Service Satisfaction, Information Trust and e-crm Performance in BSC model in the Empirics of Financial Institutions

Transcription

1 50 Journal of Business and Policy Research Vol.4 No.1 July 2009, Pp Service Satisfaction, Information Trust and e-crm Performance in BSC model in the Empirics of Financial Institutions Majidul Islam* and Yi-Feng Yang** Our study used Kaplan & Norton s (2001) balanced scorecard (BSC) measures such as customer loyalty, internal process efficiency, channel management, and innovation to examine the marketing relationship performance with customers, which closely ties into the core of this study on e-crm (customer relationship management) performance. The objective of this study is to achieve a better understanding of BSC performance. A total of 400 questionnaires were distributed in the summer of 2006 to four Taiwanese banks that have applied the BSC to their customer service operations. Mediator hierarchical regressions were applied to analyze the data, and as the result, this study suggests that mediating effects exist in the BSC model. In other words, when institutions create and raise levels of service satisfaction and informational trust, the results are improvements in customer interactions, potentially helping the institution to achieve a higher level of BSC performance. Field of Research: Business, Financial and Marketing Management 1. Introduction The BSC (Kaplan & Norton, 2001, 2004) was originally developed to solve problems related to financial measures in accounting (AICPA, 1994; Dearden, 1969, 1987; Hopwood, 1972; Johnson & Kaplan, 1987; Kaplan & Norton, 1996; Merchant, 1985; Vancil, 1979). The BSC covers four broad perspectives related to financial aspects, customer relations, internal business, and innovation and learning. The BSC is designed to enable managers to measure, evaluate, and guide business activities from these perspectives as well as to enhance their problem-solving and decision-making capabilities by the examination of cross-functional relationships (Kaplan & Norton, 1992, 2004). The BSC further allows for the evaluation of managerial activities from the broad viewpoints of both tangible and intangible financial and non-financial aspects. It is an action-oriented approach to business performance improvement (Martinsons & Tse, 1999), allowing for the appraisal of integration of technology processes, marketing activities, and business performance; and it estimates the level of customer satisfaction by considering marketing feedback (Grembergen & Amelinckx, 2002). It reflects a customer-centric philosophy based on such aspects such as customer knowledge, customer interaction, customer value, and customer satisfaction (Kim & Hwang, 2003). The BSC is a goal-oriented approach *Dr. Majidul Islam, Concordia University, Montreal, Canada. [email protected] **Dr. Yi-Feng Yang, Shu-Te University, Taiwan. [email protected]

2 designed to advance business effectiveness by customer relationship management (Olve & Wetter., 1999). Martinsons et al., (1999) adapted the BSC for information systems (IS) study, while Kim (2004) used the BSC perspective to connect business performance to information technology (IT) expenditure. Liyanage & Kumar (2003) used it to develop an architecture for the monitoring of managerial effects on operations and maintenance business performance. Based on prior studies, the BSC has emerged as a strategic evaluation tool for firm performance, and in this study we apply the BSC to evaluate business performance objectives. The financial perspectives covered by the BSC include returns on investment and sales as a determinant of whether the firms strategic implementation and execution policies have truly led to improvement in business activities. There are three constructs considered: increased returns on investment (ROI) and increased returns on assets (ROA) as a measure of productivity; increased profit margins as a measure of revenue growth and market share (Gumbus & Lyons, 2002); operating cost and materials and asset utilization as a measure of cost structure (Ellingson & Wambsganss, 2001; Hoque & James, 2000; Maiga & Jacobs, 2003; Yeniyurt, 2003).The customer perspective in the BSC is related to the measuring of service performance and customer satisfaction from customer response and feedback. This perspective includes three constructs: quality and functionality of products as a measure of product attributes; customer response time and satisfaction as a measure of customer relationship; and image and reputation as a measure of firm image (Ellingson & Wambsganss, 2001) and brand recognition (Banker & Konstans., 2004; Gumbus & Lyons, 2002; Yeniyurt, 2003; Hoque & James, 2000; Kaplan & Norton, 2004; Libby & Webb., 2004; Maiga & Jacobs, 2003). The internal process includes four broad constructs: operations management, measured by the quality of the operational process (Banker et al., 2004; Gumbus & Lyons, 2002) and the dependability of the delivery process (Ellingson & Wambsganss, 2001; Hoque & James, 2000; Maiga & Jacobs, 2003; Seddon & Willcocks., 2002); customer management, measured by target customer selection (Kaplan & Norton, 2004), customer acquisition (Ellingson & Wambsganss, 2001; Libby et al., 2004), and target customer retention (Ellingson & Wambsganss, 2001; Yeniyurt, 2003); and innovation, measured by innovative opportunities (Hoque & James, 2000; Maiga & Jacobs, 2003;Yeniyurt, 2003) and time needed for product innovation (Hoque & James, 2000; Maiga & Jacobs, 2003). Innovation and learning measures, which include such items as employee skills and expertise, focus on those elements that facilitate continuous improvement and growth. Previous studies have shown that a company s innovativeness in terms of the development of new products and processes is critical to achieving excellence (Banker et al., 2004). The innovation and learning perspective includes three broad constructs: human capital, measured by employee skills (Ellingson & Wambsganss, 2001; Libby et al., 2004; Ullrich & Tuttle, 2004) and know-how (Kaplan & Norton, 2004); organization capital, measured by sharing of worker knowledge (Kaplan & 51

