Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

Managing engagement in an emerging economy service

Managing engagement in an emerging economy service The purpose of this paper is to offer a better understanding of managing engagement in an emerging economy service. It explores the role of organisational climates for initiative and psychological safety as the key drivers of employee engagement (EE). It also examines the effects of EE on customer engagement (CE) and, in turn, on relationship commitment and switching intention.Design/methodology/approachData were collected through a structured survey of service employees and customers of 69 bank branches in Bangladesh using two survey instruments. Responses were collected from 156 employees and 316 customers. A dyadic data set was created by matching customer data with the corresponding employee data collected from each bank branch. Structural equation modelling using AMOS (version 22.0) was employed for data analysis.FindingsOrganisational climates for initiative and psychological safety positively influence EE. In turn, EE significantly influences CE which has a significant impact on customer relationship commitment and switching intention.Research limitations/implicationsFuture research could consider actual customer behaviour, such as repeat purchase, as the key outcome variable.Practical implicationsThe findings emphasise that investment by service managers in organisational resources to facilitate favourable climates for initiative and psychological safety would engage employees at work, which would ultimately help to attain CE and commitment, and reduce switching intention.Originality/valueThis research extends the existing engagement literature with empirical evidence supporting two new EE drivers and two new CE outcomes. It offers a better understanding of managing engagement in the financial services industry of an emerging economy, focussing on the relationship chain from organisational climate to EE, CE and customer-based outcomes. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Service Theory and Practice Emerald Publishing

Managing engagement in an emerging economy service

Download PDF
29 pages

Loading next page...
 
/lp/emerald-publishing/managing-engagement-in-an-emerging-economy-service-bKtJ11TPUs
Publisher
Emerald Publishing
Copyright
© Emerald Publishing Limited
ISSN
2055-6225
DOI
10.1108/jstp-12-2018-0276
Publisher site
See Article on Publisher Site

Abstract

The purpose of this paper is to offer a better understanding of managing engagement in an emerging economy service. It explores the role of organisational climates for initiative and psychological safety as the key drivers of employee engagement (EE). It also examines the effects of EE on customer engagement (CE) and, in turn, on relationship commitment and switching intention.Design/methodology/approachData were collected through a structured survey of service employees and customers of 69 bank branches in Bangladesh using two survey instruments. Responses were collected from 156 employees and 316 customers. A dyadic data set was created by matching customer data with the corresponding employee data collected from each bank branch. Structural equation modelling using AMOS (version 22.0) was employed for data analysis.FindingsOrganisational climates for initiative and psychological safety positively influence EE. In turn, EE significantly influences CE which has a significant impact on customer relationship commitment and switching intention.Research limitations/implicationsFuture research could consider actual customer behaviour, such as repeat purchase, as the key outcome variable.Practical implicationsThe findings emphasise that investment by service managers in organisational resources to facilitate favourable climates for initiative and psychological safety would engage employees at work, which would ultimately help to attain CE and commitment, and reduce switching intention.Originality/valueThis research extends the existing engagement literature with empirical evidence supporting two new EE drivers and two new CE outcomes. It offers a better understanding of managing engagement in the financial services industry of an emerging economy, focussing on the relationship chain from organisational climate to EE, CE and customer-based outcomes.

Journal

Journal of Service Theory and Practice – Emerald Publishing

Published: Nov 29, 2019

Keywords: Employee engagement; Customer engagement; Switching intention; Organizational climate; Relationship commitment

