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.
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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.
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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.
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Denis Samwel Ringo, Isaac Kazungu and Amani Tegambwage
This study aims to examine the influence of the entrepreneurial orientation (EO) dimensions (innovativeness, risk-taking, proactiveness, competitive aggressiveness and autonomy…
Abstract
Purpose
This study aims to examine the influence of the entrepreneurial orientation (EO) dimensions (innovativeness, risk-taking, proactiveness, competitive aggressiveness and autonomy) on the export performance (EXP) of small and medium enterprises (SMEs).
Design/methodology/approach
In this study a cross-sectional survey design was used and data were collected from 250 managers of manufacturing-exporting SMEs in Tanzania. The developed conceptual model was empirically tested using confirmatory factor analysis and hierarchical regression.
Findings
The results reveal that innovativeness, risk-taking, competitive aggressiveness and autonomy have a significant positive influence on EXP. However, proactiveness hurts EXP. Additionally, findings indicate that the dimensions of EO do not have an equal impact on SMEs’ EXP.
Research limitations/implications
This study only covered SMEs; future studies would be advised to include large firms because they may behave differently with respect EO due to their resource advantages. Furthermore, this study was conducted in a single country, Tanzania, and thus the findings should be interpreted cautiously, since each country has specific institutional frameworks that foster entrepreneurship and entrepreneurial culture in a different way.
Originality/value
The context of this study contributes significantly to the research’s originality. The study contributes to the body of knowledge on the EO-EXP link in developing countries, where research on EO-export is scant, and it further contributes to the debate on the EO-EXP link by demonstrating that the dimensions of EO do not have an equal impact on SMEs’ EXP, and accordingly a disaggregated approach would be more meaningful. Furthermore, the study contributes with regards the role of competitive aggressiveness and autonomy in improving SMEs’ EXP, which has received little attention in previous studies.
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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…
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.
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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…
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.
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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…
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.
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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.
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Ismail Abdi Changalima, Baraka Israel, David Amani, Faustine Peter Panga, Shadrack Samwel Mwaiseje, Alban Dismas Mchopa, Isaac Kazungu and Ismail Juma Ismail
This study aims to examine the influence of procedural capabilities for public procurement participation on small and medium enterprises’ (SMEs) sales performance in Tanzania…
Abstract
Purpose
This study aims to examine the influence of procedural capabilities for public procurement participation on small and medium enterprises’ (SMEs) sales performance in Tanzania. Also, the study establishes the interaction effect of internet marketing capabilities on the relationship between procedural capabilities and sales performance.
Design/methodology/approach
The authors conducted confirmatory factor analysis and PROCESS macro for simple interaction analysis to analyse cross-sectional data that were obtained through questionnaire from surveyed SMEs’ managers. The included SMEs are those that are involved in supplying goods, services and works to public entities in Dodoma, Tanzania.
Findings
The findings reveal that procedural capabilities for participation in public procurement enhance SMEs to improve sales performance. Also, there is a significant and positive relationship between internet marketing capabilities and sales performance. Lastly, internet marketing capabilities strengthen the relationship between procedural capabilities and sales performance.
Social implications
This study is a wake-up call to SMEs to better comprehend public procurement procedures and e-business practices to use the available public procurement opportunities. It is argued that SMEs should invest in technology to market their businesses through social media and online platforms. According to the study, SMEs may benefit from improving their sales performance by fully utilising their internet marketing capabilities and participating in public procurement opportunities.
Originality/value
This study adds to the two main streams of literature that emphasise harnessing public procurement opportunities for SMEs (through public procurement participation) and leveraging internet marketing capabilities for SMEs to improve their sales performance.
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This paper aims to examine the influence of records management on the performance of procurement management units (PMUs) in Tanzania.
Abstract
Purpose
This paper aims to examine the influence of records management on the performance of procurement management units (PMUs) in Tanzania.
Design/methodology/approach
To meet the objective of the study, cross-sectional survey design and quantitative approaches were used for data collection and analysis. Preliminary analysis of the data was carried out using descriptive statistics and structural equation modelling was then used to analyse the influence of records management standards on procurement performance. The data were collected from 164 government PMUs in Tanzania.
Findings
The findings revealed that records management attributes significantly affect procurement performance in Tanzania. Furthermore, government policy and integrity factors confound the association between records management and procurement performance.
Practical implications
The policymakers and practitioners of public procurement are required to be aware of records management principles and how each related factor influences the performance of PMUs. They should emphasise proper storage and housing, equipment, arrangement and access and implement electronic records management.
Originality/value
This study shows how the ISO 15489 model can be applied to public procurement processes. This study also provides the lesson that procurement records need to be protected to ensure their authenticity, reliability, integrity and useability.