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1 – 10 of 481The relationship between trust, accountability and procedural justice is studied via research into British credit unions (CUs) following regulatory reform to remedy problems…
Abstract
Purpose
The relationship between trust, accountability and procedural justice is studied via research into British credit unions (CUs) following regulatory reform to remedy problems exposed by the 2007–2008 global financial crisis.
Design/methodology/approach
Interviews at 13 case studies of different types and sizes of credit unions in Glasgow, Scotland, are examined using template analysis and abductive theorizing to understand the effects of disproportionate reforms on small credit unions.
Findings
Smaller credit unions found three regulatory changes – namely dual regulators, increased minimum reserves and introduction of the Senior Managers and Certification Regime – excessive. Excessive change generated distrust in regulators. Regulators' insufficient attention to procedural justice contributed to this distrust.
Originality/value
Linkage of multidimensional confluent trust to a multilevel system of accountability provides an original way of understanding how indiscriminate attempts at trust repair damage some elements of trust in formal regulatory systems. Recognition of the need for procedural justice to enable smaller credit unions to articulate their extant checks and potential exemption from formal regulations provides another valuable contribution. The explanation of the abductive logic employed is also original.
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Lucimara Gomes, Serje Schmidt and Luciene Eberle
In banking services, how customers interact with their bank – whether it’s through the physical branch or online – plays a significant role in how they feel about the experience…
Abstract
Purpose
In banking services, how customers interact with their bank – whether it’s through the physical branch or online – plays a significant role in how they feel about the experience. It’s not just about performing the service; it’s also about building trust, keeping them committed and getting them engaged so that a long-lasting relationship is developed. While there’s abundant research about trust and commitment in banking, not many studies have looked at how customers see both the online and offline sides of banking, especially in credit unions. Credit unions emphasize proximity with members, so it’s important to understand how these different ways of interacting affect how much people trust the credit union and stay committed to it and how engaged they feel as members. This study aims to explore this issue.
Design/methodology/approach
A quantitative survey was conducted using partial least squares structural equation modeling (PLS-SEM). The survey was answered by 195 members of one of the most traditional credit unions in Brazil.
Findings
The results suggest that both face-to-face and digital channels’ dimensions impact trust, which in turn influences commitment. Engagement is influenced by both trust and commitment, providing inputs to the value co-creation process.
Originality/value
The research presents relevant contributions to academia by deepening the understanding of the role of different service channels in value co-creation and customer engagement. It also offers significant contributions to the cooperative, which can improve the member experience in interaction channels to consequently develop lasting relationships and stimulate the engagement of its members.
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The research seeks to evaluate stakeholder perceptions of firms, the extent these assessments impact trust in firms and possible implications for sustainability communications.
Abstract
Purpose
The research seeks to evaluate stakeholder perceptions of firms, the extent these assessments impact trust in firms and possible implications for sustainability communications.
Design/methodology/approach
Three studies were undertaken involving two experiments (n = 436, n = 393) and one survey (n = 217). Analyses of variance was used in all three studies and in studies 2 and 3—to test for possible mediators—each variable was tested using Hayes' PROCESS macro (Hayes, 2013) with bootstrapping of 5,000 samples.
Findings
Results demonstrate significant favouring of sustainability-minded firms. Some differences between consumers and investors were found but also notable commonalities such as a general propensity to favour purpose-oriented firms and similar determinations of trust in firms.
Practical implications
Findings could support more effective sustainability communications and firm decisions regarding investments in purpose- and sustainability-oriented initiatives. The results may also support designs to pursue and promote designations (e.g. B Corp) that legitimize sustainability claims.
Originality/value
This research was unique in its evaluation of two stakeholder types in the same context. Further, it provides new insights into how a firm’s profit-purpose orientation affects stakeholder perceptions and assessments of trustworthiness.
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Tidarat Kumkit, Dao Le Trang Anh, Christopher Gan and Baiding Hu
This study explores the awareness (AWN) levels of good governance amongst Thai credit union cooperatives' (CUCs) members and the factors hindering good governance practice in Thai…
Abstract
Purpose
This study explores the awareness (AWN) levels of good governance amongst Thai credit union cooperatives' (CUCs) members and the factors hindering good governance practice in Thai CUCs.
Design/methodology/approach
This study used a survey questionnaire from 629 members of 36 selected CUCs in Thailand. This study analysed the determinants of governance AWN levels of Thai CUCs' members using the ordered probit model. The study also employs OLS estimation to investigate the factors hindering good governance practices.
Findings
The study shows that members of different CUC types and sizes have different levels of governance AWN. Members' characteristics, experiences, and perceptions significantly influence CUC members' AWN of governance issues. The findings also suggest that a lack of morality, transparency, participation, responsibility and accountability are key obstacles that hinder good governance practices of Thai CUCs.
Originality/value
This is the first study that attempts to assess the level of AWN amongst Thai CUCs' members in different CUC sizes and types. This is also the first research that identifies the factors that hinder good governance practice in Thai CUCs based on members' evaluations. The study's findings provide important reference and implications for Thai policy makers and CUCs' board of managers to enhance members' AWN and CUCs' governance performance, and thus increase income and living standard of CUCs' members in the long term.
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Ayi Gavriel Ayayi and Hamitande Dout
The purpose of this paper is to calculate the financial inclusion index and analyze its dynamics in developing countries.
Abstract
Purpose
The purpose of this paper is to calculate the financial inclusion index and analyze its dynamics in developing countries.
