Exploring the Influence of Employee Behaviour, Digital Banking and Customer Adjustment on Bank Performance During Covid Pandemic

Authors

  • Nancy Xalxo Research Scholar, School of Commerce, Gangadhar Meher University, Sambalpur, Odisha Author
  • Priyabrata Panda Assistant Professor, School of Commerce, Gangadhar Meher University, Sam balpur, Odisha Author

Keywords:

Covid Pandemic, Bank performance, Customer adjustment, Employee behaviour

Abstract

Covid-19 pandemic has significantly influenced  all sectors of economy. Banking sector, being an  integral part of financial system, has also been  largely influenced by such pandemic. Thus, an  attempt is made to assess the performance of  banks during the covid pandemic from customer  perspective. The study analyses the influence  of digital banking and employee behaviour on  bank performance. The impact of customer  adjustment is also examined. Structural equation  modelling is applied for data analysis and  hypothesis testing. The study reveals that there  is a significant influence of digital banking and  employee behaviour on the bank performance.  Whereas customer adjustment has no impact  on the performance of banks during covid-19  pandemic. The findings of the present study  will halp banks to revamp their strategies to  improve their performance by neutralizing the  pandemic effect. 

References

Baicu, C.G., Gârdan, I. P., Gârdan, D.A., & Epuran, G., (2020). The impact of COVID-19 on Consumer Behavior in Retail Banking. Evidence from Romania. Management & Marketing. Challenges for the Knowledge Society, 15(Special Issue), 534-556, DOI: 10.2478/mmcks-2020-0031. 2. Bollen, K. A. (1989). Structural equations with latent variables. John Wiley & Sons, Inc. 3. Browne, M. W., & Cudeck, R. (1992). Alternative ways of assessing model fit. Sociological Methods & Research, 21, (2), 230–258, doi:10.1177/0049124192021002005.

Byrne, B. M. (2016) Structural Equation Modeling with AMOS: Basic Concepts, Applications, and Programming. Routledge.

Dajani, M. A. Z., (2015). The Impact of Employee Engagement on Job Performance and Organisational Commitment in the Egyptian Banking Sector. Journal of Business and Management Sciences, 3(5), 138- 147. doi: 10.12691/jbms-3-5-1.

De’, R., Pandey, N., & Pal, A. (2020). Impact of digital surge during Covid-19 pandemic: A viewpoint on research and practice. International Journal of Information Management, 55, 102171. https://doi. org/10.1016/j.ijinfomgt.2020.102171

Dinh, V., Le U., & Le, P. (2015). Measuring the Impacts of Internet Banking to Bank Performance: Evidence from Vietnam. Journal of Internet Banking and Commerce. 20(2), 1-15. 8. Disemadi, H. S., & Shaleh, A. I. (2020). Banking credit restructuring policy amid COVID-19 pandemic in Indonesia. Jurnal Inovasi Ekonomi, 5(02), 63–70.

Fornell, C., & Larcker, D. F. (1981). Evaluating Structural Equation Models with Unobservable Variables and Measurement Error. Journal of Marketing Research, 18(1), 39–50.

Hair, J., Hult, G., Ringle, C. M., Sarstedt, M., (2017). Mirror, mirror on the wall: a comparative evaluation of composite-based structural equation modeling methods. Journal of the Academy of Marketing Science, 45(5), 616–632.

Henseler, J., Ringle, C.M., & Sarstedt, M. (2016). A New Criterion for Assessing Discriminant Validity in Variance-Based Structural Equation Modeling. Journal of the Academy of Marketing Science, vol. 43, no. 1, (2014), pp. 115–35, doi:10.1007/s11747-014-0403-8.

Hinkin, T. R. (1995). A Review of Scale Development Practices in the Study of Organizations. Journal of Management, 21(5), 967–988.

Hooper, D., Coughlan, J., & Mullen, M. (2008). Structural equation modeling: Guidelines for determining model fit. The Electronic Journal of Business Research Methods,6(1), 53-60. 14. Kline, R. B. (2011). Principles and Practice of Structural Equation Modeling. Guilford Press. 15. Kline, R. B. (2015). Principles and Practice of Structural Equation Modeling. Guilford Press. 16. Kumar, M. S., Maheshwari, V., Prabhu, J., Prasanna, M., & Jayalakshmi, P., Suganya, P. and Malar, B. A. (2020). Social economic impact of COVID-19 outbreak in India. International Journal of Pervasive Computing and Communications, 16(4), 309–319.

Kunt, D., Morales, A., & Ruiz Ortega, C. (2020). Banking Sector Performance During the COVID-19 Crisis. World Bank Policy Research Working Paper, 1-49.

