scholarly journals Impact of Operational Efficiency and Customer Satisfaction on Banking Performance: Empirical Examination on UAE Islamic Banking

2019 ◽  
Vol 8 (2S10) ◽  
pp. 304-309
Keyword(s):  
Customer Satisfaction ◽  
Customer Service ◽  
Structural Equation ◽  
Goodness Of Fit ◽  
Banking System ◽  
Operational Efficiency ◽  
Islamic Banking ◽  
Empirical Examination ◽  
Study Results ◽  
The Impact

The primary aim of the research is to examine the effect of operational efficiency and customer satisfaction in case of Islamic banking performance in UAE. Proposed model’s evaluation was done using questionnaire survey data that was obtained from 158 valid responses from Customer Service Officers, Bank Managers, Front Line Officers, and Assistant Manager working in the Islamic banks of UAE. Structural Equation Modelling via PLS3.0 software was used to define the crucial levels of associations and interactions between the tested factors. The proposed model, as evidenced by the goodness of fit of the model to the data, explained 39% of the variance in the Islamic banking performance. The multivariate analysis showed a major impact of operational efficiency on Islamic banking performance as compared to the impact on customer satisfaction. The study results gave insights into the strategies of Islamic banking system.

Income Diversification and Bank Efficiency in Vietnam

2017 ◽  
pp. 52-67
Author(s):  
Sang Nguyen Minh
Keyword(s):  
Regression Model ◽  
Commercial Banks ◽  
Banking System ◽  
Operational Efficiency ◽  
Commercial Banking ◽  
Tobit Regression ◽  
Income Diversification ◽  
Positive Effects ◽  
Study Results ◽  
The Impact

This study uses the DEA (Data Envelopment Analysis) method to estimate the technical efficiency index of 34 Vietnamese commercial banks in the period 2007-2015, and then it analyzes the impact of income diversification on the operational efficiency of Vietnamese commercial banks through a censored regression model - the Tobit regression model. Research results indicate that income diversification has positive effects on the operational efficiency of Vietnamese commercial banks in the research period. Based on study results, in this research some recommendations forpolicy are given to enhance the operational efficiency of Vietnam’s commercial banking system.

scholarly journals Factors Influence the Adoption of the Islamic Banking System: Customers Perception in Pakistan

ETIKONOMI ◽  
2019 ◽  
Vol 18 (2) ◽  
pp. 275-286
Author(s):  
Muhammad Masood Mir ◽  
Daniyal Iftikhar ◽  
Osama Ahsan ◽  
Nousheen Abbas Naqvi
Keyword(s):  
Customer Service ◽  
Structural Equation ◽  
Banking Sector ◽  
Positive Impact ◽  
Banking System ◽  
Customer Relationship ◽  
Equation Modeling ◽  
Islamic Banking ◽  
Analysis Tool ◽  
Customer Preferences

The purpose of this paper is to analyze customer perceptions of the banking sector after the advent of the Islamic banking system. This research uses structural equation modeling as its analysis tool. The results of the analysis illustrate that the range of customer service and the length of the bank-customer relationship has a positive impact on customer preferences in choosing Islamic banking. This study provides a framework not only for the banking sector but also for other organizations. This study is an effort so that each organizational policy is appropriate to get customer preferences and optimal results in the form of satisfied and loyal customers.JEL Classification: G21, G29

scholarly journals Customer satisfaction in the digital era: evidence from Islamic banking

2020 ◽  
Author(s):  
Ghazi zouari ◽  
Marwa Abdelhedi
Keyword(s):  
Factor Analysis ◽  
Customer Satisfaction ◽  
Service Quality ◽  
Customer Service ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Five Dimensions ◽  
Islamic Bank ◽  
Digital Era ◽  
The Impact