3 Norton, 2004), and shared vision, objectives, and values (Kaplan & Norton, 2004); and information capital, measured by knowledge management capabilities (Kaplan & Norton, 2004) and accessibility of information (Kaplan & Norton, 2004). 2. Literature Reviews and Hypotheses Kaplan & Norton (2001) presented their balanced scorecard (BSC) to measure organizational performance from the four perspectives of financial, customer, innovation and learning, and internal business, as shown in Figure 2.1. They claimed that the traditional financial accounting models were designed to control employee behaviors. However, the BSC process starts with the senior executive management team working together to translate a unit s strategy into specific strategic objectives. Kaplan & Norton s (2001) suggestion, with its marketing relationship value closely tied into the core of this study of the customer relationship management (CRM and, therefore, also e-crm) performance of organizations. In Customer Perspective of the BSC, Kaplan & Norton (2001) specified that there were some common sets of attributes by which value propositions were classified in many manufacturing and service industries, and they classified those attributes into three categories: (a) product and service, (b) customer relationship, and (c) image and reputation. The customer relationship dimension of the BSC includes the delivery of the product or service to the customer, including response and delivery time, and specifically, the customer s purchasing experience. In other words, this signifies how the company has been managing its relationships with its customers in maintaining product and service values that satisfy the customer. This aspect of value creation to satisfy customer needs is well reflected in the internal business process perspectives of the BSC. The creators of the BSC, Kaplan & Norton, suggested that each business had its unique set of processes for creating value for customers (Kaplan & Atkinson, 1998). By creating value that the customers would be looking for, the company could retain, acquire, and satisfy its customers. Following the generic value chain model, Kaplan & Norton (1996) suggested that the value creation effort in the internal business process had the greatest impact on customer satisfaction. 52

4 53 Figure 2.1 Kaplan & Norton s (1992, 2002) Balanced Scorecard Linking Performance Measures How do we look to shareholder? Financial Perspective How do customers see us? Customer Perspective Internal Business Perspective What must we excel at? Innovation & Learning Perspective Can we continue to improve and create value? BSC performance includes a combination of people, processes, and technology and seeks to achieve a better understanding of the buyer-seller relationship. BSC performance was more supported by advances in information technology and organizational changes in customer-focused processes. BSC performance is an integrated approach to managing customer relationships, especially focusing on customer retention and relationship development. Because employees cannot remember every customer s preferences and needs, a large amount of information collection relies heavily on e-technology (Chen & Popovich, 2003). This means that a large percentage of customer interactions will take place over the Internet, rather than directly with employees. When an institution performs a large amount of customer service, most service employees use electronic media to enhance the interaction with their customers. This study argues, therefore, that both people and e-service quality are major keys to predicting the BSC performance. Technology plays an important role in enhancing a higher level of BSC performance, while at the same time, individual employees are necessary in order enhance and increase customer service. Previous studies of the BSC attributes and its performance have contributed to the development of the framework, conceptualizations, and theoretical relationships used in this paper. The literature has been able to answer questions related to these theoretical correlation relationships, as shown in Figure 2.2. a) The positive effects of people and e-service quality on BSC performance; b) The positive effects of quality service satisfaction and information trust on the BSC performance; and

