Incorporating Institutional Theory of Corporate Image Towards Customer Loyalty of Islamic banks

Ismah Osman
Faculty of Business and Management, Universiti Teknologi MARA

Kalthom Abdullah, Nurdianawati Irwani Abdullah, Ahasanul Haque
Kulliyah of Economics and Management, International Islamic University Malaysia

Mohsin Abder Rahman
Al Futtaim Motors, Dubai, United Arab Emirates


The importance of corporate image in any organization is undisputable including those of Islamic banks. Many studies on corporate image have been using metaphorical expression in various contexts. The objective of this paper, apparently, is to examine corporate image in Islamic banks based on the institutional theory which incorporates performative image, institutional image, organizational legitimacy and support. Corporate Character Scale was utilized to determine performative image of Islamic banks, while interviews were conducted to identify institutional image. A survey was then employed to study the relationships of corporate image (performative and institutional) on customer loyalty. Findings indicate that institutional image has an impact on performative image, and both of these images influence organizational legitimacy. Surprisingly, attitudinal loyalty does not have an impact on behavioural loyalty. The implication of the study in relation to corporate image is further discussed.