Frontline employees' performance in the financial services industry: the significance of trust, empathy and consumer orientation

Abstract

PurposeBased upon social exchange theory, this study investigates the mediating effect of consumers' trust in banking industry frontline employees on two relationships: (1) the relation between consumers' perceptions of frontline employees' empathy and consumers' perceptions of frontline employees' performance, and (2) the relation between consumers' perception of frontline employees' customer orientation and consumers' perceptions of frontline employees' performance.Design/methodology/approachThe authors used a time-lag research design to collect data through online questionnaires distributed in two waves. The sample comprises 375 respondents having experience and interaction with banking frontline employees.FindingsResults confirm the mediating effect of consumers' trust in the banking industry on the relationships between their perceptions of frontline employees' empathy and consumer orientation on the one hand and their perceptions of frontline employees' performance on the other hand.Practical implicationsResults may be helpful to policymakers and managers in the service industries, prompting them to adopt approaches and strategies designed to build strong relationships with consumers, thus increasing consumers' trust and frontline employees' performance.Originality/valueThis study confirms the relevance of social exchange theory in understanding the role of consumers' trust and perceptions of frontline employees' empathy and consumer orientation in understanding their perception of frontline employee performance in the banking industry.

Developing a Culture of Continuous Learning for Sustainable Job Performance: TEVT Sector as Learning Organization, Pakistan.

“…The results of the hypotheses (H3 and H4) indicate a significant positive impact of TS and LS on EP through the mediating role of CCL. These findings are consistent with previous studies (Musah et al, 2023;Pacheco & Coello-Montecel, 2023;Tang, Zhang, & Tian, 2023) and support the concept of social exchange theory (Raza, St-Onge, & Ali, 2023). The theory posits that when employees receive support and resources, they reciprocate with increased commitment and performance (Aldabbas, Pinnington, & Lahrech, 2023).…”

The buffering role of collective mindfulness in customer incivility and service sabotage: a multilevel study of Indian banks

“…Given the fierce competition in Indian retail banks (Lata and Chaudhary, 2021) and their treatment as a collectivist society (Hofstede et al, 2010), every retail branch would tend to adhere to these societal norms (Akkawanitcha et al, 2015). In such a social structure, FLEs would possess a pooled understanding and awareness of (Gaan and Shin, 2023a, b;Paulin and Griffin, 2017;Schilpzand et al, 2016;Song et al, 2018) the internal and external processes of retail banks (Kashif and Zarkada, 2015;Raza et al, 2023). Such shared understanding would develop a strategic coping mechanism, in which they would avoid reacting to customer incivility without being judgemental, even in stressful situations (Shi and Wang, 2022;Vogus, 2011;Weick et al, 2008).…”

“…Moreover, escalating competition has led to a blurring of lines between bank and non-bank products in Indian retail banks (Lata and Chaudhary, 2021). Increased competition (Raza et al, 2023) is usually accompanied by technology-based amplified services that improve service quality (Choudhury, 2014). However, such services have increased customers' unwarranted expectations (Christ-Brendem€ uhl and Schaarschmidt, 2019;Kaila, 2021;Sliter and Jones, 2016), resulting in increased demand and customisation (Itani et al, 2020;Vera and Trujillo, 2013).…”

“…Moreover, escalating competition has led to a blurring of lines between bank and non-bank products in Indian retail banks (Lata and Chaudhary, 2021). Increased competition (Raza et al. , 2023) is usually accompanied by technology-based amplified services that improve service quality (Choudhury, 2014).…”

“…, 2016; Song et al. , 2018) the internal and external processes of retail banks (Kashif and Zarkada, 2015; Raza et al. , 2023).…”