M.R. Binks, C.T. Ennew and G.V. Reed
With the creation of the Single European market in 1992, there will be intensification of competitive pressure on small firms in the UK and on UK banks as their main providers of…
Abstract
With the creation of the Single European market in 1992, there will be intensification of competitive pressure on small firms in the UK and on UK banks as their main providers of finance. Evidence is presented of possible mismatching of the services actually provided by UK banks and those desired by small firms, and of the unwillingness of UK small firms to switch banks, particularly if it involves crossing the Scots/English border. It is argued that the competitiveness of UK small firms after 1992 depends on either an autonomous change in the services provided by UK banks or the switching of accounts to non‐domestic banks who may move into the domestic market.
Martin R. Binks, Christine T. Ennew and Geoffrey V. Reed
Increased competitive pressure in the market for loanable funds hasencouraged the banks to place greater emphasis on the marketing of theirservices to both corporate and personal…
Abstract
Increased competitive pressure in the market for loanable funds has encouraged the banks to place greater emphasis on the marketing of their services to both corporate and personal customers. The small business sector of the corporate market covers the majority of corporate accounts and for a substantial volume of bank lending. However, the proliferation of product differentiation in relation to small business customers in order to improve banks′ competitive position appears to have been less than successful. The small business sector is heterogeneous; customer needs vary but there is little evidence to suggest that banks differentiate their products sufficiently to appeal to distinct market segments. On the contrary, despite competitive pressures and new marketing strategies, small business customers generally perceive the services provided by the different banks as indistinguishable.
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Gábor Nagy, Carol M. Megehee and Arch G. Woodside
The study here responds to the view that the crucial problem in strategic management (research) is firm heterogeneity – why firms adopt different strategies and structures, why…
Abstract
The study here responds to the view that the crucial problem in strategic management (research) is firm heterogeneity – why firms adopt different strategies and structures, why heterogeneity persists, and why competitors perform differently. The present study applies complexity theory tenets and a “neo-configurational perspective” of Misangyi et al. (2016) in proposing complex antecedent conditions affecting complex outcome conditions. Rather than examining variable directional relationships using null hypotheses statistical tests, the study examines case-based conditions using somewhat precise outcome tests (SPOT). The complex outcome conditions include firms with high financial performances in declining markets and firms with low financial performances in growing markets – the study focuses on seemingly paradoxical outcomes. The study here examines firm strategies and outcomes for separate samples of cross-sectional data of manufacturing firms with headquarters in one of two nations: Finland (n = 820) and Hungary (n = 300). The study includes examining the predictive validities of the models. The study contributes conceptual advances of complex firm orientation configurations and complex firm performance capabilities configurations as mediating conditions between firmographics, firm resources, and the two final complex outcome conditions (high performance in declining markets and low performance in growing markets). The study contributes by showing how fuzzy-logic computing with words (Zadeh, 1966) advances strategic management research toward achieving requisite variety to overcome the theory-analytic mismatch pervasive currently in the discipline (Fiss, 2007, 2011) – thus, this study is a useful step toward solving the crucial problem of how to explain firm heterogeneity.
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Sabine Fliess, Stefan Dyck and Mailin Schmelter
The purpose of this paper is to investigate customer perceptions of their own contribution to service provision, in order to enhance our understanding of customer contribution and…
Abstract
Purpose
The purpose of this paper is to investigate customer perceptions of their own contribution to service provision, in order to enhance our understanding of customer contribution and its dimensions.
Design/methodology/approach
In total, 27 in-depth interviews were conducted across nine service contexts. Qualitative data were then analyzed to identify the various dimensions of customer contribution.
Findings
First, the study contributes to the understanding of customer contribution in identifying physical, mental, and emotional dimensions. The physical and mental dimensions of customer contribution are represented by activities, while emotions comprise mood and emotional states. Second, relationships among the three dimensions were identified; in particular, physical and mental activities were found to influence customer emotions. Third, the findings reveal that customer understanding of their own contribution to service provision encompass the co-creative sphere of customer and provider, and extends to the customer-sphere before the service encounter.
Research limitations/implications
The qualitative study is limited in terms of generalizability, since the 27 interview cases were based on nine interviews each covering three service settings. Further research is needed to investigate how the dimensions of customer contribution are linked to different outcomes (e.g. service value, satisfaction, loyalty), thus providing a quantitative validation of our findings.
Practical implications
Understanding the customer contribution to service provision is pivotal for service design. Service managers need to reflect on how the different dimensions of contribution manifest in their existing or potential service offering, since physical and mental customer activities shape their emotions, which in turn impact on the service experience and value.
Originality/value
Little in-depth research has been conducted on the nature and dimensionality of customer contributions to service provision, particularly with regard to perceptions of their own contribution. Most previous empirical research on customer contribution is limited to a specific context and concerned with customer behaviors. Hence, this qualitative study examines customer contribution across different service context, focussing on customer perceptions in terms of physical, mental, and emotional contributions to service provision.
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This paper focuses upon the role of factoring in small business finance and the profile of firms using it. The analysis refers to a comprehensive survey of UK providers of…
Abstract
This paper focuses upon the role of factoring in small business finance and the profile of firms using it. The analysis refers to a comprehensive survey of UK providers of factoring services. This identifies the relatively focused provision of factoring in terms of size, age, sector and stage of growth of the client base (ie businesses) using this financial service. For those using factoring, the service may provide a valuable improvement to cash flow and working capital position and can possibly contribute to small business growth and development. In its present format, however, factoring is not the potential financial solution for all firms across all industries.
