Title: Modelling the competitiveness of regional bank: empirical evidence from Sumatera, Indonesia

Authors: Kamaludin; Muhammad Nashsyah

Addresses: Faculty of Economics and Business, Bengkulu University, Bengkulu, Indonesia ' Faculty of Economics and Business, Bengkulu University, Bengkulu, Indonesia

Abstract: This research examines the effect of competitive strategy, customer relationship management (CRM), and service culture on the competitiveness and performance of regional bank in Sumatera Island. The data is obtained through the observations and survey to managers in Sumatera Region banks (BPD). The results of our study indicate that the competitive strategy applied by BPD significantly contributes to the improvement of bank performance. Competitiveness mediates the relationship between the independent variables (competitive strategic, CRM, service culture) and dependent variable (bank performance). Further, it is reported that the effect of competitiveness on bank performance is stronger than the effect of the competitive strategy. We point out that CRM is not directly affecting the performance, but CRM has contributed to improving the competitiveness and indirectly affects the growth of the BPD. Moreover, the construct of service culture directly affects the performance of the BPD and have shown no effect on competitiveness. Otherwise, the direct and significant effect is indicated by the implementation of service culture on the BPD's performance.

Keywords: competitive strategy; customer relationship management; CRM; service culture; competitiveness; BPD.

DOI: 10.1504/IJBG.2020.107835

International Journal of Business and Globalisation, 2020 Vol.25 No.1, pp.23 - 45

Received: 02 Sep 2017
Accepted: 25 Jul 2018

Published online: 17 Jun 2020 *

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