Search results

1 – 10 of over 39000
To view the access options for this content please click here
Article
Publication date: 6 April 2021

Hugo K.S. Lam and Yuanzhu Zhan

This study empirically investigates how supply chain finance (SCF) initiatives together with different firm capabilities and resources (i.e. information technology (IT…

Abstract

Purpose

This study empirically investigates how supply chain finance (SCF) initiatives together with different firm capabilities and resources (i.e. information technology (IT) capability, operational slack and political connections) affect the financial risk of service providers.

Design/methodology/approach

This study collects secondary longitudinal data to test for a direct impact of SCF initiatives on service providers' financial risk. It further investigates the moderating effects of the service provider's IT capability, operational slack and political connections. Additional tests and analytical strategies are performed to ensure the robustness of the results.

Findings

The findings indicate that SCF initiatives help service providers mitigate financial risk. The risk reduction is greater for service providers with higher IT capability, operational slack and political connections, but the last factor applies only to multinational corporations, not domestic companies.

Research limitations/implications

The data used in this research is limited to SCF service providers publicly listed in the United States, which may restrict the generalisability of the findings. Nonetheless, the research urges scholars to focus more on the financial risk implications of SCF in different market contexts.

Practical implications

This study encourages service providers to embrace the power of SCF initiatives for mitigating financial risk and allows them to evaluate their SCF investments in light of different firm capabilities and resources.

Originality/value

This is the first study investigating the impacts of SCF initiatives and various firm capabilities and resources on service providers' financial risk. The empirical findings provide important implications for future research and practices.

Details

International Journal of Operations & Production Management, vol. 41 no. 4
Type: Research Article
ISSN: 0144-3577

Keywords

To view the access options for this content please click here
Article
Publication date: 6 April 2012

Irinja Mäenpää

This paper aims to examine the extent of and key determinants for bank and insurance provider selection and usage by business customers from the small to medium‐sized…

Abstract

Purpose

This paper aims to examine the extent of and key determinants for bank and insurance provider selection and usage by business customers from the small to medium‐sized enterprise (SME) segment, thereby aiming to increase understanding of the drivers of customers' cross‐buying behaviour across these financial service sectors.

Design/methodology/approach

Semi‐structured interviews were carried out with key decision makers from 22 SMEs within one country. Content analysis was employed to analyse the data.

Findings

Empirical findings suggest use of multiple banks as the norm among SMEs, whereas insurances are dominantly purchased from a single provider. As SME customers appear to prefer using separate, independent providers for their banking and insurance services, absence of customer loyalty programs, unfavourable pricing of the total offering and image conflicts were identified as main factors limiting the willingness to cross‐buy across these financial services sectors.

Research limitations/implications

This qualitative research is focused on the financial industry within one country and bound to smaller business customers, limiting the generalisability of the findings.

Practical implications

The results imply that in order to succeed in cross‐selling bank and insurance services in the SME segment, financial service providers should improve their cross‐selling concepts by creating customer loyalty programs that would reward customer companies according to the use of multiple products in their total portfolio.

Originality/value

This study is the first to describe the customer perceived drivers of cross‐buying bank and insurance services from the same service provider in the business‐to‐business context.

Details

International Journal of Bank Marketing, vol. 30 no. 3
Type: Research Article
ISSN: 0265-2323

Keywords

To view the access options for this content please click here
Article
Publication date: 4 May 2021

Abdullah Murrar, Madan Batra and James Rodger

Service quality and customer satisfaction influence the financial performance of service organizations. Hence, the purpose of this paper is to investigate the path…

Abstract

Purpose

Service quality and customer satisfaction influence the financial performance of service organizations. Hence, the purpose of this paper is to investigate the path relationship of service quality to customer satisfaction to financial sustainability in the water service sector, which is vital to the sustainable future of mankind. Further, these three interrelated constructs and their dimensions are clearly articulated.

Design/methodology/approach

SERVQUAL questionnaire responses were collected from 635 household families, and the financial sustainability indicators of 56 water providers were gathered as well. Cronbach's alpha and factor analysis were conducted to measure the internal consistency and convergent validity. Path analysis was utilized to evaluate the causal diagram by examining the relationships among service quality, customer satisfaction and financial sustainability using the AMOS software package.

