Browsing by Author "Mbura and Buswelu, Omari and Buswelu"

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    Client Centred Business Model for Sustainable Competitive Commercial Banking in Tanzania
    (International Business Research, 2015-04) Mbura and Buswelu, Omari and Buswelu
    In the currently invariable banking industry in Tanzania and globally, traditional commercial banking is inappropriate. Customer expectations have changed drastically and commercial banks as service businesses depend on the people. Simultaneously, apart from commercial banks, other financial and non-financial institutions (communication companies) are looking to invade the space. In consequence, the adoption of the customer integrative model has become inescapable if a commercial bank has to compete favourably and sustainably in the current commercial banking environment. This paper is based on a study that assessed the extent to which commercial banks in Tanzania are applying the Client Centred Business Model (CCBM) and examined the extent to which this could contribute to the effectiveness in the development and maintenance of a sustainable competitive advantage primarily from a customers’ perceptive. The study used three Tanzanian commercial banks, namely NMB, CRDB and AZANIA, to generate data for subsequent analysis. The study conveniently selected 131 customers from the three sampled commercial banks. At least 40 respondents from each of the three banks were supplied with a self-administered questionnaire. Data were analysed using mean values for each of the three independent variables as they related to an dependent variable—sustainable competitive banking. This was performed with the help of Statistical Package for Social Sciences (SPSS) version 16. The findings reveal that despite the CCBM having strong and positive influence on competitive sustainable commercial banking, the commercial banks in Tanzania adopt the CCBM only at a very minimal level. On the basis of these findings, the study recommends for the introduction of a Customer Service Committee (CSC) at individual banks. Towards the effective adoption and integration of the CCBM, the management of respective commercial banks in Tanzania have to embrace the clients’ relationship as the fulcrum of their bank operations by adopting client-centred business model if they are to remain competitive and maintain a competitive edge in today’s commercial banking industry. (Key words: Client centred Business model, competitive sustainable banking, communication, service accessibility and transparency)