The Relationship between Human Values and Service Quality with the Mediating Role of Motivation: A Quantitative Study on Malaysian Commercial Banks

Authors: Kuppusamy Singaravelloo, Zahra Kamiab

Abstract:

This study explores the mediating effects of motivation in the relationship between human values and service quality. To examine the fundamental relationships among human values, motivation, and service quality, a Structural Equation Model (SEM) with a full mediation model was adopted. The model was designed and subsequently analyzed by utilizing the Partial Least Squares (PLS) procedure on data collected from a survey that yielded 936 usable questionnaires. The survey was sent to all 117 branches of two local commercial banks (CIMB and Maybank) operating in Kuala Lumpur, Malaysia. Both banks ranked the highest in terms of asset size and market capitalization. The mediating role of motivation was examined in the relationship between four dimensions of human values and bank service quality, whereby human values initiate service quality. The results support the notion that employee motivation fully mediates the relationship between self-enhancement values and service quality in commercial banks. These results demonstrate the unpredictable role of the interaction structures of human values on bank service quality.

Keywords: Human values, service quality, mediation, motivation, commercial bank.

Digital Object Identifier (DOI): doi.org/10.5281/zenodo.1128993

References:

[1] Abdullah, F, Suhaimi, R, Saban, G, & Hamali, J. (2011). Bank Service Quality Index. International Journal of Quality & Reliability Management, 28(5), 542-555.
[2] Adkins, C.L, & Naumann, S.E. (2002). The value of achievement and responses to the work environment. Journal of Behavioral and Applied Management, 3(2), 140-154.
[3] Aldlaigan, A. & Buttle, A. (2002), SYSTRA-SQ: a new measure of banks service quality, International Journal of Service Industry Management, 13(4), 362-381.
[4] Al-hawari, M.A, Ward, T, & Newby, L. (2009), The relationship between service quality and retention within the automated and traditional contexts of retail banking, Journal of Service Management, 20 (4), 455-472.
[5] Al-hawari, M.A. (2015), How the personality of retail bank customers interferes with the relationship between service quality and loyalty, International Journal of Bank Marketing, 33(1), 41-57
[6] Allen, M.W. (2001). A practical method for uncovering the direct and indirect relationships between human values and consumer purchases. Journal of Consumer Marketing, 18(2), 102-120.
[7] Allen, M.W, & Hung-Ng, S. (2003). Human values, utilitarian benefits and identification: the case of meat. European Journal of Social Psychology, 33(1), 37-56.
[8] Badovick, Gordon, Beatty, & Sharon. (1987). Shared organizational values: Measurement and impact upon strategic marketing implementation. Journal of the Academy of Marketing Science, 15(1), 19-26.
[9] Bahia, K. & Nantel, J. (2000), A reliable and valid measurement scale for the perceived service quality of banks, The International Journal of Bank Marketing, 18(2), 84-91.
[10] Bardi, A, Calogero, Rachel, M, & Mullen, Brian. (2008). A new archival approach to the study of values and value--Behavior relations: Validation of the value lexicon. Journal of Applied Psychology, 93(3), 483-497.
[11] Bardi, A, & Schwartz, S.H. (2003). Values and Behavior: Strength and Structure of Relations. Personality and Social Psychology Bulletin, 29(10), 1207-1220.
[12] Bernat, P. (2012). Sustainable Development and the Values we Share - Sustainability as the Confluence of Islamic and Western Frameworks. Problem ekorozwoju, 7(1), 33-41.
[13] Berry, L.L, Zeithaml, V.A, & Parasuraman, A (1990). Five imperatives for improving service quality. Sloan Management Review, 31 (4), 29-38.
[14] Budhwar, P. S., & Sparrow, P. R. (1998). National factors determining Indian and British HRM practices: an empirical study. In Management and International Review (pp. 105-121). Gabler Verlag.