5 c) The positive effects of people and e-service quality on the potential mediating roles of satisfaction and trust. 54 Figure 2.2 Service Quality, Potential Mediating Roles, and BSC Performance Service Quality People-Service Quality E-Service Quality Potential Mediations Quality Service Satisfaction Service Information Trust BSC Performance Customer Loyalty, Internal Process Efficiency, Channel Management, Innovation One marketing approach has been described as the customers psychological contract toward a higher level of satisfaction and trust, which enables institutions to become more profitable, because they retain customers rather building new relationships (Chen & Popovich, 2003). When an institution tries to build a new market segment, it faces challenges and uncertainty about things such as customer needs, preferences, purchase behaviors, and even price sensitivity. This study identifies that the two roles of satisfaction and trust are both mediators for predicting e-crm performance, or in other words, BSC performance. Research has suggested that relationship quality is one effective way to reduce the uncertainty resulting from service failure and negative outcomes (Roloff & Miller, 1987) and enable institutions to continue reaching their customers expectations (satisfaction) and interests (trust). Also, some studies have concluded that a successful buyer-seller interaction relationship raised levels of customer satisfaction (e.g., Crosby & Stephens, 1987; Parasuraman, Zeithaml, & Berry, 1985). Thus, it is important for this study to find out whether the potential mediating roles of satisfaction and trust mediate the relationship between the independent variables, people- and e-service quality, and the dependent variable, BSC performance. In other words, we would like to see whether adding the mediating roles into the BSC performance model would enhance the relationship between people- and e-service quality and BSC performance. This led to the following hypotheses, based on the relationships shown in Figure 2.2: Hypotheses 1a: Customer quality service satisfaction will mediate the relationship between the institution s people-service quality and BSC performance.

6 Hypotheses 1b: Customer quality service satisfaction will mediate the relationship between the institution s e-service quality and BSC performance. Hypotheses 2a: Customer information trust will mediate the relationship between the institution s people-service quality and BSC performance. Hypotheses 2b: Customer information trust will mediate the relationship between the institution s e-service quality and BSC performance. 3. Methodology and Research Design Sampling Recently, four banks in Taiwan Citibank, Chinatrust, Taipei Fubon Bank, and Taiwan HSBC have applied the BSC to their customer service operations. Questionnaires were distributed to 400 of these banks e-crm-experienced customers in the summer of We received 75% back as usable responses for the study. These four banks have acted internationally by issuing financial products such as global exquisite articles, international stock funds, and European market funds. These banks also issue many diversified products, including traditional financial merchandise such as stocks, bonds, deposits, and financial bills; popular financial merchandise such as real estate investment trusts (REITS), cash cards, and credit cards; and new financial merchandise such as high-tech industry funds, emerging market stocks, and global exquisite articles. The data-collection for the current research was designed to analyze the results from these sample banks to build the theoretical relationship. Data from these sample banks were used to show how these mediations played an important role in the marketing integration process. The research results could be generalized, because the new extension theory could contribute and apply to most similar banking systems. Measurements, Reliability, and Validity 55 This section analyzed research scales: people and e-service quality, service quality satisfaction and information trust, and BSC performance. Responses were made using a 5-point Likert-type scale, ranging from 1 (strongly disagree) to 5 (strongly agree). A principal-component factor analysis (Rotated Varimax Solution) was used to ensure adequate measures of validity and reliability (Appendix 1) based on the following: 1) each scale s KMO (Kasier-Meyer-Olkin Measuring of Sampling Adequacy) exceeded Rice s (1974) recommended level of 0.5; 2) each scale s Bartlett χ 2 was statistically significant; 3) each scale s reliability (Cronbach s α) exceeded Nunnally s (1978) recommended level of 0.7; 4) each scale s cumulative