References

  • Service offshoring and productivity: evidence from the US
    Amiti, M.; Wei, S.J.
  • How organizational and employee‐customer identification, and customer orientation affect job engagement
    Anaza, A.N.; Rutherford, B.
  • A model of customer-centric banking practices for corporate clients in Bangladesh
    Andaleeb, S.S.; Rashid, M.; Rahman, Q.A.
  • Co-production and customer loyalty in financial services
    Auh, S.; Bell, S.J.; McLeod, C.S.; Shih, E.
  • Service employee burnout and engagement: the moderating role of power distance orientation
    Auh, S.; Menguc, B.; Spyropoulou, S.; Wang, F.
  • Promoting role breadth self-efficacy through involvement, work redesign and training
    Axtell, C.M.; Parker, S.K.
  • Innovation is not enough: climates for initiative and psychological safety, process innovations, and firm performance
    Baer, M.; Frese, M.
  • On the evaluation of structural equation models
    Bagozzi, R.P.; Yi, Y.
  • The meaning, antecedents and outcomes of employee engagement: a narrative synthesis
    Bailey, C.; Madden, A.; Alfes, K.; Fletcher, L.
  • The job demands-resources model: state of the art
    Bakker, A.B.; Demerouti, E.
  • Towards a model of work engagement
    Bakker, A.B.; Demerouti, E.
  • The crossover of burnout and work engagement among working couples
    Bakker, A.B.; Demerouti, E.; Schaufeli, W.B.
  • Annual report, 2016 – 2017
  • Migrating’ to new service providers: toward a unifying framework of consumers’ switching behaviors
    Bansal, H.S.; Taylor, S.F.; James, S.Y.
  • Collective organizational engagement: linking motivational antecedents, strategic implementation, and firm performance
    Barrick, M.R.; Thurgood, G.R.; Smith, T.A.; Courtright, S.H.
  • The ripple effect: emotional contagion and its influence on group behavior
    Barsade, S.G.
  • Alternative hierarchies of the attitude-behavior relationship: the impact of brand commitment and habit
    Beatty, S.E.; Kahle, L.R.
  • Good, better, engaged? The effect of company-initiated customer engagement behavior on shareholder value
    Beckers, S.F.; Van Doorn, J.; Verhoef, P.C.
  • For fun, love, or money: what drives workaholic, engaged, and burned-out employees at work?
    Beek, I.V.; Hu, Q.; Schaufeli, W.B.; Taris, T.W.; Schreurs, B.H.
  • Analytics for customer engagement
    Bijmolt, T.H.; Leeflang, P.S.; Block, F.; Eisenbeiss, M.; Hardie, B.G.; Lemmens, A.; Saffert, P.
  • Engagement platforms: the role of emotions in fostering customer engagement and brand image in interactive media
    Blasco-Arcas, L.; Hernandez-Ortega, B.I.; Jimenez-Martinez, J.
  • Customer loyalty in high and low involvement service settings: the moderating impact of positive emotions
    Bloemer, J.; De Ruyter, K.
  • Outperformed: how the envy reflex influences status seeking service consumers’ engagement
    Boardman, D.; Raciti, M.M.; Lawley, M.
  • Behavioral intention formation in knowledge sharing: examining the roles of extrinsic motivators, social-psychological forces, and organizational climate
    Bock, G.W.; Lee, J.N.; Zmud, R.W.; Kim, Y.G.
  • Empowering employees: the moderating role of perceived organizational climate and justice
    Boudrias, J.-S.; Brunet, L.; Morin, A.J.; Savoie, A.; Plunier, P.; Cacciatore, G.
  • Who takes the lead? A multi-source diary study on leadership, work engagement, and job performance
    Breevaart, K.; Bakker, A.B.; Demerouti, E.; Derks, D.
  • Customer engagement: conceptual domain, fundamental propositions, and implications for research
    Brodie, R.J.; Hollebeek, L.D.; Jurić, B.; Ilić, A.
  • Learning behaviours in the workplace: the role of high-quality interpersonal relationships and psychological safety
    Carmeli, A.; Brueller, D.; Dutton, J.E.
