Revisiting expectation confirmation model to measure the effectiveness of multichannel bank services for elderly consumers

PurposeThis study aims to understand the expectations of elderly bank customers with mobile banking services and to measure its impact on their long-term satisfaction and continued intention. The study is based on two theories, expectations-confirmation theory (ECT) and hedonic adaptation theory.Design/methodology/approachA self-administered longitudinal survey was completed with a sample of 208 elder customers who do not use mobile banking services. Latent growth curve modelling approach was used to determine the change in their post-adoption experience over four time points.FindingsResults of the study confirm that the use of mobile banking services prolongs the duration of customer satisfaction and continued intention level, post-adoption, reinforcing the hedonic adaptation theory.Research limitations/implicationsMobile banking services are going to be a significant component of the multichannel banking agenda. But it might be interesting to review other digital channels of banking services. The key contribution of this study is that it measures the expectation-confirmation link of elderly customers with mobile banking services. The study sheds light on factors that positively influence customer inclination and adoption of multichannel banking services in the long run, which is important for the commercial success of such channels.Practical implicationsThe study highlights the importance of elder customers' pre-expectations, related dimensions which are important for post-adoption experiences of mobile banking services to improve customers' satisfaction and continued intention in the long run. This is crucial for the commercial success of banks.Originality/valueThis is the first such study that used the expectation confirmation model (ECT) and related it with hedonic adaptation theory to assess elderly customer's post-adoption satisfaction and continued usage of mobile banking services over time.

How AI chatbots have reshaped the frontline interface in China: examining the role of sales–service ambidexterity and the personalization–privacy paradox

PurposeThis study serves two purposes: (1) to evaluate the effects of organizational ambidexterity by examining how the balanced and the combined sales–service configurations of chatbots differ in their abilities to enhance customer experience and patronage and (2) to apply information boundary theory to assess the contingent role that chatbot sales–service ambidexterity can play in adapting to customers' personalization–privacy paradox.Design/methodology/approachAn online survey of artificial intelligence chatbots users was conducted, and a mixed-methods research design involving response surface analysis and polynomial regression was adopted to address the research aim.FindingsThe results of polynomial regressions on survey data from 507 online customers indicated that as the benefits of personalization decreased and the risk to privacy increased, the inherently negative (positive) effects of imbalanced (combined) chatbots' sales–service ambidexterity had an increasing (decreasing) influence on customer experience. Furthermore, customer experience fully mediated the association of chatbots' sales–service ambidexterity with customer patronage.Originality/valueFirst, this study enriches the literature on frontline ambidexterity and extends it to the setting of human–machine interaction. Second, the study contributes to the literature on the personalization–privacy paradox by demonstrating the importance of frontline ambidexterity for adapting to customer concerns. Third, the study examines the conduit between artificial intelligence (AI) chatbots' ambidexterity and sales performance, thereby helping to reconcile the previously inconsistent evidence regarding this relationship.

The impact of market orientation on small firm performance: a configurational approach

PurposeIn this study, the authors examine the influence of market orientation on small firms' performance. The authors theorize that the association between market orientation and small firm performance provides an incomplete picture in a competitive environment. The application of configuration approach which involves simultaneous consideration of market orientation, strategic flexibility and competition intensity is crucial to examine driver of firm performance.Design/methodology/approachThe sample of the research study consists of 272 small firms from an emerging economy, India. Ordinary least squares regression has been used to investigate the hypothesized relationships.FindingsThe authors noted that the three-way interaction between market orientation, strategic flexibility and competition intensity elucidates variance in small firm performance over and above a contingency model and a direct relationship.Research limitations/implicationsThe findings contribute to the existing literature by exhibiting the effect of market orientation on firm performance. The configuration model suggests that small firms can outperform competitors in a lower competitive environment if they have high market orientation and high strategic flexibility investment. To leverage market opportunities and achieve better firm performance, small firms’ owners should analyze the usefulness of current capabilities in a changing competitive environment concurrently and align market orientation to those conditions.Originality/valueThe strategic management and marketing literature suggests that relationship between market orientation and performance is ambiguous. The findings offer insights to managers regarding the appropriate use of strategic flexibility in leveraging the benefits of market orientation in a highly competitive environment. Furthermore, by collecting data from the context of an emerging economy, India, the authors attempt to strengthen the applicability of market orientation in different contexts.