7 explained (%) exceeded the level of 50.00%; 5) each factor s Eigen value exceeded the early recommended level of 1.000, and each item s factor component exceeded the level of Results Table 1 shows the correlation coefficients, mean score, standard deviation, and reliability for all variables. A hierarchical multiple regression analysis of the data and Baron and Kenny s (1986) suggestion were used for testing for mediation effects. According to their study, the three major hypotheses were considered to develop by the effects of service quality on BSC performance, the effects of the mediating roles on BSC performance, and the mediating roles to help enforce the effects of service quality on BSC performance. Table 1 shows the overall scores of the mean (M), standard deviations (SD), and correlation coefficients. While we tested the Variance Inflation Factor (VIF) scores, these are among the causal relationships ranging from 1.00 to 1.49, which was suggested as being significant by Ryan (1997) in his regressions analysis. Table 2 shows the overall regressions. Table 1: Overall Correlations 56 Mean S.D. α ** **.450** **.451**.594** **.524**.478**.432** **.Correlation is significant at the 0.01 level (2-tailed) 1. People-Service Quality; 2. e-service Quality; 3. Service Quality Satisfaction; 4. Information Trust; 5. BSC Performance In Model 1, we find a significant positive effect on the following aspects: 1) the BSC performance of people- and e-service quality (β =.465 and 524, p <.01, respectively) explaining 21.6% and 27.5% of variance (R 2 =.216 and.275, p <.01, respectively) and F value (F = and , p <.01, respectively). In Model 2, there is a significant positive effect shown in the BSC performance of quality service satisfaction and information trust (β =.478 and.493; R 2 =.228 and.243; F = and 95.63, p <.01, respectively). Following Baron and Kenny s (1986) mediation study, all hypotheses are fully supported, because, when people- and e-service quality were added to the regression (already containing the satisfaction and trust in the BSC performance), the change in R² was statistically significant in Model 3. In addition, hypotheses 1a, 2a, and 2b are close to full mediations since these show a significant change in R², being close to zero in Model Discussions and Conclusion

8 57 The BSC perspective Kaplan & Norton (2001, 2004) adapted the BSC to measure organizational performance from the four perspectives of finance, customer, innovation and learning, and internal business. The BSC process starts with the senior executive management team working together to translate a unit s strategy into specific strategic objectives. In this study, we used the BSC to measure the marketing relationship performance. Kaplan & Norton (1996) suggested that it was value creation efforts in the internal business process that had the greatest impact on customer satisfaction. This closely ties to the marketing relationship value that is at the core of this study. Based on their research, we define four major aspects of organizational performance as a measure of BSC performance: customer loyalty, internal process efficiency, channel management, and innovation. Customer loyalty has been a major issue in marketing for over half a century, and a sizeable amount of literature on the subject has evolved. Table 2 Result of Mediator Multiple Regression (MMR) to Hypothesis 1a to 2 X3.1 The BSC performance Model β R 2 /ΔR 2 F/ΔF c VIF Model 1: IVs People-service Quality (X1.1).279**.216** 82.26** 1.00 e-service Quality (X1.2).392**.275** ** 1.00 Model 2: Mediating Roles Quality Service Satisfaction (X2.1) Information Trust (X2.2).284**.228** 88.09** **.243** 95.62** 1.00 Model 3: Mediation X 1.1 X 2.1 X ** a.054** b 22.35** c 1.46 X 1.1 X 2.2 X ** a.120** b 54.75** c 1.25 X 1.2 X 2.1 X ** a.066** b 27.24** c 1.49 X 1.2 X 2.2 X ** a.073** b 33.95** c 1.25 ** p<.01 level (2-tailed) ; a, b, c : the values produced by the process as

9 independent variable entered after mediating role 58 We note that, for a company to attain customer loyalty, it should offer value-added services, such as the construction of attractive websites or the use of advertising to attract potential customers and others, to improve service support. Proper practices have the potential to improve customer satisfaction ratings and increase customer retention, which in turn enhances customer loyalty, which will increase the performance of the company under the BSC measures. Channel management in the context of service to customers can be viewed as a way to coordinate and synchronize communications across all possible customer touch-points. Therefore, efficient channel management means that the service company provides multiple information delivery channels, through which customers conveniently receive consistent marketing information through the available channels. Again, as pointed out by Kaplan & Norton (1992), a company s ability to innovate, improve, and learn is closely tied to a company s image and value to customers. With regard to the BSC, the ability of the service company to launch more effective navigational services can increase value for both the suppliers and customers. The internal business perspective is related to the efficiency and effectiveness of business processes that have an impact on customer satisfaction, such as business cycle time, quality, employee skills, and productivity. Business units should know the processes and competencies they must excel at and specify measures for meeting these standards. This can broadly include total business cycle time, flexibility of service to meet particular customer needs, supplier lead time against industry norms, delivery service, purchase order cycle time, effectiveness of the production schedule, capability utilization, total inventory cost, stock level and others. The innovation and learning perspective is aimed at sustaining innovation and maintaining capabilities by continuous business improvement and growth. Continuous innovation and learning can increase business operation efficiency by strengthening financial competitiveness through increased profitability and earnings per share. To succeed financially, which is the goal of most for-profit organizations, the organization should reach the following goals: profitability, continuing liquidity and solvency in the short and long run, increasing sales turnover, and maximized shareholder wealth. We conclude that, in order to achieve the financial perspective of the BSC, the company should broadly cover business query time, net profit vs. productivity ratio, rate of return on investment, customer-supplier relationship, delivery performance, business costs and savings, product delivery reliability, the cost per business operation day, and information and technology cost. The customer performance measures, core to the evaluation of business activities, have to

