Moderating effect of support service quality on marketing IS sophistication and bank’s core competencies

2017 ◽  
Vol 8 (4) ◽  
pp. 711-731 ◽  
Author(s):  
Mohamed Salih Yousif Ali
Keyword(s):  
Service Quality ◽  
Banking Sector ◽  
Banking Industry ◽  
Core Competencies ◽  
Support Service ◽  
Superior Performance ◽  
Information Technology Managers ◽  
Content Type ◽  
Technology Managers ◽  
Effect Of Support

Purpose The purpose of the study is to examine the moderating effects of support service quality (SSQ) on marketing information services sophistication (MISS) and bank’s core competencies within banking sector. Design/methodology/approach To collect the data, the questionnaire approach and random sampling are chosen. The survey sample consisted of 180 banking branches information technology managers in Sudan’s banking industry. Findings The study evidenced that the effect of SSQ on the relationship between MISS and bank’s core competencies is a quasi-moderator and also indicate that the two components of MISS are positively and significantly associated with bank’s core competencies. Research limitations/implications The study is conducted in Sudan banking industry and generalization could be limited. Future studies will replicate the study in different industries or countries. Practical implications For the managers’ practice, the findings showed that MISS can deliver superior performance and efficiency (such as proper work flow, employee satisfaction, reducing complaints or enquiries and competitive capabilities) if it reinforced or strengthened by SSQ. Originality/value Empirical results support the positive link between MISS, SSQ and top core competencies. The benefit of that contribution is performance excellence competencies at the market.

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.

Examining the relationships among service features, customer loyalty and switching barriers in the Greek banking sector

2017 ◽  
Vol 9 (3/4) ◽  
pp. 425-440 ◽  
Author(s):  
Eleni Koutsothanassi ◽  
Nancy Bouranta ◽  
Evangelos Psomas
Keyword(s):  
Customer Satisfaction ◽  
Service Quality ◽  
Conceptual Framework ◽  
Customer Loyalty ◽  
Banking Sector ◽  
Banking Industry ◽  
Content Type ◽  
Switching Barriers ◽  
The Relationship

Purpose The aim of this paper is to present and empirically validate a conceptual framework that explores the links between the two service features (physical and interactive) and their impact on customer loyalty. It also introduces and investigates the potential intervening role of a single personality dimension (neuroticism) in the relationship between service features and customer loyalty. In addition, examining whether the customer’s switching barriers affect customer loyalty is also an aim of the present study. Design/methodology/approach A structured questionnaire was used to collect data from a sample of 224 customers in the banking industry in Greece. The respondents were picked using simple random sampling. Exploratory and confirmatory factor analyses were used to validate the latent factors of the proposed conceptual framework, whereas their relationships were examined through linear regression analyses. Findings The empirical data verify that physical and interactive features of service quality have a significant impact on customer loyalty. The study also concludes that customer neuroticism has an intervening effect on the relationship between service features and customer loyalty. In addition, switching barriers such as confidence benefits, special treatment benefits, switching costs and availability and attentiveness of alternatives affect a bank’s customer loyalty. Practical implications This perspective could improve managerial understanding of the service-quality/customer-loyalty relationship and lead to more focused decisions. During the period of economic Greek crisis, the customers’ learning and understanding, the immediate response to their needs and expectations, the provision of customer services in accordance with their personality type and the establishment a long and effective relationship with them may have an important impact not only on success but also mainly on bank survival. Originality/value Previous studies have shown the positive and significant relationship between customer satisfaction and loyalty in the banking industry, but this study extends the literature of consumer behavior theory by examining the distinct role that the physical and interactive service features play in the formation of customer loyalty. While it is known the role of personality in customer satisfaction has not been analyzed sufficiently the effect of neuroticism in the evolution of the above relationship. The present study tries to fill the bibliographic gap focusing on the Greek banking sector in the period of economic crisis.