  • Employee engagement: boosting productivity in turbulent times
    Catteeuw, F.; Flynn, E.; Vonderhorst, J.
  • Relationships and individuals’ bank switching behavior
    Chakravarty, S.; Feinberg, R.; Rhee, E.-Y.
  • Is customer participation in value creation a double-edged sword? Evidence from professional financial services across cultures
    Chan, K.W.; Yim, C.K.; Lam, S.S.
  • Service systems: a broadened framework and research agenda on value propositions, engagement, and service experience
    Chandler, J.D.; Lusch, R.F.
  • Work engagement: a quantitative review and test of its relations with task and contextual performance
    Christian, M.S.; Garza, A.S.; Slaughter, J.E.
  • The relationship between employees’ perceptions of organizational climate and customer retention rates in a major retail bank
    Clark, M.
  • Back from the brink: why customers stay
    Colgate, M.; Tong, V.T.U.; Lee, C.K.C.; Farley, J.U.
  • Linking job demands and resources to employee engagement and burnout: a theoretical extension and meta-analytic test
    Crawford, E.R.; LePine, J.A.; Rich, B.L.
  • The support of autonomy and the control of behavior
    Deci, E.L.; Ryan, R.M.
  • The job demands-resources model of burnout
    Demerouti, E.; Bakker, A.B.; Nachreiner, F.; Schaufeli, W.B.
  • Burnout and engagement at work as a function of demands and control
    Demerouti, E.; Bakker, A.B.; De Jonge, J.; Janssen, P.P.; Schaufeli, W.B.
  • Consumer engagement in online brand communities: a social media perspective
    Dessart, L.; Veloutsou, C.; Morgan-Thomas, A.
  • Investments in consumer relationships: a cross-country and cross-industry exploration
    De Wulf, K.; Odekerken-Schröder, G.; Iacobucci, D.
  • Customer loyalty: toward an integrated conceptual framework
    Dick, A.S.; Basu, K.
  • Psychosocial safety climate as a precursor to conducive work environments, psychological health problems, and employee engagement
    Dollard, M.F.; Bakker, A.B.
  • A higher-order model of consumer brand engagement and its impact on loyalty intentions
    Dwivedi, A.
  • Learning from mistakes is easier said than done: group and organizational influences on the detection and correction of human error
    Edmondson, A.
  • Psychological safety and learning behavior in work teams
    Edmondson, A.
  • A process model of employee engagement: the learning climate and its relationship with extra-role performance behaviors
    Eldor, L.; Harpaz, I.
  • The relative strength of affective commitment in securing loyalty in service relationships
    Evanschitzky, H.; Iyer, G.R.; Plassmann, H.; Niessing, J.; Meffert, H.
  • Consumers’ switching motivations and intention in the case of bank mergers: a cross-cultural study
    Farah, M.F.
  • A look back to move ahead: new directions for research on proactive performance and other discretionary work behaviours
    Fay, D.; Sonnentag, S.
  • Personal initiative: an active performance concept for work in the 21st century
    Frese, M.; Fay, D.; Staw, B.M.; Sutton, R.M.
  • Psychological success factors of small scale businesses in Namibia: the roles of strategy process, entrepreneurial orientation and the environment
    Frese, M.; Brantjes, A.; Hoorn, R.
  • The conception of personal initiative: operationalization, reliability and validity in two German samples
    Frese, M.; Fay, D.; Hilburger, T.; Leng, K.; Tag, A.
  • Exploring service climate and employee performance in multicultural service settings
    Fung, C.; Sharma, P.; Wu, Z.; Su, Y.
  • State of the American workplace: employee engagement insights for US business leaders
    Gallup, L.L.C.
  • Organizational justice and employee engagement: exploring the linkage in public sector banks in India
