IDEAS home Printed from https://ideas.repec.org/a/eee/jbrese/v133y2021icp297-308.html
   My bibliography  Save this article

How does relationship quality sustain the rich world’s poorest businesses?

Author

Listed:
  • Hani, Umme
  • Akter, Shahriar
  • Wickramasinghe, Ananda
  • Kattiyapornpong, Uraiporn

Abstract

A social bank has been argued as a viable solution to empower disadvantaged business customers through a long-term relationship. Despite the importance of business relationship, there is little empirical evidence of how the dynamic bundling of the relationship quality dimensions evolve to make an economic and social impact. Drawing on the social exchange theory, this study presents a social banking relationship quality (SBRQ) model for business customers using the Grameen Bank in Bangladesh as a research context. The empirical findings confirm three primary dimensions (i.e., trust, respect and reciprocity) and nine subdimensions of SBRQ and their significant effects on financial self-efficacy and quality of life.

Suggested Citation

  • Hani, Umme & Akter, Shahriar & Wickramasinghe, Ananda & Kattiyapornpong, Uraiporn, 2021. "How does relationship quality sustain the rich world’s poorest businesses?," Journal of Business Research, Elsevier, vol. 133(C), pages 297-308.
  • Handle: RePEc:eee:jbrese:v:133:y:2021:i:c:p:297-308
    DOI: 10.1016/j.jbusres.2021.04.065
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S014829632100309X
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.jbusres.2021.04.065?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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. René Algesheimer & Sharad Borle & Utpal M. Dholakia & Siddharth S. Singh, 2010. "The Impact of Customer Community Participation on Customer Behaviors: An Empirical Investigation," Marketing Science, INFORMS, vol. 29(4), pages 756-769, 07-08.
    2. TENENHAUS, Michel, 2008. "Component-based structural equation modelling," HEC Research Papers Series 887, HEC Paris.
    3. Tokunaga, Howard, 1993. "The use and abuse of consumer credit: Application of psychological theory and research," Journal of Economic Psychology, Elsevier, vol. 14(2), pages 285-316, June.
    4. Robert W. Palmatier & Srinath Gopalakrishna & Mark B. Houston, 2006. "Returns on Business-to-Business Relationship Marketing Investments: Strategies for Leveraging Profits," Marketing Science, INFORMS, vol. 25(5), pages 477-493, September.
    5. Tsung-Chi Liu & Li-Wei Wu, 2009. "Cross-buying evaluations in the retail banking industry," The Service Industries Journal, Taylor & Francis Journals, vol. 29(7), pages 903-922, July.
    6. Marie‐Thérèse TAUPIN & Pascal GLEMAIN, 2007. "Les Logiques D'Acteurs Des Finances Solidaires Contemporaines: De La Resistance A La Resilience?," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 78(4), pages 629-661, December.
    7. Armstrong, J. Scott & Overton, Terry S., 1977. "Estimating Nonresponse Bias in Mail Surveys," MPRA Paper 81694, University Library of Munich, Germany.
    8. Simon Cornée & Ariane Szafarz, 2014. "Vive la Différence: Social Banks and Reciprocity in the Credit Market," Journal of Business Ethics, Springer, vol. 125(3), pages 361-380, December.
    9. D. Harrison McKnight & Vivek Choudhury & Charles Kacmar, 2002. "Developing and Validating Trust Measures for e-Commerce: An Integrative Typology," Information Systems Research, INFORMS, vol. 13(3), pages 334-359, September.
    10. Soyeon Shim & Joyce Serido & Sun‐Kyung Lee, 2019. "Problem‐Solving Orientations, Financial Self‐Efficacy, and Student‐Loan Repayment Stress," Journal of Consumer Affairs, Wiley Blackwell, vol. 53(3), pages 1273-1296, September.