Exploring relationships among ethical climate types and organizational commitment

2017 ◽  
Vol 9 (1) ◽  
pp. 20-40 ◽  
Author(s):  
Japneet Kaur
Keyword(s):  
Organizational Commitment ◽  
Employee Turnover ◽  
Ethical Climate ◽  
Banking Sector ◽  
Banking Industry ◽  
Negative Impact ◽  
Predictive Ability ◽  
Content Type ◽  
The Relationship ◽  
Three Components

Purpose Indian banking sector is facing a number of challenges, and increasing number of corporate frauds and employee turnover are among the top list. Literature reveals that gaining insights about ethical climate may provide a possible solution and relief from the challenges being faced. This paper aims to contribute to the understanding of the prevalent various ethical climate types in the Indian banking industry. Furthermore, it presents interesting results by investigating the effect of five theorized ethical climate types on organizational commitment along with its three components in the banking sector. Design/methodology/approach This empirical research encompasses a descriptive research design. Sample uses 266 respondents from four prime banks of the Indian banking industry. Findings Statistical analyses unveiled that all five conceptualized ethical climate types are prevalent in the Indian banking industry. However, the perception of employees for caring climate was the highest among all others. In contrast to the results reported by Western studies, this research reveals a strong negative impact of instrumental climate on affective commitment. Furthermore, it has been seen that instrumental climate is a significant predictor for the three components of commitment (affective, continuance and normative). However, it fails to predict the overall organizational commitment construct. Likewise, opposed to findings of Western countries, law and code, rules and independent climate types have shown significant relationship and impact on organizational commitment for Indian banking sector employees. It has been found that different commitment components are predicted by a diverse mix of climate types in India. Practical implications Findings highlight varying strength of relationship and predictive ability of different ethical climate types with commitment. This helps in elucidating that managers and top executives should focus on building an ethical work environment to warrant high-level commitment among employees. Congruence between employee, manager and organizations’ perception of ethics is a pre-requisite for maintaining a long-term relationship among the parties. This study will enable understanding the role of ethical climate in reducing corporate frauds and employee turnover. Originality/value This research addresses a significant gap in literature by exploring the relationship between ethical climate and organizational commitment. The study uses data from the Indian banking industry which contributes to expanding knowledge of the relationship in the Indian context.

Gamification in banking: a review, synthesis and setting research agenda

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Shilpa Chauhan ◽  
Asif Akhtar ◽  
Ashish Gupta
Keyword(s):  
Research Agenda ◽  
Banking Sector ◽  
Banking Industry ◽  
Psychological Theory ◽  
Future Research ◽  
Content Type ◽  
Bank Management ◽  
Customer Behaviour ◽  
The Future ◽  
The Impact

Purpose The objective of this paper is to explore and extend the existing literature on the use of gamification in banking. Design/methodology/approach Gamification is a new concept, further its application in banking is in a nascent stage both from the perspective of research and application. To systematise the limited literature and to draw the future research prospects, studies are presented based on theories, characteristics, context and methodologies framework. Findings The synthesis of the literature on gamification opened to a spectrum of areas to determine the future of gamification in the banking industry. The study emphasises the use of social and psychological theory building in the banking industry. Further, the research on game elements is an underexplored area in the banking domain, while they have well exploited in other contexts. Banking context needs more literature evidence, empirically tested and validated research methods to understand the personality traits and customer behaviour arising from the use of gamification. Practical implications For bank management, this study lays the impact of gamification in this era of digital banking. With the right mix of hedonic and utilitarian elements, bank management shall be able to boost financial literacy, improve saving habits, simplify banking products and strengthen knowledge updates among bank employees. Understanding the key elements and present status of research on gamification and their impact on customer behaviour development is crucial for the bank in building strategic advantage. Originality/value This study on gamification applied explicitly to the banking sector. With no clear application of the elements and mechanics of technology used in gamification, this study presents past literature in a systematised manner and draws the future research agenda of gamification in banking services.

Market structure-performance hypothesis in Kenyan banking industry

2015 ◽  
Vol 10 (4) ◽  
pp. 697-710 ◽  
Author(s):  
Solomon W. Giorgis Sahile ◽  
Daniel Kipkirong Tarus ◽  
Thomas Kimeli Cheruiyot
Keyword(s):  
Market Structure ◽  
Market Efficiency ◽  
Market Share ◽  
Commercial Banks ◽  
Banking Sector ◽  
Banking Industry ◽  
Developing Economies ◽  
Market Concentration ◽  
Bank Performance ◽  
Content Type