Developing a competitiveness index at sub-national level for India: an economic growth measure

PurposeThe objective of this study is threefold–first, to develop a Regional Competitiveness Index (RCI) for measuring competitiveness of sub-national regions for India; second, to test this index for its ability to explain regional growth, which validates usage and applicability of this index; and third, to further investigate if the competitiveness of states is in turn caused by economic growth, i.e. it is tested if there is a bidirectional causality between competitiveness and regional growth.Design/methodology/approachThe data of indicators used in the index are from sources available freely in public domain. The competitiveness index is constructed using equal weightage supported by principal component analysis (PCA) technique. The causal relationship analysis is done using panel data of 10 years from 2008 to 2017 for 32 Indian states/union territories. The generalized method of moments (GMMs) is used for this dynamic regression estimation.FindingsBased on RCI score, states have been ranked and through rank analysis, the authors observe the performance status of these sub-national regions and are able to categorize them as improving, no change or deteriorating in regional competitiveness. Using the GMM estimation, the association between RCI and economic growth is found to be significant at 10% level. This shows that regional competitiveness as captured through the RCI score is able to explain regional economic growth and economic disparity among the sub-national units. Further, that RCI score is found to Granger-cause growth, while growth does not lead to better RCI scores. This establishes the usefulness of RCI as an important policy variable to compare states and provide direction for sectoral reforms.Research limitations/implicationsThe limitations of the study include (1) broad assumption that these sub-national regions belong to a uniform macro-economic and technology environment, and (2) data constraints as it is a longitudinal study. The study implies that the composite index could capture differences in regional competitiveness explaining regional economic disparity and that competitiveness causes higher economic growth and not vice versa.Practical implicationsThe RCI score can prove to be a useful indicator of economic performance of different states and can be used by national and state policymakers to compare and assess regional disparity among different states. The pillar-wise scores will be useful for in-depth study of weakness and strength of the sub-national territories.Originality/valueConstruction of an RCI for sub-national territories and analysis of panel data for longitudinal study of ten years is unique in the regional competitiveness literature.

Entry-level job pursuit intention: assessing person-environment fit in India

PurposePerson-environment (PE) fit theory suggests that value congruence (fit) leads to the job pursuits intention (Cable and Judge, 1996) which is also influenced by cultural norms (Ma and Allen, 2009). Due to stringent job market condition along with its people, as a part of collectivistic culture, having poor self-concept consistency, value congruence may unfold different phenomenon in Indian context. Therefore, the present study intends to explore the existing fit theory on different cultural norms and different job market condition with entry-level job pursuits as participants.Design/methodology/approachThe fit was measured both objectively and subjectively in a mixed method research design. Top 100 institutes ranked in NIRF (National Institutional Ranking Framework) (under Management category) were approached for data collection and 41 institutes agreed to participate. Data were collected in four phases from 2,714 entry-level job pursuits and domain experts based on web-based job advertisements. Krippendorff's alpha was calculated for measuring objective fit, and the subjective fit was measured through quadratic structural equation modeling with response surface analysis.FindingsFindings revealed lack of value congruence objectively; and no influencing role of subjective fit in job pursuits intention. This indicated that neither Indian employers nor entry-level job pursuits were concerned about value congruence. The post-hoc analysis suggested that poor self-concept consistency as a cultural norm led to such atypical findings.Originality/valueThe present study suggests that fit may lead to different phenomena of entry-level job pursuits intention with different contextual and cultural norms.

Can market state and market volatility explain time-varying momentum profits in South Africa?

PurposeWhile the momentum anomaly is prevalent in South Africa, few have examined the reasons influencing it. This study examines whether momentum profits vary through time and are affected by the state of the market and market volatility between 1998 and 2019.Design/methodology/approachThe authors consider combinations of portfolio construction, such as the lookback period, weighting scheme, measure of volatility and the volatility window period. They further examine the interaction of momentum with sentiment, default risk and semi-deviation as a measure of risk, as a means of testing whether behavioural factors have significant influence.FindingsThe results generally show that neither volatility nor market state has explanatory power on momentum profits.Originality/valueThese results make the momentum anomaly in South Africa an even greater mystery than before as they do not conform to the existing literature from developed economies. The authors do, however, find that default risk is a significant predictor of momentum profits, which is a useful additional factor for those fund managers who utilise momentum strategies. This implies that a fundamental factor, default risk, is a potential explanation for the market-related momentum anomaly.

Fundamental analysis and the use of financial statement information to separate winners and losers in frontier markets: evidence from Vietnam

PurposeThe pupose of the paper is to study the usefulness of Piotroski (2000)'s F-score in separating winners and losers in Vietnam.Design/methodology/approachThe authors adopt a portfolio analysis and regression analysis on a sample of 501 of listed firms between 2009 and 2019 in Vietnam.FindingsThe authors find that a hedge strategy that buys high-F-score firms and sells low-F-score firms yield market-adjusted return of over 30 percent annually, which is statistically and economically significant. The hedge strategy based on F-score is not only profitable for value (high book-to-market [BM]) firms but also earn abnormal returns in a sample of growth (low BM) firms, suggesting that the usefulness of F-score strategy is not just a phenomenon in value firms as documented in previous literature.Research limitations/implicationsWhilst the authors' paper documents economically significant returns obtained from the F-score strategy, the authors do not examine what drives the abnormal returns.Practical implicationsThe results provide supporting evidence for the use of financial statement analysis as a screening tool to improve the performance of value investment in Vietnam stock market and for the training of financial reporting and fundamental analysis in universities.Originality/valueThe authors' research is the first study examining the F-score strategy in Vietnam that provides insights about the usefulness of fundamental analysis in separating winners and losers in a frontier market and contributes to the literature on fundamental analysis and market efficiency in emerging and frontier markets.

