the influence of diversity management on OCB and two of its important antecedents: organizational commitment and work engagement.Design/methodology/approachThe study used a survey instrument of pre-validated scales to measure banking sector employees’ perceptions of their affective and normative commitment (NC), OCB, and diversity management practices at their organizations. Structural equation modeling was used with AMOS (20) to empirically assess the relationships among constructs.FindingsThis study empirically confirmed the positive impact of diversity management on employees’ feelings of affective commitment to the organization and engagement at work, which in turn positively impact employees’ OCB. However, the findings negate any direct influence of diversity management on NC or on OCB.Originality/valueThis study fills a gap in the literature by questioning the validity of applying the social exchange theory to the concept of OCB.

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