Banking system trust, bank trust, and bank loyalty

2017 ◽  
Vol 35 (1) ◽  
pp. 97-111 ◽  
Author(s):  
Pauline W.J. van Esterik-Plasmeijer ◽  
W. Fred van Raaij
Keyword(s):  
Customer Orientation ◽  
Strong Predictor ◽  
Banking System ◽  
Value Congruence ◽  
Structural Equations ◽  
Customer Relationships ◽  
Content Type ◽  
Trust System ◽  
Managerial Implications ◽  
Practical Implications

Purpose The purpose of this paper is to test a model of banking system trust as an antecedent of bank trust and bank loyalty. Six determinants of trust and loyalty are included: competence, stability, integrity, customer orientation, transparency, and value congruence. The study provides insights which determinants are crucial for explaining bank trust and bank loyalty, and thus for rebuilding trust and loyalty. Design/methodology/approach Survey among 1,079 respondents of 18 years and older in The Netherlands on person trust, system trust, bank trust, and their scores on determinants of trust and loyalty. Structural equations modeling (AMOS) has been performed to provide insights into the relationships between concepts such as person trust, system trust, bank trust, and bank loyalty. The importance of determinants to explain bank trust and bank loyalty has been assessed as well. Findings Integrity is the most important determinant of bank trust. Transparency, customer orientation, and competence are also significant. Trust is a strong predictor of loyalty. Determinants explaining bank loyalty are: competence, stability, transparency, and value congruence. System trust is also a determinant of bank trust. The meaning of these results is discussed in the paper, as well as the managerial implications of these findings. Research limitations/implications Data were collected in May 2014 with a large sample, when the financial crisis came to an end. Distrust still remained as a consequence of the crisis. Banks are now rebuilding trust and loyalty. This research provides indications which determinants of trust and loyalty are important in this process and should be focused upon. A longitudinal study how trust and loyalty are developing would give insights and feedback on managerial actions. Practical implications Results provide insights into the causes and reasons of (dis)trust. From this study, banks get insights with a priority matrix which determinants are below par but important for specific banks and should be focused on and improved at the short term. Social implications Trust in banks and other financial institutions is crucial for the functioning of the banking system and for society at large. Restoring trust is a matter of fundamental changes of the bank-customer relationships, not only by communication but by sincere behavior (integrity) and benevolence in the customer interest. Originality/value The authors are not aware of research using all six determinants (competence, stability, integrity, customer orientation, transparency, and value congruence) to explain and predict bank trust and bank loyalty, and their implications for trust and loyalty in banks.

Positive and negative valence influencing consumer engagement

2018 ◽  
Vol 28 (2) ◽  
pp. 147-169 ◽  
Author(s):  
Kristina Heinonen
Keyword(s):  
Customer Relationships ◽  
Cognitive Factors ◽  
Future Research ◽  
Research Approach ◽  
Consumer Engagement ◽  
Content Type ◽  
Negative Valence ◽  
Managerial Implications ◽  
Positive And Negative Valence ◽  
Practical Implications

Purpose The current service landscape is increasingly dynamic, and consumers’ engagement in market-related behavior is constantly changing. Developments in technology further influence this continuous dynamism. Therefore, it is important to understand the factors that may cause different engagement valence, especially as only some consumers actively engage in online platforms. The purpose of this paper is to characterize factors that positively and negatively influence consumer engagement and suggest theoretical and managerial implications for the different factors that determine consumer engagement. Design/methodology/approach This paper conceptualizes factors that influence consumer engagement based on their characteristics (behavioral, emotional, and cognitive) and the type of influence (positive or negative). The study uses customer-dominant logic of service, which focuses on emancipated customers and idiosyncratic customer logic, rather than on provider-orchestrated customer experiences of brands, firms, or offerings. An abductive research approach is used to qualitatively explore consumer engagement in the context of online interest communities. Findings The study identifies the behavioral, emotional, and cognitive factors that positively and negatively determine consumer engagement in the context of online interest communities. Research limitations/implications Through the focus on customer logic, the study provides a detailed and nuanced view of factors that influence consumer engagement. Future research is needed to explore how this framework can be applied to other online communities and different service contexts. Practical implications The paper provides insights into the presence of an interest area in consumers’ lives. The study indicates how firms may be involved in consumers’ lives and how firms may create successful customer relationships based on consumer engagement. Originality/value This study enhances previous research in four ways: by characterizing factors that determine engagement, paying particular attention to its negatively valenced factors and examining the interplay of the factors that positively and negatively influence engagement, by describing consumers’ connection to the interest area instead of positioning the brand as the link between the consumers and the provider, and by discussing the theoretical and practical challenges associated with understanding and managing consumer engagement.

