The Role of Competitive Advantage and the Exploration of Religiosity to Decrease Customer Switching Behaviour in Islamic Banking
Abstract
This article aims to analyse and measure the relationship between sharia banking competitive advantage on customer switching behaviour, through the exploration of religiosity as an intervening variable as a fundamental factor for people which influence people’s attitudes, values, and behaviours in consuming a thing. This is happened due to the phenomenon of customer switching behaviour which triggers sharia banks to keep and maintain its customer as the result of great competition between sharia and conventional banks nowadays. This is a quantitative research, using a primary data which obtained from questionnaire then, reached 102 respondents of sharia banking customers. Furthermore, the data analysed with path analysis model in order to know the direct and indirect relationship of each research variable. The result delineated that competitive advantage and religiosity able to decrease customer switching behaviour phenomenon directly then, the role of religiosity is able to strengthen the indirect relationship between competitive advantage and customer switching behaviour.
References
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Aslam, E., & Haron, R. (2021). Corporate governance and banking performance: the mediating role of intellectual capital among OIC countries. Corporate Governance (Bingley). https://doi.org/10.1108/CG-08-2020-0312
Baazeem, T. A. (2015). How Religiosity Influences Consumption: The Impact of Consumer Religiosity on Perceptions of Psychological and Social Risk. In Doctoral Disertation.
David, F. R., & David, F. R. (2015). Strategic Management: Concept and Cases. Pearson Education.
Dirgantoro, C. (2001). Keunggulan Bersaing Melalui Proses Bisnis. PT. Grasindo.
Furwanti, R. (2021). Pengaruh Religiusitas, Islamic Social Reporting, Dan Local Wisdom Terhadap Loyalitas Nasabah Dalam Menggunakan Produk Perbankan Syariah Melalui Kepuasan Sebagai Variabel Intervening (Studi Kasus Masyarakat Bugis Muslim Di Kawasan BOSOWASI). UIN Sunan Kalijaga.
Garland, R. (2002). Estimating customer defection in personal retail banking. International Journal of Bank Marketing. https://doi.org/10.1108/02652320210451214
Ghamry, S., & Shamma, H. M. (2022). Factors influencing customer switching behavior in Islamic banks: evidence from Kuwait. Journal of Islamic Marketing. https://doi.org/10.1108/JIMA-01-2020-0021
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Kordi Ghasrodashti, E. (2018). Explaining brand switching behavior using pull-push-mooring theory and the theory of reasoned action. Journal of Brand Management. https://doi.org/10.1057/s41262-017-0080-2
Lestari, D. M., & Qoyum, A. (2021). Measuring Maslahah on Collateral Implementation in Mudaraba Contract at Sharia Banking. Global Review of Islamic Economics and Business, 9(1), 079. https://doi.org/10.14421/grieb.2021.091-06
Mavri, M., & Ioannou, G. (2008). Customer switching behaviour in Greek banking services using survival analysis. Managerial Finance. https://doi.org/10.1108/03074350810848063
Mohamed, N., Taheri, B., Farmaki, A., Olya, H., & Gannon, M. J. (2020). Stimulating satisfaction and loyalty: transformative behaviour and Muslim consumers. International Journal of Contemporary Hospitality Management. https://doi.org/10.1108/IJCHM-04-2020-0330
Mostafa, R. H. A., & Ibrahim, M. M. (2020). The effects of customer equity and religious motivation on customer retention and switching intention: A study of the Egyptian banking sector. Journal of Islamic Marketing. https://doi.org/10.1108/JIMA-06-2019-0136
Nawaz, M., Ashraf, M. S., Amin, M., & Talha, I. (2021). Moderating Role of Muslim Religiosity and Collectivism among Sight Cues, CSR and Costumer Loyalty through Corporate Image in Islamic Banks. GISRAS Journal of Management & Islamic Finance (GJMIF), 1(2), 44–73. http://gjmif.com/index.php/GJMIF/article/view/13
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Porter, M. E. (1998). Competitive Advantage: Creating and Sustaining Superior Performance. In The Free. https://doi.org/10.1016/j.neubiorev.2009.11.015
Putri, Y. A. (2020). Peran Komunikasi Pemasaran Dalam Mempertahankan Konsumen Di Sandang Mas Indonesia. Network Media. https://doi.org/10.46576/jnm.v3i2.851
Putriani. (2015). Pola Perilaku Konsumsi Islami Mahasiswa Muslim Fakultas Ekonomi Dan Bisnis Universitas Airlangga Ditinjau Dari Tingkat Religiusitas 1) Yolanda. ISSN 2502-3632 (Online) ISSN 2356-0304 (Paper) Jurnal Online Internasional & Nasional Vol. 7 No.1, Januari – Juni 2019 Universitas 17 Agustus 1945 Jakarta.