[15] Burke, M. J., Finkelstein, L. M., & Dusig, M. S. (1999). On average deviation indices for estimating interrater agreement. Organizational Research Methods, 2(1), 49-68.
[16] Chandrakumara, A., & Sparrow, P. (2004). Work orientation as an element of national culture and its impact on HRM policy-practice design choices: Lessons from Sri Lanka. International Journal of Manpower, 25(6), 564-589.
[17] Chin, Wynne W. (1998). The partial least squares approach to structural equation modeling. Modern methods for business research, 295(2), 295-336.
[18] Chin, Wynne W. (2001). PLS-Graph user’s guide. CT Bauer College of Business, University of Houston, USA.
[19] Christine, A. Hemingway, & Patrick, W. Maclagan. (2004). Manager’s Personal Values as Drivers of Corporate Social Responsibility. Journal of Business Ethics, 50(1), 33-44.
[20] Conley, J. J. (1985). Longitudinal stability of personality traits: A multitrait–multimethod–multioccasion analysis. Journal of personality and social psychology, 49(5), 1266-1282.
[21] Cronin, J. & Taylor, S. (1994), SERVPERF versus SERVQUAL: reconciling performance-based based and performance-minus-expectations measurement of service quality, Journal of Marketing, 58 (1), 132-139.
[22] Demirci, M. (2007), The Effect of Motivation Tools on Employee Performance: An Application on an Automotive Company in Turkey, Master Thesis, Marmara University, Institute of Social Sciences.
[23] Dubinsky, A.J, Kotabe, M, Lim, C.U, & Wagner, W. (1997). The impact of values on salespeople’s job responses: A cross-national investigation. Journal of Business Research, 39, 195-208.
[24] Feather, & Norman, T. (1996). Values, deservingness, and attitudes toward high achievers: Research on tall poppies. In C. Seligman, J. M. Olson & M. P. Zanna (Eds.), The psychology of values: The Ontario symposium, Vol. 8 (pp. 215-251). Hillsdale, NJ, England: Lawrence Erlbaum Associates, Inc.
[25] Fischer, K. W., & Bidell, T. R. (2006). Dynamic development of action and thought. Handbook of child psychology.
[26] Fischer, R., & Smith, P. B. (2006). Who cares about justice? The moderating effect of values on the link between organizational justice and work behavior. Applied Psychology, 55(4), 541-562.
[27] Gefen, David, Straub, Detmar, & Boudreau, Marie-Claude. (2000). Structural equation modeling and regression: Guidelines for research practice. Communications of the association for information systems, 4(7), 1-77.
[28] Gollan, Tobias, & Witte, Erich H. (2014). From the Interindividual to the Intraindividual Level: Is the Circumplex Model of Values Applicable to Intraindividual Value Profiles? Journal of Cross-Cultural Psychology, 45(3), doi:10.1177/0022022113509885.
[29] Grant, Adam M. (2008). Does intrinsic motivation fuel the prosocial fire? Motivational synergy in predicting persistence, performance, and productivity. Journal of Applied Psychology, 93(1), 48-58.
[30] Guay, F., Vallerand, R. J., & Blanchard, C. (2000). On the assessment of situational intrinsic and extrinsic motivation: The Situational Motivation Scale (SIMS). Motivation and emotion, 24(3), 175-213.
[31] Hair, J. F, Hult, G. T. M, Ringle, C. M, & Sarstedt. (2014). A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM): Thousand Oaks: Sage.
[32] Julian, Craig C, & Ramaseshan, Bashar. (1994). The role of customer-contact personnel in the marketing of a retail bank's services. International Journal of Retail & Distribution Management, 22(5), 29-34.
[33] Kabanoff, B, & Daly, J.P. (2000). Values espoused by Australian and US organizations. Applied Psychology, 49(2), 284-314.
[34] Kahle, L.R, Beatty, S.E, & Homer, P. (1986). Alternative measurements approach consumer values: the list of values (LOV) and values and lifestyle (VALS). The Journal of Consumer Research, 13(3), 405-409.
[35] Kamakura, Wagner A., & Novak, Thomas P. (1992). Value-System Segmentation: Exploring the Meaning of LOV Journal of consumer research, 19.
[36] Kuvaas, B., & Dysvik, A. (2009). Perceived investment in employee development, intrinsic motivation and work performance. Human Resource Management Journal, 19(3), 217-236.
