Impact of Credit Risk on Financial Performance: Mediating role of Operational Efficiency in banking Sector of Emerging Economy

Purpose: Financial performance of banks is an estimation of how better a company can use its assets for generating profits. Mostly the performance of banks is affected by modernization of financial system, technological advancements and deregulation. The aim of this study is to examine the mediating role of operational efficiency in relationship between credit risk and financial performance of banks. Design/Methodology/Approach: The research sample is 29 banks of Pakistan. Data for the study is collected from the published financial statements of banks ranges from 2011 to 2018. The data analysis technique used in this study is simple mediation analysis in structure equation modeling. Findings: The results reflect that operational efficiency partially significantly and inversely mediates the relationship of credit risk with financial performance. Implications/Originality/Value: One the basis of results it can be suggested that managers need to utilize their deposits carefully and should take more precautionary measures while granting loans. Managers and employees should maintain a better relationship and align their goals with the banks.

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The Effect of Marketing Capability on Financial Performance with the mediating role of Perceived Sevice Quality and the moderating role of Competitive Intensity. An empirical study on the Banking Sector in Indonesia

Petra International Journal of Business Studies ◽

10.9744/ijbs.1.2.80-88 ◽

2018 ◽

Vol 1 (2) ◽

pp. 80-88

Author(s):

Teguh Wibisono Santosa ◽

Hatane Samuel ◽

Devie .

Keyword(s):

Service Quality ◽

Financial Performance ◽

Banking Sector ◽

Marketing Capability ◽

Analysis Model ◽

Competitive Intensity ◽

Perceived Service Quality ◽

Mediating Role ◽

Relationship Of

This research aims to analyze the effects of Marketing Capability towards Financial Performance with Perceived Service Quality as Variable Intervening and Competitive Intensity as Variable Moderating at Banking Company in Indonesia. This research was conducted by distributing questionnaires to 170 respondents who are a customer of Bank. Quantitative analysis with path analysis model method was used for the technical analysis. The results of this research shows that the effect of Marketing Capability on Financial Performance is not significant, but the role of the Perceived Service Quality as an Intervening Variable, is able to strengthen the influence of Marketing Capability on Financial Performance to be a significant influence, and Competitive Intensity as a moderating variable on the relationship of Marketing Capability to Financial Performance does not have a significant effect but has a significant direct effect on Financial Performance.

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

Journal of Management Development ◽

10.1108/jmd-04-2020-0124 ◽

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.

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The Mediating Role of IT Governance Effectiveness between ITG and Financial/ Non-Financial Performance: Empirical Research on Egyptian Banking Sector

SSRN Electronic Journal ◽

10.2139/ssrn.3119507 ◽

2017 ◽

Author(s):

Mohammed Soliman ◽

Ahmed Hamdy Mohamed Zaky

Keyword(s):

Financial Performance ◽

Empirical Research ◽

Banking Sector ◽

It Governance ◽

Mediating Role ◽

Governance Effectiveness ◽

Role Of It

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A Proposed Framework Of Mediating Role Of Interpersonal Employee Conflict Between The Relationship Of Servant Leadership And Academicians OCB, Using PLS

International Journal of Engineering and Advanced Technology - Regular Issue ◽

10.35940/ijeat.e1195.0585c19 ◽

2019 ◽

Vol 8 (5C) ◽

pp. 1369-1374

Keyword(s):

Servant Leadership ◽

Organizational Citizenship ◽

Structure Equation ◽

Equation Modeling ◽

Mediating Role ◽

Structure Equation Modeling ◽

Relationship Of ◽

The Relationship ◽

New Framework

Interpersonal employee conflicts exist in every organization, which relates to Organizational citizenship behaviours of employees. This study investigates the mediating role of interpersonal employee conflict between the relationship of servant leadership approach and academicians OCB. Variance based structure equation modeling is implementes as smar PLS is used to investigate the reltionship. A new framework is proposed as Interpersonal employee conflict mediates the relationship between servant leadership and academicians OCB. It is recommened to reduce the interpersonal employee conflict as these hampers the relationship between servant leadership dimensios ad academicians OCB.

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INNOVATION, PROCESS CAPITAL AND FINANCIAL PERFORMANCE: MEDIATING ROLE OF MARKETING PERFORMANCE (EVIDENCE FROM MANUFACTURING INDUSTRY IN INDONESIA)

Humanities & Social Sciences Reviews ◽

10.18510/hssr.2019.7132 ◽

2019 ◽

Vol 7 (1) ◽

pp. 278-290 ◽

Cited By ~ 2

Author(s):

Bambang Tjahjadi ◽

Hanna Miriam Shanty ◽

Noorlailie Soewarno

Keyword(s):