Examining the nexus between transformational leadership and follower's radical creativity: the role of creative process engagement and leader creativity expectation

PurposeThe primary objective of this study is to examine the nexus between transformational leadership (TL) and followers' radical creativity (FRC). In contrast, creative process engagement (CPE) and leader creativity expectation (LCE) was employed as a mediating and a moderator role, respectively.Design/methodology/approachA quantitative exploratory survey was applied as a research design, and 293 valid responses were collected from industry-university collaborative team leaders-followers. The authors performed descriptive and partial least square based structural equation modeling (PLS-SEM) analysis using the SPSS 23 and Smart-PLS 3.0 package program to test the hypothesis.FindingsEmpirical results revealed that the TL positively and significantly influences the FRC. Therefore, the mediation of CPE bridges the relationship between TL and FRC, while the moderating role of LCE was insignificant. TL with higher CPE indirectly enhances the FRC.Research limitations/implicationsUnlike the prior conventional componential theory of creativity (CTC), this study extends the scope of CTC addressing CPE and LCE to investigate the nexus between TL and FRC and contributes to the current literature leaders-followers relationship.Practical implicationsPractically, this research contributes to the growing body of the literature demonstrating how organizations might foster radical creativity in their employees and how to inspire followers to participate in radical creativity activities that might enhance organizational performance.Originality/valueThis study has broadened the scope of the CTC by emphasizing the mediating function of CPE in promoting particular aspects of followers' creativity.

Natural resources and economic growth: evidence from Brunei Darussalam

PurposeThis paper explores the relationship between natural resources and economic growth of Brunei Darussalam, an underresearched area in the available literature.Design/methodology/approachAnnual data are sourced from reliable sources for the period 1989–2020. Appropriate cointegration techniques for time series data are employed to estimate the specified models and extract results.FindingsThe results provide evidence about the positive and significant role that natural resources have played in the economic growth of Brunei Darussalam. Similarly, trade openness and domestic investment have also positively and significantly impacted the long-run economic growth. On the other hand, the impacts of government expenditure and the growth of human capital on economic growth are although positive but insignificant statistically in the long run. The short-run results show that natural resources, government expenditures and domestic investment have influenced economic growth both positively and significantly. Moreover, the positive and significant impact of trade openness on economic growth, which was observed in the long run, turned negative and insignificant in the short run. Finally, the insignificant positive relationship between the growth of human capital and economic growth observed in the long run remained the same in the short run.Originality/valueThis paper studies the resource curse hypothesis for Brunei Darussalam for the first time, and therefore, the findings will be of significant interest for policymakers and researchers.

Assessing the interconnectedness and systemic risk contagion in the Chinese banking network

PurposeIn this paper, the authors use the balance sheet data to investigate the interconnectedness and risk contagion effects in China's banking sector. They firstly study the network structure and centrality of the interbank network. Then, they investigate how and to what extent the credit shock and liquidity shock can lead to the risk propagation in the banking network.Design/methodology/approachReferring to the theoretical framework by Haldane and May (2011), this paper uses the network topology theory to analyze the contagion mechanism of credit shock and liquidity shock. Centrality measures and log-log plot are used to evaluate the interconnectedness of China's banking network.FindingsThe network topology has shown clustering effects of large banks in China's financial network. If the Industrial and Commercial Bank of China (ICBC) is in distress, the credit shock has little impact on the Chinese banking sector. However, the liquidity shock has shown more substantial effects than that of the credit shock. The discount rate and the rollover ratio play significant roles in determining the contagion effects. If the credit shock and liquidity shock coincide, the contagion effects will be amplified.Research limitations/implicationsThe results of this paper reveal the network structure of China's interbank market and the resilience of banking system to the adverse shock. The findings are valuable for regulators to make policies and supervise the systemic important banks.Originality/valueThe balance sheet data of different types of banks are used to construct a bilateral exposure matrix. Based on the matrix, this paper investigates the knock-on effects of credit shock triggered by the debt default in the interbank market, the knock-on effects of liquidity effects, which is featured by “fire sale” of bank assets, and the contagion effects of combined shocks.