Abstract PurposeBased upon an extended SERVQUAL model, this paper attempts to contribute to the Islamic banking literature by examining the impact of digitalization, as a service quality dimension, on customer satisfaction.Design/methodology/approachTwo dimensions, i.e. digitalization and compliance are added to the existing SERVQUAL model of five dimensions. Results are drawn from a self-completed survey of a convenience sample of 145 Tunisian Islamic bank customers for the year 2018. Factor analysis and regression analysis are used to determine factor structure and determine the impact of service quality dimensions, especially digitalization, on customer satisfaction in Islamic banking.FindingsThe factor analysis extracted five dimensions of service quality, i.e. confidence, compliance, digitalization, tangibles and human skills. The paper demonstrates a positive and significant relationship between the main dimensions of customer service quality and customer satisfaction, except for tangibles.Research limitations/implicationsAlthough the outcomes lend support to the extended SERVQUAL model, the results are derived based on a relatively small sample size in one country (Tunisia). This limits the generalizability of the study results. It might also be useful to enlarge the study sample and include a comparison between Islamic versus conventional banking about service quality and customer satisfaction.Managerial implications:To remain competitive, Tunisian Islamic banks need to pay attention to the way the services are delivered and not take it for granted that customers are only focusing on compliance. Dealing henceforth with Generation Y customers, they must persevere in bringing their customer service into the digital era.Originality/valueThis study is one of few which try to investigate the drivers of customer satisfaction for Islamic banks in a Digital Era. It reveals that although customers pay special attention to Sharia’ laws, the way services are delivered matters to them too. From now on, digital banking must appear among the Islamic bank features to stay relevant in the Digital Era.

The impact of customer service quality on customer satisfaction in Islamic banking

2017 ◽  
Vol 8 (4) ◽  
pp. 595-604 ◽  
Author(s):  
Mohamed Abdulnaser Janahi ◽  
Muneer Mohamed Saeed Al Mubarak
Keyword(s):  
Customer Satisfaction ◽  
Service Quality ◽  
Customer Service ◽  
Banking Sector ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Content Type ◽  
Quality Dimensions ◽  
Service Quality Dimensions ◽  
The Impact

Purpose The purpose of this paper is to contribute to the Islamic banking literature by examining the impact of different factors of customer service quality on customer satisfaction. Design/methodology/approach The paper presents a model which is not frequently used in Islamic banking literature and shows relationships between six factors of customer service quality and customer satisfaction in the Islamic banking sector. Customers of five main Islamic banks are contributing in this study. Findings This paper demonstrates strong and positive relationships between the six main dimensions of customer service quality (Compliance, Assurance, Reliability, Tangibility, Empathy and Responsiveness) and customer satisfaction. Research limitations/implications The study may suffer from lack of generalization, as it is conducted in one country (Bahrain). It might also be useful to enlarge the study sample and include comparison between Islamic versus conventional banking with regard to service quality and customer satisfaction. Practical implications This paper can influence the current Islamic banks with regard to service quality with an ultimate aim of increasing customer satisfaction and retaining customers. Originality/value This study is one of the few that focus on effects of customer service quality dimensions on customer satisfaction in the Islamic banking sector. It reveals that, although customers pay special attention to Sharia’h laws (compliance) in their transactions with banks, the way services are delivered matters to them too.

scholarly journals Analyzing the Moderating Effect of Perceived Brand Image in Creating Customer Loyalty: A Case of Indian Telecom Industry

YMER Digital ◽  
2022 ◽  
Vol 21 (01) ◽  
pp. 226-240
Author(s):  
Sasmita Pattnaik ◽  
◽  
Uma Sankar Mishra ◽  
Keyword(s):  
Customer Satisfaction ◽  
Customer Loyalty ◽  
Structural Equation ◽  
Cell Phone ◽  
Structural Equation Models ◽  
Service Providers ◽  
Brand Image ◽  
Service Business ◽  
Study Results ◽  
The Impact

Service providers in Indian telecommunication industry are now facing lots of challenges for their sustainability in tough competition because of varying wants of customers. Provision of quality service, initiatives of public relationship programmes, and generation of timely customer satisfaction are now of major concerns. In addition to these, positioning a proper brand image in customers’ mindset is equally important. The present study investigates all these factors of service business concerns to know the key determinants of achieving appropriate customer loyalty. Around 214 numbers of cell phone users were surveyed through a structured tested questionnaire in the state of Odisha, India and then all collected responses were analyzed through structural equation models. Study results showed that perception on public relation moderated by brand image has no role in creating customer loyalty. Again, after introduction of brand image as moderator, the impact of service quality on customer satisfaction becomes insignificant. However, customer satisfaction plays a major role in the variation of customer loyalty.

scholarly journals Customer satisfaction in the digital era: evidence from Islamic banking