Kwateng, K. O., Osei-Wusu, E. E. & Amanor, K. (2019). Exploring the effect of online banking on bank performance using data envelopment analysis. Benchmarking: An International Journal, 27(1), 136-165. 19. Lee, K., Zaidi, N.S.B., Wen, C.C. (2020). Technical Analysis and Malaysian Banking Sector during COVID-19 Pandemic. UNIMAS Review of Accounting and Finance, 4(1), 41–46. https://doi. org/10.33736/uraf.2822.2020

Mirzaei, A., Saad, M., & Emrouznejad, A. (2020). Bank Stock Performance During the COVID-19 Crisis: Does Efficiency Explain Why Islamic Banks Fared Relatively Better? SSRN, 1–53. https://doi. org/10.2139/ssrn.3702116

Moşteanu, N. R., Faccia, A., Cavaliere, L.P.L., & Bhatia, S. (2020). Digital Technologies’ Implementation Within Financial and Banking System During Socio Distancing Restrictions – Back to the Future. International Journal of Advanced Research in Engineering and Technology (IJARET), 11(6), 307–315. 22. Muenjohn, N., & Armstrong, A. (2008). Evaluating the Structural Validity of the Multifactor Leadership Questionnaire (MLQ), Capturing the Leadership Factors of Transformational-Transactional Leadership, Contemporary Management Research, 4(1), 3–14.

Nachit, H., & Belhcen, L. (2020). Digital Transformation in Times of COVID-19 Pandemic: The Case of Morocco. SSRN, 1, 1–16. https://doi.org/10.2139/ssrn.3645084.

Naeem, M. (2021). Do social media platforms develop consumer panic buying during the fear of Covid-19 pandemic? Journal of Retailing and Consumer Services, 58,

Nagi, S., &. Kumar, S.D. (2020). covid-19 pandemic and stress towards bank staffs in coimbatore. Aut Aut Research Journal, 11(6), 219–229.

Okonkwo, J. J., & Okonkwo, E. V. (2020). Covid-19 Pandemic, Non-Pharmaceutical Interventions and Bank Customers Patronage: a Study of Awka Banking Patrons. European Journal of Accounting, Finance and Investment, 6(6), 33–48.

Pegu, G. (2020). Covid-19 Pandemic, Lockdown, and Indian Economy. International Journal of Management, 11(10), 1086–1096. https://doi.org/10.34218/IJM.11.10.2020.098 28. Pérez, P, D. S., & Falcón, J. M. G., (2004). The Influence of Human Resource Management in Savings Bank Performance. The Service Industries Journal, 24(2), 51-66.

Putra, K.C., Pratama, T. A., Linggautama, R. A., & Prasetyaningtyas, S.W. (2020). The Impact of Flexible Working Hours, Remote Working, and Work Life Balance to Employee Satisfaction in Banking Industry during Covid-19 Pandemic Period. Journal of Business Management Review, 1(5), 341–353. https://doi.org/10.47153/jbmr15.592020.

Ramasamy, D. (2020). Impact Analysis in Banking, Insurance and Financial services industry due to COVID-19 Pandemic. Pramana Research Journal, 10(8), 19–29.

Roy, D., Tripathy, S., Kar, S. K., Sharma, N., Verma, S. K., & Kaushal, V. (2020). Study of knowledge, attitude, anxiety & perceived mental healthcare need in Indian population during COVID-19 pandemic. Asian Journal of Psychiatry, 51.

Seetharaman, P. (2020). Business models shifts: Impact of Covid-19. International Journal of Information Management, 54, 102173. https://doi.org/10.1016/j.ijinfomgt.2020.102173

Shahabi, V., Azar, A., Faezy Razi, F. and Fallah Shams, M.F. (2020). Simulation of the effect of COVID-19 outbreak on the development of branchless banking in Iran: case study of Resalat Qard–al-Hasan Bank, Review of Behavioral Finance, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/RBF-06- 2020-0123.

Sudarsono, H., Nugrohowati, R. N. I., & Tumewang, Y. K. (2020). The Effect of Covid-19 Pandemic on the Adoption of Internet Banking in Indonesia: Islamic Bank and Conventional Bank. Journal of Asian Finance, Economics and Business, 7(11), 789–800.

Talbot, D., & Ponce, E. (2020). Canadian banks’ responses to COVID-19: a strategic positioning analysis. Journal of Sustainable Finance and Investment, 1–8.

Tunay, K. B., Tunay, N. T., & Akhisar, I. (2015). Interaction Between Internet Banking and Bank Performance: The Case of Europe, Procedia - Social and Behavioral Sciences, 195 (2015), 363 – 368. 37. Weston, R, and Paul A. G. (2006). A brief guide to structural equation modelling, The Counseling Psychologist, 34 (5), 719–751, doi:10.1177/0011000006286345.

Winarsasi, P. A. (2020). Guarantee Benefit for Creditor and Credit Reconstruction Effort during COVID-19 Pandemic. International Journal of Multicultural and Multireligious Understanding, 7(8), 1–9.

Zhang, M., Fan, D., D., & Zhu, C., J. (2014). High-Performance Work Systems, Corporate Social Performance and Employee Outcomes: Exploring the Missing Links. Journal of Business Ethics, (2014), 423–35, doi:10.1007/s10551-013-1672-8.

Published

2024-07-12

How to Cite

Exploring the Influence of Employee Behaviour, Digital Banking and Customer Adjustment on Bank Performance During Covid Pandemic. (2024). IITM Journal of Business Studies, 9(1), 135-145. http://journalsiitmjp.com/index.php/iitmjbs/article/view/100