Does CSR Enhance Young Bank Customers’ Satisfaction and Loyalty in a Developing Economy? The Mediating Role of Trust

The role of corporate social responsibility (CSR) on firm performance is well documented in the literature. Although the majority of the evidence available points to a positive association between CSR and determinants of company performance such as monetary performance, personnel commitment and corporate identity, findings still remain rather inconclusive as negative or no correlation results are also reported. In addition, little is known about how CSR is perceived from a bank customer’s point of view and studies examining its effect on customer satisfaction and loyalty in developing economies are scanty. Drawing insights from the stakeholder and signaling theories, this study examines the effect of CSR on customer satisfaction and customer loyalty. The study also examines the mediating role of trust on these relationships. Data from 348 bank customers in Zambia indicate that CSR positively affects satisfaction and loyalty. It was also established that trust has a significant mediating effect on the relationships. With the increase in complexity and dynamism of today’s business environment banks are advised to be more socially responsible as one way of building trust and customer satisfaction and loyalty

The Differential Effects of Government Support, Inter-firm Collaboration and Firm Resources on SMEs' Performance in a Developing Economy.

The file attached to this record is the author's final peer reviewed version. The Publisher's final version can be found by following the DOI link.Notwithstanding that there has been increasing attention on factors that enhance SME performance in developing economies, there is a dearth of studies explicitly investigating the roles of government support systems and inter-firm collaboration. Drawing on the Resource-Based View (RBV) of the firm and Institutional theories, this study models and examines how government support, inter-firm collaboration and managerial ties affect SME performance and further explores how firm specific resources mediate the relationships. A quantitative research design was employed. Data were collected using a structured questionnaire from 438 SMEs operating in Zambia, a developing Sub-Saharan African country. Hierarchical linear regression in SPSS PROCESS macro was used to test the hypotheses. Findings indicate that managerial ties have both a direct and indirect effect, through firm resources, on financial performance. Also, the relationship between inter-firm collaboration and financial performance is fully mediated by firm resources. Surprisingly, results reveal that government support does not have a significant effect on SME financial performance. We conducted our study using a cross-sectional research design in SMEs in a developing economy context. While we unleash from a context that is largely under-researched, extrapolating our findings to other countries should be done with care. The study has important implications for SME managers and policy makers. It demonstrates that inter-firm collaborations and managerial ties enhance a firm’s financial performance. It also highlights the view that SMEs need to have firm specific resources to transform external resources, accessed from inter-firm relationships, into superior performance. SME policy makers are advised to focus more on policies and support mechanisms that promote inter-firm relationships at firm and managerial levels. This study is one of the few studies to empirically show that the differential effects of inter-firm collaboration and managerial ties on SME performance are channeled through firm resources, in an under-researched developing Sub-Saharan African economy context. The study is also one of the few studies to reveal that government support is not significantly related to SME performance. Therefore, it provides valuable insights which could be applied to other developing countries with characteristics similar to Zambia

INVESTIGATING THE PATH FROM FIRM INNOVATIVENESS TO FINANCIAL PERFORMANCE: THE ROLES OF NEW PRODUCT SUCCESS, MARKET RESPONSIVENESS, AND ENVIRONMENT TURBULENCE

This resource-based study investigates how a path from firm innovativeness to financial performance is channelled through new product success, and is contingent upon levels of market responsiveness and environment turbulence. Using primary data from small- and medium-sized exporting firms in the United Kingdom, the study finds that new product success partially mediates the path from firm innovativeness to financial performance. The study further finds that while market responsiveness strengthens links between new product success and financial performance, environment turbulence weakens the relationship. The implications of these findings for both researchers and managers of small- and medium-size enterprises are discussed

Developing and utilizing coopetitive relationships : evidence from small and medium-sized enterprises in sub-Saharan Africa