Putriani, Y. H., & Shofawati, A. (2015). Pola Perilaku Konsumsi Islami Mahasiswa Muslim Fakultas Ekonomi dan Bisnis Universitas Airlangga Ditinjau Dari TIngkat Religiusitas. Jurnal Ekonomi Syariah Teori Dan Terapan. https://doi.org/10.20473/vol2iss20157pp570-582
Qoyum, A. (2018). Maqasid Ash-Shariʻah Framework and the Development of Islamic Finance Products: The Case of Indonesia. Tazkia Islamic Finance and Business Review. https://doi.org/10.30993/tifbr.v12i2.150
Rahman, A. U. (2016). Customer Loyalty Toward Islamic and Conventional Banks; Mediator Role of Customer Satisfaction. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.2860534
Rama, A. (2017). An Exploration Of Customers’ Switching Behavior In Islamic Banking Industry. Journal of Islamic Monetary Economics and Finance. https://doi.org/10.21098/jimf.v2i2.653
Resty, N. N. H., & Hidayat, A. (2021). Factors Affecting Millennial Customers’ Savings Intention in Islamic Banks. European Journal of Business and Management Research, 6(4), 116–122. https://doi.org/10.24018/ejbmr.2021.6.4.949
Saeed, M., & Azmi, I. B. A. G. (2019). The nexus between customer equity and brand switching behaviour of millennial Muslim consumers. South Asian Journal of Business Studies, 8(1), 62–80. https://doi.org/DOI: 10.1108/SAJBS-04-2018-0046
Sharma, V., & Panga, M. D. (2018). Determinants of Switching Behaviour in Consumer Electronic Goods. Prestige International Journal of Management and Research, 10(4), 107.
Soemitra, A. (2019). Bank dan Lembaga Keuangan Syariah. In Bank dan Lembaga Keuangan Syariah.
Su, L., Jiang, Y., Chen, Z., & Nathan Dewall, C. (2017). Social exclusion and consumer switching behavior: A control restoration mechanism. Journal of Consumer Research. https://doi.org/10.1093/jcr/ucw075
Surjaatmadja, S., & Adriansyah, A. (2016). Does islamic banking have a competitive advantage over conventional banking in indonesia?: A study of perspectives. Pertanika Journal of Social Sciences and Humanities.
Suryawardani, B., & Wulandari, A. (2020). Determinant Factors of Customers Switching Behavior to Customer Satisfaction and Loyalty in Online Transportation Users in Bandung. Jurnal Dinamika Manajemen. https://doi.org/10.15294/jdm.v11i1.21432
Thomas, B. J., & Sekar, P. C. (2008). Measurement and validity of Jennifer Aaker’s brand personality scale for colgate brand. Vikalpa. https://doi.org/10.1177/0256090920080304
Vyas, V., & Raitani, S. (2014). Drivers of customers’ switching behaviour in Indian banking industry. International Journal of Bank Marketing. https://doi.org/10.1108/IJBM-04-2013-0033
Widyastuti, U., Febrian, E., Sutisna, S., & Fitrijanti, T. (2020). Sharia compliance in sharia mutual funds: A qualitative approach. International Journal of Economics and Business Administration. https://doi.org/10.35808/ijeba/483
Xu, H., Wang, J., Tai, Z., & Lin, H. C. (2021). Empirical study on the factors affecting user switching behavior of online learning platform based on push-pull-mooring theory. Sustainability (Switzerland). https://doi.org/10.3390/su13137087
Yasa, N. N. K., Ketut Giantari, I. G. A., Setini, M., & Rahmayanti, P. L. D. (2020). The role of competitive advantage in mediating the effect of promotional strategy on marketing performance. Management Science Letters. https://doi.org/10.5267/j.msl.2020.4.024
Yudiana, F. E., Kusuma, H., & Qizam, I. (2021). Gender Roles in the Relationship between Hijrah Intention, Satisfaction, and Islamic-Bank Customer Loyalty. Pertanika Journal of Social Sciences and Humanities. https://doi.org/10.47836/pjssh.29.4.28
Ali, M., Raza, S. A., & Puah, C.-H. (2015). Factors affecting intention to use Islamic personal financing in Pakistan : Evidence from the modified TRA model . Munich Personal RePEc Archive.
Ancok, D., & Suroso, F. N. (2002). Psikologi Islam: Solusi Islam atas Problem- Problem Psikologi (Islamic psychology. Islam solution for psychological problems). Pustaka Pelajar.
