scholarly journals Can Corporate Fairness towards Public Authorities Enhance Customer Loyalty? A Multi-Sectorial Investigation in a Developing Country

2019 ◽  
Vol 12 (1) ◽  
pp. 187 ◽  
Author(s):  
Ovidiu I. Moisescu ◽  
Oana A. Gică ◽  
Victor O. Müller ◽  
Camelia Ancuța Müller

This paper investigates how customer loyalty can be enhanced by improving customers’ perceptions of corporate fairness towards public authorities, taking into account the mediating role of customer-company identification, in a multi-sectorial context, in a developing country in Central and Eastern Europe. The investigation is conducted comparatively within four main industries (telecom services, retail banking services, dairy products and personal care products) and depicts the particular impact these perceptions have on customer loyalty in each domain, with practical implications concerning corporate social responsibility (CSR) communications. A consumer survey was designed and implemented among a sample of 1464 customers from Romania. The collected data was analyzed by means of partial least squares structural equation modeling (PLS-SEM). We found that customers’ perception of corporate fairness towards public authorities has a significant and positive impact on customer loyalty in all investigated industries, both directly and indirectly via customer-company identification, with a higher impact for services, especially for retail banking services.

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mohd Ahmad Al-Hawari ◽  
Shaker Bani-Melhem ◽  
Faridahwati Mohd. Shamsudin

Purpose This study aims to build on the trait activation and interactionist perspective theories to investigate the effect of frontline employees’ (FLEs) willingness to take risks on hotel guest loyalty by assessing the mediating role of their innovative behaviors. It also examines whether decentralization strengthens the positive impact of willingness to take risks on innovative behavior and, subsequently, customer loyalty. Design/methodology/approach The authors collected multilevel data from various sources – hotel FLEs (n = 183), hotel operation managers (n = 46) and hotel guests/customers (n = 266) – from five-star hotels operating in Dubai. Structural equation modeling and PROCESS macro (version 3.5) were used to analyze the data. Findings The findings showed that willingness to take risks indirectly (via innovative behaviors) affects guest/customer loyalty positively. This effect is strengthened when the hotel is decentralized. Practical implications This study provides insight into how hotel managers can foster customer loyalty. More specifically, they can do so by establishing employees’ innovative behaviors triggered by employees’ positive personality traits and by giving employees more autonomy. Originality/value The present study addresses recent calls to investigate the positive impact of FLEs’ personality traits, attitudes and behaviors on customer loyalty.


SAGE Open ◽  
2020 ◽  
Vol 10 (1) ◽  
pp. 215824401989910 ◽  
Author(s):  
James Agyei ◽  
Shaorong Sun ◽  
Eugene Abrokwah ◽  
Emmanuel Kofi Penney ◽  
Richmond Ofori-Boafo

This study examined the influence of trust dimensions on customer engagement, and the resultant impact of customer engagement on customer loyalty in the context of life insurance. Furthermore, it investigated the mediating role of customer engagement in the relationships between trust dimensions and customer loyalty. A total of 452 valid responses from life insurance customers in Ghana were examined using structural equation modeling (SEM). The results revealed that trust in service provider, trust in the regulator, economy-based trust, and information-based trust significantly influence customer engagement, with trust in service provider and trust in the regulator driving a higher level of customer engagement. The results also uncovered that customer engagement significantly enriches customer loyalty and mediated the relationships between the trust dimensions and customer loyalty. The findings highlight the importance of building convincing customer trust to advance customer engagement and customer loyalty.


2014 ◽  
Vol 28 (5) ◽  
pp. 361-373 ◽  
Author(s):  
Husni Kharouf ◽  
Donald J. Lund ◽  
Harjit Sekhon

Purpose – The purpose of this paper is to investigate the role of retailer trustworthiness in driving customer trust and the subsequent impact on loyalty. The authors position trustworthiness as a mediator in the link between retail strategies and the development of trust. They model customer loyalty to the service retailer as a function of the trust created through trustworthy perceptions. Design/methodology/approach – The authors validate their model using 420 survey responses from customers in a service retail setting. Nine research hypotheses were tested using structural equation modeling. Alternate models are estimated, and the results provide support for the theory-based trustworthiness mediation model. Findings – Trustworthy behaviors first build trustworthiness, which then translates into customer trust and ultimately has a positive impact on both behavioral and attitudinal loyalty. Research limitations/implications – The research highlights the importance for retailers to signal their trustworthiness to build customer trust and loyalty. Researchers should measure trustworthiness perceptions when examining customer relationships and managers should plan strategically to develop both trust and trustworthiness with their customers. Originality/value – This study is one of the first to investigate the mediating effect of trustworthiness on customer loyalty in service settings. While past research has investigated dimensions of trustworthy behaviors, none has included a measure of trustworthiness perceptions and consumer trust in the same theoretical model. The results of the research provide important insights for both researchers and managers.


