Article Sidebar

Article History
Submitted February 5, 2021
Accepted March 5, 2021
Published March 16, 2021
Download
PDF
Statistic
Read Counter : 266 Download : 115

Downloads

Download data is not yet available.

Main Article Content

Abstract

In today’s highly volatile environment, banks strive to leverage the perceptions of their multiple customers more than ever before with the aim to build a sustainable competitive advantage. Accordingly, corporate image and customer trust concepts are of vital importance for both academicians and practitioners, concerning their potential impact on internal and external stakeholders. Recognizing the intensified significance of a multi-stakeholder perspective, the current study attempts to contribute to the literature through examining the mediating role of institutional trust on the relationship between corporate image and customer trust. The study applies the partial least squares structural equation modelling (PLS-SEM) method to examine this relationship. The data are collected from a total of 372 Iraqi banking customers using a random sampling technique. The finding for path-1 shows that there exists a positive and significant association between corporate image, institutional trust and trust in online banking services. Similarly, the result of path-2 also reveals a positive and significant association between institutional trust and trust in online banking services. Finally, bias-corrected bootstrapping confirms that institutional trust plays a mediating role between corporate image and trust in online banking services in Iraq. This study has important theoretical and practical implications. It not only fills some of the gaps in the literature about trust in online banking services, particularly for Iraq but it also reinforces to policy-makers that institutional trust is an important factor in promoting customer’s trust in financial services.

Keywords

Corporate Image Customer Trust Institutional Trust Iraqi Banking Sector

Article Details

Copyright & License

Copyright (c) 2021 Hamid Mohsin Jadah, Manar Hayder Ali Alghanimi, Noor Hashim Mohammed Al-Husainy

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

Management & Economics Research Journal is licensed under a (CC BY-NC 4.0).

The following guidelines apply to all users:

  • -Individuals may view, download, print, or save Journal content for the purposes of research and teaching.
  • -Any use and/or copies of this Journal in whole or in part, must include the customary bibliographic citation, including author attribution, date, article title, the Journal name and its website address.

Authors who publish with this journal agree to the following terms:

a) Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a (CC BY-NC 4.0) that allows others to share and adapt the work with an acknowledgement of the work's authorship and initial publication in this journal.

b) Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work . Where authors include such a work in an institutional repository or on their website , we request that they include a statement that acknowledges the Management & Economics Resaerch journal including the name of the journal, the volume and issue and a web-link to the journal item.

c) Authors should be aware that the Creative Commons Attribution (CC-BY) License permits readers to share (copy and redistribute the work in any medium or format) and adapt (remix, transform, and build upon the work) for any purpose, even commercially, provided they also give appropriate credit to the work, provide a link to the license, and indicate if changes were made. They may do these things in any reasonable manner, but not in any way that suggests you or your publisher endorses their use.

Author Biographies

Hamid Mohsin Jadah, Department of Finance and Banking, College of Administration and Economics, University of Kerbala (Iraq)

Senior Lecturer
Academic profiles: Scopus

Manar Hayder Ali Alghanimi, Babylon Technical Institution, AL-Furat AL-Awsat Technical University (Iraq)

Master of Banking Science, Lecturer

Noor Hashim Mohammed Al-Husainy, Imam AL-Kadhum College for Islamic Studies, Babylon Departments, (Iraq)

Master of Banking Science, Lecturer

How to Cite
Jadah, H. M., Alghanimi, M. H. A., & Al-Husainy, N. H. M. (2021). The Mediating of Institutional Trust on Corporate Image and Customer Trust in Iraqi Banking Sector. Management & Economics Research Journal, 3(1), 60-75. https://doi.org/10.48100/merj.2021.153
Download Citation
Endnote/Zotero/Mendeley (RIS)
BibTeX
Cited by
Crossref
Scopus
Google Scholar
Europe PMC