    Ghosh, P.; Rai, A.; Sinha, A.
  • Defensive communication
    Gibb, J.R.
  • Managing customer engagement at trade shows
    Gopalakrishna, S.; Malthouse, E.C.; Lawrence, J.M.
  • A new model of work role performance: positive behavior in uncertain and interdependent contexts
    Griffin, M.A.; Neal, A.; Parker, S.K.
  • Performance management and employee engagement
    Gruman, J.A.; Saks, A.M.
  • Factors affecting employee engagement in India: a study on offshoring of financial services
    Gupta, M.; Ganguli, S.; Ponnam, A.
  • Global customer engagement
    Gupta, S.; Pansari, A.; Kumar, V.
  • Motivation through the design of work: test of a theory
    Hackman, J.R.; Oldham, G.R.
  • Toward a theory of customer engagement marketing
    Harmeling, C.M.; Moffett, J.W.; Arnold, M.J.; Carlson, B.D.
  • Customer engagement with tourism social media brands
    Harrigan, P.; Evers, U.; Miles, M.; Daly, T.
  • Customer engagement and the relationship between involvement, engagement, self-brand connection and brand usage intent
    Harrigan, P.; Evers, U.; Miles, M.; Daly, T.
  • Business-unit-level relationship between employee satisfaction, employee engagement, and business outcomes: a meta-analysis
    Harter, J.K.; Schmidt, F.L.; Hayes, T.L.
  • Cause-related marketing and employee engagement: the roles of admiration, implicit morality beliefs, and moral identity
    He, H.; Chao, M.M.; Zhu, W.
  • Positive and negative valence influencing consumer engagement
    Heinonen, K.
  • Are all smiles created equal? How emotional contagion and emotional labor affect service relationships
    Hennig-Thurau, T.; Groth, M.; Paul, M.; Gremler, D.D.
  • Demystifying ‘brand usage engagement’ in social networking contexts: conceptualisation, scale development and validation
    Hollebeek, L.
  • Demystifying customer brand engagement: exploring the loyalty nexus
    Hollebeek, L.D.
  • Consumer brand engagement in social media: conceptualization, scale development and validation
    Hollebeek, L.D.; Glynn, M.S.; Brodie, R.J.
  • SD logic–informed customer engagement: integrative framework, revised fundamental propositions, and application to CRM
    Hollebeek, L.D.; Srivastava, R.K.; Chen, T.
  • What it takes to get proactive: an integrative multilevel model of teh antecedents of personal initiative
    Hong, Y.; Liao, H.; Raub, S.; Han, J.H.
  • Consumer cocreation in new product development
    Hoyer, W.D.; Chandy, R.; Dorotic, M.; Krafft, M.; Singh, S.S.
  • Bank selection criteria and satisfaction of retail customers of Islamic banks in Bangladesh
    Iqbal, M.; Nisha, N.; Rashid, M.
  • The role of customer engagement behavior in value co-creation: a service system perspective
    Jaakkola, E.; Alexander, M.
  • Comment: organizations do not cognize
    James, L.R.; Joyce, W.F.; Slocum, J.W.
  • Psychological conditions of personal engagement and disengagement at work
    Kahn, W.A.
  • To be fully there: psychological presence at work
    Kahn, W.A.
  • The effects of organizational and personal resources on stress, engagement, and job outcomes
    Karatepe, O.M.; Yavas, U.; Babakus, E.; Deitz, G.D.
  • A simple model of service offshoring with time zone differences
    Kikuchi, T.; Long, N.V.
  • Competitive advantage through engagement
    Kumar, V.; Pansari, A.
  • Customer engagement in service
    Kumar, V.; Rajan, B.; Gupta, S.; Pozza, I.D.
  • Employee voice and work engagement: macro, meso, and micro-level drivers of convergence?
    Kwon, B.; Farndale, E.; Park, J.G.
  • Drivers of work engagement: an examination of core self-evaluations and psychological climate among hotel employees
    Lee, J.J.; Ok, C.M.
  • Determinants of customer satisfaction in retail banking
    Levesque, T.; McDougall, G.H.
