INFLUENCE OF ADHOCRACY CULTURE ON PERFORMANCE OF THE LISTED BANKS IN KENYA
Journal Title: Journal of Advances in Social Science and Humanities - Year 2018, Vol 4, Issue 6
Abstract
The banking industry plays an important role in the development of a country. For sustainable economic growth, a country must have a strong banking sector. However, there have been challenges in robustness of banks’ performance as a result of the current operating environment. This has resulted to loss of jobs, locking in of customer’s deposits, erosion of shareholder’s wealth as well as a slowdown in economic growth of their countries. To enable optimal operation of banks’ within the current changing environment, it is prudent for management of the banks’ to study their strengths which may be a competitive advantage. Adhocracy culture has been selected for this study as one of the strengths that an organization can utilize to exploit the opportunities in the environment and therefore boost its performance in line with stakeholders’ expectations. This study therefore sought to determine the influence of adhocracy culture on performance of the listed banks in Kenya. The study is of great significance to the management of the Banks in that they will know whether adhocracy culture can give them an edge to enhance their performance. The relationship between culture and performance has been studied by previous scholars. From the existing literature, organizational culture has been operationalized in different ways. This study adopted a different paradigm of the Competing Values Framework (CVF). Therefore, the independent variables for the research was one of the CVF culture namely adhocracy culture. On the other side, the dependent variable for the research was the organization performance which was measured in both qualitative and quantitative ways using return on assets, customer experience ratings and staff satisfaction index. Strategic leadership was taken as the moderating variable between the relationship of adhocracy culture and performance. This study adopted a descriptive research design. The population of the study was composed of all the licensed and listed commercial banks in the Nairobi Securities Exchange (NSE). For the study, multi-stage sampling was deployed and convenience and purposive sampling designs were used to come up with a sample of 100 respondents who were interviewed using questionnaires. Secondary data on the financial results was collected using data collection sheets. The data was analyzed for descriptive statistics and inferential statistics. Adhocracy culture emerged as a strong predictor of the banks’ performance. Strategic leadership was found not to have a significant moderating effect on the relationship between adhocracy culture and performance. In overall, the study findings concluded that the adhocracy culture variable was statistically significant in explaining the performance in banks. The study recommends that banks should invest more on technology and innovative solutions that provides convenience, accessibility and reliability of banking services as that will give them a competitive edge as banking services shift from brick and mortar to technology based services.
Authors and Affiliations
Alfred Kamau Mwangi, Gladys Rotich, Joyce Nzulwac, George Orwa
Keywords
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- EP ID EP320404
- DOI 10.15520/jassh46327
- Views 49
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