IDEAS home Printed from https://ideas.repec.org/a/sae/emecst/v5y2019i2p125-140.html
   My bibliography  Save this article

Impact of Service Innovation on Customer Satisfaction: An Evidence from Pakistani Banking Industry

Author

Listed:
  • Rimsha Kanwal
  • Salman Yousaf

Abstract

The purpose of this study is to appraise the linkage between service innovation (SI), customer value creation (CVC), and customer satisfaction (CS) with a specific focus on the Pakistani banking sector. In addition, the study evaluates the moderating role of brand equity (BE) fit between SI and CS. A survey is conducted on 250 customers from commercial banks in Pakistan and scales were acquired from past literature. The study showed that CVC mediates the relationship between SI and CS. Therefore, SI must create value for their customers in order to enhance CS. Moreover, BE has a partial positive moderation effect on the relationship bewteen SI and CS. By relating to the findings, managers of firms should focus on SI that adds to or create holistic value for their customers, which ultimately increase the CS level. This study relies on two theories, which include signaling theory and expectation disconfirmation theory to explain how SI in Pakistani banking sector creates customer value which achieves CS. The other uniqueness of the study is that it will be helpful for researchers by giving baseline regarding BE effect as a moderator between SI and CS in Pakistani banking industry.

Suggested Citation

  • Rimsha Kanwal & Salman Yousaf, 2019. "Impact of Service Innovation on Customer Satisfaction: An Evidence from Pakistani Banking Industry," Emerging Economy Studies, International Management Institute, vol. 5(2), pages 125-140, November.
    • Handle: RePEc:sae:emecst:v:5:y:2019:i:2:p:125-140
    DOI: 10.1177/0976747919870876
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/0976747919870876
    Download Restriction: no
    File URL: https://libkey.io/10.1177/0976747919870876?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Salunke, Sandeep & Weerawardena, Jay & McColl-Kennedy, Janet R., 2013. "Competing through service innovation: The role of bricolage and entrepreneurship in project-oriented firms," Journal of Business Research, Elsevier, vol. 66(8), pages 1085-1097.
    2. Michael Spence, 2002. "Signaling in Retrospect and the Informational Structure of Markets," American Economic Review, American Economic Association, vol. 92(3), pages 434-459, June.
    3. Joseph E. Stiglitz, 2000. "The Contributions of the Economics of Information to Twentieth Century Economics," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 115(4), pages 1441-1478.
    4. C. Storey & D. Kelly, 2001. "Measuring the Performance of New Service Development Activities," The Service Industries Journal, Taylor & Francis Journals, vol. 21(2), pages 71-90, April.
    5. Yoo, Boonghee & Donthu, Naveen, 2001. "Developing and validating a multidimensional consumer-based brand equity scale," Journal of Business Research, Elsevier, vol. 52(1), pages 1-14, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Singh Rajesh & Sarangal Rajani Kumari, 2021. "Innovation in Quick Service Restaurants (QSRs): A Future Perspective," European Journal of Tourism, Hospitality and Recreation, Sciendo, vol. 11(2), pages 210-218, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Calixto Salomão Filho, 2015. "Monopolies and Underdevelopment," Books, Edward Elgar Publishing, number 16587.
    2. Bonsón, Enrique & Lavorato, Domenica & Lamboglia, Rita & Mancini, Daniela, 2021. "Artificial intelligence activities and ethical approaches in leading listed companies in the European Union," International Journal of Accounting Information Systems, Elsevier, vol. 43(C).
    3. Roberta Sisto & Giustina Pellegrini & Piermichele La Sala, 2019. "Dual quality food: A negative social externality or a competitiveness opportunity?," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 65(7), pages 307-313.
    4. Dawson, Alexandra & Ginesti, Gianluca & Sciascia, Salvatore, 2020. "Family-related antecedents of business legality: An empirical investigation among Italian family owned SMEs," Journal of Family Business Strategy, Elsevier, vol. 11(1).
