EFFECT OF ORGANIZATIONAL CULTURE ON PERFORMANCE OF COMMERCIAL BANKS IN KENYA
Abstract
The purpose of this study was to establish the relationship between organizational culture and performance of commercial banks in Kenya. The banking sector operates in a dynamic environment and performance has proved to be a daunting task in the turbulent and dynamic environment of commercial banks. The general objective of this study was to establish the effect of organizational culture on organizational performance of commercial banks in Kenya. The specific objectives were to determine the effect of adhocracy culture, clan culture, hierarchy culture and market culture on performance of commercial banks in Kenya. The theoretical review covered the Competing Values Framework, Schein’s organizational culture theory, Max Weber bureaucracy theory and the Balance Scorecard theory. Descriptive research design was used to establish the relationship between the independent variable and the dependent variable. The target population was 86 respondents from commercial banks in Kenya from which a sample size of 70 was drawn. Primary data was collected by use of structured questionnaires. Data was analysed using SPSS and descriptive and inferential statistics were generated. The study found out that there was a positive significant relationship between organizational culture and performance of commercial banks in Kenya. The study concluded that adhocracy culture, clan culture, hierarchy culture and market culture had positive significant effect on performance of commercial banks in Kenya. The study concluded that managers should encourage adhocracy culture, clan culture, hierarchy culture and market culture so as to increase the performance of commercial banks in Kenya.
Key words: Adhocracy, Clan, Culture, Hierarchy, Market, Performance
CITATION: Mugwika, P. N., & Kavale, S. (2022). Effect of organizational culture on performance of commercial banks in Kenya. The Strategic Journal of Business & Change Management, 9 (4), 311 - 322.
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DOI: http://dx.doi.org/10.61426/sjbcm.v9i4.2415
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