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Article
Publication date: 3 October 2023

Amani Gration Tegambwage and Pendo Shukrani Kasoga

This study aims to investigate the effect of financial satisfaction (FS) on customer loyalty in the banking industry.

Abstract

Purpose

This study aims to investigate the effect of financial satisfaction (FS) on customer loyalty in the banking industry.

Design/methodology/approach

The study followed an explanatory research design using responses from 334 respondents from commercial banks in Tanzania. A stepwise regression analysis was used to validate the relevance of the study model.

Findings

The results indicate a positive and statistically significant association between customer loyalty and FS with levels of assets (β = 0.598, p < 0.001), savings (β = 0.186, p < 0.001) and debts (β = 0.065, p < 0.001). Of the three dimensions of FS, the level of assets had the strongest contribution to customer loyalty, followed by the level of savings and debts, in that order.

Research limitations/implications

The study used a model of FS that was linked to customer loyalty in the Tanzanian banking industry. It is recommended that the model be tested in other environments to increase the generalizability of the findings.

Practical implications

This study provides an alternative way for banks to strengthen customer loyalty by enhancing FS.

Originality/value

The FS model (Joo and Grable, 2004) and the social exchange theory (Blau, 1964) are used in this study to propose a model of customer loyalty in the banking industry. Customer loyalty and FS have not been connected in prior studies.

Details

Nankai Business Review International, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2040-8749

Keywords

Open Access
Article
Publication date: 2 November 2023

Amani Gration Tegambwage

The operations and viability of microfinance institutions (MFIs), crucial for socioeconomic development and poverty reduction, heavily rely on the multilevel relationships among…

Abstract

Purpose

The operations and viability of microfinance institutions (MFIs), crucial for socioeconomic development and poverty reduction, heavily rely on the multilevel relationships among borrowers, loan officers and MFIs. This study examines the relationship between interpersonal and firm-level relationship quality (RQ) and their simultaneous impact on customer loyalty (CL) in microfinance. Additionally, it investigates the mediating effect of firm-level RQ between CL and interpersonal RQ.

Design/methodology/approach

In this study, correlational research methods were employed. Completed questionnaires were received from 498 MFI borrowers in Dar es Salaam and Mwanza cities. Regression techniques and structural equation modeling were utilized to analyze the data. Before hypothesis testing, the validity and reliability of the measurements were confirmed.

Findings

Interpersonal-level and firm-level RQs are significantly related. Interpersonal-level RQ and its dimensions are significantly linked to CL, whereas firm-level RQ and its dimensions are insignificantly related to CL, except for commitment. Interpersonal-level relationships have a stronger impact on CL than firm-level relationships. Among all the dimensions of RQ, commitment has the greatest influence on CL at both levels. Firm-level RQ negatively and insignificantly mediates the relation between interpersonal-level RQ and CL.

Research limitations/implications

The study findings only apply to Tanzania's microfinance industry, because the interactions between and the relative effects of firm and interpersonal ties may vary across various contexts and cultures. Future research may consider replicating this study in other contexts and cultures to confirm these findings.

Practical implications

This study advances the understanding of how multilevel relationships affect CL within the microfinance industry. This insight will assist MFIs and policymakers in identifying alternative and more efficient relational strategies to enhance CL, a critical element for the sustainability of MFIs. In turn, the sustainability of MFIs in low-income countries like Tanzania holds paramount importance for stimulating socioeconomic development and, hence, achieving the goal of poverty eradication.

Originality/value

While previous studies on multilevel relationships concentrated on a single relational dimension (trust) and were conducted within the realms of retail, airline and industrial manufacturing, the current study employs the three most popular relational dimensions: trust, commitment and satisfaction, within the microfinance context. Additionally, this study investigates the mediation effect of firm-level RQ between interpersonal-level RQ and CL, a previously unexplored area in research.

Details

Journal of Business and Socio-economic Development, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2635-1374

Keywords

Article
Publication date: 10 February 2023

Amani Gration Tegambwage and Pendo Shukrani Kasoga

The purpose of this study is to investigate the moderation effects of religiosity in the relationship between service quality (SQ), customer satisfaction (CS), relationship…

Abstract

Purpose

The purpose of this study is to investigate the moderation effects of religiosity in the relationship between service quality (SQ), customer satisfaction (CS), relationship quality (RQ) and Islamic banking (IB) loyalty in a non-Islamic country.