Shareholder risk-taking incentives in the presence of contingent capital

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mahmoud Fatouh ◽  
Ayowande A. McCunn
Keyword(s):  
Risk Taking ◽  
Banking System ◽  
Capital Requirements ◽  
Content Type ◽  
Basic Model ◽  
Conversion Rates ◽  
A Minor ◽  
The Impact ◽  
Practical Implications

Purpose This paper aims to present a model of shareholders’ willingness to exert effort to reduce the likelihood of bank distress and the implications of the presence of contingent convertible (CoCo) bonds in the liabilities structure of a bank. Design/methodology/approach This study presents a basic model about the moral hazard surrounding shareholders willingness to exert effort that increases the likelihood of a bank’s success. This study uses a one-shot game and so do not capture the effects of repeated interactions. Findings Consistent with the existing literature, this study shows that the direction of the wealth transfer at the conversion of CoCo bonds determines their impact on shareholder risk-taking incentives. This study also finds that “anytime” CoCos (CoCo bonds trigger-able anytime at the discretion of managers) have a minor advantage over regular CoCo bonds, and that quality of capital requirements can reduce the risk-taking incentives of shareholders. Practical implications This study argues that shareholders can also use manager-specific CoCo bonds to reduce the riskiness of the bank activities. The issuance of such bonds can increase the resilience of individual banks and the whole banking system. Regulators can use restrictions on conversion rates and/or requirements on the quality of capital to address the impact of CoCo bonds issuance on risk-taking incentives. Originality/value To model the risk-taking incentives, authors generally modify the asset processes to introduce components that reflect asymmetric information between CoCo holders and shareholders and/or managers. This paper follows a simpler method similar to that of Holmström and Tirole (1998).

scholarly journals Effective contracting for high operational performance in projects

2019 ◽  
Vol 39 (2) ◽  
pp. 294-325 ◽  
Author(s):  
Maria Kapsali ◽  
Jens K. Roehrich ◽  
Pervaiz Akhtar
Keyword(s):  
Comparative Analysis ◽  
Fuzzy Set ◽  
Design Methodology ◽  
Qualitative Comparative Analysis ◽  
Operational Performance ◽  
Future Research ◽  
Content Type ◽  
Contractual Incompleteness ◽  
Managerial Implications ◽  
Practical Implications

Purpose The purpose of this paper is to examine combinations of contract clauses in order to ascertain which combinations correlate to high operational performance (OP). Design/methodology/approach Two hypotheses were formulated from contracting theory and tested on data collected from 45 projects. Fuzzy set qualitative comparative analysis was used and validated with multiple regression and simulation. Findings The hypotheses were tested to determine whether combinations of classical, relational, and/or associational contract clauses correlate to high OP. The results show that whereas high OP correlates to combinations of relational and associational contract clauses, classical and relational clauses should not be combined. Research limitations/implications Directions are proposed to guide future research in order to produce a more nuanced testing of contractual complementarity. Practical implications The managerial implications of the findings include a more thorough understanding of the use of contract clauses and of which clauses managers should combine to achieve high OP. Originality/value This study contributes to the theory of contractual incompleteness and complementarity, specifically in the context of project contracting. The analysis produced two theoretical implications: first, that better performing contracts are created when combining relational and associational contract clauses; and second, that in projects, relational and classical contract clauses are not complementary with regards to realizing high OP.

scholarly journals Environmental determinants of destination competitiveness and its Tourism Attractions-Basics-Context, A-B-C, indicators