Findings

The results showed that the five dimensions of service quality explain 58% of the customer satisfaction variation. The responsiveness, empathy, assurance and reliability have significant impact on the customer satisfaction where p < 0.05, while the tangible dimension has an insignificant effect. The results also revealed that customer satisfaction has a significant impact on the financial sustainability indicators of the water providers, where p = 0.000 for the debt collection ratio indicator, and p = 0.003 for the financial efficiency ratio indicator.

Research limitations/implications

This research on financial sustainability is based on evidence about service quality and customer satisfaction in the Palestinian water sector. Future research on financial sustainability of the water sector may focus on the pricing mechanism and debt collection of water service.

Practical implications

The findings suggest that water providers should recognize the importance of service quality dimensions, which strengthen the customer satisfaction, which, in turn, is a significant driver for their financial sustainability. It is, therefore, sound to draw action-oriented managerial implications from these results.

Originality/value

The study adds to the literature of water service sector and is based on empirical evidence from primary data of household families and secondary data of water service providers from developing countries. This paper also contributes toward the strengthening of sustainability of the water service sector in Palestine – a worthy humanitarian cause. The study provides evidence useful for policy makers toward carving out policies aimed at strengthening the financial sustainability of the water service sector.

Details

The TQM Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1754-2731

Keywords

To view the access options for this content please click here
Article
Publication date: 17 July 2020

Kofi Mintah Oware and T. Mallikarjunappa

The purpose of this study is to investigate the impact of the choice of an assurance service provider on financial and social performance in an emerging economy. The study…

Abstract

Purpose

The purpose of this study is to investigate the impact of the choice of an assurance service provider on financial and social performance in an emerging economy. The study also examines whether the chief executive officer’s (CEO) characteristics influence the choice of an assurance service provider.

Design/methodology/approach

This study uses descriptive statistics, ordinary least square and probit regression to examine the 800 firm-year observations for the period 2010–2019 and with the Indian stock market as a testing ground.

Findings

The study shows that the engagement of assurance service providers reduces financial performance (stock price returns and Tobin’s q). The study also shows that consulting firms and auditing firms improve the social performance disclosure of the firm in an emerging economy. However, consulting firms outweigh auditing firms in improving social performance disclosure. Also, the implementation of mandatory reporting may slightly impede instead of an increase in social performance disclosure in an emerging economy. The study also shows that ageing CEOs prefer consulting firms over auditing firms in assurance service provision. Finally, the study shows that an extended stay in office by a CEO improves the choice of consulting firms, but the effect has a near-neutral significance.

Originality/value

The choice of CEO characteristics as an independent variable adds to the factors or drivers that cause the choice of an assurance service provider in an emerging economy. Also, the measurement variable of stock price returns and Tobin’s q expands the financial performance measurement in the relationship with assurance service providers.

Details

Meditari Accountancy Research, vol. 29 no. 1
Type: Research Article
ISSN: 2049-372X

Keywords

To view the access options for this content please click here
Article
Publication date: 4 March 2014

Kostas Selviaridis and Andreas Norrman

The performance of service supply chains in terms of service levels and cost efficiency depends not only on the effort of service providers but also on the inputs of…

Abstract

Purpose

The performance of service supply chains in terms of service levels and cost efficiency depends not only on the effort of service providers but also on the inputs of sub-contractors and the customer. In this sense, performance-based contracting (PBC) entails increased financial risk for providers. Allocating and managing risk through contractual relationships along the service supply chain is a critical issue, and yet there is scant empirical evidence regarding what factors influence, and how, provider willingness to bear PBC-induced risk. This paper aims to address this gap.

Design/methodology/approach

The paper draws on agency theory and two cases of logistics service supply chains, in the food retail and automotive industries respectively, to identify key influencing factors. Data were collected through semi-structured interviews with 30 managers of providers and sub-contractors and review of 35 documents, notably contracts and target letters.

