Title

Implementing Capabilities-Based Quality Management and Marketing Strategies to Improve Banking Performance

Abstract

Purpose: The purpose of this paper is to study the impact of successfully coordinating infrastructural capabilities, such as technology, and structural capabilities, such as people, on the performance of service businesses. Effective coordination of these two types of capabilities is shown to impact the implementation of quality management practices and the design of marketing strategy, both of which when utilized properly, lead to enhanced organizational performance.

Design/methodology/approach: The authors surveyed retail banking firms for this study to analyze empirical data on infrastructural and structural capabilities. Results were corroborated on the basis of in-depth interviews with several banking managers to provide real world verification of the findings.

Findings: Results indicate that both infrastructural and structural capabilities positively impact the design of marketing strategy, while only structural capabilities impact the implementation of quality management practices. Both, successfully implemented quality management ideals and a well-designed marketing strategy, are shown to enhance overall organizational performance.

Research limitations/implications: Research was conducted on a specific sector of the service industry, the banking sector. Also, the relatively small size of the study sample may have impacted the outcome of research applicability in some large businesses. Continuously emerging financial regulations could not be incorporated in the study. On the positive side, strong managerial feedback provides guidance toward adopting the study results, and lays the foundation for future research.

Originality/value: As today's rapidly evolving society pushes people out of service encounters, replacing them with efficient and cost-saving technology, roles of both the people and the technology in an organization must be fully understood. This paper shows that, despite the exponential growth of technological innovation, both people and technology are critical to enhancing organizational performance through sound quality management practices and supportive marketing strategies.

Department(s)

Marketing

Document Type

Article

DOI

https://doi.org/10.1108/ijqrm-12-2014-0197

Keywords

technology, quality management, people. Marketing strategy

Publication Date

2016

Journal Title

International journal of quality and reliability management

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