2020 ◽  
Vol 25 (50) ◽  
pp. 425-449 ◽  
Author(s):  
Lalita A. Manrai ◽  
Ajay K. Manrai ◽  
Stefanie Friedeborn
Keyword(s):  
Environmental Factors ◽  
Design Methodology ◽  
Future Research ◽  
Review Of The Literature ◽  
Environmental Determinants ◽  
Content Type ◽  
Destination Competitiveness ◽  
Managerial Implications ◽  
Tourism Attractions ◽  
Practical Implications

Purpose The purpose of this paper is to provide a comprehensive review of the literature and develop a model of the determinants, indicators and effects of destination competitiveness (DC), as well as several propositions. Design/methodology/approach This study thoroughly reviewed extant literature to develop a conceptual model and propositions. Findings Two key findings are listed below. First, 12 different environmental factors are identified and 12 propositions are developed linking these environmental factors to DC. Second, a new indicator of DC is developed, namely, Tourism Attractions-Basics-Context (TABC) model. The TABC model is simple and directly taps into the benefits tourists seek in a destination. Research limitations/implications Directions for future research are discussed in detail in the paper. Practical implications Managerial implications are discussed in detail in the paper. Originality/value The extant research on the topic of DC has been rather fragmented and incomplete in scope. The research presented in this paper addresses these limitations.

Customer orientation and organizational innovation: the case of environmental management practices

2016 ◽  
Vol 31 (7) ◽  
pp. 835-848 ◽  
Author(s):  
Sanja Pekovic ◽  
Sylvie Rolland ◽  
Hubert Gatignon
Keyword(s):  
Environmental Management ◽  
Information Processing ◽  
Management Practices ◽  
Customer Orientation ◽  
Market Competition ◽  
Content Type ◽  
Industrial Marketing ◽  
Customer Information ◽  
Environmental Management Practices ◽  
Practical Implications

Purpose This study aims to investigates the effect of three customer orientation components – customer information-processing, responsiveness and values and norms – on a firm’s decision to adopt environmental management practices. Consistent with the literature on strategy and industrial marketing, the authors also examine the moderating effect of marketplace characteristics. Design/methodology/approach The authors use a linear model on a sample of 4,324 French firms with ten or more employees. Findings Based on a large-scale survey of firms across industries, the results indicate that customer information-processing and values and norms directly contribute to the adoption of environmental management practices. Furthermore, the effect of customer information-processing is shown to be contingent on market competition. Practical implications The findings have direct practical implications. When managers recognize the importance and usefulness of customer orientation, they understand the need to formulate organizational strategies in terms of environmental management practices that reflect customer expectations. In addition, following the strategic fit approach, customer orientation should fit with the specific market environment to stimulate the adoption of environmental management practices. In other words, the findings are useful for managers, who can assess the specific environmental characteristics they are facing and align these with customer orientation to build competitive advantage. Originality/value The findings indicate that the different dimensions of customer orientation distinctly affect a firm’s decision to adopt environmental management practices. In this sense, the authors argue that they capture different facets of the customer orientation measure, which points to the importance of analyzing the dimensions of customer orientation separately. Furthermore, rather than analyzing aggregate measures of corporate social responsibility, the authors selected environmental orientation as a specific dimension, which has received less attention in the industrial marketing literature. Finally, the main findings mark an important contribution to the literature because they provide deeper insights into the conditions under which customer orientation dimensions drive the adoption of environmental management practices.

Studying customers’ resource integration by service employees in interactional value co-creation

2016 ◽  
Vol 30 (2) ◽  
pp. 152-164 ◽  
Author(s):  
Loïc Plé
Keyword(s):  
Conceptual Framework ◽  
Design Methodology ◽  
Customer Participation ◽  
Resource Integration ◽  
Service Dominant Logic ◽  
Content Type ◽  
Service Employees ◽  
Dominant Logic ◽  
Managerial Implications ◽  
Practical Implications