References

  1. Adams, M., Andersson, J., Andersson, L.-F., & Lindmark, M. (2009). Commercial Banking, Insurance and Economic Growth in Sweden between 1830 and 1998. Accounting, Business & Financial History, 19(1), 21–38. https://doi.org/10.1080/09585200802667139
  2. Adeniran, A., Jadah, H., & Mohammed, N. (2020). Impact of Information Technology on Strategic Management in the Banking Sector of Iraq. Insights into Regional Development, 2(2), 592-601.‏
  3. Alalwan, A. A., Dwivedi, Y. K., Rana, N. P. P., & Williams, M. D. (2016). Consumer adoption of mobile banking in Jordan: Examining the role of Usefulness, Ease of Use, Perceived Risk and Self-efficacy. Journal of Enterprise Information Management, 29(1), 118–139.
  4. Ali, A. B. (2018) Banks, Credit and Financial Depth between Iraq and the International Experience, Central Bank of Iraq, Journal of Monetary and Financial Studies, 3, 31-63.
  5. Alvin, N. N. (2017). The Effectiveness of Online Advertisement on Consumer Decision: A Case of Radio Africa Group Limited Nairobi, Kenya. United Staes International University.
  6. Ansah, M. O., & Chinomona, R. (2017). Analysis of Market Orientation on Business Performance in the Multinational Service Industries. Journal of Social Sciences, 1–14. https://doi.org/10.3844/jssp.2017
  7. Boateng, F. D. (2017). Institutional Trust and Performance: A study of the Police in Ghana. Australian & New Zealand Journal of Criminology, 1–19. https://doi.org/10.1177/0004865817712335
  8. Bruggen, M. van. (2014). The Corporate Identity and Corporate Image of KLM A Gap Analysis. History, Culture and Communication. Erasmus University Rotterdam.
  9. D'agostino, R. B., Belanger, A., & D'Agostino Jr, R. B. (1990). A Suggestion for Using Powerful and Informative Tests of Normality. The American Statistician, 44(4), 316–321.
  10. Ennew, C., Kharouf, H., & Sekhon, H. (2011). Trust in UK Financial Services: A Longitudinal Analysis. Journal of Financial Services Marketing, 16(1), 65–75. https://doi.org/10.1057/fsm.2011.8
  11. Fuglsang, L., & Jagd, S. (2015). Making Sense of Institutional Trust in Organizations: Bridging Institutional Context and Trust. The organization, 22(1), 23–39. https://doi.org/10.1177/1350508413496577
  12. Gujarati, D. N. (2003). Basic Econometrics (Fourth). New York: McGraw-HiII/Irwin.
  13. Guo, C., Kulviwat, S., Zhu, J., & Wang, Y. J. (2017). Competing in an Emerging Market: Antecedents and Consequences of Market Orientation and the Role of Environmental Factors. Journal of Strategic Marketing, 1–20. https://doi.org/10.1080/0965254X.2017.1411386
  14. Hair, J. F., Matthews, L. M., Matthews, R. L., & Sarstedt, M. (2017). PLS-SEM or CB-SEM : Updated Guidelines on Which Method to Use. International Journal Multivariate Data Analysis, 1(2), 107–123. https://doi.org/10.1504/IJMDA.2017.087624
  15. Horng, J.-S., Liu, C.-H., Chou, S.-F., Tsai, C.-Y., & Hu, D. C. (2018). Does Corporate Image Really Enhance Consumer’s Behavioural Intentions? Asia Pacific Journal of Tourism Research, 23(10), 1008–1020. https://doi.org/10.1080/10941665.2018.1513946
  16. IMF. (2019). Iraq Selected Issues. IMF Country Report No. 19/249, 1-47.
  17. Jadah, H. M., Alghanimi, M. H., Al-Dahaan, N. S., & Al-Husainy, N. H. (2020). Internal and External Determinants of Iraqi Banks Profitability. Banks and Bank Systems, 15(2), 79-93. http://dx.doi.org/10.21511/bbs.15(2).2020.08.
  18. Jadah, H. M., Murugiah, L. A. & Adzis, A. B. A. (2016). Board Characteristics and Bank Performance: Evidence from Iraq. Journal of Independent Studies and Research: Management, Social Sciences and Economics, 14(1), 29-41.
  19. Jadah, H. M., Mohammed, N. H., Hasan, M. M., & Adetayo O. A. (2020). The Impact of the Political Instability on Bank’s Performance: Evidence from Iraq. The Iraqi Magazine for Managerial Sciences, 16(65), 228-240.
  20. Jaworski, B. J., & Kohli, A. K. (2017). Conducting Field-based, Discovery-Oriented Research: Lessons from our Market Orientation Research Experience. AMS Review, 7(1–2), 4–12. https://doi.org/10.1007/s13162-017-0088-5
  21. Kasim, A., Ekinci, Y., Altinay, L., & Hussein, K. (2018). Impact of Market Orientation, Organizational Learning and Market Conditions on Small and Medium-size Hospitality Enterprises. Journal of Hospitality Marketing and Management, 27(07), 1–21. https://doi.org/10.1080/19368623.2018.1438955
  22. Koksal, M. H. (2016). The Intentions of Lebanese Consumers to Adopt Mobile Banking. International Journal of Bank Marketing, 34(3), 327–346.
