The quality of business environment and internal factors affect the competitiveness of retail banking service in VietinBank

Figures & data

Figure 1. Research model. Source: Researchers proposed.

Figure 2. Competitive capacity in VietinBank by provinces. Source: The researchers’ collecting data.

Table 1. Information about customers surveyed in VietinBank.

Measure	Value	Frequency	Percent
Gender	Female	881	53.1
	Male	778	46.9
Age	<20 years old	99	6.0
	20–30	470	28.3
	30–40	586	35.3
	40–50	314	18.9
	50–60	138	8.3
	≥60 years old	52	3.1
Education	High school	211	12.7
	Intermediate/College	320	19.3
	University	946	57.0
	Postgraduate	182	11.0
Income	<10 million VND	510	30.7
	10–20 million VND	647	39.0
	20–30 million VND	314	18.9
	30–40 million VND	110	6.7
	≥40 million VND	78	4.7
Period of using time	<1 year	210	12.6
	1–3 year	438	26.4
	3–5 year	429	25.9
	≥5 years	582	35.1

Source: The researchers’ collecting data.

Table 2. Period of using retail service of customers by different ages.

Time using service	<20	20–30	30–40	40–50	50–60	≥60	Grand total
<1 year	60	82	39	15	11	3	210
1–3 year	33	182	139	63	17	4	438
3–5 year	2	141	145	98	37	6	429
≥5 years	4	65	263	138	73	39	582
Grand total	99	470	586	314	138	52	1659

Source: The researchers’ collecting data.

Table 3. Period of using retail service of customers by different income.

Time using service	<10 million VND	10–20 million VND	20–30 million VND	30–40 million VND	≥40 million VND	Grand total
<1 year	136	45	13	9	7	210
1–3 year	156	189	75	8	10	438
3–5 year	94	186	96	41	12	429
≥5 years	124	227	130	52	49	582
Grand total	510	647	314	110	78	1659

Source: The researchers’ collecting data.

Table 4. Reliability and validity of constructs.

Constructs	Scale items	Cronbach’s alpha	CR	AVE	MSV	Factor loading
Service quality	Serqual_2	0.865	0.862	0.610	0.346	0.824
	Serqual_3					0.798
	Serqual_1					0.781
	Serqual_4					0.706
Risk management	Risk_2	0.899	0.898	0.747	0.493	0.884
	Risk_1					0.839
	Risk_3					0.794
Organizational culture	Cult_4	0.900	0.894	0.585	0.493	0.800
	Cult_5					0.793
	Cult_6					0.764
	Cult_2					0.759
	Cult_3					0.731
	Cult_1					0.663
Financial capacity	Fincap_2	0.924	0.918	0.738	0.457	0.973
	Fincap_1					0.889
	Fincap_3					0.862
	Fincap_4					0.711
Promotion	Promo_3	0.855	0.851	0.534	0.491	0.861
	Promo_2					0.857
	Promo_5					0.693
	Promo_4					0.544
	Promo_1					0.534
Social responsibility	Social_4	0.871	0.872	0.696	0.432	0.915
	Social_3					0.861
	Social_5					0.622
Competitive capacity	Compete_3	0.923	0.926	0.758	0.457	0.905
	Compete_2					0.867
	Compete_1					0.821
	Compete_4					0.792

Notes: CR: composite reliability; AVE: average variance extracted; MSV: maximum shared variance. Source: The researchers’ collecting data and AMOS.

Table 5. Discriminant validity.

	Risk	Organizational culture	Financial capacity	Competitive capacity	Promotion	Service quality	Social resposibility
Risk	0.864
Organizational culture	0.702	0.765
Financial capacity	0.620	0.578	0.859
Competitive capacity	0.642	0.660	0.676	0.870
Promotion	0.633	0.701	0.600	0.540	0.731
Service quality	.441	0.588	0.401	0.368	0.544	0.781
Social resposibility	0.617	0.657	0.598	0.649	0.552	0.451	0.834

Source: The researchers’ collecting data and AMOS.