    11. Chiung-Ju Liang & Wen-Hung Wang, 2006. "The behavioural sequence of the financial services industry in Taiwan: Service quality, relationship quality and behavioural loyalty," The Service Industries Journal, Taylor & Francis Journals, vol. 26(2), pages 119-145, March.
    12. Yoganathan, Dhanushanthini & Jebarajakirthy, Charles & Thaichon, Paramaporn, 2015. "The influence of relationship marketing orientation on brand equity in banks," Journal of Retailing and Consumer Services, Elsevier, vol. 26(C), pages 14-22.
    13. Bejou, David & Wray, Barry & Ingram, Thomas N., 1996. "Determinants of relationship quality: An artificial neural network analysis," Journal of Business Research, Elsevier, vol. 36(2), pages 137-143, June.
    14. Williams, Jerome D. & Han, Sang-Lin & Qualls, William J., 1998. "A Conceptual Model and Study of Cross-Cultural Business Relationships," Journal of Business Research, Elsevier, vol. 42(2), pages 135-143, June.
    15. Wynne W. Chin & Barbara L. Marcolin & Peter R. Newsted, 2003. "A Partial Least Squares Latent Variable Modeling Approach for Measuring Interaction Effects: Results from a Monte Carlo Simulation Study and an Electronic-Mail Emotion/Adoption Study," Information Systems Research, INFORMS, vol. 14(2), pages 189-217, June.
    16. Rauyruen, Papassapa & Miller, Kenneth E., 2007. "Relationship quality as a predictor of B2B customer loyalty," Journal of Business Research, Elsevier, vol. 60(1), pages 21-31, January.
    17. Dariya Mykhayliv & Klaus G Zauner, 2018. "The financial and economic performance of social banks," Applied Economics, Taylor & Francis Journals, vol. 50(34-35), pages 3833-3839, July.
    18. Michel Tenenhaus, 2008. "Component-based Structural Equation Modelling," Working Papers hal-00580149, HAL.
    19. Irene van Staveren, 2013. "Caring Finance Practices," Journal of Economic Issues, Taylor & Francis Journals, vol. 47(2), pages 419-426.
    20. Simon Cornée & Panu Kalmi & Ariane Szafarz, 2016. "Selectivity and Transparency in Social Banking: Evidence from Europe," Journal of Economic Issues, Taylor & Francis Journals, vol. 50(2), pages 494-502, April.
    21. Al-alak, Basheer A., 2014. "Impact of marketing activities on relationship quality in the Malaysian banking sector," Journal of Retailing and Consumer Services, Elsevier, vol. 21(3), pages 347-356.
    22. Shahriar Akter & John D'Ambra & Pradeep Ray, 2011. "Trustworthiness in mHealth information services: An assessment of a hierarchical model with mediating and moderating effects using partial least squares (PLS)," Journal of the Association for Information Science & Technology, Association for Information Science & Technology, vol. 62(1), pages 100-116, January.
    23. DeanS. Karlan, 2007. "Social connections and group banking," Economic Journal, Royal Economic Society, vol. 117(517), pages 52-84, February.
    24. Simon Cornée & David Masclet & Gervais Thenet, 2012. "Credit Relationships: Evidence from Experiments with Real Bankers," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 44(5), pages 957-980, August.
    25. Reddy, Srinivas K. & Czepiel, John A., 1999. "Measuring and Modeling the Effects of Long-Term Buyer-Seller Relationships in Corporate Financial Services Markets," Journal of Business Research, Elsevier, vol. 46(3), pages 235-244, November.
    26. Ricard, Line & Perrien, Jean, 1999. "Explaining and Evaluating the Implementation of Organizational Relationship Marketing in the Banking Industry: Clients' Perception," Journal of Business Research, Elsevier, vol. 45(2), pages 199-209, June.