Findings

Four influencing factors were found: performance attributability within the service supply chain; relational governance in service supply chain relationships; provider risk and reward balancing; and provider ability to transfer risk to sub-contractors. The propositions developed address how these factors influence provider willingness to bear PBC-induced risk.

Research limitations/implications

The factors identified are external to the provider mindset and refer to the management of contractual relationships and service delivery interactions along the service supply chain. The paper contributes to agency theory by stressing the risk allocation implications of bi-directional principal-agent relations in service supply chains.

Practical implications

The study suggests ways in which providers can increase their capacity to bear and manage financial risk related to PBC design.

Originality/value

The paper identifies factors that influence provider willingness to bear financial risk induced by PBC in service supply chains.

Details

Supply Chain Management: An International Journal, vol. 19 no. 2
Type: Research Article
ISSN: 1359-8546

Keywords

To view the access options for this content please click here
Article
Publication date: 20 December 2019

Meena Rambocas and Surendra Arjoon

The purpose of this paper is to develop an integrated model to represent how service experience (core, employee and service scale), customer satisfaction…

Abstract

Purpose

The purpose of this paper is to develop an integrated model to represent how service experience (core, employee and service scale), customer satisfaction (transaction-specific and cumulative) and brand affinity influence brand equity in financial services, taking into account the moderating influence of financial service providers.

Design/methodology/approach

Data were collected from 751 customers in three types of financial service providers (banks, insurance companies and credit unions), and analyzed with structural equation modeling and multi-group analysis.

Findings

The findings confirm the significant and positive influence of service experience, customer satisfaction and brand affinity on brand equity. Employee service experience has the strongest influence, but its impact is mediated by customer satisfaction. Brand affinity has the lowest influence on brand equity. The type of financial service provider moderates the influence of customer satisfaction on brand equity; transactional satisfaction is more important for credit unions and insurance companies, but cumulative satisfaction is higher for banks.

Practical implications

The study is significant for three reasons. First, it reconciles branding strategies across different types of financial service providers. Second, it will help financial managers to develop and implement a more integrated approach toward building brand equity for financial service brands. Finally, it will identify specific service-related areas financial providers can target to increase customers’ preferential value.

Originality/value

The paper addresses previous concerns within brand equity studies by examining the drivers of brand equity formation in multiple financial institutions. It shows how different aspects of service experience and customer satisfaction affect brand affinity and preferential attitudes toward financial brands.

Details

International Journal of Bank Marketing, vol. 38 no. 3
Type: Research Article
ISSN: 0265-2323

Keywords

To view the access options for this content please click here
Article
Publication date: 11 October 2011

Irinja Mäenpää and Raimo Voutilainen

The purpose of this paper is to investigate how financial service providers cross‐sell combined bank and insurance service offerings in a business‐to‐business context with…

Abstract

Purpose

The purpose of this paper is to investigate how financial service providers cross‐sell combined bank and insurance service offerings in a business‐to‐business context with the aim of increasing understanding on the creation of corporate customer value through cross‐selling.

Design/methodology/approach

A qualitative study of eight providers, augmented with interviews among eight of their small and medium‐sized enterprise (SME) customers, form the empirical basis of the study.

Findings

Financial service providers anticipate a shift from separate sales events towards one‐stop shopping and from unilateral provision of non‐related products towards consideration of hybrid products in the SME segment. SME customers, who tend to acquire their banking and insurance services as non‐related products from separate providers, do not fully support these trends. The results are partly explained by the absence of customer loyalty programs and non‐existent provision of hybrid products in the business‐to‐business context.

Research limitations/implications

The research is focused on the financial industry within one country and bound to SME customers, limiting the generalizability of the findings.

Practical implications

The results imply that financial service providers should develop their one‐stop shopping concept in the SME segment by creating a customer loyalty program that would reward customer companies according to the use of multiple products in their total portfolio. Additionally, the possibilities of introducing hybrid products solely for business customer use should be further investigated.

Originality/value

This study is the first to show how business customers perceive the value of cross‐buying bank and insurance services, presenting a reminder to managers about the importance of recognizing their SME customers' value expectations.

