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JUNE 2011<br />

INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS VOL 3, NO 2<br />

produced highest returns (Hussain, et al; 2009). In the lead were the newly privatized banks like<br />

UBL, HBL and MCB which have embarked upon consumer financing and extended their<br />

network outside major cities (Hussain et al;2009).This development led to a tough competition<br />

which compelled bankers to meaningfully enhance their service quality (determinant of customer<br />

satisfaction) to attract and retain new clientage (Naeem and Saif,2010). Hence, a need was felt to<br />

investigate the nature of correlation between service quality and customer satisfaction as<br />

applicable to Pakistani Banks with different organizational culture. In the back drop of above<br />

described situation, the researcher intends to study the contextual impact of service quality on<br />

customer satisfaction in banking sector of Pakistan.<br />

1.1 Objectives of the Study<br />

• To confirm direction of causal linkage between service quality and custom satisfaction in<br />

banking sector of Pakistan.<br />

• To study impact of service quality on customer satisfaction or vice-a-versa.<br />

• To contextualize the interaction between service quality and customer satisfaction in<br />

banking sector of Pakistan.<br />

1.2 Significance of the Study<br />

The study contextualizes the impact of service quality on customer satisfaction in banking<br />

sector of Pakistan by comparing two independent sets of data. Moreover it makes<br />

recommendations for researchers as well as managers.<br />

2. Literature Review<br />

2.1 Dimensions of National Culture.<br />

Till late sixties the Convergence approach remained as a widely accepted belief (Hofstede,<br />

2008). The scholars could not find any linkage between national culture and management which<br />

was taken as a universal practice. However, with the advent of seventies this notion faded away<br />

and most of the organizations including multi-nationals identified it to be the most crucial<br />

problem for management in the corporate sector. As of now, the concept of “flat world”<br />

(Friedman, 2005) or a “global village” (Ger, 1999) is having a telling effect on business concerns<br />

(Dunphy, 1987).However, each nation still maintains the integrity of its respective culture<br />

(Aristotle, 330 B.C; Ibne Khnldum, 1380 A.D; Frederic, 1850; Wundt, 1910). The impact of this<br />

distinctive element of different cultures can be measured with five dimensions of national<br />

cultures (Hofstede, 1983)<br />

2.2 Organizational Context<br />

With the fading away of standardization, the importance of context specific localization has<br />

increased manifolds (Hofstede, 1980). Therefore, organizational psychology needs to develop a<br />

through understanding of context related implication of culture. It will reveal the nature of their<br />

interdependence. The cross cultural organizational psychology should, therefore, incorporate<br />

contextual factor (s) into the research design to find their moderating affect (Koztowski and<br />

Klicn, 2000). In this backdrop, the organizational context can affect the interrelationship of<br />

independent and dependent variables as under:-<br />

a. Amplification Effect<br />

It this case organizational context will accelerate and strengthen the variations caused by<br />

direct relationship (Tett and Burnett, 2003). For example sense of accountability makes the<br />

collectivists more cooperative and individualists more competitive (Gelfand and Realo,<br />

1999).<br />

COPY RIGHT © 2011 Institute of Interdisciplinary Business Research 1056

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