Integrating Institutional Theory in Determining Corporate Image of Islamic Banks

Osman, Ismah; Alwi, Sharifah Faigah Syed; Mokhtar, Imani; Ali, Husniyati; Setapa, Fatimah; Muda, Ruhaini; Rahim, Abdul Rahman Abdul

doi:10.1016/j.sbspro.2015.11.074

Cited by 13 publications

(10 citation statements)

References 39 publications

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“…Another important factor is image, because this is one of the components of service quality that is essential for service businesses. Therefore, a good image of Islamic banking in a customer's mind will be a key means by which to differentiate Islamic banking and to create competitive advantage (Sangeetha and Mahalingam, 2011;Osman et al, 2015). From a company's point of view, this image is an association that resides deeply in the minds of customers when they hear or see the company's brand name.…”

Section: Literature Review An Overview Of the Basis Of Customer Preferences In Islamic Bankingmentioning

confidence: 99%

A Rasch analysis of the community’s preference for different attributes of Islamic banks in Indonesia

Setiawan¹,

Panduwangi²,

Sumintono

2018

IJSE

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Purpose The purpose of this paper is to investigate the degree to which the different attributes of Islamic banks in Indonesia are preferred by the community. Design/methodology/approach This paper uses a quantitative approach by applying Rasch analysis to measure the relative importance of 18 attributes of Islamic banks to the community. The data were collected by questionnaires, which were distributed online and completed by 345 respondents. In addition to the Rasch model, the preference of attributes was measured by a statistical inference test, using “SPSS” software, which employs binary logic regression related to the agreement between the performance of attributes and expectations. Findings The instrument used in this study showed good reliability, and its validity fits the expected model. The results show that the assurance of financial security, friendliness and the application of Islamic principles in their operations are the most important attributes to be considered when people choose an Islamic bank. The degree of importance placed by the community on the various attributes of Islamic banks will have an effect upon the actual and perceived quality of those attributes. An increase in the community’s preference for a particular attribute will eventually be followed by an increased agreement between the actual performance of that attribute and the community’s expectation. Research limitations/implications The varied profiles of individual respondents were not explored fully: this research relies solely on quantitative analysis. So, there is no empirical information to inform the Islamic banks as to which segments of the community should be the focus of their promotional activities. Originality/value The use of Rasch analysis to measure the community’s preference for various attributes of Islamic banks has not been done previously.

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Section: Literature Review An Overview Of the Basis Of Customer Preferences In Islamic Bankingmentioning

confidence: 99%

A Rasch analysis of the community’s preference for different attributes of Islamic banks in Indonesia

Setiawan¹,

Panduwangi²,

Sumintono

2018

IJSE

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show abstract

“…In the banking sector in particular, a strong corporate image is believed to be a major source of differentiation between conventional and Islamic banks (Osman et al, 2015). It has been suggested that customer satisfaction has a stronger effect on corporate image for non-Muslim customers of banks compared to its Muslim customers (Amin et al, 2013) and that it enhances employee engagement (Hussain, Ishak, Daud, & Yunus, 2014).…”

Section: Antecedents Of Corporate Imagementioning

confidence: 99%

Antecedents and Consequences of Corporate Image: Conventional and Islamic Banks

2018

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Islamic and conventional banks differ in basic philosophy and objectives although both perform the same service. This study used cognitive, affective, and conative sequence to examine antecedents and consequences of corporate image of conventional and Islamic banks in Pakistan. Self-administered questionnaires collected empirical data from 320 respondents. It was found that non-firm communication and corporate social responsibility significantly relate to brand familiarity and corporate image in case of Islamic banks. Brand familiarity significantly builds corporate image, which confirms the cognitive, affective, and conative sequence. Corporate image creates positive brand attitude and intention to use banking services. In case of conventional banks, only firm communication significantly relates to corporate image and brand familiarity. The relationship of corporate image with brand attitude and intention to use the service are similar to Islamic banks. This study can help banks to invest in building respective antecedents which can increase intention to use their services.

