Factors Associated with Customer satisfaction and financialperformance. A case study with Dubai Islamic Bank in Jordan.
Year : 2012-06-01
Faculty : Business
Author : سلطان محمد سعيد سلطان فريحات /
Abstarct :
This study has three objectives. First is to investigate the set of relationships between three variables [general services, corporate social responsibility (CSR) services and Sharia’h compliance services] and customer satisfaction. The second objective investigates the relationships between three bank service variables [general services, CSR services and Sharia’h compliance services and financial performance] and financial performance. The third objective of this study is to examine the mediating effect of customer satisfaction on the individual relationships between each of three factors [general services, CSR services, and Sharia h compliance services] and financial performance. To achieve the three objectives, the study utilises a single approach design involving the use of a quantitative instrument for customers from Jordanian Islamic banks. A representative sample of banks customers (n=210) were recruited from the selected Islamic banks to voluntarily participate in the study. The questionnaire sought information on factors commonly associated with customer satisfaction in the banking industry: general services, CSR services, Sharia h compliance services and financial performance, plus demographic details. The results of this study suggested provision of general services and CSR services are associated with customer satisfaction. This is consistent with results of prior studies reporting a significant positive association between two variables (general services and CSR services) and customer satisfaction. The study also found that Sharia h compliance is consistent with some previous findings: that provision of Sharia h compliance services is associated with customer satisfaction. Similarly, this study found a positive relationship between customer satisfaction and financial performance consistent with results of past studies. Furthermore, this study found customer satisfaction mediated the relationship between the following variables (general services, CSR services, and Sharia h compliance services) and financial performance. Some findings are consistent with past study results which reported financial performance depended on customer satisfaction with general services and CSR services However, the third finding about Sharia h compliance services adds to the body of knowledge because no previous study has investigated the mediating effect of customer satisfaction on the relationship between Sharia h compliance services and financial performance. These results have implications for future research studies into these relationships within Sharia’h banks. The present study also offers important implications for i) practice: utility of good quality general services, CSR services, and Sharia h compliance services in the maintenance of sustainable business practices and customer satisfaction (as an important stakeholder group) ii) government institutions: encouraging them to improve their general services and integrate CSR services into their business and iii) society: banks being more socially responsible financial institutions and creating windows for Sharia h compliance services.
Year : 2012-06-01
Faculty : Business
Author : سلطان محمد سعيد سلطان فريحات /
Abstarct :
This study has three objectives. First is to investigate the set of relationships between three variables [general services, corporate social responsibility (CSR) services and Sharia’h compliance services] and customer satisfaction. The second objective investigates the relationships between three bank service variables [general services, CSR services and Sharia’h compliance services and financial performance] and financial performance. The third objective of this study is to examine the mediating effect of customer satisfaction on the individual relationships between each of three factors [general services, CSR services, and Sharia h compliance services] and financial performance. To achieve the three objectives, the study utilises a single approach design involving the use of a quantitative instrument for customers from Jordanian Islamic banks. A representative sample of banks customers (n=210) were recruited from the selected Islamic banks to voluntarily participate in the study. The questionnaire sought information on factors commonly associated with customer satisfaction in the banking industry: general services, CSR services, Sharia h compliance services and financial performance, plus demographic details. The results of this study suggested provision of general services and CSR services are associated with customer satisfaction. This is consistent with results of prior studies reporting a significant positive association between two variables (general services and CSR services) and customer satisfaction. The study also found that Sharia h compliance is consistent with some previous findings: that provision of Sharia h compliance services is associated with customer satisfaction. Similarly, this study found a positive relationship between customer satisfaction and financial performance consistent with results of past studies. Furthermore, this study found customer satisfaction mediated the relationship between the following variables (general services, CSR services, and Sharia h compliance services) and financial performance. Some findings are consistent with past study results which reported financial performance depended on customer satisfaction with general services and CSR services However, the third finding about Sharia h compliance services adds to the body of knowledge because no previous study has investigated the mediating effect of customer satisfaction on the relationship between Sharia h compliance services and financial performance. These results have implications for future research studies into these relationships within Sharia’h banks. The present study also offers important implications for i) practice: utility of good quality general services, CSR services, and Sharia h compliance services in the maintenance of sustainable business practices and customer satisfaction (as an important stakeholder group) ii) government institutions: encouraging them to improve their general services and integrate CSR services into their business and iii) society: banks being more socially responsible financial institutions and creating windows for Sharia h compliance services.