    27. Skarmeas, Dionysis & Saridakis, Charalampos & Leonidou, Constantinos N., 2018. "Examining relationship value in cross-border business relationships: A comparison between correlational and configurational approaches," Journal of Business Research, Elsevier, vol. 89(C), pages 280-286.
    28. Crittenden, Victoria L. & Crittenden, William F. & Ajjan, Haya, 2019. "Empowering women micro-entrepreneurs in emerging economies: The role of information communications technology," Journal of Business Research, Elsevier, vol. 98(C), pages 191-203.
    29. Simon, Françoise, 2013. "The influence of empathy in complaint handling: Evidence of gratitudinal and transactional routes to loyalty," Journal of Retailing and Consumer Services, Elsevier, vol. 20(6), pages 599-608.
    30. Fynes, Brian & Voss, Chris & de Burca, Sean, 2005. "The impact of supply chain relationship quality on quality performance," International Journal of Production Economics, Elsevier, vol. 96(3), pages 339-354, June.
    31. Shahriar Akter & John D'Ambra & Pradeep Ray, 2011. "Trustworthiness in mHealth information services: An assessment of a hierarchical model with mediating and moderating effects using partial least squares (PLS)," Journal of the American Society for Information Science and Technology, Association for Information Science & Technology, vol. 62(1), pages 100-116, January.
    32. Sin, Leo Y. M. & Tse, Alan C. B. & Yau, Oliver H. M. & Chow, Raymond P. M. & Lee, Jenny S. Y. & Lau, Lorett B. Y., 2005. "Relationship marketing orientation: scale development and cross-cultural validation," Journal of Business Research, Elsevier, vol. 58(2), pages 185-194, February.
    33. Wolfgang Ulaga & Andreas Eggert, 2006. "Value-Based Differentiation in Business Relationships: Gaining and Sustaining Key Supplier Status," Post-Print hal-00482456, HAL.
    34. Blanco-Oliver, Antonio & Irimia-Dieguez, Ana & Reguera-Alvarado, Nuria, 2016. "Prediction-oriented PLS path modeling in microfinance research," Journal of Business Research, Elsevier, vol. 69(10), pages 4643-4649.
    35. Margurite Hook & Stacey Baxter & Alicia Kulczynski, 2018. "Antecedents and consequences of participation in brand communities: a literature review," Journal of Brand Management, Palgrave Macmillan, vol. 25(4), pages 277-292, July.
    36. Akter, Shahriar & Wamba, Samuel Fosso & D’Ambra, John, 2019. "Enabling a transformative service system by modeling quality dynamics," International Journal of Production Economics, Elsevier, vol. 207(C), pages 210-226.
    37. Marc J. Epstein & Kristi Yuthas, 2011. "The Critical Role Of Trust In Microfinance Success: Identifying Problems And Solutions," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 16(04), pages 477-497.
    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. Finger, Maya & Manos, Ronny & Shakir, Ofir, 2024. "Power relationships, digital literacy, and inclusive digital banking in Israel," Finance Research Letters, Elsevier, vol. 63(C).
    2. Bhukya, Ramulu & Paul, Justin, 2023. "Social influence research in consumer behavior: What we learned and what we need to learn? – A hybrid systematic literature review," Journal of Business Research, Elsevier, vol. 162(C).
    3. Chatterjee, Sheshadri & Chaudhuri, Ranjan & Vrontis, Demetris, 2022. "Examining the role of cross-cultural factors in the international market on customer engagement and purchase intention," Journal of International Management, Elsevier, vol. 28(3).

