Nicolaus Lundahl, Fatima Vegholm and Lars Silver
The purpose of this study is to investigate the influence of the technical and functional dimensions of service management on customer satisfaction in the bank‐SME relationship.
Abstract
Purpose
The purpose of this study is to investigate the influence of the technical and functional dimensions of service management on customer satisfaction in the bank‐SME relationship.
Design/methodology/approach
An ordinal logistic regression analysis is used to examine a total of 221 responses to a questionnaire distributed to small and medium‐sized enterprises (SMEs) in Sweden.
Findings
Both the technical and the functional dimensions of service management were shown to correlate with customer satisfaction. Thus, SMEs seem to evaluate their banking relationship not only on the basis of the effectiveness and quality of banks' service outcomes but also on the care and manner in which the bankers deliver services.
Research limitations/implications
The study shows that relationship variables, such as personal interaction is a strong determinant for customer satisfaction in the bank‐SME relationship. Hence, there is a need for banks to focus training on understanding the issues of SMEs on a broader scale rather than solely on the sale of individual products.
Originality/value
The study examines both the technical and functional dimensions of service management in the bank‐SME relationship. Because most researchers treat ordinal scales as continuous variables, stronger conclusions can thus be drawn from the ordinal regression analysis performed here.
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Keywords
Lars Silver, Nicolaus Lundahl and Björn Berggren
The purpose of this paper is to investigate the effects of small business entrepreneurs’ relinquishment of control aversion and the impact of their interaction with external…
Abstract
Purpose
The purpose of this paper is to investigate the effects of small business entrepreneurs’ relinquishment of control aversion and the impact of their interaction with external financiers on market connection.
Design/methodology/approach
Questionnaires were sent to the chief executive officers of small businesses in the manufacturing and professional services sectors. A total of 459 valid responses were analyzed in a structural equation model.
Findings
The attitude of small business entrepreneurs in relying on financiers’ advice is marked by control aversion. This fear of losing control creates information asymmetry, which in itself leads to decreased financing opportunities for small business entrepreneurs. The results of the study suggest that small firms seeking the aid of financiers will be provided with substantial additional information about the market. Issues pertaining to supply seem to be less relevant than those relating to demand, thus indicating that greater focus should be placed on the investment readiness of small businesses.
Originality/value
This study emphasizes the importance of the role of attitudes among SMEs in understanding capital market failure and credit rationing.