A study of factors that impact on executive network marketing in financial institutions in LDCs. An examination of factors that impact on executive network marketing in the finacial services sector in less developed countries: The case of Ghana.

Abstract

This research study provides a view of the relationship between organizational leaders and relationship executives of financial institutions and their exchange partners. It does so by analyzing data on the networking efforts of 20 executive directors in qualitative interviews and 124 relationship executives in research questionnaires. Network marketing within the financial services sector is becoming increasingly important. We proposed a model that seeks to offer an explanation of Executive network marketing in financial institutions in LDCs where the market system is underdeveloped. The proposed model identified four categories being: firm characteristics, Executives’ personal contact groups, Executives’ business contact groups and issues of commitment and trust in exchange relationships. Multiple factor analysis established the regression model as significant in establishing a formal relationship between the dependent variable (network marketing) and the independent variables (firm characteristics, business contact, personal contact and commitment and trust). It was confirmed that there are differences in Executives’ level of network marketing among the different age groups. Also there were significant differences in the network marketing of the Executives with regard to their level of education. It was observed that there were significant differences in the network marketing of the Executives with respect of their fields of study. Finally it was observed that owner managers were more involved in network marketing than the professional managers and those in partnerships. Not only did the study confirm the research model, but it also revealed that, to a considerable extent, network marketing is practiced by the Executives in the financial services sector in Ghana. The study concluded that business contact networks are the most effective of the Executives’ network marketing in financial services sector in Ghana. It is therefore important that state policies are directed towards enhancing the business environment within the financial services sector. Government should desist from being a regulator and a player in the same market.