Arfan, A., & Athroz Arfan, I. (2021). A strategy for strengthening public perception toward sharia banking. Banks and Bank Systems. https://doi.org/10.21511/bbs.16(2).2021.16
Aslam, E., & Haron, R. (2021). Corporate governance and banking performance: the mediating role of intellectual capital among OIC countries. Corporate Governance (Bingley). https://doi.org/10.1108/CG-08-2020-0312
Baazeem, T. A. (2015). How Religiosity Influences Consumption: The Impact of Consumer Religiosity on Perceptions of Psychological and Social Risk. In Doctoral Disertation.
David, F. R., & David, F. R. (2015). Strategic Management: Concept and Cases. Pearson Education.
Dirgantoro, C. (2001). Keunggulan Bersaing Melalui Proses Bisnis. PT. Grasindo.
Furwanti, R. (2021). Pengaruh Religiusitas, Islamic Social Reporting, Dan Local Wisdom Terhadap Loyalitas Nasabah Dalam Menggunakan Produk Perbankan Syariah Melalui Kepuasan Sebagai Variabel Intervening (Studi Kasus Masyarakat Bugis Muslim Di Kawasan BOSOWASI). UIN Sunan Kalijaga.
Garland, R. (2002). Estimating customer defection in personal retail banking. International Journal of Bank Marketing. https://doi.org/10.1108/02652320210451214
Ghamry, S., & Shamma, H. M. (2022). Factors influencing customer switching behavior in Islamic banks: evidence from Kuwait. Journal of Islamic Marketing. https://doi.org/10.1108/JIMA-01-2020-0021
Keaveney, S. M. (1995). Customer Switching Behavior in Service Industries: An Exploratory Study. Journal of Marketing. https://doi.org/10.2307/1252074
Khotimah, N. (2018). Pengaruh Religiusitas, Kepercayaan, Citra Perusahaan, Dan Sistem Bagi Hasil Terhadap Minat Nasabah Menabung Dan Loyalitas Di Bank Syariah Mandiri. Jurnal Ilmu Ekonomi & Manajemen, 05(01), 37–48. https://doi.org/DOI: 10.30996/jmm17.v5i01.1712
Kordi Ghasrodashti, E. (2018). Explaining brand switching behavior using pull-push-mooring theory and the theory of reasoned action. Journal of Brand Management. https://doi.org/10.1057/s41262-017-0080-2
Lestari, D. M., & Qoyum, A. (2021). Measuring Maslahah on Collateral Implementation in Mudaraba Contract at Sharia Banking. Global Review of Islamic Economics and Business, 9(1), 079. https://doi.org/10.14421/grieb.2021.091-06
Mavri, M., & Ioannou, G. (2008). Customer switching behaviour in Greek banking services using survival analysis. Managerial Finance. https://doi.org/10.1108/03074350810848063
Mohamed, N., Taheri, B., Farmaki, A., Olya, H., & Gannon, M. J. (2020). Stimulating satisfaction and loyalty: transformative behaviour and Muslim consumers. International Journal of Contemporary Hospitality Management. https://doi.org/10.1108/IJCHM-04-2020-0330
Mostafa, R. H. A., & Ibrahim, M. M. (2020). The effects of customer equity and religious motivation on customer retention and switching intention: A study of the Egyptian banking sector. Journal of Islamic Marketing. https://doi.org/10.1108/JIMA-06-2019-0136
Nawaz, M., Ashraf, M. S., Amin, M., & Talha, I. (2021). Moderating Role of Muslim Religiosity and Collectivism among Sight Cues, CSR and Costumer Loyalty through Corporate Image in Islamic Banks. GISRAS Journal of Management & Islamic Finance (GJMIF), 1(2), 44–73. http://gjmif.com/index.php/GJMIF/article/view/13
Otoritas Jasa Keuangan. (2021). Snapshot Perbankan Syariah Indonesia 2021. https://www.ojk.go.id/id/kanal/syariah/berita-dan-kegiatan/publikasi/Documents/Pages/Snapshot-Perbankan-Syariah-September-2021/Snapshot Perbankan Syariah September 2021.pdf
Ozair, K., Luqman, M., & Hussain Hamdani, S. N. (2019). Conceptualizing the Impact of Religiosity on the Preferences for Islamic Banking in Mirpur (Azad Jammu and Kashmir): An Empirical Analysis. Lahore Journal of Business, Vol. 8(No. 1), 73–90. https://doi.org/10.35536/ljb.2019.v8.i1.a4
Porter, M. E. (1998). Competitive Advantage: Creating and Sustaining Superior Performance. In The Free. https://doi.org/10.1016/j.neubiorev.2009.11.015
Putri, Y. A. (2020). Peran Komunikasi Pemasaran Dalam Mempertahankan Konsumen Di Sandang Mas Indonesia. Network Media. https://doi.org/10.46576/jnm.v3i2.851
Putriani. (2015). Pola Perilaku Konsumsi Islami Mahasiswa Muslim Fakultas Ekonomi Dan Bisnis Universitas Airlangga Ditinjau Dari Tingkat Religiusitas 1) Yolanda. ISSN 2502-3632 (Online) ISSN 2356-0304 (Paper) Jurnal Online Internasional & Nasional Vol. 7 No.1, Januari – Juni 2019 Universitas 17 Agustus 1945 Jakarta.