Purpose Noting that resource integration is a pivotal dimension of value co-creation in Service-Dominant logic, this paper aims to explore how service employees engaged in co-creation processes with customers integrate the latter’s resources. Design/methodology/approach To address the limitations of previous research on customer resources and their integration by service employees, this study turns to the concept of customer participation to identify the nature of customers’ resources. A conceptual framework of their integration by service employees underpins nine key propositions. This foundation leads to the development of theoretical contributions, managerial implications and avenues for research. Findings Customers can use 12 types of resources in value co-creation. Contrasting with earlier findings, the conceptual framework reveals that service employees may not only integrate these customers’ resources but also either misintegrate or not integrate them. Non-integration and misintegration may be intentional or accidental. Accordingly, value co-creation or co-destruction may result from interactions. Research limitations/implications This conceptual and exploratory text requires complementary theoretical and empirical investigations. It also does not adopt an ecosystems view of co-creation. Practical implications Knowing the different steps of resource integration and what influences them should increase the chances of value co-creation and limit the risks of value co-destruction. Originality/value Scant research has examined the nature of customer resources and how service employees integrate them. This paper also is the first to distinguish among resource integration, misintegration and non-integration.

Enhancing participation through organizational drivers

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Fernando Ruiz-Pérez ◽  
Álvaro Lleó ◽  
Elisabeth Viles ◽  
Daniel Jurburg
Keyword(s):  
Job Satisfaction ◽  
Social Influence ◽  
Self Efficacy ◽  
Employee Participation ◽  
Research Literature ◽  
Structural Equations ◽  
Content Type ◽  
Individual Outcomes ◽  
Managerial Implications ◽  
Using Data

PurposeThis paper unifies previous research literature on employee participation in continuous improvement (CI) activities through the development and validation of a conceptual model. The purpose of this model is to illustrate how organizational drivers foster organizational and individual enablers which, in turn, strengthen employee participation in CI. The article also discusses the results and managerial implications.Design/methodology/approachFirstly, the article introduces the main variables affecting employee participation in CI, looking at the different possible relationships proposed in existing literature. In accordance with the Kaye and Anderson (1999) framework, these variables are categorized into organizational drivers, organizational and individual enablers and individual outcomes. Based on these categories, a model was put forward and empirically validated using data collected from three Spanish companies (n = 483) and using partial least squares structural equations modelling (PLS–SEM).FindingsA model was put forward, proposing PIRK systems (power, information, rewards, knowledge) as the main organizational driver of employee participation in CI activities. PIRK impacts positively on social influence (organizational enabler), self-efficacy and job satisfaction (individual enablers). These enablers, together with employee intention of participating, help determine employee participation in CI activities.Practical implicationsOrganizations with CI programmes should develop systems based on employee empowerment, information, rewards and knowledge in order to foster their self-efficacy and seek out a culture where social influence may help to improve job satisfaction. By suitably managing these organizational drivers, managers can help to further develop certain organizational and individual enablers responsible for fostering employee participation in CI activities.Originality/valueBy unifying different behavioural and CI-related frameworks, this paper carries out an in-depth study into the process of fostering employee participation as the key aspect in helping organizations sustain CI programmes. This paper shows the importance of managing PIRK organizational drivers as levers in the process of developing certain organizational and individual enablers, which are responsible for enhancing employee participation in CI.

The anatomy of the inconspicuous luxury fashion experience

2018 ◽  
Vol 22 (1) ◽  
pp. 129-156 ◽  
Author(s):  
Marian Makkar ◽  
Sheau-Fen Yap
Keyword(s):  
Consumer Behavior ◽  
Relationship Marketing ◽  
Design Methodology ◽  
Exploratory Research ◽  
Symbolic Consumption ◽  
Content Type ◽  
Starting Point ◽  
Managerial Implications ◽  
Depth Interviews ◽  
Practical Implications

Purpose The purpose of this paper is to address the following questions: how do consumers construct meaning around their inconspicuous luxury fashion experiences? What desires do inconspicuous consumers strive to fulfill? What sentiments do they associate with their inconspicuous luxury fashion consumption? Design/methodology/approach This exploratory research begins with a netnographic study of 11 online luxury blogs followed by in-depth interviews and home observations of ten luxury consumers with inconspicuous preferences in Dubai. Findings Inconspicuous choices are not simply for associative or dissociative motivations but several symbolic consumption schemas come into play. A typology of inconspicuous luxury fashion consumers has emerged: fashion influencers, trendsetters, fashion followers, and luxe conservatives. Practical implications The findings have potential to yield important managerial implications for fashion retailers and brand communications. The typology of inconspicuous consumers provides a basis for developing a more targeted relationship marketing program for luxury fashion brands. Originality/value This research advances luxury knowledge in fashion and consumer behavior research by unveiling how consumers construct meanings around their inconspicuous consumption. The typology developed in this study marks the starting point for further extensions to explore the complexities of inconspicuous luxury consumers, which are grounded in the roles they take on in society, how they plan their luxury consumption journey and how they eventually use these possessions for self-identification and communication to others.