Purpose – The purpose of this paper is to test market structure-performance hypothesis in banking industry in Kenya. Specifically, the structure-conduct-performance (SCP) and market efficiency hypotheses were examined to determine how market concentration and efficiency affect bank performance in Kenya. Design/methodology/approach – The study used secondary data of 44 commercial banks operating from 2000 to 2009. Three proxies to measure bank performance were used while market concentration and market share were used as proxies for market structure. Market concentration was measured using two concentration measures; the concentration ratio of the four largest banks (CR4) and Herfindahl-Hirschman Index, while market share was used as a proxy for efficiency. The study made use of generalized least square regression method. Findings – The empirical results confirm that market efficiency hypothesis is a predictor of firm performance in the banking sector in Kenya and rejects the traditional SCP hypothesis. Thus, the results support the view that efficient banks maximize profitability. Practical implications – The study provides insights into the role of efficiency in enhancing profitability in commercial banks in Kenya. It has managerial implication that profitable banks ought to be efficient and dispels the notion of collusive behavior as a precursor for profitability. Originality/value – The paper fills an important gap in the extant literature by proving insights into what determines bank profitability in banking sector in Kenya. Although this area is rich in research, little work has been conducted in the developing economies and in particular no study in the knowledge has addressed this critical issue in Kenya.

Internal marketing, service quality and perceived customer satisfaction

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Leigh De Bruin ◽  
Mornay Roberts-Lombard ◽  
Christine De Meyer-Heydenrych
Keyword(s):  
Customer Satisfaction ◽  
Service Quality ◽  
Banking Industry ◽  
Marketing Mix ◽  
Internal Marketing ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Content Type ◽  
Internal Process ◽  
Perceived Ability

Purpose This study aims to explore the extent to which internal marketing influences employees’ perceived ability to deliver service quality in the Islamic banking industry in Oman. Additionally, the influence of perceived service quality on perceived customer satisfaction is established. Design/methodology/approach Data was obtained from retail banking branch employees at the customer front line of Islamic banks in Oman using electronic and person-administered surveys, and 272 responses were deemed suitable for data analysis. The measurement and structural models were measured through structural equation modelling. Findings The findings show that internal promotion, internal process and internal purpose are enablers of employees’ perceived ability to deliver service quality in the Islamic banking industry of Oman. In addition, service quality was found to have a strong positive influence on perceived customer satisfaction in Islamic banks. Research limitations/implications This study demonstrates that internal product, internal price, internal promotion, internal process and internal purpose are influencers of service quality, and the latter has a direct relationship with perceived customer satisfaction in Islamic banking. Practical implications The findings can guide the Islamic banking sector in Oman on how internal marketing can foster service quality, ultimately leading to positive perceived customer satisfaction experiences. Originality/value The internal marketing mix model is predominately a Western model, which has been tested primarily in mature Western markets. This study reflects on ten internal marketing mix elements, which have been tested for the enablement of service quality and perceived customer satisfaction in Oman.

Core – competencies – a key to future – oriented and sustainable e-governance implementation: a mixed method research

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Apeksha Hooda ◽  
M L Singla
Keyword(s):  
Service Quality ◽  
Mixed Method ◽  
Core Competencies ◽  
Partial Least Square ◽  
Least Square ◽  
Mixed Method Research ◽  
Content Type ◽  
The Core ◽  
Strategic Implementation ◽  
The Government

Purpose The purpose of this paper is to empirically identify the themes of core-competencies required for future-oriented and sustainable e-governance practices, especially across the developing nations. Design/methodology/approach The present study has been conducted using the sequential mixed method research wherein the exploratory qualitative study is first carried out with the government officials involved in e-governance implementation across India to identify the themes of core-competencies. The findings of this exploratory study are then empirically tested with the 359 respondents from Group A and Group B officers of the two government departments in India using partial least square technique. Findings The findings suggested that to ensure the implementation of future-oriented and sustainable e-governance, it is required to develop the core-competencies. The significant core-competencies explored are, namely, process management, employee engagement, internal service quality, external service quality, citizen satisfaction, leadership, culture and technology. Research limitations/implications As strategic implementation of e-governance is a relatively new area of study, the present study has used the learning from core-competencies studies in the non-government sector. Practical implications The findings of this study underscore the need for strategic implementation of e-governance to have long-term success of e-governance. The requirement is to develop the core-competencies. These core-competencies are the key to making the government departments proactive in dealing with any future contingency without compromising on the departmental performance. Originality/value The present research is one of the few research studies focusing on the implementation of sustainable and future-oriented e-governance. The current study has laid the stepping stone for investigating the role of core-competencies to ensure the implementation of sustainable and future-oriented e-governance.

