Strategy execution as determinant of deposit money banks’ customer satisfaction in Nigeria

International Journal of Research and Innovation in Social Science (IJRISS) | Volume VI, Issue V, May 2022 | ISSN 2454–6186

Strategy execution as determinant of deposit money banks’ customer satisfaction in Nigeria

Asikhia, Olalekan. U., Makinde Grace. O., Akinlabi, Bababtunde. A. & Adewole, Adekunle. A.
Department of Business Administration Babcock University Ilishan-Remo Ogun State, Nigeria

Abstract: Purpose: This study examined the effect of strategy execution on customer satisfaction in Deposit Money Banks (DMBs), Lagos State, Nigeria.
Methodology: This study adopted a cross-sectional survey design. A sample of 379 staff of eleven quoted DMBs in Lagos State, Nigeria was drawn from a target population of 69,793 using krejcie and Morgan sample size determination formular. Partial Least Square- Structural Equation Modeling was used to test the study’s hypotheses.
Findings: The results showed that strategy execution predicts significant changes in customer satisfaction of DMBs in Lagos State, Nigeria (Adj R2 = 0.425, p=0.000, Q2 =0.226).
Implications: Within the strategy execution framework, management communication and system of shared responsibility (organisational structure) offers the least consistent contribution to organisational performance (including customer satisfaction) compared with other strategy execution dimensions. Hence, the study recommends that management of the DMBs should re-energize their commitment to these dimensions, so that the companies can record higher level of customer satisfaction.

Keywords: Strategy Execution, Customer Satisfaction, Dynamic Capability theory, Deposit Money Bank

I.INTRODUCTION

Banking industry continued existence has socio-economic importance to many stakeholders within an economy because it facilitates trade, create jobs and generation revenue for the stakeholders. How well banks play their intermediary functions in aligning the deficit and surplus sector in the economy result in its socio-economic relevance (Itah & Onamusi, 2021). The global economic disruption occasioned by the COVID-19 pandemic and its attendant consequences had negative ripple effect business organisations (Onamusi, 2021) including banking operations. On the part of the customers, there has been a constant complaint about multiple charges levied against account holders, frustrating online banking services, and the poor customer experience before the COVID-19 pandemic, which worsened with the COVID-19 pandemic (KPMG, 2020). Nigeria Banks are slow to find innovative means of attending to customers, as customers stay wait for 6-8hours before getting a simple bank service. In contrast, those not fortunate, spend days coming back to the bank before getting served. Another reason to worry is how bank staff address customers and how they are increasingly involved in in-house unethical activities to defraud customers and the bank itself. This only exposed the poor response capabilities of the Nigerian banks in the wake of the COVID-19 pandemic and other issues. To buttress this discussion, the KPMG bank customer report (2020), which captured 25,466 retail customers, 3,045 SMEs, and 369 commercial/corporate organisations, reveals that satisfaction has been on a

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