Design/methodology/approach

This study used a quantitative approach and a cross-sectional research design. The data was collected by a closed-ended questionnaire from a systematic sample of 267 customers of full-fledged Islamic banks in Tanzania. Structural equation modeling and regression analysis techniques were used to analyze the data.

Findings

Results indicate that religiosity is a significant (p < 0.05) moderator of the relationship between SQ and loyalty (β = 0.176), and between CS and loyalty (β = 0.263). However, religiosity sharpens the impact of CS on loyalty (β increases from 0.170 to 0.263, p < 0.05) and does not sharpen the impact of SQ on loyalty (β decreases from 0.338 to 0.176, p < 0.05). The results further indicate that religiosity is not a significant moderator (p > 0.05) in the link between RQ and loyalty (β = −0.112).

Research limitations/implications

This study used only full-fledged Islamic banks in Tanzania. Therefore, future research could be undertaken by including conventional banks that have introduced an IB window.

Practical implications

To build and maintain a loyal customer base, Islamic banks should take advantage of religiosity by providing a wide range of Sharia-based products and services that truly distinguish them from conventional banks. Accordingly, policymakers should establish an appropriate legal framework to enable Islamic banks to leverage religiosity to sharpen the impact of CS on loyalty and hence maintain loyalty in non-Islamic countries like Tanzania.

Originality/value

This study proposes and validates the theoretical model of loyalty in IB by showing the role of religiosity as a moderator in a non-Islamic country. This knowledge strengthens the overall understanding of loyalty in IB. To the best of the authors’ knowledge, this study is the first to examine the moderation effects of religiosity in the link between RQ and loyalty, and thus between SQ, CS, RQ and loyalty in a single study.

Details

Journal of Islamic Marketing, vol. 14 no. 12
Type: Research Article
ISSN: 1759-0833

Keywords

Open Access
Article
Publication date: 23 March 2023

Denis Samwel Ringo, Amani Gration Tegambwage and Isaac Kazungu

This paper aims to examine the relationship between innovation capabilities (INVC) and export performance (EXPERF) of manufacturing small and medium enterprises (SMEs). Moreover…

2152

Abstract

Purpose

This paper aims to examine the relationship between innovation capabilities (INVC) and export performance (EXPERF) of manufacturing small and medium enterprises (SMEs). Moreover, the paper aims to investigate the moderating effect of risk-taking propensity (RSTP) in the relationship between INVC and the SMEs’ EXPERF.

Design/methodology/approach

A cross-sectional survey design was used and data were collected through structured questionnaires from 250 manufacturing exporting SMEs in Tanzania. Confirmatory factor analysis was used to test the measurement model. The hypotheses were empirically tested using PROCESS macro test.

Findings

The findings affirm that INVC is a significant predictor of EXPERF. Additionally, RSTP was found to be a significant moderator of the relationship between INVC and EXPERF.

Research limitations/implications

Although the study was able to accomplish its overall objective, it is limited in terms of the context under which the study was conducted. This study covered only manufacturing SMEs in a single country, Tanzania. Hence, the findings should be interpreted with caution since each country has specific institutional environments that support innovation.

Originality/value

The findings of this study expand the application of the resource-based view (RBV) theory in exporting context. The study revealed how INVC as an intangible resource can lead to successful performance. Hence, the findings of this study broaden the applicability of RBV theory. Also, this study contributes to the debate about the innovation-export performance relationship by revealing a moderating role of RSTP in the relationship between INVC and EXPERF.

Details

Journal of Money and Business, vol. 3 no. 1
Type: Research Article
ISSN: 2634-2596

Keywords

Open Access
Article
Publication date: 21 September 2022

Pendo Shukrani Kasoga and Amani Gration Tegambwage

The purpose of the paper is to examine the financial management behavior (FMB) mediation mechanism in self-control, optimism, deliberative thinking and investment decisions in the…

2933

Abstract

Purpose

The purpose of the paper is to examine the financial management behavior (FMB) mediation mechanism in self-control, optimism, deliberative thinking and investment decisions in the Tanzanian stock market.

Design/methodology/approach

A sample of 268 individual investors in the Tanzanian stock market was obtained through questionnaires. The data were analyzed using structural equation modeling.

Findings

The findings show that self-control, optimism and deliberative thinking are significantly and positively related to FMB and investment decisions. The findings also confirmed the mediating role of FMB in the influence of self-control, optimism and deliberative thinking on investment decisions among Tanzanian individual investors. These findings imply that people with good self-control, optimistic and deliberative thinking are more likely to save money, have better FMB and prefer to make investment decisions.

