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Managing engagement in an emerging economy service

Fazlul K. Rabbanee (School of Marketing, Curtin University, Perth, Australia)
Mohammad Moinul Haque (Department of Business Administration, Premier University, Chittagong, Bangladesh)
Shanta Banik (Department of Marketing, University of Chittagong, Chittagong, Bangladesh)
Mohammad Majedul Islam (School of Marketing, Curtin University, Bentley, Australia)

Journal of Service Theory and Practice

ISSN: 2055-6225

Article publication date: 28 October 2019

Issue publication date: 29 November 2019

924

Abstract

Purpose

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/approach

Data 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.

Findings

Organisational 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/implications

Future research could consider actual customer behaviour, such as repeat purchase, as the key outcome variable.

Practical implications

The 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/value

This 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.

Keywords

Citation

Rabbanee, F.K., Haque, M.M., Banik, S. and Islam, M.M. (2019), "Managing engagement in an emerging economy service", Journal of Service Theory and Practice, Vol. 29 No. 5/6, pp. 610-638. https://doi.org/10.1108/JSTP-12-2018-0276

Publisher

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Emerald Publishing Limited

Copyright © 2019, Emerald Publishing Limited

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