Table 6. Coefficients from the structural equation modelling (SEM).

Relationships			Standardized coefficient	S.E	C.R	p	Conclusion
Competitive capacity	<---	Income	0.03	0.011	1.759	0.079	Accepted
Competitive capacity	<---	Time using service	−0.034	0.011	−1.881	0.050	Accepted
Competitive capacity	<---	Service quality	0.084	0.030	−30.260	0.001	H2 is accepted
Competitive capacity	<---	Financial capacity	0.339	0.028	120.084	0.000	H4 is accepted
Competitive capacity	<---	Risk management	0.156	0.033	40.970	0.000	H6 is accepted
Competitive capacity	<---	Promotion	−0.043	0.039	−10.304	0.192	H7 is rejected
Competitive capacity	<---	Organizational culture	0.284	0.046	70.494	0.000	H8 is accepted
Competitive capacity	<---	Social Responsibility	0.225	0.032	70.729	0.000	H9 is accepted
Competitive capacity	<---	Provincial Competitiveness Index	0.025	0.004	1.442	0.000	H10 is accepted

Source: The researchers’ results and AMOS.

Table

Factor	Encode	Items
Product	Prod_1	Bank has more diversified retail banking products
	Prod_2	Bank often launches new retail banking products
	Prod_3	Retail banking products have many utilities
	Prod_4	Competitive prices (interest rates, fees) of retail banking products
Service quality	Serqual_1	Simple transaction procedure
	Serqual_2	Fast transaction execution time
	Serqual_3	The bank has a good customer care policy
	Serqual_4	Service attitude of staff is friendly, considerate, and cheerful
Distribution	Dist_1	The system of branches and transaction offices is wide
	Dist_2	Transaction location and time is convenient for customers to transact
	Dist_3	Branches and transaction offices have a large area with convenience
Financial capacity	Fincap_1	Charter capital of the bank is big
	Fincap_2	Equity of the bank is big
	Fincap_3	Mobilized capital of the bank is high
	Fincap_4	The bank’s ability to mobilize capital is good
Technology	Tech_1	The bank regularly updates and applies new technologies
	Tech_2	The bank’s online transactions are smooth and safe
	Tech_3	The Bank’s ATMs, POSs meet customer needs and operate 24/7
	Tech_4	The location and density of ATMs and POS is reasonably arranged
Risk management	Risk_1	The bank is always interested in risk management activities to ensure business operations
	Risk_2	The bank can handle risk incidents well
	Risk_3	The bank has implemented a risk control system through a technology platform
Promotion	Promo_1	Customers can easily find information about the bank’s retail services
	Promo_2	The bank has impressive forms of advertising
	Promo_3	The bank’s promotions are relevant and valuable
	Promo_4	The bank has sponsorship and communication activities to increase the bank’s image in the market
	Promo_5	Beautiful and impressive retail banking brochures
Organizational culture	Cult_1	High involvement of bank staff in processes, decisions, and performance
	Cult_2	The employees are committed and have a high sense of responsibility to the bank
	Cult_3	Banks have a common set of values, beliefs and symbols
	Cult_4	There is a high degree of coordination and consistency among employees in the bank
	Cult_5	The bank learns the factors of the external environment and makes appropriate responses
	Cult_6	The bank could adapt to changes in the external environment to match its structure and operation
	Cult_7	The bank’s goals are clear and relevant to all employees
	Cult_8	The bank tries its best to achieve the goal
Social Responsibility	Social_1	The bank pays tax in full
	Social_2	The bank guarantees legitimate rights and benefits for employees
	Social_3	The bank ensures transaction safety
	Social_4	The bank guarantees the benefits for customers
	Social_5	The bank participates in the community programs
Competitiveness	Compete_1	The bank achieves high loan balance and sales growth
	Compete_2	The bank achieves high profit growth
	Compete_3	The bank improves the efficiency of providing retail banking services
	Compete_4	The bank achieves customer satisfaction and trust