Financial Performance ◽

Structural Equation ◽

Manufacturing Industry ◽

Equation Modeling ◽

Manufacturing Companies ◽

Data Set ◽

Mediating Role ◽

Marketing Performance ◽

The Relationship

Purpose of the Study: This paper aims to investigate the mediating role of marketing performance on innovation-financial performance relationship as well as on process capital-financial performance relationship using the publicly listed manufacturing firms on the Indonesia Stock Exchange (IDX). Methodology: This is a quantitative research employing marketing performance as the mediation variable. A mediation research model is constructed to test the hypotheses of this research using the Partial Least Squares Structural Equation Modeling. A new data set is prepared which involves the publicly listed manufacturing companies on the IDX covering a period of thirteen years from 2005 to 2017. Main Findings: The results of this research provide the following empirical evidence. Firstly, marketing performance partially mediates the relationship between innovation and financial performance. Secondly, marketing performance fully mediates the relationship between process capital and financial performance. Conclusion: This study provides a better understanding of managers regarding the mechanism of how innovation affects financial performance via marketing performance as well as on the mechanism of how to process capital affects financial performance via marketing performance. Application/Implication: This study implies that managers need to continuously innovate, improve manufacturing processes, and enhance marketing management to achieve better financial performance.

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Customer-contact employees’ empowerment and customer performance

International Journal of Productivity and Performance Management ◽

10.1108/ijppm-07-2017-0169 ◽

2019 ◽

Vol 69 (9) ◽

pp. 1833-1859

Author(s):

Sarra Berraies ◽

Rached Chtioui ◽

Mehrez Chaher

Keyword(s):

Performance Indicators ◽

Structural Equation ◽

Banking Sector ◽

Two Dimensions ◽

Customer Relationship ◽

Equation Modeling ◽

Customer Contact ◽

Content Type ◽

Mediating Role

Purpose The purpose of this paper is to explore the relationship between the customer-contact employees’ (CCE) empowerment and customer performance indicators, namely, perceived service quality (PSQ), customer satisfaction (CS), customer loyalty (CL) and word-of-mouth (WOM). The authors deepen the analysis by highlighting the mediating role of the dimensions of the customer relationship management (CRM) effectiveness in this link. The authors also investigate links between customer performance indicators. Design/methodology/approach An empirical study was carried out on the basis of a questionnaire administrated to a sample of 215 Tunisian bank CCE and 516 customers. Data analysis was performed using the structural equation modeling method. Findings Findings reveal that the CCE’ empowerment contributes to PSQ, CS and all the dimensions of CRM effectiveness which in turn are key factors of customer performance. This research also outlines the mediating role of two dimensions of the CRM effectiveness, namely, organizational commitment and customer experience between CCE’ empowerment and PSQ and CS, respectively. In addition, the study highlights that PSQ improves CS which is positively linked to CL. Finally, loyal customers tend to generate positive WOM. Originality/value Few studies have investigated the effects of the CCE’ empowerment on PSQ, CS, CL and positive WOM, especially in the banking sector. This research fills this gap by highlighting the mediating role of the dimensions of the CRM effectiveness in these links. This paper offers interesting insights to bankers by providing them with tools to improve their customers’ relationship. In this sense, banks must bet on the proximity of the CCE as a key asset that allows creating a real sense of closeness with customers and offers lighting to banks on how to create customized marketing approaches to ensure customer performance.

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Brand Empowerment and Brand Consistent Behavior: Mediating Role of Brand Psychological Ownership and Employee Brand Understanding

Pakistan Journal of Psychological Research ◽

10.33824/pjpr.2019.34.3.26 ◽

2019 ◽

Vol 34 (3) ◽

pp. 477-496

Author(s):

Mohsin Altaf ◽

Sany Sanuri Mohd Mokhtar ◽

Faisal Mustafa ◽

Arfan Shahzad

Keyword(s):

Positive Relationship ◽

Banking Sector ◽

Psychological Ownership ◽

Survey Method ◽

Mediating Role ◽

Multistage Sampling ◽

Relationship Of ◽

The Relationship ◽

Brand Understanding

This study aimed to investigate the connection of brand empowerment with employee brand understanding, brand psychological ownership, and brand consistent behavior. Secondly, mediating role of brand psychological ownership and employee brand understanding in the relationship of brand empowerment and brand consistent behavior was also examined. Survey method was used to collect data from 274 employees of banking sector through multistage sampling. Measures of Brand Consistent Behavior Scale (King, Grace, & Funk, 2012), Employee Brand Understanding Scale (Piehler et al., 2016), Brand Psychological Ownership Scale (Chang et al., 2012), and Brand Empowerment Scale (King, So, & Grace, 2013) were used. Results affirmed the positive relationship between brand empowerment with brand psychological ownership and employee brand understanding. Moreover, brand psychological ownership and employee brand understanding had positive relationship with brand consistent behavior of the employees. Findings further indicated that the relationship of brand empowerment and brand consistent behavior was mediated by brand psychological ownership and employee brand understanding. Implications of the study were also discussed.

