The role of governance mechanisms in trust-building strategies: A comparative analytical study in public and private banks

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Abstract

The study aims to build a model that enhances trust-building for public and private banks to compare and determine the significant differences between public and private banks, by testing the impact of governance mechanisms (transparency, accountability, justice, independence, and social responsibility) (Agere, 2000) on trust-building strategies (trust and trust building, people management, work relations, training and development, leadership practices, and communications) (Ngalo, 2011; Stone et al., 2005), to indicate the level of employees’ awareness of the theoretical contents of the two variables and their importance to banking work, with the aim of improving performance. The main question is the role of governance mechanisms in supporting trust-building strategies. The questionnaire was distributed to two stratified random samples, the first in public banks consisting of 62 individuals and the second in private banks consisting of 61 individuals. It followed the descriptive analytical comparative approach. One of the most important results is that there are significant differences between the two samples, and the weight is weighted in favor of public banks in relation to trust-building strategies with customers. Despite the use of outdated working methods, the conclusions pointed to the tangible role of governance mechanisms in supporting trust-building strategies.

Keywords: Governance Mechanisms, Trust-Building Strategies, Transparency, Communication Practices, Public Banks, Private Banks

Authors’ individual contribution: Conceptualization — H.A.M. and A.S.H.A.-J.; Methodology — H.A.M. and A.S.H.A.-J.; Formal Analysis — H.A.M.; Investigation — H.A.M. and A.S.H.A.-J.; Data Curation — A.S.H.A.-J.; Writing — Original Draft — A.S.H.A.-J.; Writing — Review & Editing — A.S.H.A.-J. and K.S.N.; Visualization — A.S.H.A.-J. and S.A.H.; Supervision — S.A.H.; Project Administration — S.A.H.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: M10, M12, M15, M19

Received: 19.07.2023
Accepted: 12.01.2024
Published online: 16.01.2024

How to cite this paper: Mhaibes, H. A., Al-Janabi, A. S. H., & Hussein, S. A. (2024). The role of governance mechanisms in trust-building strategies: A comparative analytical study in public and private banks. Corporate & Business Strategy Review, 5(1), 77–86. https://doi.org/10.22495/cbsrv5i1art8