  • Customer-to-customer interactions: broadening the scope of word of mouth research
    Libai, B.; Bolton, R.; Bügel, M.S.; De Ruyter, K.; Götz, O.; Risselada, H.; Stephen, A.T.
  • The moderating effect of self-efficacy and gender on work engagement for restaurant employees in the United States
    Liu, J.; Cho, S.; Putra, E.D.
  • Employee engagement in the finance industry
  • Leveraging employee engagement for competitive advantage
    Lockwood, N.R.
  • Abusive supervision and customer-oriented organizational citizenship behavior: the roles of hostile attribution bias and work engagement
    Lyu, Y.; Zhu, H.; Zhong, H.J.; Hu, L.
  • Affect and cognition based trust as foundations for interpersonal cooperation in organizations
    McAllister, D.J.
  • Dimensions of service quality in developed and developing economies: multi-country cross-cultural comparisons
    Malhotra, N.K.; Ulgado, F.M.; Agarwal, J.; Shainesh, G.; Wu, L.
  • Engagement, satisfaction and customer behavior-based CRM performance: an empirical study of mobile instant messaging
    Marino, V.; Presti, L.L.
  • The customer engagement ecosystem
    Maslowska, E.; Malthouse, E.C.; Collinger, T.
  • The psychological conditions of meaningfulness, safety and availability and the engagement of the human spirit at work
    May, D.R.; Gilson, R.L.; Harter, L.M.
  • To be engaged or not to be engaged: the antecedents and consequences of service employee engagement
    Menguc, B.; Auh, S.; Fisher, M.; Haddad, A.
  • The role of climate: implications for service employee engagement and customer service performance
    Menguc, B.; Auh, S.; Yeniaras, V.; Katsikeas, C.S.
  • A model of marketing knowledge use within firms
    Menon, A.; Varadarajan, P.R.
  • Shedding light on followers’ innovation implementation behavior: the role of transformational leadership, commitment to change, and climate for initiative
    Michaelis, B.; Stegmaier, R.; Sonntag, K.
  • Work design and frontline employee engagement
    Miracle, Q.J.; Ellinger, E.A.; Franke, R.G.
  • Relationships between providers and users of market research: the dynamics of trust
    Moorman, C.; Zaltman, G.; Deshpande, R.
  • The commitment-trust theory of relationship marketing
    Morgan, R.M.; Hunt, S.D.
  • Taking charge at work: extrarole efforts to initiate workplace change
    Morrison, E.W.; Phelps, C.C.
  • An analysis of interest rate spread in the banking sector in Bangladesh
    Mujeri, M.K.; Younus, S.
  • Employee job satisfaction in developing countries: the case of Kenya
    Mulinge, M.; Mueller, C.W.
  • Customer engagement: the construct, antecedents, and consequences
    Pansari, A.; Kumar, V.
  • The role of customer engagement in the involvement-loyalty link
    Parihar, P.; Dawra, J.; Sahay, V.
  • Modeling the antecedents of proactive behavior at work
    Parker, S.K.; Williams, H.M.; Turner, N.
  • Consumer-based approach to customer engagement–the case of luxury brands
    Prentice, C.; Loureiro, S.M.C.
  • Service with a smile: emotional contagion in the service encounter
    Pugh, S.D.
  • Work design and frontline employee engagement
    Qi, J.M.; Ellinger, A.E.; Franke, G.R.
  • Effects of store loyalty on shopping mall loyalty
    Rabbanee, F.K.; Ramaseshan, B.; Wu, C.; Vinden, A.
  • The role of marketing managers’ commitment and involvement in marketing strategy implementation
    Ramaseshan, B.; Ishak, A.; Rabbanee, F.K.
  • The impact of customer relationship characteristics on profitable lifetime duration
    Reinartz, W.J.; Kumar, V.
  • Learning from socially driven service innovation in emerging economies
    Reynoso, J.; Kandampully, J.; Fan, X.; Paulose, H.
  • Job engagement: antecedents and effects on job performance