2020 ◽  
Author(s):  
Ghazi zouari ◽  
Marwa Abdelhedi
Keyword(s):  
Factor Analysis ◽  
Customer Satisfaction ◽  
Service Quality ◽  
Customer Service ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Five Dimensions ◽  
Islamic Bank ◽  
Digital Era ◽  
The Impact

Abstract Purpose: Based upon an extended SERVQUAL model, this paper attempts to contribute to the Islamic banking literature by examining the impact of digitalization, as a service quality dimension, on customer satisfaction.Design/methodology/approach: Two dimensions, i.e. digitalization and compliance are added to the existing SERVQUAL model of five dimensions. Results are drawn from a self-completed survey of a convenience sample of 145 Tunisian Islamic bank customers for the year 2018. Factor analysis and regression analysis are used to determine factor structure and determine the impact of service quality dimensions, especially digitalization, on customer satisfaction in Islamic banking.Findings: The factor analysis extracted five dimensions of service quality, i.e. confidence, compliance, digitalization, tangibles, and human skills. The paper demonstrates a positive and significant relationship between the main dimensions of customer service quality and customer satisfaction, except for tangibles.Research limitations/implications: Although the outcomes lend support to the extended SERVQUAL model, the results are derived based on a relatively average sample size in one country (Tunisia). It might also be useful to enlarge the study sample for better generalization of the findings in other countries and include a comparison between Islamic versus conventional banking about service quality and customer satisfaction.Managerial implications: To remain competitive, Tunisian Islamic banks need to pay attention to the way the services are delivered and not take it for granted that customers are only focusing on compliance. Dealing henceforth with Generation Y customers, they must persevere in bringing their customer service into the digital era.Originality/value: This study is one of few which try to investigate the drivers of customer satisfaction for Islamic banks in a Digital Era. It reveals that although customers pay special attention to Sharia laws, the way services are delivered matters to them too. From now on, digital banking must appear among the Islamic bank features to stay relevant in the Digital Era.

scholarly journals Influence of Management Quality and Technology Developments on Islamic Banking Performance in UAE

2019 ◽  
Vol 8 (2S10) ◽  
pp. 297-303
Keyword(s):  
Quality Management ◽  
Customer Service ◽  
Structural Equation ◽  
Goodness Of Fit ◽  
Banking Sector ◽  
Technology Development ◽  
Islamic Banking ◽  
Management And Development ◽  
And Performance ◽  
The Stability

A country’s economic growth is said to be based on the finance sector and its performance, which is considered the most prominent factors in boosting an economy. Also, the economic stability and growth greatly depends on the stability and performance of its finance and banking sector. The study aims at examining the effect of quality management and development of technology in determining Islamic banking performance in the context of UAE. The process of evaluation was carried out using questionnaire survey data obtained from 158 valid responses from Customer Service Offers, Bank Managers, Front Line Officers, and Assistant Manager in the Islamic banks in the UAE. Structural Equation Modelling (SEM) was done using PLS3.0 software for determining the importance levels of associations within the tested factors. The goodness of fit of the proposed model showed 41% of variance in the Islamic banking performance. The multivariate analysis revealed that quality management has an impact on the Islamic banking performance as compared to technology development, which offers insights into the strategies of Islamic banking sector.

scholarly journals Islamic Banking Service Innovation in Customer Co-Creation: Its Impact on Customer Trust, Satisfaction, and Loyalty

2021 ◽  
Vol 56 (2) ◽  
pp. 65-82
Author(s):  
Nur Asnawi ◽  
Nina Dwi Setyaningsih
Keyword(s):  
Customer Satisfaction ◽  
Customer Loyalty ◽  
Structural Equation ◽  
Equation Modeling ◽  
Islamic Bank ◽  
Banking Service ◽  
Study Results ◽  
Bank Managers ◽  
Customer Trust ◽  
The Impact

This study examines the impact of co-creation on customer trust, satisfaction, and loyalty in the context of Islamic banks, the relationship between co-creation and customer satisfaction and loyalty mediated by trust and customer satisfaction. 379 Islamic bank customers data were analyzed using variance-based structural equation modeling to test the nine hypotheses proposed. The study results found that customer co-creation positively influences customer trust and satisfaction, which further implicates loyalty. However, surprisingly co-creation does not affect Islamic bank customer loyalty. Islamic bank managers in Indonesia need to involve customers to participate in value co-creation. Because Islamic bank's customer loyalty relationship with co-creation is mediated in full by trust and satisfaction, this research is the first empirical investigation that tests customer co-creation in an integrated manner and its implications on trust, satisfaction, and customer loyalty in the Islamic bank industry.

