Exploring Service Quality Dimensions in Savings and Credit Cooperatives Societies of Nepal

Abstract

Purpose: The study explores the factors affecting service quality (SQ) of Savings and Credit Cooperatives
Societies (SACCOS) in Nepal.
Methods: Adopting the Service Quality (SERVQUAL) framework, the study investigates the factors of SQ
among three SACCOS in Nepal. In doing so, the research employed a self-constructed questionnaire focusing
on SQ, tailored to the specific context. Data was gathered from three SACCOS using a cross-sectional survey
approach, involving 1,209 respondents for quantitative data. These districts were chosen to encompass Nepal’s
diverse geographical regions, including the Hills, and Terai areas. The factor analysis of the collected data determined four dimensions of SQ in the SACCOS context. Based on the empirical analysis, the research findings
developed hospitality, integrity, resilience, and autonomy (HIRA) model, identifying key dimensions impacting
SQ.
Results: Practical implications suggest that SACCOS should adopt a holistic approach, simultaneously enhancing operational dimensions and member-centric elements. Addressing concerns related to ethical practices,
governance, and decision-making processes is essential for a uniform and better satisfaction level.
Conclusion: This comprehensive roadmap encourages SACCOS to navigate key dimensions and leverage positive associations within SQ dimensions. SACCOS can position themselves as indispensable financial partners,
ensuring sustained success and welfare for their members in the cooperative sector.