10 achieve the goal of delivering ever-increasing value to the customer. The management of a business operation can express and communicate its general mission to its customers through specific measures such as lead time, product quality and services, navigational business service performance, and cost effectiveness. The purpose of customer business service and satisfaction is to link the customer s specifications [to what?] and set the elements of quality as feedback for the business control process. This eventually leads to the achievement of a company s financial goals, which is the focus of the financial perspective of the BSC. 6. Conclusion Some earlier studies have suggested that a mediator plays an important role in linking and explaining the logical relationship between the predictor and criterion variables. Without a discussion of the mediating role, the research findings may be difficult to accurately interpret. Thus, this is why the study used the critical psychological states (CPS), such as experienced meaningfulness, experienced responsibility, and knowledge of results, to provide a theoretical link between perceived job characteristics and internal work motivation. Consistent with the earlier CPS studies, our study found that service quality satisfaction and informational trust had important mediating effects on the BSC performance process. These two mediating roles explain that, when an institution creates and raises the levels of service quality satisfaction and informational trust, the results lead to a favorable customer interaction relationship and, thus, could help the institution achieve higher levels for BSC performance measures. Limitations and Suggestions for Future Studies Our research design allowed for data collection from only four representative banks in Taiwan in Even though it would be beneficial to enhance this data by studying more service banks in the future, we believe that our current research still achieved satisfactory levels of accuracy and precision, because these four banks have applied BSC performance measures to their customer service operations. Also, the usable sample size was 300, exceeding the earlier recommended level of 200. We did discover the significance of mediating roles, and the research findings help to accurately interpret the empirical relationship between service quality and BSC performance. However, in this study, we did not cover moderating roles for the relationship between service quality and BSC performance. According to Howell & Kerr s (1986) mediation-moderator argument, which suggests that some mediating roles could be critical as moderators in the causal process, there is a very strong need for future studies to study whether both satisfaction and trust play moderating roles in the e-crm service process. References American Institute of Certified Public Accountants AICPA, The AICPA Special Committee on Financial Reporting.1994, Improving Business Reporting A Customer Focus: Meeting the Information Needs of 59

11 Investors and Creditors, NY: American Institute of Certified Public Accountants. 60 Baron, Reuben M. & Kenny, David A The moderator-mediator variable distinction in social psychological research: conceptual, strategic, and statistical considerations, Journal of Personality and Social Psychology, vol. 51 no. 6, p Banker, R. D, Chang, H, Janakiraman, S.N. & Konstans, C A balanced scorecard analysis of performance metrics, European Journal of Operational Research, vol. 154, No. 2, pp Crosby, L. & Stephens, N Effects of relationship marketing on satisfaction, retention and prices in the life insurance industry, Journal of Marketing Research, pp Cunningham, A. W. F Measurement bias in price indices: An application to the UK s RPI, Bank of England Working Paper, no.47: Bank of England. Chen, I. J., & Popovich, K Understanding customer relationship management (CRM), Business Process Management Journal, vol. 9, No. 5. Dearden, J The case against ROI control, Harvard Business Review, vol. 47 no. 3, pp Dearden, J Measuring profit center managers, Harvard Business Review, Vol. 65 no. 4, pp Dick, A. S. & Basu, K Customer loyalty: toward an integrated conceptual framework. Journal of the Academy of Marketing Science, vol. 22 no. 2, pp Ellingson, D. A. & Wambsganss, J. R Modifying the approach to planning and evaluation in governmental entities: A balanced scorecard" approach, Journal of Public Budgeting, Accounting & Financial Management, vol. 13 no. 1, pp Gumbus, A. and Lyons, B The balanced scorecard at Philips electronics, Strategic Finance, vol. 84, no. 5, pp Grembergen, W. V., Amelinckx, I Measuring & managing e-business projects through the balanced scorecard, Proceedings of the 35th Hawaii International Conference on System Sciences, HICSS, 2002: p Hopwood, A.G An empirical study of the role of accounting data in performance evaluation, empirical research in accounting, Journal of Accounting Research, vol. 10, pp

