Influencing dynamics of culture and employee factors on retail banks’ performances in a developing country context
Abstract
Purpose
This paper aims to investigate the influencing dynamics of culture (national and organizational), employee characteristics, employee job satisfaction and organizational commitment in determining the organizational performances of firms in the retail banking sector in a developing country such as Ghana.
Design/methodology/approach
A conceptual framework linking national and organizational cultures to employees’ job satisfaction, job characteristics, organizational commitment and organizational performance was developed, and their measurement scales were adapted to guide the empirical investigation. Data were collected using a questionnaire filled in by 300 employees in nine retail banks in Ghana. The results were first analyzed by carrying out data reduction of the measured scales by using the Statistical Package for the Social Sciences-based factor analysis approach. The reduced data obtained from the factor analysis were then analyzed for model goodness fit by using the Analysis of Moment Structures-based structural equation modeling approach.
Findings
Effective organizational performance of retail banks in Ghana is directly influenced by the relationships among organizational culture, employee job satisfaction and organizational commitment.
Research limitations/implications
The study sample was drawn from a single sub-sector of the Ghanaian economy. Replications and extensions of the study in different sectors that are experiencing high growth will help test the robustness and generalizability of the findings.
Practical implications
The study provides empirical knowledge that could be used to understand the influencing interrelationships among organizational culture, employee job satisfaction and organizational commitment on the organizational performances of retail banking firms in a developing country context.
Originality/value
The study adds to the literature as one of the most comprehensive studies of the links between culture, job satisfaction, employee characteristics and organizational commitment toward organizational performance within the banking sector in Ghana to date.
Keywords
Acknowledgements
This research was supported by a grant received from the Danish International Development Agency as part of the Agency’s Building Stronger University in Developing Countries initiative under the Growth and Employment Scheme “Strengthening Research funding and Research collaboration”. It was conducted as a Joint Explorative Research Activity under the “Work package 3 on Research Collaboration” between Northern and Southern partner Academic Institutions. We wish to show our appreciation to the management and staff of the following banks for the interest shown in the research and the support they provided us in the data collection process: Merchant Bank, Cal Bank, Agricultural Development Bank, Ghana Commercial Bank, Standard Chartered Bank, Barclays Bank, Zenith Bank, ECOBANK and National Investment Bank.
Citation
Sanda, M.-A. and Kuada, J. (2016), "Influencing dynamics of culture and employee factors on retail banks’ performances in a developing country context", Management Research Review, Vol. 39 No. 5, pp. 599-628. https://doi.org/10.1108/MRR-04-2015-0078
Publisher
:Emerald Group Publishing Limited
Copyright © 2016, Emerald Group Publishing Limited