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Volume 14
Issue 2
Online publication date 2018-02-22
Title Efficiency and client satisfaction of Islamic and conventional banks: A bilateral effect
Author Talla Aldeehani
In this paper, we investigate the possible bidirectional causal relationship between bank efficiency and client satisfaction in the banking sector of Kuwait. For this purpose, we applied structural equation model (SEM) methodology. Based on a 5-point Likert scale questionnaire, data was gathered from Islamic banks (IBs) clients and conventional banks (CBs) client. We found a significant evidence of a, relatively, higher client satisfaction for IBs. The findings, also, provide evidence of a positive and significant bilateral causal relationship between client satisfaction and bank efficiency. This is a result that confirms an anticipated theoretical proposition related to the ultimate goal of firm value maximization. Discussions, interpretations, implications, and recommendations are provided.

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Keywords Bank efficiency, Islamic banks, customer satisfaction bilateral effects
Pages 282-299
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