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Exploring the mediating role of intellectual capital and competitive advantage on the relation between CSR and financial performance in SMEs

Social Responsibility Journal ◽

10.1108/srj-04-2015-0048 ◽

2017 ◽

Vol 13 (1) ◽

pp. 1-23 ◽

Cited By ~ 21

Author(s):

Priyanka Jain ◽

Vishal Vyas ◽

Ankur Roy

Keyword(s):

Financial Performance ◽

Competitive Advantage ◽

Intellectual Capital ◽

Geographical Area ◽

Mediating Effect ◽

Equation Modeling ◽

Content Type ◽

Mediating Role ◽

The Relationship

Purpose The relationship between corporate social responsibility (CSR) and financial performance (FP) is a much-researched topic in academic arena. Recent studies disclosed that intellectual capital (IC) significantly impacts the success and survival of organizations. Moreover, theoretical assertions confirm that competitive advantage (CA) mediates the association between IC and FP. This has opened up new dimensions for the study. Therefore, this study aims to develop a theoretical model, first, to specify these relations and, second, to explore the mediating role of IC and CA on the relation between CSR and FP in the context of small- and medium-sized enterprises (SMEs). Design/methodology/approach Hypotheses are tested through a survey conducted on 384 SMEs in Rajasthan state. A structured questionnaire having 38 variables was used, and collected data are subjected to confirmatory factor analysis. Structural equation modeling was used to validate the measurement model and to test the mediating effect. Findings The findings indicate a weak positive relation between CSR and FP. The empirical data provide supportive evidence that IC has a profound impact on CSR and FP relationship. Specifically, it was noticed that the mediating role of CA on this relationship was not as reflective as described in the literature. Research limitations/implications The limitation of this study is that it is limited to one country, more specific to one geographical area of a country; therefore, findings of the study cannot be generalized in terms of its implications to other regions and countries. Originality/value Very few empirical studies have analyzed the mediating role of IC and CA on the relationship between CSR and FP. This study is expected to enable scholars and practitioners to have a more definite and direct understanding of the implication of IC and CA in association between CSR and FP.

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Influence of Experiential Consumption and Social Environment of Local Tourists on the Intention to Revisit Tunisian Guesthouses: Mediating Role of Involvement in the Experience

Sustainability ◽

10.3390/su13126584 ◽

2021 ◽

Vol 13 (12) ◽

pp. 6584

Author(s):

Nesrine Khazami ◽

Zoltan Lakner

Keyword(s):

Social Environment ◽

Equation Modeling ◽

Theoretical Contribution ◽

Mediating Role ◽

Experiential Consumption ◽

The Social ◽

Relationship Of ◽

The Relationship ◽

Intention To Revisit

This study aims to examine the relationships between the experiential consumption, the social environment, and intention to revisit. The mediating role of involvement in the experience between experiential consumption and the intention to revisit and between the social environment and the intention to revisit has been expressed and tested. The data for this research was collected from local tourists staying in guesthouses scattered all over Tunisia. The authors applied structural partial least squares equation modeling to analyze 259 questionnaires completed by participants and to test the hypotheses. The authors found a positive and direct effects of the social environment on involvement in the experience while experiential consumption did not. In addition, the results indicated positive and significant indirect effects for the social environment on the intention to revisit through involvement in the experience. The results do not support a mediating role of involvement in experience on the relationship of experiential consumption and intention to revisit. In addition, the results showed a strong and positive effect of involvement in the experience on intention to revisit. This research makes a distinctive theoretical contribution to the literature of perceived experiential value by analyzing the relationships between experiential consumption and the social environment on experience involvement and intention to revisit a guesthouse. In addition, this study explores several practical implications of these results.

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The Impact of Perceived Training Utility on Transfer of Training: The mediating role of Motivation to Transfer

Jinnah Business Review ◽

10.53369/bdhc4428 ◽

2018 ◽

Vol 6 (1) ◽

pp. 7-12

Author(s):

Kamran Iqbal ◽

◽

Muhammad Arif ◽

Muhammad Zahid ◽

◽

...

Keyword(s):

Transfer Of Training ◽

Banking Sector ◽

Cognitive Theory ◽

Training Data ◽

Mediating Role ◽

Motivation To Transfer ◽

Relationship Of ◽

The Impact ◽

The Relationship

The purpose of this study was to examine the mediating role of motivation between the relationship of perceived training utility and transfer of training. Data were obtained from 215 employees working in the banking sector. SPSS and AMOS statistical software were used to test the hypothesized model. Consistent with social cognitive theory, results suggested a significant positive relationship of perceived training utility with motivation to transfer and transfer of training. The results further revealed that the relationship between perceived training utility and transfer of training had an indirect effect via Motivation to transfer. This study has made a significant theoretical contribution to the literature by exploring the mechanism through which perceived training utility affects transfer of training. This study will help HRD professionals to understand the importance of perceived training utility in transfer of training.

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