IDEAS home Printed from https://ideas.repec.org/a/spr/joiaen/v14y2025i1d10.1186_s13731-025-00474-z.html
   My bibliography  Save this article

The role of individual dimensions of business relationship quality and business customer value in building loyalty in microfinance

Author

Listed:
  • Amani Gration Tegambwage

    (The University of Dodoma)

  • Pendo Shukrani Kasoga

    (The University of Dodoma)

Abstract

This study examines the effects of individual dimensions of business relationship quality (BRQ), namely trust, respect, and reciprocity, on business customer value (BCV) and customer loyalty (CL) in the microfinance industry. In addition, the study investigates the mediation effects of BCV on the relationship between the individual dimensions of BRQ and CL. A survey of 509 microenterprises that borrow money from microfinance institutions (MFIs) in Tanzania was conducted. Structural equation modeling was used to analyze the data. Based on the findings, it is concluded that BCV is significantly impacted by respect and trust. BCV, however, is not significantly related to reciprocity. Respect has a positive and significant impact on CL, while trust and reciprocity are not significantly related to CL. Furthermore, the study concludes that CL is positively and significantly impacted by BCV. Regarding the mediation effects, the study concludes that BCV fully mediates the link between trust and CL and partially mediates the link between respect and CL. There is no mediation between reciprocity and CL. The major recommendation of this study is that practitioners and policymakers should establish strategies and policies, respectively, which combine BRQ initiatives such as trust and respect with interventions that increase BCV in order to improve CL. Providing valuable services is difficult if the microentrepreneur is not respected and trusted. CL, in turn, will ensure MFIs’ survival and, hence, foster entrepreneurship development.

Suggested Citation

  • 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.
    • Handle: RePEc:spr:joiaen:v:14:y:2025:i:1:d:10.1186_s13731-025-00474-z
    DOI: 10.1186/s13731-025-00474-z
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1186/s13731-025-00474-z
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1186/s13731-025-00474-z?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.

    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:spr:joiaen:v:14:y:2025:i:1:d:10.1186_s13731-025-00474-z. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.