Author(s):  
Albertus Fenanlampir

The purpose of this research is to examine the influence of consumer sentiments on purchase intention toward foreign products and to determine which personality traits are responsible for the formation of consumer sentiments. In this study, we employed Structural Equation Modeling to test the research model using data collected from a survey of 400 young Vietnamese consumers in Ho Chi Minh City. The results provide empirical evidence of the positive impact of consumer cosmopolitanism and xenocentrism on consumers’ purchase intention toward foreign products. Furthermore, through this study, we indicated that certain personality traits shape consumer sentiments. Generally speaking, in the context of foreign consumption, there is an enhanced link between personality traits and purchase intention via the mediating role of consumer sentiments. Theoretical and managerial implications are also discussed.


2019 ◽  
pp. 1-16 ◽  
Author(s):  
Ayman Mousa Mahmoud Alnaimi ◽  
Husam Rjoub

AbstractResearch on the knowledge sharing has exploded over the past decades due to trends and integration of knowledge and talent management in modern workplace. However, knowledge hiding has been left unexplored; moreover, efforts to foster knowledge sharing remain because employees are unwilling to share their knowledge for several reasons. Drawing on psychological ownership and social exchange theory, this article investigated the nexus between perceived organizational support, psychological entitlement, knowledge hiding behavior, and extra-role behavior, and the mediating role of knowledge hiding behavior. Utilizing survey data collected from 375 employees in Jordanian commercial banks, a structural equation modeling was applied to analyze the data. Results from structural equation modeling show that (1) perceived organizational support has a positive impact on extra-role behavior, (2) knowledge hiding behavior has a negative impact on extra-role behavior, (3) psychological entitlement has a positive impact on knowledge hiding behavior, and (4) knowledge hiding behavior mediated the relationship between psychological entitlement and extra-role behavior. Implications for theory and practice are discussed.


2019 ◽  
Vol 41 (3) ◽  
pp. 420-435 ◽  
Author(s):  
Arshad Mahmood ◽  
Muhammad Naseer Akhtar ◽  
Usman Talat ◽  
Chuanmin Shuai ◽  
James C. Hyatt

PurposeThe purpose of this paper is to increase understanding of the influence mechanisms of specific HR practices variables – salary, job stability and job enrichment – upon employee commitment, through the mediating role of job satisfaction, in a developing country context. Crucially, these indicate employee commitment.Design/methodology/approachThe study analyzed three specific HR practices with a sample of 263 employees in the banking industry of Pakistan. A structural equation modeling methodology is adopted.FindingsThe findings indicate that remuneration strategies were positively related to job satisfaction and employee commitment. Regarding the intervening impact of job satisfaction, this study found that it mediates only for non-monetary strategies between job satisfaction and employee commitment.Research limitations/implicationsA key limitation is that this is a cross-sectional study, perhaps not generalizable over longitudinal approaches. Another limit is posed by the developing country context of this study, perhaps not applicable to some developed countries.Practical implicationsFrom an HR perspective, managing salary structure is an ongoing issue. The proposed model suggests the use of specific practices about satisfaction and commitment as intermediate steps to manage employee commitment.Originality/valueThe research offers a unique understanding from the developing country context of Pakistan. This provides a novel study conducted to examine employee commitment using the high-performance work practices model.