Research limitations/implications

The study deals with individual investors. Future research could examine the effects of psychological traits on investment decisions by adding or modifying the items of particular constructs and studying institutional investors.

Practical implications

Individual investors can use the information to study and evaluate their financial behavior and stock investment decisions. This research can be used by security firms to better understand investor behavior, forecast future market trends and advice investors. Individual investors require psychological features to manage their behavior in various aspects, ranging from affective behavior to cognition, which are relevant for investing decisions.

Originality/value

Few studies have examined the influence of self-control, optimism and deliberative thinking on the investment decisions of individual investors. The unique empirical analysis developed in this paper is that it examines the mediation mechanisms of FMB with respect to self-control, optimism and deliberative thinking and investment decisions among individual investors in the Tanzanian stock market.

Details

Journal of Money and Business, vol. 2 no. 2
Type: Research Article
ISSN: 2634-2596

Keywords

Article
Publication date: 6 February 2023

Denis Samwel Ringo, Isaac Kazungu and Amani Gration Tegambwage

This paper examines the relationship between product innovation (PRODIN), process innovation (PROCIN) and export performance (EXPF) of manufacturing small-and medium-sized…

Abstract

Purpose

This paper examines the relationship between product innovation (PRODIN), process innovation (PROCIN) and export performance (EXPF) of manufacturing small-and medium-sized enterprises (SMEs). Moreover, the paper investigates the moderating effect of marketing innovation (MAKIN) in the relationship between PRODIN, PROCIN and the SMEs' EXPF.

Design/methodology/approach

A cross-sectional survey design was used and data were collected through structured questionnaires from 250 manufacturing exporting SMEs in Tanzania. CFA was used to test the measurement model. The hypotheses were empirically tested using PROCESS macro test.

Findings

The findings suggest that PRODIN is a significant determinant of EXPF. However, PROCIN was found to have a significant negative effect on EXPF. Additionally, MAKIN was found to be a significant moderator of the relationship between PRODIN, PROCIN and EXPF.

Research limitations/implications

This study covered only manufacturing SMEs. Future studies can include large firms because they may behave differently on innovations due to the resources advantage they have. Also, because only a single country context was used, the findings of this study should be interpreted with caution.

Practical implications

Managers of exporting SMEs should develop and cultivate PRODIN and MAKIN to nurture EXPF of their firms.

Originality/value

The findings of this study extend the application of resource-based view theory in exporting context by unpacking the process through which resources result in successful performance. Also, this study contributes to the debate about the innovation–EXPF relationship by establishing a moderating effect of MAKING in the relationship between PRODIN, PROCIN and EXPF.

Details

Technological Sustainability, vol. 3 no. 1
Type: Research Article
ISSN: 2754-1312

Keywords

Article
Publication date: 1 March 2022

Amani Gration Tegambwage and Pendo Shukrani Kasoga

This study aims to examine the association between relationship quality, service quality, customer satisfaction, switching barriers and Islamic banking customer loyalty using…

1171

Abstract

Purpose

This study aims to examine the association between relationship quality, service quality, customer satisfaction, switching barriers and Islamic banking customer loyalty using evidence from Tanzania.

Design/methodology/approach

This study used correlational research design to test the hypotheses. Completed questionnaires were received from 572 Islamic bank customers in three major cities of Tanzania (Dar es Salaam, Dodoma and Zanzibar).

Findings

There is a significant positive relationship between relationship quality, service quality, customer satisfaction and customer loyalty. Switching barriers have an insignificant effect on customer loyalty. Further, the four antecedents contribute differentially to customer loyalty, with service quality having the most significant contribution.

Practical implications

The findings of the study can help managers of Islamic banks build and maintain customer loyalty through high service quality, high customer satisfaction and high-quality bank–customer relationships and attain a competitive advantage that would enable Islamic banks to grow and succeed in a competitive banking environment.

Originality/value

This study provides new insights on Islamic banking consumer loyalty by comparing the levels of contributions of the customer loyalty antecedents in a single study. This knowledge would enable Islamic banks to identify antecedents that have the highest contribution to customer loyalty and where best to target marketing attention and limited corporate resources.

Details

Journal of Islamic Accounting and Business Research, vol. 13 no. 4
Type: Research Article
ISSN: 1759-0817

Keywords

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