Details

International Journal of Bank Marketing, vol. 29 no. 7
Type: Research Article
ISSN: 0265-2323

Keywords

To view the access options for this content please click here
Article
Publication date: 26 August 2014

Kristina Heinonen

The purpose of this paper is to describe and conceptualize customer relationships in the financial service sector, focussing on three aspects of customer-bank…

Abstract

Purpose

The purpose of this paper is to describe and conceptualize customer relationships in the financial service sector, focussing on three aspects of customer-bank relationships: the financial service provider perspective, the customer-provider dyad, and the customer context.

Design/methodology/approach

Through a short review of the eight papers included in this special issue, this paper illustrates different aspects of customer relationships. It explores customer value formation in the context of banking services, the dynamics and strength of customer relationships, and strategies for financial service provision and consumer trust.

Findings

Customer relationships in the financial service sector are increasingly dynamic and unpredictable. This may be due to both activities within the control of financial service providers, such as strategies for service provision, but is more often attributable to factors beyond the control of providers. What empowered customers are doing in their own settings influences their attitudes toward and evaluations of financial services.

Research limitations/implications

The paper is conceptual. It challenges the firm-centric approach to customer relationships and compares different perspectives of customer relationships. The significance of the customer-centric perspective is emphasized.

Practical implications

Awareness of uncontrollable and idiosyncratic aspects of customer relationships will offer financial service providers new opportunities for being present in the customers’ lives and business.

Originality/value

This paper illustrates the importance of extending the focus from what financial service providers are doing to what customers are doing within their own domains. Financial service providers need to understand more about their customers than their perceptions of service quality, satisfaction, and loyalty in different distribution channels, such as internet and mobile banking. The focus should be instead on how customers integrate their financial activities and experiences in their own life or business.

Details

International Journal of Bank Marketing, vol. 32 no. 6
Type: Research Article
ISSN: 0265-2323

Keywords

To view the access options for this content please click here
Article
Publication date: 1 July 2001

Per E. Pedersen and Herbjørn Nysveen

Agent technology has been applied to design new services simplifying product and merchant brokering in several customer industries. The term “shopbots” is now generally…

Abstract

Agent technology has been applied to design new services simplifying product and merchant brokering in several customer industries. The term “shopbots” is now generally used to characterize these services. Proposes that shopbots will make customers more rational and less loyal and that loyalty will be adversely affected. Proposes that different forms of loyalty are affected by shopbot access and that the effect of shopbots on loyalty may differ among customer groups. These propositions were tested in an experimental study of customers choosing a financial service provider. The findings suggest that cognitive loyalty is the loyalty form most affected by shopbot access and that the loyalty effects of shopbots depend upon customers’ past switching behavior. However, no effects of shopbots on stronger forms of loyalty were found. Even though this research is exploratory, it suggests that financial service providers may not fear the effects of shopbots on the behavior of their affective and conative loyal customers. It also suggests that to avoid the threat of shopbots, strong forms of loyalty should be developed in long‐term relationships between providers and customers.

Details

International Journal of Bank Marketing, vol. 19 no. 4
Type: Research Article
ISSN: 0265-2323

Keywords

To view the access options for this content please click here
Article
Publication date: 1 February 1998

James G. Barnes and Darrin M. Howlett

Relationship marketing has been embraced in a wide range of industries, including financial services. Despite considerable study and widespread application, it appears…

Abstract

Relationship marketing has been embraced in a wide range of industries, including financial services. Despite considerable study and widespread application, it appears that many services marketers have accepted the concept of relationship marketing with little examination of the basis for genuine, quality relationships. Based on a review of the social psychology and relationship marketing literature, the authors offer a consumer‐focused approach to defining the principles of relationship marketing, and examine the conditions under which services marketers can expect to form relationships with their customers. Also presented are empirical findings on the predictors of the level of equity which resides in relationships between financial services providers and their retail customers. The research reveals that the affective dimensions of the service encounter best predict quality relationships. The implications for financial services marketers are discussed.

Details

International Journal of Bank Marketing, vol. 16 no. 1
Type: Research Article
ISSN: 0265-2323

Keywords

1 – 10 of over 39000