A Model of Affective Commitment in Small and Medium Enterprise Relationship to Retail Banks in Nigeria

Abstract

Purpose:

This study aims to investigate a model of affective commitment within the context of SMEs relationship to retails banks in Nigeria. Specifically, this study investigates the drivers and consequences of SMEs affective commitment and the moderating effect of relationship length.

Design/methodology/approach Firstly, face validity to ensure clarity and non-ambiguous statements for the respondents. Secondly is the content validity, using Exploratory Factor Analysis, Principal Component Analysis using varimax rotation for factor loadings and structure, whilst cronbach`s alpha for construct reliability. Furthermore, confirmatory factor analysis will be employed to test for measurement model goodness of fit. Lastly, to test the research hypotheses, structural equation modelling will be employed.

Findings To start with, this study will provide relevant construct measurements scales in Nigeria. Next, the research will indicate the impact of satisfaction and trust on SMEs affective commitment. Further indicating the impact of affective commitment on loyalty dimensions (repurchase intention and advocacy) as moderated by relationship length.

Originality/value This study contributes to the validation of affective commitment modelled in Nigeria. Also, the research aims to empirically establish the significant drivers and consequences of affective commitment model. This client segment (SMEs) and context has not been empirically investigated before in the relationship commitment literature.