12 61 Howell, J. P., Dorfman, P. W., and Kerr, S Moderator Variables in Leadership Research, Journal of Management Review, vol. 11, no. 1, pp Hoque, Z. & James, W Linking balanced scorecard measures to size and market factors: Impact on organizational performance, Journal of Management Accounting Research, vol. 12, pp Johnson, H. T. & Kaplan, R. S Relevance Lost: The Rise and Fall of Management Accounting, Harvard Business School Press, Boston, Massachusetts. Kahn, B. E., Manohar, U. K. & Donald, G. M Measuring variety-seeking and reinforcement behaviors using panel data, Journal of Marketing Research, vol. 23, pp Kaplan, R. S & Norton, D. P The balanced scorecard: measures that drive performance, Harvard Business Review, vol. 70, no. 1, pp Kaplan, R. S. & Norton, D. P. 1996, Using the balanced scorecard as a strategic management system, Harvard Business Review, vol. 74, no. 1, pp Kaplan, R. S., and Atkinson, A. A Advanced Management Accounting, New Jersey, Prentice Hall, Inc. Kaplan & Norton, The Strategy-Focused Organization: How Balanced Scorecard Companies Thrive in the New Business Environment, Harvard Business School Press, Kim, J., Suh, E., and Hwang, H A model for evaluating the effectiveness of CRM using the balance scorecard, Journal of Interactive Marketing, vol. 17, no. 2,. Kaplan, R. S. & Norton, D. P Measuring the strategic readiness of intangible assets, Harvard Business Review, vol. 82, no. 2, pp Kim, C The effects of IT expenditures on banks business performance: using a balanced scorecard approach, Managerial Finance, vol. 30, no. 6, pp Liyanage, J. & Kumar, U Toward a value-based view on operations and maintenance performance management, Journal of Quality in Maintenance Engineering, vol. 9, no. 4, pp Libby, T., Salterio, S. E. & Webb, A The balanced scorecard: The effects of assurance and process accountability on managerial judgment, The Accounting Review, vol. 79, no. 4, pp Massey, W. F., David, B. M. & Donald, G. M Stochastic Models of

13 62 Buying Behavior, The MIT Press, Cambridge, Massachusetts. Merchant, K Control in Business Organizations, Harvard Graduate School of Business, Pitman, Boston, Massachusetts. Martinsons, M., Davison, R. & Tse, D The BSC: a foundation for the strategic management of information systems. Decision Support Systems, vol. 25, no.1, pp Maiga, A. S. & Jacobs, F. A Balanced scorecard, activity-based costing and company performance: An empirical analysis, Journal of Managerial Issues, vol. 15, no. 3, pp Olve, N. G, Roy, J. & Wetter, M Performance Drivers: A Practical Guide to Using the Balanced Scorecard, Wiley, Chichester. Odin, Y., Odin, N. & Valette-Florence, P Conceptual and operational aspects of brand loyalty: an empirical investigation, Journal of Business Research, vol. 53, no. 2, pp Paraguayan A., Zeithaml, Valarie A. & Berry, Leonard L A Conceptual Model of Service Quality and Its Implications for Future Research, Journal of Marketing, vol. 49, pp.48. Roloff, M. E. & Miller, G. R Interpersonal processes: New Directions in Communication Research, London: Sage Publications. Rice, D. W Whales and Whale Research in the Eastern North Pacific. Pages in W. E. Schevill, ed. The Whale Problem: a Status Report. Harvard University Press: Cambridge, MA. Ryan, T. P Modern Regression Methods. New York: John Wiley & Sons, Inc. Seddon, P. B., Graeser, V. & Willcocks, L. P Measuring organizational is effectiveness: An overview and update of senior management perspectives, Data Base for Advances in Information Systems, Vol. 33, pp Vancil, R. F Decentralization: Managerial Ambiguity by Design, Dow-Jones-Irwin, New York, NY. Yeniyurt, S A literature review and integrative performance measurement framework for multinational companies, Marketing Intelligence & Planning, vol. 21, no. 3, pp

