About the Research

1. PROBLEM STATEMENT

In view of the research study, the research problem is stated as:

“How does the performance quality affect localizing sustainable development for Maybank in Klang Valley?”

The reason for choosing this topic is to study the industry innovativeness affecting localizing sustainable development for Maybank in Klang Valley. Researchers found that this topic is interesting and challenging for us to conduct. Maybank is Malaysia's largest provider of banking services, and it has a customer base of over 21 million. Maybank provides customers with convenience by making ATMs widely accessible in Malaysia. It means, Maybank innovativeness for localizing sustainable development is happening in the company. There is a need to know what the cause of loyalty in Maybank organization is. Maybank is one of the first sustainability Bank in Malaysia. It had been built on the commitment that it would serve as a catalyst for economic and social development wherever it operates. According to (Maybank, 2020) Maybank has a sharp vision, a vision to providing people with easy access to financing at fair terms and pricing; advising customers based on their needs and being at the heart of the communities it serves.

2. REVIEW OF PREVIOUS RESEARCH TO SOLVE THE PROBLEM

Dependent Variable​

1. Performance quality

The quality of performance refers to how well a product or service works when it is performed. It assesses how well a product or service meets the needs of the consumer in terms of both seamless banking services and excellent service. Maybank must also strive to enhance its level of service. In this area, Maybank should focus on the circumstances that are critical to the quality of its products and services. Maybank must foster a culture of correcting mistakes as soon as they occur, or as soon as feasible if that is not possible.

Independent Variable

1. Service quality

According to recent studies, a high level of customer service quality can have a favorable impact on customer satisfaction (Parasuraman et al., 1988; Cronin and Taylor, 1992). Customers' perceptions of service quality and satisfaction are heavily influenced by their interactions with service representatives.

2. Efficiency

The ability of banks to utilise available resources to generate profit is measured by their economic efficiency. Customer loans, labor, social contributions/tax, and risk are among the four outputs used to measure social efficiency for sustainability.

3. Sustainability

In essence, the banking sector plays a role in achieving sustainability. They describe bank sustainability as a bank's ability to find a balance between self-development and societal contributions with the resources at hand. Bank stability, management of the bank-customer relationship, internal resource allocation, and environmentally friendly features of bank operation were all used to define and evaluate sustainability.

Moderating Variable

1. Customer loyalty

The concept of customer loyalty has been around for a long time. It has become increasingly crucial as the banking industry undergoes rapid transformation. (Ndubisi 2007) examined studied the link between four characteristics (commitment, trust, conflict resolution, and communication) and customer loyalty in the Malaysian banking industry. According to the findings of the Ndubisi research, the four characteristics have a substantial influence on customer loyalty in Malaysia's banking sector.

3. THEORITICAL FRAMEWORK

In the theoretical framework, it shows how the independent variables, or we call it a factor that affects the dependent variable. The independent variables are efficiency, sustainability and service quality. The moderating variable is customer loyalty in Maybank and the dependent variable is performance quality. All the independent variables are factors for performance quality in Maybank and how is the response to customers in Maybank.

Source: SPSS Version 28.0

4. LITERATURE REVIEW

Customers may define service quality, and it occurs when a service provider provides an advantage that meets the demands of the customer (Metters, 2003). The studies of efficiency using frontier approaches on banking did not start until Sherman and Gold initiated their own (Berger and Humphrey, 1997). To achieve sustainability goals for banks is to offer products that will contribute to sustainable development. Such research recommends that banks have value propositions that will lead to climate impact mitigation, adoption to the climate changes, reduction in environmental impact, eliminating hunger and poverty, increasing literacy and combating gender discrimination (Nwagwu, 2020). The customer who is satisfied with a product or service is more likely to repeat the purchase and to recommend the consumption experience to other people is a definition of loyalty (Bloemer et al., 1999).

5. THEORIES ON THE RESEARCHER TOPIC

5.1 Total Quality Management Theory (TQM)

TQM is a management system for a customer-focused business that has all employees participating in continuous improvement. Maybank will be able to satisfy its customers because of this theory. Customer satisfaction rises because of high-quality services that satisfy consumers' demands (Mary K. Pratt, 2019). Increased market share, revenue growth via upsells, and word-of-mouth marketing launched by customers can all result from high customer satisfaction. TQM theories will be used as a metric to assess Maybank's quality performance. Maybank's quality performance will be revealed as a result, allowing the topic to be related to TQM theories.

5.2 Equity Theory

By using equity theory approach, the satisfaction exists when consumers perceived their output/input ratio as being fair and efficient. A worker’s performance is an important factor to be considered for any organization claiming to be excellent. Thus, it could be referred to from the assertion that an organization’s success or failure depends, to a large extent, on the job performance of the individuals working for the organization. Maybank will be able to sustain if more of their employees adopt this approach as a source of inspiration while also increasing the efficiency of their work.