Relational Bonding, Stakeholders' Commitment and Loyalty Intention in Service Relationships: Evidence From Banking Sector of Pakistan

Abstract

Purpose: In this study, the aim is to research the impact of relational bonding on intention and loyalty and the mediating role of commitment in the service context in Pakistan. We applied (Chai, 2015) framework based on (Blau, 1964) exchange theory, that integrates economic and social perspectives of bonding (social and structural) and stakeholders commitment (service company, service provider and interpersonal commitment), as well as incorporating loyalty behavioral intention that included long-term behavioral intention (LB), repurchase intention (RP), and advocacy intention (AD) in the loyalty responses.

Methodology: In this investigation, a cross-sectional and quantitative survey approach was applied. The survey was conducted among bank customers in Pakistan. Structural equation modeling and confirmatory factor analysis were used to analyze the data.

Findings: The results suggested a significant positive effect of the relational bond to stakeholders' commitment (except Structural bonding and Service company commitment).And onward positive and significant effect of commitment on Loyalty Intensions. Hence this shows that commitment act as an effective mediator in the relationships between bonding and loyalty related behavioral intentions.

Originality: Similar research was conducted in a developed country, No study was conducted on this topic for a developing nation like Pakistan. Moreover, banking sectors were the first time covered in the literature.

Keywords: Loyalty behavioral intentions, Commitment foci, Service relationships, Social bonding, Structural bonding