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“…On the other hand, institutional image constituents are recognized as Islamic, fair and trustworthy (Osman et al, 2018). By contrast, Saudi Arabian customers perceive their banks' images through their financial prospects, corporate management and corporate communication (Anouze and Alamro, 2019).…”

Section: Literature Reviewmentioning

confidence: 99%

“…On the other hand, Osman et al (2018) conducted a study on the corporate image in Islamic banks in Malaysia and discovered two images related to these organizations; institutional image and performative image. Institutional image is identified as the consequence of the interactions among a person's impression, prevailing beliefs, thoughts and feelings about an entity (Lin and Lu, 2010).…”

Section: Literature Reviewmentioning

confidence: 99%

Revisiting the corporate image through service quality and relationship marketing: an empirical evidence from Malaysian and Saudi Arabian Takaful customers

Rehman

Khan

Osman

et al. 2021

JIABR

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Purpose This study aims to test a proposed model based on a combination of the relationship marketing and service quality dimensions as predictors of corporate image and customer loyalty via corporate reputation in the Takaful context. More importantly, this study compares the Takaful operators’ services with the perceived service quality and the relationship marketing from the Malaysian and Saudi Arabian customers’ viewpoint. Design/methodology/approach A survey-based study was conducted through a questionnaire, and the data was collected from Takaful customers (362 Saudi Arabian and 350 Malaysian customers) through an online survey. Structural equation modelling is used to test the proposed model. Besides, the perception of Takaful customers between Saudi Arabia and Malaysia is compared through a multi-group analysis. Findings The results from the Malaysian context reveal that positive perceptions of service quality PAKSERV dimensions (personalization, reliability and tangibility) and positive perceptions of relationship marketing dimensions (Islamic ethical behaviour and structural bonds) have a significant influence on the corporate image. Alternatively, in the Saudi Arabian context, results have shown that the positive perceptions of service quality PAKSERV dimensions (assurance and reliability) of service quality and the positive perceptions of the relationship marketing dimensions (Islamic ethical behaviour, structural bonds and financial bonds) have a significant influence on the corporate image. The differences in both countries’ results can also enhance the corporate image on corporate reputation, merely in Malaysia. By contrast, corporate reputation is deemed a significant predictor of customer loyalty, represented as valid for both contexts. Research limitations/implications The proposed research model tested in Takaful Malaysian and Saudi Arabian can be replicated in other contexts – in terms of country and industry. Moreover, the current study reveals the crucial role of corporate image in forming corporate reputation. Future research could be focussed on the importance of other emotional or affective variables that may be involved in determining corporate reputation. Finally, future studies can be carried with another cultural perspective to have more diversified socio-economic implications. Practical implications It is suggested that Takaful operators from both Malaysia and Saudi Arabia need to put maximum effort towards customer loyalty by bringing both the dimensions of service quality and the relationship marketing in compliance with the principles of Islamic business transaction. The findings of the specific dimensions of service quality and relationship marketing will contribute to customers’ perceptions of corporate image and reputation in the Takaful industry. Originality/value The present study tested a blended facet of customer’s overall experience through service quality (PAKSERV) and customer service provider connectivity (relationship marketing) to predict the corporate image of the highly growing financial marketplace (Takaful). Contextually, this study contributes to delineating the factors (corporate reputation) affecting customer loyalty rather than a customer satisfaction tradition. Significantly, Saudi Arabia and Malaysia were chosen for this study, as they are currently the two fast-growing markets for Islamic financial services, especially with regards to the Takaful products and offerings.

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Integrating Institutional Theory in Determining Corporate Image of Islamic Banks

Cited by 13 publications

References 39 publications

A Rasch analysis of the community’s preference for different attributes of Islamic banks in Indonesia

A Rasch analysis of the community’s preference for different attributes of Islamic banks in Indonesia

Antecedents and Consequences of Corporate Image: Conventional and Islamic Banks

Revisiting the corporate image through service quality and relationship marketing: an empirical evidence from Malaysian and Saudi Arabian Takaful customers

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