scholarly journals Exploring competitive strategic performance consistency in service organizations

2018 ◽  
Vol 22 (2) ◽  
pp. 165-182 ◽  
Author(s):  
Carlos F. Gomes ◽  
Mohammad Najjar ◽  
Mahmoud M. Yasin
Keyword(s):  
Performance Measures ◽  
Open System ◽  
Customer Orientation ◽  
Dynamic Environment ◽  
Service Organizations ◽  
Future Research ◽  
Content Type ◽  
Strategic Orientations ◽  
And Performance ◽  
Practical Implications

PurposeAs service organizations move toward the open system strategic customer orientation, they need to ensure consistency among competitive methods, performance measures and strategies utilized. This paper aims to examine the relationships among these important facets of today’s service organizations. The study at hand examines the relationship among competitive methods, implicit strategy and performance measures used by Portuguese service organizations.Design/methodology/approachThis research uses a survey-based methodology. Factor analysis, cluster analysis and regression analysis procedures are used to analyze the collected data from Portuguese service organizations.FindingsBased on the results of this study, it appears that some of the studied service organizations are steadily moving toward the open system mode of strategy, competitive methods and performance measurement. However, the majority of the service organizations examined appeared to be in a state of strategic confusion, as they appear to lack the consistency among competitive methods, performance measures and desired strategic orientations.Research limitations/implicationsThe sample used in this study is specific in nature, as it includes only Portuguese service organizations. Therefore, the results of this study should be interpreted with caution. Future research in other cultural service settings is recommended. Such research should emphasize the exploration of theoretical frameworks, which tend to practically integrate competitive methods, performance measures and strategic orientation.Practical implicationsThis study has direct practical implications for service managers, as they attempt to integrate their organizational systems. As such, the research in this study paves the way toward the practical integration and consistency among competitive methods, performance measures and strategic orientations needed to enhance the customer orientation. In this context, such integration and consistency are essential to enhance the strategic competitiveness of today’s service organizations operating in a dynamic marketplace.Originality/valueThis research combines bodies of knowledge dealing with competitive methods, performance measures and their impact on strategic orientations. The conceptual framework offered in this research attempts to facilitate the understanding for consistent practice pertaining to the competitiveness of the open system service organization in a dynamic environment. Such consistency is essential to the competitiveness of the organization in a dynamic environment.

Improving performance through leaders' forgiveness: the mediating role of radical innovation

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Emilio Domínguez-Escrig ◽  
Francisco Fermín Mallén Broch ◽  
Ricardo Chiva Gómez ◽  
Rafael Lapiedra Alcamí
Keyword(s):  
Organizational Performance ◽  
Explanatory Variable ◽  
Radical Innovation ◽  
Structural Equations ◽  
Content Type ◽  
Mediating Role ◽  
Firm Turnover ◽  
The Relationship ◽  
Practical Implications

PurposeThe objective of this study is to analyze the relationship between leaders' forgiveness and organizational performance using radical innovation as an explanatory variable.Design/methodology/approachThe study was conducted in a sample frame of 11,594 Spanish companies. A total of 600 valid questionnaires were obtained. The structural equations were used to validate the proposed hypotheses.FindingsResults confirmed the hypotheses proposed in the model: the authors provided, through structural equations, empirical evidence of the relationship between leaders' forgiveness and organizational performance, mediated by radical innovation. Leaders' forgiveness promotes radical innovation and, in turn, performance.Research limitations/implicationsThe sample of companies is heterogeneous in terms of firm turnover, size and age. The study is focused on radical innovation.Practical implicationsThe present study may help to develop more humane policies to manage human resources, by taking into account employees' feelings and needs.Originality/valueThe business field is closer to competitive values and has traditionally underestimated the importance of leaders' forgiveness. This is one of the few studies that empirically analyze the consequences of leaders' forgiveness within organizations.

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