[37] Lewis, B.R. (1989), “Quality in the service sector: a review”, International Journal of Bank Marketing, 7(5), 4-12.
[38] Lewis, B.R. (1993), “Service quality: definitions, determinants, and measurement”, Training for Quality, (2)1, 16-19.
[39] Liu, Ying, & Cohen, Aaron. (2010). Values, commitment, and OCB among Chinese employees. International Journal of Intercultural Relations, 34(5), 493-506.
[40] Madrigal, R.D, & Kahle, L.R. (1994). Predicting vacation activity preferences on the basis of value-system segmentation. Journal of Travel Research, 32(3), 22-28.
[41] Manzoor, Q.A. (2012). The impact of employees’ motivation on organizational effectiveness. Business management and strategy, 3(1), 1-12.
[42] Malaysia, B. N. (2015). Monetary and Financial Conditions Retrieved, accessed 2014, from http://www.bnm.gov.my/files/publication/ar/en/2014/cp02.pdf
[43] Malaysia, B. N. (2015). Malaysia Commercial Banking Report. Business Monitor International.
[44] Malaysia Investment Performance (2015). Malaysian Investment Development Authority (MIDA). from http://www.mida.gov.my/env3/uploads/PerformanceReport/2011/Report.pdf
[45] Minbaeva, Dana B. (2008). HRM practices affecting the extrinsic and intrinsic motivation of knowledge receivers and their effect on intra-MNC knowledge transfer. International Business Review, 17(6), 703-713.
[46] Nepomuceno, Marcelo Vinhal, & Porto, Juliana Barreiros. (2010). Human values and attitudes toward bank services in Brazil. International Journal of Bank Marketing, 28(3), 168-192.
[47] Nyambegera, S. M., Sparrow, P., & Daniels, K. (2000). The impact of cultural value orientations on individual HRM preferences in developing countries: lessons from Kenyan organizations. International Journal of Human Resource Management, 11(4), 639-663.
[48] Parasuraman, A, Zeithmal, VA, & Berry, LL. (1985). A conceptual model of service quality and its implications for future research. Journal of Marketing, 49(4), 41 - 50.
[49] Parasuraman, A, Zeithmal, VA, & Berry, LL. (1988). SERVQUAL: a multiple-item scale for measuring consumer perceptions of service quality. Journal of Retailing, 64(1), 12 - 40.
[50] Parks, L., & Guay, R. P. (2009). Personality, values, and motivation. Personality and Individual Differences, 47(7), 675-684.
[51] Parks, L., & Guay, R. P. (2012). Can Personal Values Predict Performance? Evidence in an Academic Setting. Applied Psychology: An International Review, 61(1), 149-173.
[52] Pinder, C. C. (1998). Work motivation in organizational behavior. Upper Saddle River, NJ: Prentice Hall.
[53] Preacher, Kristopher J, & Hayes, Andrew F. (2004). SPSS and SAS procedures for estimating indirect effects in simple mediation models. Behavior research methods, instruments, & computers, 36(4), 717-731.
[54] Ryan, R. M., & Deci, E. L. (2000). ‘Self-determination theory and the facilitation of intrinsic motivation, social development, and well-being'. American Psychologist, 55: 68-78.
[55] Rodrigues, L., Barkur, G., Varambally, K. & Motlagh, F. (2011), Comparison of SERVQUAL and SERVPERF metrics: an empirical study, The TQM Journal, 23(6), 629-643.
[56] Rokeach, M. (1972). Beliefs, attitudes, and values: A theory of organization and change. San Francisco, CA: Jossey-Bass Inc.
[57] Rokeach, M. (1973). The nature of human values. New York: Free Press.
[58] Rokeach, M (1979). Understanding Human Values. New York: Free Press.
[59] Ros, M, Schwartz, S.H, & Surkiss, S. (1999). Basic individual values work values and the meaning of work. Applied Psychology, 48 (1), 49-71.
[60] Salanova, M., Agut, S., & Peiró, J. M. (2005). Linking organizational resources and work engagement to employee performance and customer loyalty: the mediation of service climate. Journal of Applied Psychology, 90(6), 1217-1227.
[61] Salas, E, & Fogli, L. (2006). Customer service delivery: Research and best practices (Vol. 20): John Wiley & Sons.
[62] Schwartz, S. H, & Boehnke, K. (2004). Evaluating the structure of human values with confirmatory factor analysis. Journal of Research in Personality and Social Psychology, 53(3), 550-562.
