The Influence of Company Reputation on Customer Loyalty in Indonesian Commercial Banks: The Mediating Role of Country of Origin in the Perspective of Signaling Theory
Downloads
This study aims to analyze the impact of company reputation on the customer loyalty of commercial banks in Indonesia from the perspective of signal theory, as well as evaluate the role of the country of origin as a mediating variable in the relationship. Data was obtained from 61 commercial bank customers at Bank BJB KC Swadaya Gunung Jati University Cirebon using quantitative research methods. A company's reputation is defined as a multidimensional construct that includes corporate social responsibility (CSR), relationship marketing, product quality, and corporate responsiveness. The data were analyzed using structural equation (SEM) model-based path analysis with the help of AMOS software. The results of the study show that corporate social responsibility signals do not directly affect customer loyalty, but indirectly affect significantly through the country of origin, which indicates full mediation. Product quality has been shown to have a direct and significant influence on customer loyalty, and is the most influential factor in the research model. In contrast, relational marketing and company credibility did not show significant influence. The research model can explain 60.9% variation in customer loyalty. The study confirms that a company's reputation serves as a strategic signal, the effectiveness of which depends on the type of signal being sent and the context of the bank's country of origin. These results expand the application of signal theory in Indonesia's banking sector and provide important implications for bank reputation management in building sustainable customer loyalty.
Ahn, J., Shamim, A., & Park, J. (2021). International Journal of Hospitality Management Impacts of cruise industry corporate social responsibility reputation on customers ’ loyalty?: Mediating role of trust and identification. 92(September 2020).
Arhinful, R., Gyamfi, B. A., Mensah, L., & Obeng, H. A. (2025). Non-performing loans and their impact on investor confidence: A Signaling Theory perspective—Evidence from US Banks. Journal of Risk and Financial Management, 18(7), 383.
Asnawi, N., Sukoco, B. M., & Fanani, M. A. (2020). The role of service quality within Indonesian customers satisfaction and loyalty and its impact on Islamic banks. Journal of Islamic Marketing, 11(1), 192–212.
Azizan, S., & Shailer, G. (2021). Does Corporate Citizenship Influence Auditors ’ Perceptions of the Credibility of Management in Relation to Financial Reports?? Auditors ’ Perceptions of the Credibility of Management in Relation to Financial Reports?? European Accounting Review, 0(0), 1–22. https://doi.org/10.1080/09638180.2021.1950022
Boateng, S. L. (2013). Online relationship marketing and customer loyalty?: a signaling theory perspective. https://doi.org/10.1108/IJBM-01-2018-0009
Chang, W., Tanford, S., Chang, W., & Tanford, S. (2018). The Impact of Job Advertising on Hospitality Graduates ’ Job Pursuit Intention The Impact of Job Advertising on Hospitality Graduates ’ Job Pursuit Intention. Journal of Hospitality & Tourism Education, 00(00), 1–14. https://doi.org/10.1080/10963758.2018.1480380
Cowan, K., & Guzman, F. (2018). How CSR reputation , sustainability signals , and country-of-origin sustainability reputation contribute to corporate brand performance?: An exploratory study ?. Journal of Business Research, November, 1–11. https://doi.org/10.1016/j.jbusres.2018.11.017
Farhan, A., Omar, N. A., Jannat, T., & Nazri, M. A. (2020). The impact of political brand relationship quality and brand engagement on voters’ citizenship behaviour: Evidence from Indonesia. The South East Asian Journal of Management, 14(1), 7.
Fombrun, C. J., Gardberg, N. A., & Sever, J. M. (1999). The Reputation Quotient?: A multi-stakeholder measure of corporate reputation. 7(4).
Gli, D. D., Tweneboah-koduah, E. Y., Odoom, R., & Kodua, P. (2023). The effect of corporate reputation on customer loyalty in the Ghanaian banking industry?: the role of country-of-origin. August 2024. https://doi.org/10.1108/AJEMS-12-2022-0492
Hanna, W. H., & Jeong, K. (2013). How CSR Leads to Corporate Brand Equity?: Mediating Mechanisms of Corporate Brand Credibility and Reputation. https://doi.org/10.1007/s10551-013-1910-0
Khan, R. U., Salamzadeh, Y., Iqbal, Q., & Yang, S. (2020). The Impact of Customer Relationship Management and Company Reputation on Customer Loyalty?: The Mediating Role of Customer Satisfaction The Impact of Customer Relationship Management and Company Reputation on Customer Loyalty?: The Mediating Role of Custo. Journal of Relationship Marketing, 0(0), 1–27. https://doi.org/10.1080/15332667.2020.1840904
Kim, L., Jindabot, T., & Yeo, S. F. (2024). Understanding customer loyalty in banking industry: A systematic review and meta analysis. Heliyon, 10(17).
Lee, J., Lee, Y., & Lee, J. (2018). Effects of multi-brand company ’ s CSR activities on purchase intention through a mediating role of corporate image and brand image. https://doi.org/10.1108/JFMM-08-2017-0087
Mariutti, F. G., Moura, J. De, & Giraldi, E. (2019). How does a Brand Reputation-Driven Construct Impact on Country Brand Equity?? A Cross-National Study of Brazil and China How does a Brand Reputation-Driven Construct Impact on Country Brand. Journal of International Consumer Marketing, 0(0), 1–20. https://doi.org/10.1080/08961530.2019.1590280
Money, K., Saraeva, A., Garnelo-Gomez, I., Pain, S., & Hillenbrand, C. (2017). Corporate reputation past and future: A review and integration of existing literature and a framework for future research. Corporate Reputation Review, 20(3), 193–211.
Narteh, B., & Braimah, M. (2020). Corporate reputation and retail bank selection?: the moderating role of brand image. 48(2), 109–127. https://doi.org/10.1108/IJRDM-08-2017-0164
Newell, S. J., & Goldsmith, R. E. (2001). The development of a scale to measure perceived corporate credibility. 52.
Nworie, G. O., Oduche, I. J., & Cyril-Nwuche, O. F. (2024). Signaling theory in action: How dividends affect shareholder investment decisions in Nigerian deposit money banks. Asian Journal of Economics, Business and Accounting, 24(7), 506–515.
Shahid, Z. A., Tariq, M. I., Paul, J., Naqvi, S. A. N., & Hallo, L. (2024). Signaling theory and its relevance in international marketing: a systematic review and future research agenda. International Marketing Review, 41(2), 514–561.
Zhang, Q., Cao, M., Zhang, F., Liu, J., & Li, X. (2020). Effects of corporate social responsibility on customer satisfaction and organizational attractiveness: A signaling perspective. Business Ethics: A European Review, 29(1), 20–34.
Copyright (c) 2026 Muhammad Nadif Kurniawan, Adi Setiawan
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution-ShareAlike 4.0 International. that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work.