  23. Litzinger, T. A., Lee, S. H., Wise, J. C., & Felder, R. M. (2005). Applications, Reliability and Validity of the Index of Learning Styles. In Int. J. Egng ED (pp. 103–112). USA: American Society for Engineering Education.
  24. Maduku, D. K. (2016). the Effect of Institutional Trust on Internet Banking Acceptance: Perspectives of South African Banking Retail Customers. South African Journal of Economic and Management Sciences, 19(4), 533–548. https://doi.org/10.17159/2222-3436/2016/v19n4a5
  25. Mahmoud, M. A., Blankson, C., Owusu-Frimpong, N., Nwankwo, S., & Trang, T. P. (2016). Market Orientation, Learning Orientation and Business Performance. International Journal of Bank Marketing, 34(5), 623–648. https://doi.org/10.1108/IJBM-04-2015-0057
  26. Malaysian Association of Risk and Insurance. (2018). Deputy Governor’s Opening Speech at the Malaysian Association of Risk and Insurance Management (MARIM) Conference 2018. Retrieved July 22, 2018, from https://www.bnm.gov.my/index.php?ch=en_speech&pg=en_speech&ac=803&lang=en
  27. Mcknight, D. H., Choudhury, V., & Kacmar, C. J. (2000). Trust in E-commerce Vendors: A two-stage Model. Proceedings of the Twenty-First International Conference on Information Systems. Association for Information Systems, (Heider 1958), 532–536.
  28. McNeish, J. (2015). Consumer Trust and Distrust: Retaining Paper Bills in Online Banking. International Journal of Bank Marketing, 33(1), 5–22. https://doi.org/http://dx.doi.org/10.1108/MRR-09-2015-0216
  29. Melewar, T. C., Gupta, P. F. S., Kitchen, P. J., & Foroudi, M. M. (2017). Integrating Identity, Strategy and Communications for Trust, Loyalty and Commitment. International Journal for Marketing, 51(3), 572–604. https://doi.org/http://dx.doi.org/10.1108/MRR-09-2015-0216
  30. Moin, S. M. A., Devlin, J. F., & McKechnie, S. (2017). Trust in Financial Services: The Influence of Demographics and Dispositional Characteristics. Journal of Financial Services Marketing, 22(2), 64–76. https://doi.org/10.1057/s41264-017-0023-8
  31. Mostafa, R. (2017). Does Corporate Image Really Matter in Service Recovery Context. International Journal of Customer Relationship Marketing and Management, 8(1), 1–14.
  32. Narver, J. C., & Slater, S. F. (1990). The Effect of a Market Orientation on Business Profitability. Journal of Marketing, 54(4), 20–35. https://doi.org/10.2307/1251757
  33. Oliveira, T., Alhinho, M., Rita, P., & Dhillon, G. (2017). Modelling and Testing Consumer Trust Dimensions in E-commerce. Computers in Human Behavior, 71, 153–164. https://doi.org/10.1016/j.chb.2017.01.050
  34. Pauline, W. J., Esterik-Plasmeijer, V., & Raaij, W. F. van. (2017). Banking System Trust, Bank Trust, and Bank Loyalty. International Journal of Banking Marketing, 35(1), 97–111. https://doi.org/10.1108/EUM0000000001122
  35. Sikdar, P., Kumar, A., & Makkad, M. (2015). Online Banking Adoption: A Factor Validation and Satisfaction Causation Study in the Context of Indian Banking Customers. International Journal of Bank Marketing, 33(6), 760–785. https://doi.org/http://dx.doi.org/10.1108/MRR-09-2015-0216
  36. Singh, S., & Ranchhod, A. (2004). Market Orientation and Customer Satisfaction: Evidence from British Machine Tool Industry. Industrial Marketing Management, 33(2), 135–144. https://doi.org/10.1016/S0019-8501(03)00056-7
  37. Tse, A. C. B., Sin, L. Y. M., Yau, O. H. M., Lee, J. S. Y., & Chow, R. (2003). Market Orientation and Business Performance in a Chinese Business Environment. Journal of Business Research, 56, 227–239. https://doi.org/10.1016/S0148-2963(01)00230-2
  38. Wang, S. W., Ngamsiriudom, W., & Hsieh, C. H. (2015). Trust Disposition, Trust Antecedents, Trust, and Behavioural Intention. Service Industries Journal, 35(10), 555–572. https://doi.org/10.1080/02642069.2015.1047827
  39. Yu, P. L., Balaji, M. S., & Khong, K. W. (2017). Building Trust in Internet Banking: A trustworthiness Perspective. Industrial Management & Data Systems, 115(2), 235–252.
  40. Yusuf Dauda, S., & Lee, J. (2015). Technology Adoption: A conjoint Analysis of Consumers’ Preference on Future Online Banking Services. Information Systems, 53, 1–15. Retrieved from http://dx.doi.org/10.1016/j.is.2015.04.006
  41. Zameer, H., Tara, A., Kausar, U., & Mohsin, A. (2015). Impact of Service Quality, Corporate Image and Customer Satisfaction Towards Customers’ Perceived Value in the Banking Sector in Pakistan. International Journal of Bank Marketing, 33(4), 442–456.