[63] Schwartz, S.H. (1992). Universals in the content and structure of values: Theory and empirical tests in 20 countries. Advances in experimental social psychology 25, 1-65.
[64] Schwartz, S.H. (1994). Are There Universal Aspects in the Structure and Contents of Human Values? Journal of Social Issues, 50(4), 19-45.
[65] Schwartz, S.H. (2005a). Basic human values: Their content and structure across countries. Petrópolis, Brazil: Vozes: A. Tamayo & J. B. Porto.
[66] Schwartz, S.H. (2005b). Robustness and fruitfulness of a theory of universals in individual human values. In E. U. d. Brasilia (Ed.), (pp. 56-95). Brasilia, Brazil: A. Tamayo & J. Porto.
[67] Schwartz, S.H. (2011). Studying Values: Personal Adventure, Future Directions. Journal of Cross-Cultural Psychology, 42(2), 307-319.
[68] Schwartz, S.H. (2012). An overview of the Schwartz theory of basic values. Online Readings in Psychology and Culture, 2(1), from http://dx.doi.org/10.9707/2307-0919.1116
[69] Schwartz, S.H, & Bardi, A. (2001). Value hierarchies across cultures: Taking a similarities perspective. Journal of Cross-Cultural Psychology, 32, 268-290.
[70] Schwartz, S.H, & Bilsky, W. (1987). Toward a Psychological Structure of Human Values. Journal of Personality and Social Psychology, 53, 878-891.
[71] Schwartz, S.H, & Bilsky, W. (1990). Toward a psychological structure of human values: Extensions and cross-cultural replications. Journal of Personality and Social Psychology, 58, 878–891.
[72] Schwartz, S. H., & Sagiv, L. (1995). Identifying culture-specifics in the content and structure of values. Journal of cross-cultural psychology, 26(1), 92-116.
[73] Schwartz, S.H, & Sagiv, L. (2000). Value priorities and subjective well-being: direct relations and congruity effects. European Journal of Social Psychology, 30(2), 177-198.
[74] Sobel, Michael E. (1982). Asymptotic confidence intervals for indirect effects in structural equation models. Sociological methodology, 13(1982), 290-312.
[75] Tabassi, Amin Akhavan, & Bakar, AH Abu. (2009). Training, motivation, and performance: The case of human resource management in construction projects in Mashhad, Iran. International Journal of Project Management, 27(5), 471-480.
[76] Thomas, K. W. (2002). Intrinsic motivation at work: Building energy & commitment. San Francisco: Berrett-Koehler.
[77] Thøgersen, John, & Ölander, Folke. (2002). Human values and the emergence of a sustainable consumption pattern: A panel study. Journal of Economic Psychology, 23(5), 605-630. doi: 10.1016/s0167-4870(02)00120-4
[78] Tuziak, A. (2010). Socio-Economic Aspects of Sustainable Development on Global and Local Level. Problemy ekorozwoju, 5(2), 39-49.
[79] Urde, M. (2003). Core value-based corporate brand building. European Journal of Marketing, 37(7/8), 1017-1040.
[80] Warrier, S. (2010). Chennai, the Detroit of Asia? Retrieved June 30, 2014, from www.business.rediff.com
[81] Wold, H. (l982). Soft modeling: the basic design and some extensions. K.G. Jo¨reskog & H. Wold 2, 1 –54.
[82] Wright, Lauser. (2014). Principles of service marketing and management.
[83] Zahir, Osman, & Ilham, Sentosa. (2014). Influence of Customer Satisfaction on Service Quality and Customer Loyalty Relationship in Malaysian Commercial Banking Industry. International Journal of Economics, Finance, and Management, 3(2), from SSRN:http://ssrn.com/abstract=2735635.
[84] Zeithaml, Valarie A, Berry, Leonard L, & Parasuraman, Ananthanarayanan. (1996). The behavioral consequences of service quality. The Journal of Marketing, 60(2), 31-46.
[85] Zelizer, V.A. (1978). Human values and the market: the case of life insurance and death in nineteenth-century America. The American Journal of Sociology, 84(3), 591-6100.
[86] Azwihangwisi E. Nesamvuni1, Khathutshelo A. Tshikolomo, Ndivhudzannyi S. Mpandeli (2016). Investigation of Economic Viability of Value Adding at Tshivhase-Mukumbani Tea Estate, International Journal Series in Multidisciplinary Research (IJSMR),2 (6), 11-24.