Service quality of Islamic banks: satisfaction, loyalty and the mediating role of trust

Purpose – The objective of this study is to examine the impact of PAKSERV model on customers' satisfaction, loyalty and trust in Malaysian Islamic banks. These comprehensive measures concern on the cultural dimension of service quality by focusing on the mediating role of trust in the Malaysian...

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Main Authors: Razali Haron, Noradilah Abdul Subar, Khairunisah Ibrahim
Format: Article
Language:English
Published: Emerald Publishing 2020-10-01
Series:Islamic Economic Studies
Subjects:
Online Access:https://www.emerald.com/insight/content/doi/10.1108/IES-12-2019-0041/full/pdf
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author Razali Haron
Noradilah Abdul Subar
Khairunisah Ibrahim
author_facet Razali Haron
Noradilah Abdul Subar
Khairunisah Ibrahim
author_sort Razali Haron
collection DOAJ
description Purpose – The objective of this study is to examine the impact of PAKSERV model on customers' satisfaction, loyalty and trust in Malaysian Islamic banks. These comprehensive measures concern on the cultural dimension of service quality by focusing on the mediating role of trust in the Malaysian context. Design/methodology/approach – A survey was conducted involving 401 customers of Islamic banks in the states of Kuala Lumpur and Selangor, Malaysia. The data were analyzed through exploratory factor analysis, confirmatory factor analysis and structural equation model employing AMOS 23 and SPSS 23. Findings – The study found positive relationship of PAKSERV dimensions of service quality, customers' satisfaction, customers' loyalty and the mediating role of trust in enhancing customers' loyalty. This study provides new evidence on how trust can act as a partial mediation on the relationship between customers' satisfaction and customers' loyalty in the cultural context of Islamic banking in Malaysia. Practical implications – The findings of this study can be used as a framework for other Islamic Financial Institutions (IFIs) in improving services to its customers. Originality/value – This study contributes to the body of knowledge in enhancing the understanding on customers' satisfaction, loyalty and trust in Islamic banks in Malaysia. This study also covers a broad range of respondents, hence representing a good diversity of Islamic banks' customers.
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spelling doaj.art-adec7e95afc0488dba3ac43722e139152023-07-03T08:12:54ZengEmerald PublishingIslamic Economic Studies1319-16162411-33952020-10-0128132310.1108/IES-12-2019-0041Service quality of Islamic banks: satisfaction, loyalty and the mediating role of trustRazali Haron0Noradilah Abdul Subar1Khairunisah Ibrahim2IIUM Institute of Islamic Banking and Finance, International Islamic University Malaysia, Kuala Lumpur, MalaysiaIIUM Institute of Islamic Banking and Finance, International Islamic University Malaysia, Kuala Lumpur, MalaysiaDepartment of Finance, International Islamic University Malaysia, Kuala Lumpur, MalaysiaPurpose – The objective of this study is to examine the impact of PAKSERV model on customers' satisfaction, loyalty and trust in Malaysian Islamic banks. These comprehensive measures concern on the cultural dimension of service quality by focusing on the mediating role of trust in the Malaysian context. Design/methodology/approach – A survey was conducted involving 401 customers of Islamic banks in the states of Kuala Lumpur and Selangor, Malaysia. The data were analyzed through exploratory factor analysis, confirmatory factor analysis and structural equation model employing AMOS 23 and SPSS 23. Findings – The study found positive relationship of PAKSERV dimensions of service quality, customers' satisfaction, customers' loyalty and the mediating role of trust in enhancing customers' loyalty. This study provides new evidence on how trust can act as a partial mediation on the relationship between customers' satisfaction and customers' loyalty in the cultural context of Islamic banking in Malaysia. Practical implications – The findings of this study can be used as a framework for other Islamic Financial Institutions (IFIs) in improving services to its customers. Originality/value – This study contributes to the body of knowledge in enhancing the understanding on customers' satisfaction, loyalty and trust in Islamic banks in Malaysia. This study also covers a broad range of respondents, hence representing a good diversity of Islamic banks' customers.https://www.emerald.com/insight/content/doi/10.1108/IES-12-2019-0041/full/pdfService qualitySatisfactionLoyaltyPAKSERVIslamic bank
spellingShingle Razali Haron
Noradilah Abdul Subar
Khairunisah Ibrahim
Service quality of Islamic banks: satisfaction, loyalty and the mediating role of trust
Islamic Economic Studies
Service quality
Satisfaction
Loyalty
PAKSERV
Islamic bank
title Service quality of Islamic banks: satisfaction, loyalty and the mediating role of trust
title_full Service quality of Islamic banks: satisfaction, loyalty and the mediating role of trust
title_fullStr Service quality of Islamic banks: satisfaction, loyalty and the mediating role of trust
title_full_unstemmed Service quality of Islamic banks: satisfaction, loyalty and the mediating role of trust
title_short Service quality of Islamic banks: satisfaction, loyalty and the mediating role of trust
title_sort service quality of islamic banks satisfaction loyalty and the mediating role of trust
topic Service quality
Satisfaction
Loyalty
PAKSERV
Islamic bank
url https://www.emerald.com/insight/content/doi/10.1108/IES-12-2019-0041/full/pdf
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AT noradilahabdulsubar servicequalityofislamicbankssatisfactionloyaltyandthemediatingroleoftrust
AT khairunisahibrahim servicequalityofislamicbankssatisfactionloyaltyandthemediatingroleoftrust