The Role of Employee's Innovative Behavior in Strengthening the Impact of Customer Participation on Customer Engagement

The Role of Employee's Innovative Behavior in Strengthening the Impact of Customer Participation on Customer Engagement

Elsayed Sobhy Ahmed Mohamed
DOI: 10.4018/IJCRMM.2020100101
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Abstract

Given the intensive rivalry in the service industry, customer engagement has become a vital concern for the banking sector. This study investigates to what extent do customer participation (CP) impacts customer engagement through the mediating role of employee's innovative behavior. The authors put forward and test a theoretical framework of direct and indirect effects of CP on customer engagement via employee innovative behavior (EIB). Hypothetically, CP coupled with EIB is likely to influence customer engagement (CE). Empirical results based on a sample of 336 customers in Egyptian banks proved that customer engagement composed of three main dimensions: affective, cognitive, and behavioral. In addition, the findings support the hypotheses. Results also indicate that CP provides a basis for EIB and CE. Thus, the authors conjecture that CP and EIB improve customer engagement. Accordingly, they encourage Egyptian banks to cultivate their CP for harnessing their EIB in order to boost CE in the long run.
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1. Introduction

Nowadays, customer engagement (CE) represents a strategic imperative for generating enhanced corporate performance. According to Gallup (2009), fully engaged customers buy more, retain with a company longer, and are more profitable than rather customers. Moreover, Marketing Science Institute (MSI) located customer engagement in its list of the highest research priorities in 2016-18 (MSI, 2016). Recently, customer engagement considers as one of the concepts that has evolved and reached a leading place in marketing field (Islam & Rahman, 2016). Therefore, it is evident that organizations increasingly consider customer engagement as an important concept for forming their relationship marketing strategies. According to service-dominant logic and social exchange theory, customers are expected to proactively contribute to firm or brand interactions, rather than merely act as passive recipients (Sashi, 2012). According to the two theories, customers are expected to participate in the entire value creation process to firm, rather than merely act as passive recipients (Vargo & Lusch, 2016).

Customer participation (CP) and employee’s innovative behavior (EIB) as marketing concepts can contribute in developing the entire value creation process to firm that lead to increasing the level of customer engagement (Braun, Hadwich & Bruhn, 2017). Furthermore, a few studies argue that customer engagement is affected by various marketing activities (Pansari & Kumar, 2017). In the same manner, service firms are concerned about the possible influence of customer participation on customer behaviors (Li & Hsu, 2018). Despite several studies investigate the effects of customer participation on service performance, little is known about the influence of customer participation may have on a customer’s psychological response (Bendapudi & Leone, 2003; Dong & Sivakumar, 2015) and its role in making customers more engaged with their companies (Chen, 2018).

Additionally, Dong and SivaKumar (2017:960) revealed that there is a need to investigate the linking between CP and CE and integrating customer participation with service systems and institutions. In addition, empirical research that integrates the three concepts: customer engagement, customer participation and employee’s innovative behavior is relatively rare (Bolton 2011; Sharma & Rather, 2016), and very little is known about the role of customer participation and employee innovative behaviour as new marketing concepts in enhancing customer engagement (see Table1).

Table
‎1. Summary of research results
DatabaseKeywords
EIBCECPEIB & CE & CPEIB & CE & CP & E
ABI/INFORM
Global
-Scholarly Journals.
*Relevant
‎40,165
40,165
‎‎31,454
31,454‎
‎56,525
56,525
‎8,657
Non
277
Non
Science direct
*Relevant
24,075
24,075
17,988
17,988
5
5
1,923
Non
50
Non
Academic Search Complete – EBSCO
*Relevant
45
45
6,595
6,595
674
674
Non
Non
Non
Non

Date: 20 December 2019.

*We reviewed and analysed the abstracts of the most relevant articles to our study.

**The Searching Period: from 2000 to 2020.

***CE=Customer engagement, EIB= employee’s innovative behavior, CP= Customer Participation and E= Egypt.

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