    Rich, B.L.; Lepine, J.A.; Crawford, E.R.
  • Leveraging cultural factors in international service delivery
    Riddle, D.I.
  • Customer engagement behaviors: the role of service convenience, fairness and quality
    Roy, S.K.; Shekhar, V.; Lassar, W.M.; Chen, T.
  • Customer engagement behavior in individualistic and collectivistic markets
    Roy, S.K.; Balaji, M.S.; Soutar, G.; Lassar, W.M.; Roy, R.
  • Corporate social responsibility and employee engagement: the moderating role of CSR-specific relative autonomy and individualism
    Rupp, D.E.; Shao, R.; Skarlicki, D.P.; Paddock, E.L.; Kim, T.Y.; Nadisic, T.
  • Antecedents and consequences of employee engagement
    Saks, A.M.
  • What do we really know about employee engagement?
    Saks, A.M.; Gruman, J.A.
  • Linking organizational resources and work engagement to employee performance and customer loyalty: the mediation of service climate
    Salanova, M.; Agut, S.; Peiró, J.M.
  • Job demands, job resources and their relationship with burnout and engagement: a multi-sample study
    Schaufeli, W.B.; Bakker, A.B.
  • The measurement of engagement and burnout: a two sample confirmatory factor analytic approach
    Schaufeli, W.B.; Salanova, M.; González-Romá, V.; Bakker, A.B.
  • Organizational service climate drivers of the American customer satisfaction index (ACSI) and financial and market performance
    Schneider, B.; Macey, W.H.; Lee, W.C.; Young, S.A.
  • Linking competitive strategies with human resource management practices
    Schuler, R.S.; Jackson, S.E.
  • What engages employees the most or, the ten C’s of employee engagement
    Seijts, G.H.; Crim, D.
  • Exploring the role of IND–COL as a moderator in the comprehensive service evaluation model
    Sharma, P.; Chen, I.S.; Luk, S.T.
  • Customer engagement with a service provider and context: an empirical examination
    Sim, M.; Plewa, C.
  • I am engaged, I feel good, and I go the extra-mile: reciprocal relationships between work engagement and consequences
    Simbula, S.; Guglielmi, D.
  • Branded service encounters: strategically aligning employee behavior with the brand positioning
    Sirianni, N.J.; Bitner, M.J.; Brown, S.W.; Mandel, N.
  • Customer engagement with tourism brands: scale development and validation
    So, K.K.F.; King, C.; Sparks, B.
  • Why customer engagement matters so much now
    Sorenson, S.; Adkins, A.
  • The ties that bind: measuring the strength of consumers’ emotional attachments to brands
    Thomson, M.; MacInnis, D.J.; Whan Park, C.
  • La mobilisation du personnel: l’art d'établir un climat d'échanges favorable basé sur la réciprocité
    Tremblay, M.; Simard, G.
  • The impact of competition on bank performance in Bangladesh: an empirical study
    Uddin, S.S.; Suzuki, Y.
  • Customer engagement behavior: theoretical foundations and research directions
    Van Doorn, J.; Lemon, K.N.; Mittal, V.; Nass, S.; Pick, D.; Pirner, P.; Verhoef, P.C.
  • Evolving to a new dominant logic for marketing
    Vargo, S.L.; Lusch, R.F.
  • Customer engagement as a new perspective in customer management
    Verhoef, P.C.; Reinartz, W.J.; Krafft, M.
  • Customer engagement: exploring customer relationships beyond purchase
    Vivek, S.D.; Beatty, S.E.; Morgan, R.M.
  • A generalized multidimensional scale for measuring customer engagement
    Vivek, S.D.; Beatty, S.E.; Dalela, V.; Morgan, R.M.
  • The World Bank in Bangladesh
  • A customer engagement framework for a B2B context
    Youssef, Y.M.A.; Johnston, W.J.; AbdelHamid, T.A.; Dakrory, M.I.; Seddick, M.G.S.
  • Job engagement, perceived organizational support, high-performance human resource practices, and cultural value orientations: a cross-level investigation
    Zhong, L.; Wayne, S.J.; Liden, R.C.