Putriani, Y. H., & Shofawati, A. (2015). Pola Perilaku Konsumsi Islami Mahasiswa Muslim Fakultas Ekonomi dan Bisnis Universitas Airlangga Ditinjau Dari TIngkat Religiusitas. Jurnal Ekonomi Syariah Teori Dan Terapan. https://doi.org/10.20473/vol2iss20157pp570-582
Qoyum, A. (2018). Maqasid Ash-Shariʻah Framework and the Development of Islamic Finance Products: The Case of Indonesia. Tazkia Islamic Finance and Business Review. https://doi.org/10.30993/tifbr.v12i2.150
Rahman, A. U. (2016). Customer Loyalty Toward Islamic and Conventional Banks; Mediator Role of Customer Satisfaction. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.2860534
Rama, A. (2017). An Exploration Of Customers’ Switching Behavior In Islamic Banking Industry. Journal of Islamic Monetary Economics and Finance. https://doi.org/10.21098/jimf.v2i2.653
Resty, N. N. H., & Hidayat, A. (2021). Factors Affecting Millennial Customers’ Savings Intention in Islamic Banks. European Journal of Business and Management Research, 6(4), 116–122. https://doi.org/10.24018/ejbmr.2021.6.4.949
Saeed, M., & Azmi, I. B. A. G. (2019). The nexus between customer equity and brand switching behaviour of millennial Muslim consumers. South Asian Journal of Business Studies, 8(1), 62–80. https://doi.org/DOI: 10.1108/SAJBS-04-2018-0046
Sharma, V., & Panga, M. D. (2018). Determinants of Switching Behaviour in Consumer Electronic Goods. Prestige International Journal of Management and Research, 10(4), 107.
Soemitra, A. (2019). Bank dan Lembaga Keuangan Syariah. In Bank dan Lembaga Keuangan Syariah.
Su, L., Jiang, Y., Chen, Z., & Nathan Dewall, C. (2017). Social exclusion and consumer switching behavior: A control restoration mechanism. Journal of Consumer Research. https://doi.org/10.1093/jcr/ucw075
Surjaatmadja, S., & Adriansyah, A. (2016). Does islamic banking have a competitive advantage over conventional banking in indonesia?: A study of perspectives. Pertanika Journal of Social Sciences and Humanities.
Suryawardani, B., & Wulandari, A. (2020). Determinant Factors of Customers Switching Behavior to Customer Satisfaction and Loyalty in Online Transportation Users in Bandung. Jurnal Dinamika Manajemen. https://doi.org/10.15294/jdm.v11i1.21432
Thomas, B. J., & Sekar, P. C. (2008). Measurement and validity of Jennifer Aaker’s brand personality scale for colgate brand. Vikalpa. https://doi.org/10.1177/0256090920080304
Vyas, V., & Raitani, S. (2014). Drivers of customers’ switching behaviour in Indian banking industry. International Journal of Bank Marketing. https://doi.org/10.1108/IJBM-04-2013-0033
Widyastuti, U., Febrian, E., Sutisna, S., & Fitrijanti, T. (2020). Sharia compliance in sharia mutual funds: A qualitative approach. International Journal of Economics and Business Administration. https://doi.org/10.35808/ijeba/483
Xu, H., Wang, J., Tai, Z., & Lin, H. C. (2021). Empirical study on the factors affecting user switching behavior of online learning platform based on push-pull-mooring theory. Sustainability (Switzerland). https://doi.org/10.3390/su13137087
Yasa, N. N. K., Ketut Giantari, I. G. A., Setini, M., & Rahmayanti, P. L. D. (2020). The role of competitive advantage in mediating the effect of promotional strategy on marketing performance. Management Science Letters. https://doi.org/10.5267/j.msl.2020.4.024
Yudiana, F. E., Kusuma, H., & Qizam, I. (2021). Gender Roles in the Relationship between Hijrah Intention, Satisfaction, and Islamic-Bank Customer Loyalty. Pertanika Journal of Social Sciences and Humanities. https://doi.org/10.47836/pjssh.29.4.28
Published
2022-07-20
How to Cite
Lestari, D., Haryono, S., & Furwanti, R. (2022). The Role of Competitive Advantage and the Exploration of Religiosity to Decrease Customer Switching Behaviour in Islamic Banking. Annual International Conference on Islamic Economics and Business (AICIEB), 2(1), 119-132. https://doi.org/https://doi.org/10.18326/aicieb.v2i1.72
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ARTICLES
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