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Deployment of Relational Constructs to Enhance the Performance of Nigeria Micro-Finance Banks (MFBs)

Author

Listed:
  • Dr. Muhammad Mujtaba Abubakar*

    (Department of Business Administration and Management, Waziri Umaru Federal Polytechnic, PMB 1034, Binin Kebbi, Nigeria)

Abstract

Despite ample empirical studies that focus on Micro-finance Banks (MFBs) and their deployment of such tactics as service quality, advertisements, corporate social responsibility (CSR), public relations and host of other strategies, the microfinance sub-sector is far from actualizing its mandate, hence the need to search for additional marketing constructs that may be deployed to help mitigate the challenges facing MFBs and provide solution to their financial performance crisis. Broadly, the research objectives seek to examine the impact of three relational constructs, namely trust, communication and personalization on customer loyalty of MFBs in Nigeria. To facilitate this, a descriptive research was designed and employed. The target population and unit of analysis are given by the customers of selected MFBs in the North-West Geopolitical Zone of Nigeria. A sample of 487 respondents was taken and data were taken from them through a self-administered questionnaire. A regression analysis has been used as the main data analysis technique to comply with international standard. Findings of the research suggest that trust, communication and personalization of service have significant positive impact on customer loyalty of MFBs. Implications of the study as well as direction for future studies have been documented.

Suggested Citation

  • Dr. Muhammad Mujtaba Abubakar*, 2025. "Deployment of Relational Constructs to Enhance the Performance of Nigeria Micro-Finance Banks (MFBs)," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 9(14), pages 980-990, April.
    • Handle: RePEc:bcp:journl:v:9:y:2025:issue-14:p:980-990
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    References listed on IDEAS

    as
    1. Amani Gration Tegambwage & Pendo Shukrani Kasoga, 2025. "The role of individual dimensions of business relationship quality and business customer value in building loyalty in microfinance," Journal of Innovation and Entrepreneurship, Springer, vol. 14(1), pages 1-19, December.
    2. Ndah Grimbald & Tarbot Chelsea Mah, 2023. "Bank Marketing and Its Effects on Customer Retention in Microfinance in Yaounde, Cameroon," Business and Economic Research, Macrothink Institute, vol. 13(1), pages 57-68, December.
    3. Frasquet, Marta & Ieva, Marco & Mollá-Descals, Alejandro, 2024. "Customer inspiration in retailing: The role of perceived novelty and customer loyalty across offline and online channels," Journal of Retailing and Consumer Services, Elsevier, vol. 76(C).
    4. Allen N. Berger & David B. Humphrey, 1992. "Measurement and Efficiency Issues in Commercial Banking," NBER Chapters, in: Output Measurement in the Service Sectors, pages 245-300, National Bureau of Economic Research, Inc.
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