Efficiency in banking of developing countries with the same cultural background

Abstract

Purpose The purpose of this paper is to analyze the bank efficiency in three developing countries, namely Angola, Brazil and Mozambique, aiming to infer differences given that they belong to the same cultural tradition. The underlying idea is to control for the cultural background, thus allowing the discussion on how different socio-economic and historical variables maybe impacting different levels of banking efficiency and returns to scale results within the ambit of these three countries. Design/methodology/approach Due to the presence of latent inefficiency, the authors have to modify the technique to accommodate simulation by importance sampling; therefore, in effect, the authors use a local maximum simulated likelihood approach. Findings The results reveal that Brazil has the highest level of output-oriented efficiency, followed by Angola and then Mozambique. The same ranking is observed in returns to scale, except that vis-à-vis technical change, Brazil and Angola rank first. Finally, inefficiency derived from technical change is highest in Mozambique, followed by Angola and then Brazil. Therefore, these results reveal that the countries with the highest degree of development are higher in efficiency. Originality/value Previous studies have identified factors such as legal tradition, accounting conventions, regulatory structures, property rights, culture and religion as possible explanations for cross-border variations in financial development and economic growth. This is the first time banking efficiency is assessed in light of a common cultural background by selecting a group of countries that share the same language and colonial past. Since results are controlled for the same background, it is possible to affirm that the findings are purely related to scale size and economic/political background issues of each country.

Knowledge-sharing efforts and employee creative behavior: the invigorating roles of passion for work, time sufficiency and procedural justice

“…To test the study hypotheses, the data came from employees who work for an organization in the banking sector in the African country of Mozambique. As mentioned previously, this empirical context is highly relevant, because intra-organizational knowledge sharing is critical for stimulating employee creative behavior in industries marked by high levels of external competition, as in the banking sector in this country, yet the effective application of pertinent knowledge to an organization’s internal functioning also might be challenging (Barros et al , 2018; Gil-Alana et al , 2017). In particular, challenges originate from the prevalence of rigid decision-making structures in the banking sector, distinct viewpoints embraced by internal stakeholders about how a bank should operate (e.g.…”

“…In particular, challenges originate from the prevalence of rigid decision-making structures in the banking sector, distinct viewpoints embraced by internal stakeholders about how a bank should operate (e.g. system engineers vs retail banking salespeople) and the fear among employees that proposing novel solutions will undermine their position or provoke resistance from powerful others in the hierarchy (Barros et al , 2018; Ghosh, 2018; Gil-Alana et al , 2017; Tsaurai, 2018).…”

Internet and mobile banking: the role of engagement and experience on satisfaction and loyalty

“…The Brazilian banking market is one of the most developed in the world, both in scale and in the automation of operations. This characteristic is largely a consequence of the period of high inflation that occurred between the years 1980 and 1990, in which due to the legal need for daily correction of the monetary values of the assets and the continental size of the country, the banking industry was encouraged to invest heavily in computerized systems (Barros et al, 2018). The launch of the Real Plan in 1994 initiated monetary stabilization while simultaneously accelerating the process of banking concentration in the country.…”

“…To empirically test the conceptual model of this study, data were collected from users of e-banking and mobile banking in Brazil, one of the largest and most dynamic environments for using digital banking channels (Barros et al, 2018). Partial least square-structural equation modeling (PLS-SEM) 0and PLS-MGA (multigroup analysis) analyzed a total of 390 questionnaires.…”

“Hey everyone, look at me helping you!”: A contingency view of the relationship between exhibitionism and peer-oriented helping behaviors

“…By focusing on one specific industry and country, we sought to diminish the risk of unobserved variance in pertinent industry or country factors that could influence the perceived need to help organizational peers with their work (Chiaburu et al, 2015). The banking sector in Africa is characterized by high levels of external competition and a complex set of regulations and constraints (Barros et al, 2018), so extra-role voluntary efforts may have great value for individual and organizational effectiveness. This empirical context accordingly is relevant to address questions about how and when employees' discretionary personal energy resources may be leveraged into dedicated efforts that help organizational peers with their work.…”