    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. Simon Cornée & Anastasia Cozarenco & Ariane Szafarz, 2023. "The Changing Role of Banks in the Financial System: Social Versus Conventional Banks," Palgrave Macmillan Studies in Banking and Financial Institutions, in: Chrysovalantis Gaganis & Fotios Pasiouras & Menelaos Tasiou & Constantin Zopounidis (ed.), Sustainable Finance and ESG, pages 1-25, Palgrave Macmillan.
    2. Ming Yang & Jinglu Jiang & Melody Kiang & Fangyun Yuan, 2022. "Re-Examining the Impact of Multidimensional Trust on Patients’ Online Medical Consultation Service Continuance Decision," Information Systems Frontiers, Springer, vol. 24(3), pages 983-1007, June.
    3. Alam, Mohammad Zahedul & Hu, Wang & Kaium, Md Abdul & Hoque, Md Rakibul & Alam, Mirza Mohammad Didarul, 2020. "Understanding the determinants of mHealth apps adoption in Bangladesh: A SEM-Neural network approach," Technology in Society, Elsevier, vol. 61(C).
    4. Simon Cornée & Panu Kalmi & Ariane Szafarz, 2020. "The Business Model of Social Banks," Kyklos, Wiley Blackwell, vol. 73(2), pages 196-226, May.
    5. Gupta, Prashant & Seetharaman, A. & Raj, John Rudolph, 2013. "The usage and adoption of cloud computing by small and medium businesses," International Journal of Information Management, Elsevier, vol. 33(5), pages 861-874.
    6. Simon Cornée & Marc Jegers & Ariane Szafarz, 2018. "A Theory of Social Finance," Working Papers halshs-01717167, HAL.
    7. Hedaya Abusafiya & Saad Suliman, 2017. "Causes and Effects of Cost Overrun on Construction Project in Bahrain: Part 2 (PLS-SEM Path Modelling)," Modern Applied Science, Canadian Center of Science and Education, vol. 11(7), pages 1-28, July.
    8. Simon Cornée & Panu Kalmi & Ariane Szafarz, 2016. "Selectivity and Transparency in Social Banking: Evidence from Europe," Journal of Economic Issues, Taylor & Francis Journals, vol. 50(2), pages 494-502, April.
    9. Amélie Artis & Simon Cornée, 2013. "Transformation informationnelle, certification et intermédiation financière : le cas de la banque solidaire," Economics Working Paper Archive (University of Rennes & University of Caen) 201326, Center for Research in Economics and Management (CREM), University of Rennes, University of Caen and CNRS.
    10. Basco, Rodrigo & Hair, Joseph F. & Ringle, Christian M. & Sarstedt, Marko, 2022. "Advancing family business research through modeling nonlinear relationships: Comparing PLS-SEM and multiple regression," Journal of Family Business Strategy, Elsevier, vol. 13(3).
    11. Simon Cornée & Ariane Szafarz, 2018. "How Costly is Social Screening? Evidence from the Banking Industry," Economics Bulletin, AccessEcon, vol. 38(1), pages 532-540.
    12. Chee-Hua Chin & May-Chiun Lo & T. Ramayah, 2013. "Market Orientation and Organizational Performance," SAGE Open, , vol. 3(4), pages 21582440135, November.
    13. Joseph F. Hair & G. Tomas M. Hult & Christian M. Ringle & Marko Sarstedt & Kai Oliver Thiele, 2017. "Mirror, mirror on the wall: a comparative evaluation of composite-based structural equation modeling methods," Journal of the Academy of Marketing Science, Springer, vol. 45(5), pages 616-632, September.
    14. Paul A. Pavlou & Angelika Dimoka, 2006. "The Nature and Role of Feedback Text Comments in Online Marketplaces: Implications for Trust Building, Price Premiums, and Seller Differentiation," Information Systems Research, INFORMS, vol. 17(4), pages 392-414, December.
    15. Karin Schermelleh-Engel & Christina Werner & Andreas Klein & Helfried Moosbrugger, 2010. "Nonlinear structural equation modeling: is partial least squares an alternative?," AStA Advances in Statistical Analysis, Springer;German Statistical Society, vol. 94(2), pages 167-184, June.
    16. Amélie Artis & Simon Cornée, 2017. "Composition, Interpretation and Memorisation of the Idiosyncratic Knowledge in Social Banking," Working Papers CEB 17-002, ULB -- Universite Libre de Bruxelles.
    17. Wagner, Stephan M. & Eggert, Andreas & Lindemann, Eckhard, 2010. "Creating and appropriating value in collaborative relationships," Journal of Business Research, Elsevier, vol. 63(8), pages 840-848, August.
    18. Simon Cornée & Marc Jegers & Ariane Szafarz & Simon Cornée & Marc Jegers & Ariane Szafarz, 2022. "Feasible Institutions of Social Finance: A Taxonomy," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 178(3), pages 280-310.
    19. Tsou, Hung-Tai & Hsu, Sheila Hsuan-Yu, 2015. "Performance effects of technology–organization–environment openness, service co-production, and digital-resource readiness: The case of the IT industry," International Journal of Information Management, Elsevier, vol. 35(1), pages 1-14.
    20. Richard Bofinger & Simon Cornée & Ariane Szafarz, 2024. "When in Rome, Do as the Romans Do: Disclosure Regulation and ESG Fund Management by Social and Conventional Banks," Working Papers CEB 24-003, ULB -- Universite Libre de Bruxelles.

    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:eee:jbrese:v:133:y:2021:i:c:p:297-308. 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/jbusres .

    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.