    5. Sardar Muhammad Usman & Farasat Ali Shah Bukhari & Muhammad Usman & Daniel Badulescu & Muhammad Safdar Sial, 2019. "Does the Role of Media and Founder’s Past Success Mitigate the Problem of Information Asymmetry? Evidence from a UK Crowdfunding Platform," Sustainability, MDPI, vol. 11(3), pages 1-24, January.
    6. Mendiola Teng-Calleja & Alfred Presbitero & Mira Michelle Guzman, 2023. "Organizational direction, expectations, and employees’ intention for Green HRM practices in the Philippines: a signaling theory perspective," Asian Business & Management, Palgrave Macmillan, vol. 22(4), pages 1301-1327, September.
    7. Dror Etzion & Aviad Pe'er, 2014. "Mixed signals: A dynamic analysis of warranty provision in the automotive industry, 1960–2008," Strategic Management Journal, Wiley Blackwell, vol. 35(11), pages 1605-1625, November.
    8. Diestre, Luis, 2018. "Safety crises and R&D outsourcing alliances: Which governance mode minimizes negative spillovers?," Research Policy, Elsevier, vol. 47(10), pages 1904-1917.
    9. Tingting Zhang & Zhengyi Zhang & Jingyu Yang, 2022. "When Does Corporate Social Responsibility Backfire in Acquisitions? Signal Incongruence and Acquirer Returns," Journal of Business Ethics, Springer, vol. 175(1), pages 45-58, January.
    10. Pieter de Jong & Lakshmi Goel, 2016. "The influence of security analysts on CEO pay cuts," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 13(1), pages 26-52, February.
    11. Janina Sundermeier & Tyge-F. Kummer, 2022. "Does personality still matter in e-commerce? How perceived hubris influences the assessment of founders’ trustworthiness using the example of reward-based crowdfunding," Electronic Markets, Springer;IIM University of St. Gallen, vol. 32(3), pages 1127-1144, September.
    12. Chang, Eunmi & Chin, Hyun, 2018. "Signaling or experiencing: Commitment HRM effects on recruitment and employees' online ratings," Journal of Business Research, Elsevier, vol. 84(C), pages 175-185.
    13. J. Barkley Rosser, 2003. "A Nobel Prize for Asymmetric Information: The economic contributions of George Akerlof, Michael Spence and Joseph Stiglitz," Review of Political Economy, Taylor & Francis Journals, vol. 15(1), pages 3-21.
    14. Dimitrios Koutmos & Konstantinos Bozos & Dionysia Dionysiou & Neophytos Lambertides, 2018. "The timing of new corporate debt issues and the risk-return tradeoff," Review of Quantitative Finance and Accounting, Springer, vol. 50(4), pages 943-978, May.
    15. Chen, An & Li, Hong & Schultze, Mark B., 2023. "Optimal longevity risk transfer under asymmetric information," Economic Modelling, Elsevier, vol. 120(C).
    16. Calic, Goran & Shevchenko, Anton, 2020. "How signal intensity of behavioral orientations affects crowdfunding performance: The role of entrepreneurial orientation in crowdfunding business ventures," Journal of Business Research, Elsevier, vol. 115(C), pages 204-220.
    17. Lee, Michael T. & Raschke, Robyn L. & Krishen, Anjala S., 2022. "Signaling green! firm ESG signals in an interconnected environment that promote brand valuation," Journal of Business Research, Elsevier, vol. 138(C), pages 1-11.
    18. Teuber, Ramona, 2011. "Protecting Geographical Indications: Lessons learned from the Economic Literature," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 116081, European Association of Agricultural Economists.
    19. Suying Gao & Xiangshan Jin & Ye Zhang, 2021. "User Participation Behavior in Crowdsourcing Platforms: Impact of Information Signaling Theory," Sustainability, MDPI, vol. 13(11), pages 1-19, June.
    20. Stevens, Charles E. & Makarius, Erin E. & Mukherjee, Debmalya, 2015. "It Takes Two to Tango: Signaling Behavioral Intent in Service Multinationals' Foreign Entry Strategies," Journal of International Management, Elsevier, vol. 21(3), pages 235-248.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:emecst:v:5:y:2019:i:2:p:125-140. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: https://www.imi.edu/delhi/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.