2020 ◽  
Vol 4 (1) ◽  
pp. 1
Author(s):  
Nicholas Wilson

Penelitian ini dilakukan guna mengetahui bagaimana pengaruh service quality dan corporate reputation terhadap loyalty, baik secara langsung ataupun tidak langsung melalui trust. Penelitian ini mengimplementasikan metode survei, dimana, kuesioner digunakan sebagai alat untuk mengumpulkan data yang diperlukan pada penelitian ini. Sebanyak 200 responden berpartisipasi pada penelitian ini, dimana, dari 200 data yang terkumpul, sebanyak 191 data dinyatakan valid, reliable dan dapat digunakan untuk selanjutnya diproses pada penelitian ini. Data selanutnya dianalisa dengan metode partial least squares-structural equation modelling (PLS-SEM). Berdasarkan hasil analisis data yang diperoleh, peneliti dapat menyimpulkan bahwa service quality dan corporate reputation berpengaruh positif terhadap loyalty, baik secara langsung ataupun tidak langsung melalui trust pada industri Perhotelan di Indonesia. This research was conducted in order to determine the impact of service quality and corporate reputation toward customer loyalty, both directly and indirectly through trust in the Indonesian hospitality sector. This research implements ssurvey method, in which quaestionnaires were utilized as the tools to collect all of the data required for the completion of this study. A total od 200 respondents participate in this study, in which, out of 200, 191 data had been deemed valid, reliable and usable to be further processed in this research. All of the data then were analyzed using partial least squares-structural equation modeling (PLS-SEM) method. Based on the results of the data analysis, author would like to conclude that both service quality and corporate reputation had a positive impact on customer loyalty, both directly and indirectly through trust in the Indonesian hospitality sector.


2020 ◽  
Vol 4 (1) ◽  
pp. 46-55
Author(s):  
Roby Nurismartian ◽  
Prof. Ir. Hendra Michael Roy Sembel, MBA., Ph.D., CSA

The objective of this study is to analyze the relationship of service quality on agents’ satisfaction, service quality on agents’ loyalty, and satisfaction on loyalty when they used the insurance portal XYZNet as a digital tools provided by PT Asuransi XYZ Indonesia for their agents’ to increase market share in retail business in Indonesia. Where the portal was facing the challenge of the low number of usage. This study used a quantitative approach, involved 100 respondents which have minimum five times using this portal as samples. The analysis technique used in this study is Partial Least Square (PLS) Structural Equation Modeling (SEM), with the help of SmartPLS version 3.2.8 software. The results indicated that service quality positively influenced agents’ satisfaction, satisfaction also positively influenced agents’ loyalty. However service quality did not significantly influenced agents’ loyalty. The finding also indicated that satisfaction was a significant variable that mediated the relationship between service quality and loyalty. The study gives positive impact to the future researchers to do similar study. Furthermore, the finding could help PT Asuransi XYZ Indonesia and insurance company in general to improve their service quality.


Author(s):  
Ismail Raisal ◽  
Arun Kumar Tarofder ◽  
Aboobucker Ilmudeen

PurposeDeveloping countries’ economic growth very much depend on the successful performance of entrepreneurial-oriented firms. Entrepreneurial orientation (EO) is a valuable conjecturer of firm success. This study mainly focuses on analyzing the effect of EO on the firm performance (FP) with the mediating role of absorptive capacity (ACAP).Design/methodology/approachTo test the hypothetical model, we collected 226 valid responses from senior managers of small and medium enterprises (SMEs). The structural equation modeling technique is performed and research hypotheses are validated.FindingsThe findings show that the strong causal relations exit between EO, ACAP and FP. In brief, EO was found to be a predictor of ACAP, and ACAP has a strong positive impact on FP. Moreover, ACAP substantiated to be a mediator between EO and FP.Research limitations/implicationsA notable ramification of this finding is that for SMEs to enhance their performance via EO, the presence of ACAP as a mediator is essential.Practical implicationsThe findings of this study can be used as a basis to consider EO to increase firms' level of ACAP and to enhance FP. As a whole, the findings offer pragmatic insights for SMEs and pertinent stakeholders.Originality/valueSo far, little is known about the interrelationship between EO, ACAP and FP. Importantly, the mediating role of ACAP between EO and FP has remained unexplored. This study fills this gap in the existing literature.


SAGE Open ◽  
2021 ◽  
Vol 11 (1) ◽  
pp. 215824402198962
Author(s):  
Ozlem Uzunsaf Yamak ◽  
Serife Zihni Eyupoglu

The present study aims to examine the effect of authentic leadership (AL) on service innovative behavior (SIB) of employees as well as to identify whether proactive personality (PP) mediates this connection at an individual level. The quantitative cross-sectional study design was utilized to gather information from a study sample which consisted of 428 front-line employees (FLE) working at banks located in North Cyprus. Specifically, the study uses confirmatory factor analysis (CFA), correlation, structural equation modeling (SEM), and bootstrapping techniques to test the hypothesized relationships. The results reveal that both AL and PP have a significant positive effect on SIB; AL has a positive impact on PP of FLE, and PP plays a partial mediating role between AL and SIB of FLE. By relating the study findings, authenticity and proactivity in the banking sector in North Cyprus play a critical role in fostering the innovative behaviors of FLE. The study also discusses the practical and managerial implications, as well as the future scope.


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