scholarly journals Customer satisfaction in the digital era: evidence from Islamic banking

2021 ◽  
Vol 10 (1) ◽  
Author(s):  
Ghazi Zouari ◽  
Marwa Abdelhedi
Keyword(s):  
Factor Analysis ◽  
Customer Satisfaction ◽  
Service Quality ◽  
Customer Service ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Five Dimensions ◽  
Islamic Bank ◽  
Digital Era ◽  
The Impact

Abstract Purpose Based upon an extended SERVQUAL model, this paper attempts to contribute to the Islamic banking literature by examining the impact of digitalization, as a service quality dimension, on customer satisfaction. Design/methodology/approach Two dimensions, i.e., digitalization and compliance, are added to the existing SERVQUAL model of five dimensions. Results are drawn from a self-completed survey of a convenience sample of 145 Tunisian Islamic bank customers for the year 2018. Factor analysis and regression analysis are used to determine factor structure and determine the impact of service quality dimensions, especially digitalization, on customer satisfaction in Islamic banking. Findings The factor analysis extracted five dimensions of service quality, i.e., confidence, compliance, digitalization, tangibles, and human skills. The paper demonstrates a positive and significant relationship between the main dimensions of customer service quality and customer satisfaction, except for tangibles. Research limitations/implications Although the outcomes lend support to the extended SERVQUAL model, the results are derived based on a relatively average sample size in one country (Tunisia). It might also be useful to enlarge the study sample for better generalization of the findings in other countries and include a comparison between Islamic versus conventional banking about service quality and customer satisfaction. Moreover, we can applicate another original method for the Measuring and Implementing Service Quality like the multicriteria method dubbed (MUSA). Managerial implications To remain competitive, Tunisian Islamic banks need to pay attention to the way the services are delivered and not take it for granted that customers are only focusing on compliance. Dealing henceforth with Generation Y customers, they must persevere in bringing their customer service into the digital era. Originality/value This study is one of the few which tries to investigate the drivers of customer satisfaction for Islamic banks in a Digital Era. It reveals that although customers pay special attention to Sharia laws, the way services are delivered matters to them too. From now on, digital banking must appear among the Islamic bank features to stay relevant in the Digital Era.

The impact of Islamic Shariah compliance on customer satisfaction in Islamic banking services: mediating role of service quality

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Selim Ahmed ◽  
Muhammad Mohiuddin ◽  
Mahfuzur Rahman ◽  
Kazi Md Tarique ◽  
Md. Azim
Keyword(s):  
Customer Satisfaction ◽  
Service Quality ◽  
Customer Service ◽  
Mediating Effect ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Banking Services ◽  
Content Type ◽  
The Impact ◽  
The Relationship

Purpose The purpose of this paper is to investigate the impact of Islamic Shariah compliance on customer satisfaction through the mediating effect of service quality in Islamic banking services. Design/methodology/approach A total of 334 completed and usable questionnaires were collected from customers of Islamic banks in Bangladesh to test the hypotheses. The data were analyzed using SmartPLS 3. Findings The findings of this study indicate that Islamic Shariah compliance has a positive and significant influence on service quality and customer satisfaction of Islamic banking services. The research findings also indicate that service quality partially mediate the relationship between Islamic Shariah compliance and customer satisfaction of Islamic banking services. Research limitations/implications This study only emphasized on the Islamic banking services of Bangladesh and thus findings of the present study may not be applicable to other service areas. Practical implications The implications of the research are twofold. First, a strong standardized effect of Islamic Shariah compliance on service quality implies that customers are very sensitive to Shariah compliance related to Islamic banking services. Next, maintaining service quality is another crucial aspect to satisfy customers of Islamic banks. Quality of services will only be materialized when all the promises made by the bank function accordingly. Therefore, strategy makers of Islamic banks should assess the customer service quality and satisfaction regularly to improve the overall service experience of customers. Originality/value Limited studies have been conducted to investigate the mediating effect of service quality on the relationship between Shariah compliance and customer satisfaction in Islamic banking services. This study provides valuable insights to Islamic bank to integrate the service quality along with Shariah compliance to enhance customer satisfaction.

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