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Martin Binks, Christine Ennew and Geoff Reed
The implementation of the EC′s programme toliberalise the financial services sector as part ofthe movement towards a Single European Marketwill significantly reduce the costs of…
Abstract
The implementation of the EC′s programme to liberalise the financial services sector as part of the movement towards a Single European Market will significantly reduce the costs of entry into non‐domestic markets for Community banks. Reducing entry costs will increase competition in banking markets, but it is unlikely that all segments of the banking market will experience the same patterns of change. The large‐scale corporate market already displays a high volume of cross‐border trade, while retail markets may be inaccessible for many non‐domestic banks, except by acquisition. The small‐ and medium‐sized corporate sector is widely regarded as an attractive niche market at the European level and it is suggested that there are particular gaps in this market in the UK. These gaps may make such a market susceptible to increased competition from non‐UK Community banks, although at the same time, improvements in the product offerings to this market by UK banks may provide the basis for a strategy to protect existing domestic markets and develop into new non‐domestic markets.
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Yi‐Ching Hsieh, Jinshyang Roan, Anurag Pant, Jung‐Kuei Hsieh, Wen‐Ying Chen, Monle Lee and Hung‐Chang Chiu
The purpose of this paper is to explore how multichannel customers evaluate overall satisfaction across distribution channels and what the antecedents are of such satisfaction.
Abstract
Purpose
The purpose of this paper is to explore how multichannel customers evaluate overall satisfaction across distribution channels and what the antecedents are of such satisfaction.
Design/methodology/approach
A survey of bank customers in Taiwan was conducted. The total number of valid questionnaires was 479. Reliability and validity were tested. Maximum likelihood procedure of LISREL 8.8 was used to test the hypothesized structural equation model.
Findings
The findings indicate that the overall satisfaction in the multichannel environment is a critical determinant of customer retention and participation. The present study also develops the antecedents of multichannel satisfaction. In the multichannel environment, perceived multichannel service quality is positively related to satisfaction, while perceived channel switching difficulty is negatively related to satisfaction.
Originality/value
The present study employs the stimulus‐organism‐response (S‐O‐R) paradigm and the channel loyalty framework to better model customers' response to marketing activities in the multichannel distribution system.
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Judith J. Madill, Lisa Feeney, Alan Riding and George H. Haines
The primary goal of this empirical research study is to identify key drivers of SME satisfaction related to a variety of aspects of the bank/SME relationship. The research uses…
Abstract
The primary goal of this empirical research study is to identify key drivers of SME satisfaction related to a variety of aspects of the bank/SME relationship. The research uses data from 3,190 interviews with key informants – identified as the person who is most responsible for financial and banking decisions – in Canadian SMEs. Research focused on how SME overall satisfaction is affected by the account manager’s management of the bank/SME relationship, the branch staff’s management of the bank/SME relationship and the bank’s policies and procedures regarding bank/SME relationships. All three drivers were significantly and strongly related to SME satisfaction with the bank with which they had their primary relationship.
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The UK SME sector has been identified as a potentially attractivesegment for non‐domestic European banks wishing to establish a base inthe UK market. A survey by interview of 30…
Abstract
The UK SME sector has been identified as a potentially attractive segment for non‐domestic European banks wishing to establish a base in the UK market. A survey by interview of 30 from a sampling frame of 354 medium‐sized enterprises in the UK suggests that foreign penetration of this market is unlikely in the short term. At present, medium‐sized enterprises attach considerable importance to factors such as trust and confidence in their banking relationship. For foreign banks to penetrate this market it would be necessary to overcome existing conservative approaches to banking relationships and particularly concerns over support to distressed businesses.
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Financing is cited as the major obstacle for entrepreneurs. However, data limitations have prevented study of entrepreneurs’ own impact on their financing relationships…
Abstract
Purpose
Financing is cited as the major obstacle for entrepreneurs. However, data limitations have prevented study of entrepreneurs’ own impact on their financing relationships. Gender-based studies have concerned lender constraints and discriminatory outcomes. Others which are generally examined are borrowers’ fear of denial and non-pursuit of credit. To more fully explain the financing obstacle, the purpose of this study is to uniquely examine entrepreneurial borrowers’ evaluation of and actions in their existing financing relationship. This study also captures those businesses with equal ownership gender concentration, to contribute to a deeper understanding of gender impact.
Design/methodology/approach
This study uses a cross-sectional sample of several thousand US small enterprises from the NFIB’s proprietary credit survey. The data set offers links between owners’ perceptions and financing behavior. Robust univariate analysis examines differences across gender ownership groups. Multivariate regression analyzes how gender, business environment and other factors determine the entrepreneurs’ financing relationships.
Findings
This study highlights how entrepreneurs affect their own financing outcomes. Findings suggest that switching lenders, seeking multiple relationships and other actions determine financing satisfaction. Growth intent, business performance and characteristics of the entrepreneur are among significant posited factors influencing perception and behavior of entrepreneurs in their financing relationships that drive business performance. Furthermore, equal ownership concentration firms appear to be similar to those primarily owned by men. This study indicates that researchers need to further delineate among entrepreneurs. The results of this study also have implications for policy-makers in their assessment of gender discrimination and government entrepreneurial financing initiatives.
Originality/value
Financing is cited as the major obstacle for entrepreneurs. However, data limitations have prevented study of entrepreneurs’ own impact on their financing relationships. Gender-based studies have concerned lender constraints and discriminatory outcomes. Others which are generally examined are borrowers’ fear of denial and non-pursuit of credit. To more fully explain the financing obstacle, this study uniquely examines entrepreneurial borrowers’ evaluation of and actions in their existing financing relationship. This study also captures those businesses with equal ownership gender concentration, to contribute to a deeper understanding of gender impact.