The role of internet-based technology in customer satisfaction in the banking sector: empirical evidence from Edo State, Nigeria

Abstract

Internet-Based Technology (I-BT) has become an important resource in driving the performance of all successful businesses. This thesis contains the findings of an investigation into the role of I-BT in the relationship between customer-focused engagement behaviour (CFEBEH) and customer satisfaction (CS) in the Nigerian commercial banking sector. Using a sample of 426 bank customers in Edo State, Nigeria, the thesis seeks to ascertain whether I-BT resources in the bank have an impact on customer service delivery and satisfaction thereof. Theoretically, the Expectancy Disconfirmation Theory (EDT) and Affect Theory have been used to underpin the study of CS, while Kahn’s theory of engagement is used in support of CFEBEH. The Job Demands- Resources (JD-R) model has been used as the overarching theory underpinning this research particularly in relationship with I-BT. The results based on the structural equation model (SEM) provide two findings. First, CFEBEH has a direct effect on CS at a margin of 0.40. Second, I-BT mediates the CFEBEH and CS relationship at a margin of 0.067. Therefore, the findings of this study recommend bank managers or policymakers in Nigeria to consider making I-BT resources available in their banks as this can enhance the relationship between CFBEH and CS. By making I-BT available, this can also lead to increased CS levels, as the above results suggest. This study, therefore, has three main contributions to offer. First, by conceptualising CFEBEH as a second-order factor, this study has contributed to the literature in the area of methodology. Second, this study is the only study, to the best knowledge of the author, to have investigated the role of I-BT in the relationship between CFEBEH and CS in the Nigerian banking sector. The study has therefore deepened the academic knowledge on the role of I-BT in this relationship. Secondly, this study also contributes to the current literature on the role of I-BT in enhancing CS, particularly in a developing country context. Nigeria being the context of this study provides a unique environment for this research looking at the several challenges in the banking sector amidst institutional and infrastructural weaknesses. Finally, the design and measurement of the proposed research model in this study regarding the impact of CFEBEH on CS through its various components including PCHB, ATI, and WS, have added to the academic knowledge in customer service delivery, particularly in the banking sector which can trigger further research in this research area.