14 63 Appendix 1. Factor Analysis to all Variables 1.1 People-Service Quality Factors/ Items were derived from: DeLone & McLean (1992) and Zmud (1978) Factor 1 Factor 2 Speed to service Efficiency to service Waiting time to service Providing right information Providing believable information Providing completed information Factor 3 Factor 4 Accuracy service to customer need Efficiency service to deal with complaint Employee service training Employee service capability trust Overall service to support internal need Factor 1: Employee Response Time; Factor 2: Employee Service to Information Support; Factor 3: Personnel Asset; Factor 4: Employee Capability; Overall α=.7284; Cumulative explained (%) = ; KMO=.750; Bartlettχ 2 = **; Overall Eigenvalue >1; **Sig. = e-service Quality Factors/ Items were derived from: Byrd & Turner (2000), Kim et al. (2003), Weill & Vitale (2002), Pan & Lee (2003), Hart & Dohert (2000), Plakoyiannaki & Tzokas (2002), and Storey (2000) Factor 1 Factor 2 Website service Online safety service Marketing segment service Searching potential customer Assisting decision-making Enhancing marketing promotion Searching overall service information Factor 3 Factor 4 Internal and external system integration Access integration Searching customer information Storing customer information Analyzing customer information Factor 1: Internet Service; Factor 2: Marketing Information Integration; Factor 3: Technology Integration; Factor 4: Data Integration; Overall α=.7019; Cumulative explained (%) = ; KMO=.754; Bartlettχ 2 = **; Overall Eigenvalue >1; **Sig. = Quality Service Satisfaction Factors/ Items were derived from: Fornell s, et al. (1996) American Customer Satisfaction Index (ASCI); Brussels & Belgium s (1999) European Customer Satisfaction Index (ESCI); Fornell s (1992) Customer Satisfaction Barometer (CSB); and Parasuraman s et. al (1988, 1991) Service Quality (SERVQUAL)

15 64 Factor 1 Factor 2 Informing about customer rights and obligations Providing information about relevant products Social obligations Institute trust Customer consideration Factor ATMs transaction safety Customer service line available Overall satisfaction with products and service Satisfaction with handling of customer complaints Factor Institute professional service Institute problem solution Factor First option to the institute Recommendations to the institute Repurchase intention Willingness to choose the institute Intercourse with the institute Response while complaining Continue to intercourse with the institute Factor 1: Perceived Quality; Factor 2: Quality Satisfaction; Factor 3: Professional Satisfaction; Factor 4: Customer Support; Factor 5: Interaction Communication; Overall α=.7245; Cumulative explained (%) = ; KMO=.734; Bartlettχ 2 = **; Overall Eigenvalue >1; **Sig. = Information Trust Factors/ Items were derived from: Ganesan (1994), McCauley & Kuhnert (1992), Doney & Canon (1997), Crosby et al. (1990), Lewis & Weigert (1985), and Crosby et al. (1990) Factor 1 Factor 2 Product information trust Product information reliability Product information belief Factor Institute information belief Institute information reference Institute information sharing Institute knowledge sharing Employee information value Employee information viewpoint Employee information assistant Factor 1: Institute Information Trust; Factor 2: Institute Trust; Factor 3: Institute Employee Trust; Overall α=.7284; Cumulative explained (%) = ; KMO=.788; Bartlettχ 2 = **; Overall Eigenvalue >1; **Sig. = The BSC Performance Factors/ Items were derived from: Kim et al. (2003), Gunasekaran et al. (2001), Juhl et al. (2002), Kim et al. (2003), Kaplan & Norton (1992, 2001), Peppard (2000), and Sivakumar (2002) Factor 1 Factor 2 Purchase of relevant product/service Recommendation from old customer to new customer Provision of new product/service Provision of channel interaction Customer information consistency Provision of channel communication Dealing with channel conflict

16 65 Creation of new patent Factor 3 Factor 4 Less time to respond More efficiency in response Customer continuance commitment Customer repurchase Factor 5 Fit to reasonable need Provision of service in time Factor 1: Innovation; Factor 2: Channel Management; Factor 3: Response to Customer; Factor 4: Customer Loyalty; Factor 5: Internal Process Efficiency; Overall α=.7098; Cumulative explained (%) = ; KMO=.747; Bartlettχ 2 = **; Overall Eigenvalue >1; **Sig. =.000