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An assessment of corporate social responsibility on customer company identification and loyalty in banking industry: a PLS-SEM analysis

Author

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  • Ali Raza
  • Raouf Ahmad Rather
  • Muhammad Khalid Iqbal
  • Umair Saeed Bhutta

Abstract

Purpose - This paper aims to address the need for a more in-depth empirical investigation of exploring the link between the adoption of corporate social responsibility (CSR) practices and different aspects of customer behavior in a developing country. This paper develops a research framework and assesses the mediating role of trust, customer-company identification (CCI) and electronic-service quality (E-SQ) between customer perceptions of CSR and customer loyalty. Design/methodology/approach - Working with a sample of 280 banking customers in Pakistan, partial least square based structural equation modeling is used to test the conceptual model. Findings - Surprisingly, results suggest that CSR is not directly related to customer loyalty, which is contradictory to previously established findings conducted in developed countries. Thus, confirming a full mediation of CCI, E-SQ and trust in enhancing the effect of CSR on customer loyalty. The study also confirms that CSR is positively related to E-SQ, and E-SQ also directly affects CCI. Practical implications - Banks should adhere to honest CSR practices and effectively communicate and advertise these practices to increase awareness and knowledge among the customers. Similarly, banks should advance in technological expertise to generate customer identification, which then leads to their loyalty. Originality/value - Previous studies conferred short-term customer’s reactions, such as purchase intention and brand image. Still, this research discusses the long-term effect of CSR on customer behavior, such as the loyalty of the customers. Moreover, this is the pioneer study that investigates how CSR actions influence customer perceptions about E-SQ and how electronic services affect customer identification with a bank.

Suggested Citation

  • Ali Raza & Raouf Ahmad Rather & Muhammad Khalid Iqbal & Umair Saeed Bhutta, 2020. "An assessment of corporate social responsibility on customer company identification and loyalty in banking industry: a PLS-SEM analysis," Management Research Review, Emerald Group Publishing Limited, vol. 43(11), pages 1337-1370, April.
    • Handle: RePEc:eme:mrrpps:mrr-08-2019-0341
    DOI: 10.1108/MRR-08-2019-0341
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    Citations

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    Cited by:

    1. Naveed Ahmad & Asif Mahmood & Antonio Ariza-Montes & Heesup Han & Felipe Hernández-Perlines & Luis Araya-Castillo & Miklas Scholz, 2021. "Sustainable Businesses Speak to the Heart of Consumers: Looking at Sustainability with a Marketing Lens to Reap Banking Consumers’ Loyalty," Sustainability, MDPI, vol. 13(7), pages 1-16, March.
    2. Lu, Jintao & Jia, Xiaorong & Lev, Benjamin & Zhang, Chong & Gao, Yangyang & Zhao, Min & He, Yifan, 2021. "How to understand “salable fake goods” and “unsalable quality goods”? An insight from the view of quality responsibility and consumers’ brand loyalty," Technology in Society, Elsevier, vol. 67(C).
    3. Rather, Raouf Ahmad & Hollebeek, Linda D., 2021. "Customers’ service-related engagement, experience, and behavioral intent: Moderating role of age," Journal of Retailing and Consumer Services, Elsevier, vol. 60(C).
    4. Oleksandra Rozhenko & Maryna Iurchenko & Vytautas Juscius, 2023. "Assessing the provision of innovative technologies for the growth of corporate social responsibility in Lithuania," Eastern-European Journal of Enterprise Technologies, PC TECHNOLOGY CENTER, vol. 5(13 (125)), pages 26-35, October.
    5. Rania B. Mostafa & Leila Hamieh, 2022. "How CSR Activities Affect Student Attitudinal and Behavioral Loyalty in the Lebanese Educational Sector?," International Journal of Customer Relationship Marketing and Management (IJCRMM), IGI Global, vol. 13(1), pages 1-17, January.
    6. James Agyei & Shaorong Sun & Emmanuel Kofi Penney & Eugene Abrokwah & Richmond Ofori-Boafo, 2021. "Linking CSR and Customer Engagement: The Role of Customer-Brand Identification and Customer Satisfaction," SAGE Open, , vol. 11(3), pages 21582440211, August.
    7. Pejman Ebrahimi & Datis Khajeheian & Maria Fekete-Farkas, 2021. "A SEM-NCA Approach towards Social Networks Marketing: Evaluating Consumers’ Sustainable Purchase Behavior with the Moderating Role of Eco-Friendly Attitude," IJERPH, MDPI, vol. 18(24), pages 1-21, December.
    8. Muflih, Muhammad, 2021. "The link between corporate social responsibility and customer loyalty: Empirical evidence from the Islamic banking industry," Journal of Retailing and Consumer Services, Elsevier, vol. 61(C).
    9. Muhammad Mubushar & Shahid Rasool & Muhammad Imtiaz Haider & Roberto Cerchione, 2021. "The impact of corporate social responsibility activities on stakeholders' value co‐creation behaviour," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(6), pages 1906-1920, November.
    10. Anita Oppong & Livingstone Divine Caesar, 2023. "A contingency analysis of brand reputation and loyalty in the banking sector," SN Business & Economics, Springer, vol. 3(7), pages 1-29, July.
    11. Bilal Ahmad & Liu Da & Mirza Huzaifa Asif & Muhammad Irfan & Shahid Ali & Muhammad Imad Ud Din Akbar, 2021. "Understanding the Antecedents and Consequences of Service-Sales Ambidexterity: A Motivation-Opportunity-Ability (MOA) Framework," Sustainability, MDPI, vol. 13(17), pages 1-19, August.
    12. Ahmed Abubakar & Sani Ahmed Yauta & Mohammed Mahmud Khalifa, 2022. "Corporate Social Responsibility (CSR): Strategy for University Sustainable Competitive Advantage," Business Management and Strategy, Macrothink Institute, vol. 13(2), pages 19-33, December.
    13. Ali Raza & Muhammad Farrukh & Muhammad Khalid Iqbal & Muhammad Farhan & Yihua Wu, 2021. "Corporate social responsibility and employees' voluntary pro‐environmental behavior: The role of organizational pride and employee engagement," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(3), pages 1104-1116, May.
    14. Sehrish Atif, 2023. "Mapping circular economy principles and servitisation approach in business model canvas: an integrated literature review," Future Business Journal, Springer, vol. 9(1), pages 1-21, December.
    15. Mokgadi Cleopatra Taoana & Emmanuel Silva Quaye & Russell Abratt, 2022. "Antecedents of brand loyalty in South African retail banking," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 27(2), pages 65-80, June.
    16. Rather, Raouf Ahmad & Raisinghani, Manju & Gligor, David & Parrey, Shakir Hussain & Russo, Ivan & Bozkurt, Sıddık, 2023. "Examining tourist citizenship behaviors through affective, cognitive, behavioral engagement and reputation: Symmetrical and asymmetrical approaches," Journal of Retailing and Consumer Services, Elsevier, vol. 75(C).
    17. Nabeel Younus Ansari & Temoor Anjum & Muhammad Farrukh & Petra Heidler, 2021. "Do Good, Have Good: A Mechanism of Fostering Customer Pro-Environmental Behaviors," Sustainability, MDPI, vol. 13(7), pages 1-14, March.

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