Design/methodology/approach
The authors use the two-stage principal component analysis (PCA) method and consider financial technology innovations to improve the accuracy of the financial inclusion index.
Findings
The authors found a downward trend in the financial inclusion index in most developing countries over the study period. The authors also found that a high financial inclusion index is linked to high scores in the Doing Business and high business climate regulation ranking. In addition, the authors observed that the rates of low financial inclusion in developing countries are due to low utilization of and unequal access to financial services.
Practical implications
The analysis suggests that policymakers in developing countries could invest in digital infrastructure to extend access to financial services in remote areas. They could also encourage financial innovation, particularly in financial technologies, by adopting flexible regulatory frameworks. Promoting the financial inclusion of marginalized groups through targeted initiatives tailored to their needs is another solution. They could also encourage the use of financial services by raising awareness and educating populations through training programs. Finally, to improve the business climate, governments could simplify administrative procedures and promote transparency and legal stability.
Originality/value
Unlike previous studies, the use of the two-stage PCA method and the consideration of financial technology (Fintech) innovations such as mobile money in the determinants of the financial inclusion index improve the accuracy of the index.
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This study aims to gain insight into the motivations behind the decision to use high-cost payday loans by households who possess mainstream credit and to determine whether this…
Abstract
Purpose
This study aims to gain insight into the motivations behind the decision to use high-cost payday loans by households who possess mainstream credit and to determine whether this behavior has changed over time.
Design/methodology/approach
Using data from Statistics Canada’s Surveys of Financial Security, probit models are used to examine the sociodemographic and financial indicators associated with payday loan use.
Findings
The analysis uncovers the sociodemographic and financial characteristics of payday loan-user households with access to lower-cost short-term loans. The findings indicate that the likelihood of payday loan use has risen over time. Additional analysis reveals that indicators of financial instability are positively associated with payday loan use among this group.
Research limitations/implications
This research highlights the dichotomy of payday loan users and recommends policymakers tailor solutions to the specific needs of different types of payday loan users.
Practical implications
This research highlights the distinguishing sociodemographic and financial characteristics of payday loan user households and recommends policymakers tailor solutions to the specific needs of different types of payday loan users.
Originality/value
This is the first study, to our knowledge, to focus analysis on payday loan use of those with access to lower-cost short-term credit alternatives in Canada and to include measures of financial instability in the analysis. This research is timely given the current economic environment of high interest rates and high levels of household debt.
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Kumuditha Hikkaduwa Epa Liyanage, Valentina Hartarska and Denis Nadolnyak
Financial inclusion is measured by the number of people who use the formal financial system and banks in particular. Limited access to formal banking services and the existence of…
Abstract
Purpose
Financial inclusion is measured by the number of people who use the formal financial system and banks in particular. Limited access to formal banking services and the existence of unbanked households is a main policy concern. The authors evaluate how the use of prepaid (reloadable) debit cards by unbanked households affects financial inclusion and specifically the potential for these households to participate in the formal financial system and open a bank account.
Design/methodology/approach
The authors apply matching models to analyze survey data from the Federal Deposit Insurance Corporation National Survey of the Unbanked and Underbanked Households from 2009 to 2019 and evaluate how prepaid cards use affects plans to open a bank account.
Findings
Unbanked households who use prepaid cards are 5% less likely to open a bank account compared to the matched nonusers of prepaid cards. In addition, prepaid card users are 12% more likely to use nonbanks to transfer money/transact online and 18% more likely to have obtained loans from alternative financial services providers compared to the matched unbanked nonusers of prepaid debit cards.
Originality/value
No previous work has estimated the causal impact of use of prepaid cards on financial inclusion.
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This study aims to explore a range of institutional, environmental and policy conditions that influence the creation of “bossless” or “flat” companies, i.e. firms with little or…
Abstract
Purpose
This study aims to explore a range of institutional, environmental and policy conditions that influence the creation of “bossless” or “flat” companies, i.e. firms with little or no formal hierarchy.
Design/methodology/approach
The author builds on the theory and evidence presented by Foss and Klein (2022) in their study of the costs and benefits of organizing without hierarchy. The author also draws on a variety of related theoretical insights and empirical evidence. The paper is exploratory and anecdotal though and is intended to motivate further research rather than provide a definitive account of bossless organizing.
Findings
The paper develops nine propositions. It suggests that high levels of economic freedom create maximum scope for entrepreneurs to experiment with different organizational forms (1). Likewise, a lack of economic freedom increases the scope for the government to experiment (2). Markets characterized by technological innovation and uncertainty are likely to discourage bossless organizing (3 and 4), while stagnating industries with major capital requirements are likely to encourage it (5). Labor market interventions that increase the cost of employment contracts sometimes encourage firms to flatten (6), but more generally, these interventions encourage expanding management layers (7). In environments with strong intellectual property (IP) laws, companies with more modular and knowledge-based work are more likely to flatten (8). The creation of low-hierarchy firms such as cooperatives is encouraged by public subsidies, access to cheap credit and preferential tax treatment (9).
Originality/value
Studies of bossless or flat firms focus almost exclusively on describing their internal organization and evaluating their performance; little attention is paid to the conditions that encourage or discourage the emergence of these firms. This paper focuses on the latter, with a view to encouraging more scholarly interest in this field.
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Constantin Bratianu, Alexeis Garcia-Perez, Francesca Dal Mas and Denise Bedford