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1 – 10 of over 41000Hugo 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.
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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…
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.
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Constantino Stavros, Kate Westberg, Roslyn Russell and Marcus Banks
Service captivity is described as the experience of constrained choice whereby a consumer has no power and feels unable to exit a service relationship. This study aims to explore…
Abstract
Purpose
Service captivity is described as the experience of constrained choice whereby a consumer has no power and feels unable to exit a service relationship. This study aims to explore how positive service experiences can contribute to service captivity in the alternative financial services (AFS) sector for consumers experiencing financial vulnerability.
Design/methodology/approach
A total of 31 interviews were undertaken with Australian consumers of payday loans and/or consumer leases.
Findings
The authors reveal a typology of consumers based on their financial vulnerability and their experience with AFS providers. Then they present three themes relating to how the marketing practices of these providers create a positive service experience, and, in doing so, can contribute to service captivity for consumers experiencing financial vulnerability.
Research limitations/implications
The benefits derived from positive service experiences, including accessible solutions, self-esteem, and a sense of control over their financial situation, contribute to the service captivity of some consumers, rendering alternative avenues less attractive.
Practical implications
AFS providers must ensure a socially responsible approach to their marketing practices to minimize potentially harmful outcomes for consumers. However, a systems-level approach is needed to tackle the wider issue of financial precarity. Policymakers need to address the marketplace gaps, regulatory frameworks and social welfare policies that contribute to both vulnerability and captivity.
Originality/value
This research extends the understanding of service captivity by demonstrating how positive service experiences can perpetuate this situation. Further, specific solutions are proposed at each level of the service system to address service captivity in the AFS sector.
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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.
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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 also…
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.
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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 relationship of…
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.
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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 (transaction-specific and…
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.
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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 the aim…
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.
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Max Sim, Jodie Conduit, Carolin Plewa and Janin Karoli Hentzen
While businesses seek to engage customers, their efforts are often met with varied results, as some customers are more predisposed to engage than others. Understanding customers’…
Abstract
Purpose
While businesses seek to engage customers, their efforts are often met with varied results, as some customers are more predisposed to engage than others. Understanding customers’ dispositions to engage is central to understanding customer engagement, yet research examining customer engagement dispositions remains sparse and predominantly focused on personality traits. This paper aims to consider the general nature of a disposition and draws on qualitative findings to depict a framework for customer engagement dispositions.
Design/methodology/approach
To investigate customer engagement dispositions comprehensively and in-depth, an exploratory qualitative approach was adopted. In total, 20 semi-structured in-depth interviews were conducted with customers in ongoing relationships with financial planners residing in Australia.
Findings
Nine attributes reflecting customer engagement dispositions emerge from the data. These include the customer’s internal tendency to engage (confidence, desire for control, extroversion and enthusiasm); a tendency to engage determined in the interaction with the service provider (sense of similarity, sense of social connection and trust in the service provider); and the capacity to engage (expertise and knowledge and time availability).
Research limitations/implications
This study provides a conceptual foundation for future empirical measurement of customer engagement dispositions and their nomological network.
Practical implications
This study establishes a foundation for managers to build distinct engagement disposition profiles and segments and target initiatives to maximize engagement activity.
Originality/value
This research challenges the view of customer engagement dispositions as largely personality factors, or exclusively cognitive and emotional dimensions of engagement, and offers a comprehensive framework reflecting a customer’s disposition to engage with a service provider.
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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…
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.
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