The influence of culture on service quality leading to customer satisfaction and moderation role of type of bank

Purpose Considering the importance of current Libyan business environment, this paper aims to understand the influence of culture on perceived service quality that leads to customer satisfaction in the Libyan banking industry. In addition, it would be interesting to explore which type of banks, e.g....

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Bibliographic Details
Published in:Journal of Islamic accounting and business research 2019-01, Vol.10 (1), p.134-154
Main Authors: Endara, Yousef Mohamed, Ali, Asbi B, Yajid, Mohd Shukri Ab
Format: Article
Language:English
Subjects:
Banking industry
Banks
Collectivism
Consumers
Consumption
Corporate culture
Culture
Customer satisfaction
Customer services
Developing countries
Economic growth
Femininity
GDP
Gross Domestic Product
Individualism
Influence
LDCs
Masculinity
Power
Quality of service
Society
Values
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Summary:Purpose Considering the importance of current Libyan business environment, this paper aims to understand the influence of culture on perceived service quality that leads to customer satisfaction in the Libyan banking industry. In addition, it would be interesting to explore which type of banks, e.g. public or private banks, moderate the relationship between perceived service quality and customer satisfaction. Design/methodology/approach The data were collected from the customers who are receiving services from the top three private and top three public banks in the cities of Tripoli and Misurata, Libya. About 329 samples were obtained and Smart PLS was used for the statistical analysis. Findings The results show that perceived service quality is strongly predicted by collectivism, masculinity and uncertainty avoidance. Perceived service quality also leads to customer satisfaction among the Libyan banking customers. Further, public bank is more concerned on customer satisfaction compared to private banks. Practical implication The research has greater implication for the Middle-Eastern bank managers who are pursuing possibilities of newer business strategies. Originality The study provides an interesting viewpoint of the banking service in Libya, especially in the economic uncertainty post-war and political instability. Its focus on culture as a strong influence to the delivery of service quality in such context is admirable especially in relation with the embedded Islamic culture.
ISSN:1759-0817
1759-0825
DOI:10.1108/JIABR-12-2015-0060