The study proposes the notion of coopetition capability as an ability to cooperate and compete with rival firms simultaneously. We draw on the tenets of the resource-based and dynamic capability theories as well as insights from in-depth qualitative studies of small and medium-sized enterprises (SME) in two Sub-Saharan African markets – Kenya and Zambia – to explore the conceptual domain of the coopetitive capability phenomenon. We further examine how external and internal environmental forces trigger the development of coopetition capability, and how coopetitive capability contributes to firm success outcomes. Findings from the study indicate that coopetitive capability is manifested in SMEs’ ability to proactively develop, coordinate, and learn from portfolios of inter-firm relationships with competitors. The study further finds that interactivities between regulatory requirements, customer demands, and firm-specific learning processes are major triggers of SMEs’ propensities to develop and benefit from coopetition capability. The study extends the literature on inter-organizational relationships by highlighting the conceptual domain and drivers of coopetition capability.The Commonwealth Scholarship Commission, United Kingdom.https://www.elsevier.com/locate/jbusreshj2023Gordon Institute of Business Science (GIBS

Drivers, Boundaries and Performance Outcomes of Coopetition Capability: A Study of Small and Medium-sized Enterprises in a Developing Economy

With the growing globalisation and rapid technological change in today’s business world, an increasing number of firms in several industries are adopting coopetition - simultaneous pursuit of cooperation and competition, as a strategic tool to improve competitiveness and performance. The logic driving this phenomenon is that since competitors face similar challenges, they may possess diverse resources and capabilities that may benefit each other. Despite its strategic importance to firms, it has been argued that coopetition may undermine firms’ survival as it exhibits difficulties such as misunderstandings, opportunism and appropriation concerns. In recent years, coopetition scholars have suggested that for firms to benefit from coopetition as a core strategic tool, firms need to develop coopetition capability to manage the opportunities and challenges associated with cooperating with competitors. Notwithstanding its theoretical appeal to the academic community and interests from managers, current understanding of conceptual domain, development and outcomes of coopetition capability is lacking in the scholarly strategy literature, and small business research is particularly lacking on this topic. Accordingly, the aim of this study is to address this gap in the literature. The study draws insights from the dynamic capability perspective, institutional theory and resource based view of the firm to develop a model of the drivers, boundary conditions and performance outcomes of coopetition capability. The model is tested in an empirical study of small and medium-sized firms in Zambia, a sub-Saharan African economy. Findings from the study help advance the small business strategy literature in several ways. First, findings show that coopetition capability comprises five distinct but related dimensions that collectively have a positive effect on coopetition performance. Second, while institutional support is negatively associated with coopetition capability, managerial ties and coopetition learning process are positively related to coopetition capability. Third, coopetition capability has an indirect effect on financial performance through coopetition performance. Fourth, while coopetition capability is positively associated with coopetition performance, this relationship becomes stronger when institutional support and coopetition learning process are lower. The study discusses theoretical, managerial and policy implications of the findings whilst providing valuable avenues for future research

What Drives Individual Investors to Invest in Mutual Funds in a Developing Economy

Purpose: The aim of this study is to investigate factors that influence investment in mutual funds by individual investors in a developing economy. Drawing insights from the theory of planned behaviour, the study identified and tested the effect of awareness, attitude, financial literacy and preference for other competing investments on intention to invest in mutual funds by individual investors. Design/Methodology/Approach: Data was collected from 280 respondents in Zambia. Data was analysed using correlations and hierarchical regression models. Findings: The study reveals that awareness and attitude towards mutual funds significantly influence intention to invest in mutual funds. Surprisingly, financial literacy and preference for other investments do not significantly affect an individual investor’s intention to invest in mutual funds. Implications/Originality/Value: This study contributes to the financial services marketing literature by increasing understanding of individual investors’ investment decisions and drivers that influence intention to invest in mutual funds in Zambia. The study recommends that mutual funds marketers should invest more in building awareness and positive attitude towards investment in mutual funds in order to develop retail demand. Also, investment companies and financial services marketing policy makers should carefully consider their financial literacy programmes as the study reveals that financial literacy and competing investments are not significant drivers. &nbsp