IT to support service quality excellence in the Australian banking industry

1998 ◽  
Vol 8 (5) ◽  
pp. 350-358 ◽  
Author(s):  
Beverley Lloyd‐Walker ◽  
Yen Ping Cheung
Keyword(s):  
Service Quality ◽  
Banking Industry ◽  
Support Service

Credit risk management of Ghanaian listed banks

2016 ◽  
Vol 58 (2) ◽  
pp. 162-178 ◽  
Author(s):  
Michelle Ayog-Nying Apanga ◽  
Kingsley Opoku Appiah ◽  
Joseph Arthur
Keyword(s):  
Risk Management ◽  
Credit Risk ◽  
Management Practices ◽  
Banking Sector ◽  
Banking Industry ◽  
Credit Risk Management ◽  
Structured Interviews ◽  
Content Type ◽  
Credit Risks ◽  
Commercial Loans

Purpose – The study aims to assess credit risk management practices within financial institutions in Ghana. Specifically, the study compares credit risk management practices of listed banks in Ghana with Basel II (1999). Design/methodology/approach – The analysis is based on data gathered from varied sources, namely, use of questionnaires, analysis of internal credit policies and procedure manuals and semi-structured interviews and discussions with credit risk managers of the selected banks in May 2007 and October 2014. Findings – Overall, the credit risk management practices within listed banks in Ghana are in line with sound practices. The only dissimilarity, however, is the role of the board of directors in defining acceptable types of loans and maximum maturities for the various types of loans. The listed banks in Ghana are also exposed to credit risks associated with granting both corporate and small business commercial loans and the use of collaterals to mitigate their credit risk exposures. Practical implications – Banks in Ghana should consider developing the skills of all their personnel and appropriately motivating those involved in the credit risk management processes to ensure that they carry out this process efficiently. Originality/value – Research into credit risk management in the banking industry from the Ghanaian perspective remains scant. This study is, therefore, timely, and its findings are invaluable for the efficient management of credit risk in the banking industry. This study provides policy recommendations which will enhance shareholder value and, in this way, contribute to greater stability in the banking sector in developing countries, in particular.

Sharia’h practice at Islamic banks in Pakistan

2018 ◽  
Vol 9 (3) ◽  
pp. 274-289
Author(s):  
Muhammad Tariq Majeed ◽  
Abida Zainab
Keyword(s):  
Risk Sharing ◽  
Banking Sector ◽  
Islamic Law ◽  
Banking Industry ◽  
Supervisory Board ◽  
Primary Data ◽  
Equation Modeling ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Content Type

PurposeIslamic banks provide an alternative financial system based on Sharia’h (Islamic law). However, critics argue that operation at Islamic banks is violating Sharia’h particularly in terms of provision of interest free services, risk sharing and legal contract. The purpose of this paper is to empirically evaluate the Sharia’h practice at Islamic banks in Pakistan by considering some basic principles of Sharia’h. Design/methodology/approachPrimary data are collected from 63 branches of Islamic banks in Pakistan. Questionnaire is used as an instrument. The study uses structural equation modeling that includes confirmatory factor analysis and regression analysis. Data are codified and analyzed using SPSS and Amos. FindingsThis study finds that Islamic banks are providing interest free services, ensuring that transactions and contracts offered by Islamic banks are legal and offering conflict-free environment to customers. In contrast, estimated results expose that Islamic banks are not sharing risk and Sharia’h supervisory board is not performing its role perfectly. Similarly, it is found that organization and distribution of zakat and qard-ul-hassan are weak at Islamic banks. Research limitations/implicationsData are collected from Islamabad federal capital of Pakistan that hold just 5 per cent share of Islamic banking industry. This small share may not provide true picture of Islamic banking sector. Practical implicationsTo ensure risk sharing, Islamic banking industry must consider the development of new modes of financing and innovation of more products based on Sharia’h. State Bank of Pakistan should ensure separate regulatory framework that enable Islamic banks to provide qard-ul-hassan, organize and allocate zakat. Originality/valueThis paper discusses the perception of bankers, who are actually the executors, about Shariah’s practices at Islamic banks in Pakistan. There are not many discussions on this topic that could be found, and hence this could be considered as a significant contribution by this paper to the existing literature of Islamic finance.

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