Influencing dynamics of culture and employee factors on retail banks’ performances in a developing country context

2016 ◽  
Vol 39 (5) ◽  
pp. 599-628 ◽  
Author(s):  
Mohammed-Aminu Sanda ◽  
John Kuada

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.

2021 ◽  
pp. 097226292098594
Author(s):  
Mir Rouf Ahmad ◽  
Rameez Raja

Purpose: The aim of this research article is to scrutinize the influence of employee job satisfaction on organizational commitment and business performance in the context of retail banking sector in northern India. Design/methodology/approach: A research design of quantitative in nature was used via a structured questionnaire on a sample of 440 Indian commercial bank employees. Research hypotheses were tested by using the structural equation modelling (SEM) technique to evaluate and test the proposed model. Findings: The result of the present study confirms that all facets of job satisfaction affect the satisfaction of employees significantly and, thus, influence the employee’s organizational commitment and business performance, respectively. The significance of the indirect path of employee job satisfaction on business performance through organizational commitment has also been tested with the Sobel test, which exhibited significant results. Research implications: This study provides insight into the influence of employee job satisfaction on the organizational commitment and business performance in the Indian commercial banking context in particular, which could benefit management and policymakers as well as other enterprises operating in the same segment. The results suggest that employee job satisfaction strongly contributes to employees’ organizational commitment and business performance. Therefore, organizations require that their employees must be contented and pleased with what they do. Originality/value: This research study contributes one more brick to the existing body of knowledge by investigating the casual relation of employee job satisfaction, and organizational commitment as a mediator with business performance, as these causal relations with business performance are very scarce in the context of commercial banking context. Research limitations: This research survey was restricted to commercial banks operating only in northern India. Thus, it limits the generalizability of the results for the context specified only.


2020 ◽  
Vol 40 (7/8) ◽  
pp. 529-541 ◽  
Author(s):  
Fatma Cherif

PurposeThe purpose of this study was to investigate the role of human resource management and employee job satisfaction in predicting organizational commitment in the Saudi Arabian banking sector.Design/methodology/approachFor the purpose of this study, quantitative survey research was employed. The independent variables are human resource management and employee job satisfaction, while the dependent variable is organizational commitment.FindingsHuman resource management correlated positively with employee job satisfaction and organizational commitment. On the other hand, employee job satisfaction was found to be positively correlated with organizational commitment. The two independent variables made significant individual contributions to the prediction of organizational commitment.Research limitations/implicationsThis study has some limitations. First, convenient sampling method was used to recruit the participants. Therefore, the findings of the study have limited generalizability in other regions and age groups. Second, as a cross-sectional study, there has to be caution in making any generalization of the results. Future researchers should get more respondents from wider geographical location, that is from different bans, private and public. Furthermore, self-report questionnaires were used to collect data from respondents. It is recommended that future researchers use different methods such as personal interview or telephone interview to collect data. This may help get reliable data after clarifying and removing what may be ambiguous.Practical implicationsThe results of this study have corroborated with previous research and confirmed correlations between and among human resource management (HRM), employee job satisfaction and organizational commitment in the Saudi Arabian banking sector. These findings have practical implications. Having high levels of job satisfaction among bank employees will prevent low levels of turnover rate, absenteeism and levels of productivity and increase organizational commitment. HRM practices, on the other hand, help in career development opportunities and hence provide better job opportunities. This study can recommend that to ensure high levels of job satisfaction among employees and enhanced organizational commitment, organizations, especially banks, should emphasize more on HRM practices.Originality/valueThis study could contribute to the literature on HRM, job satisfaction and organizational commitment in the Saudi Arabian banking sector. There is a rapid growth in the banking sector in Saudi Arabia. Therefore, there is an urge for recruiting efficient and experienced human resources (Mizan et al., 2013). This study will contribute to the development of the Saudi Arabian banking sector, which may lead to maintain this sector work effectively that will have a positively impact on the economy of the Saudi society. It also will highlight the nature and importance of the HRM practices for the benefit of the banking sector.


2019 ◽  
Vol 42 (7) ◽  
pp. 797-817
Author(s):  
Tazeem Ali Shah ◽  
Mohammad Nisar Khattak ◽  
Roxanne Zolin ◽  
Syed Zulfiqar Ali Shah

Purpose The main purpose of this paper is to examine the mediating role of psychological capital in the relationship between perceived psychological empowerment and employee satisfaction, normative organizational commitment and turnover intentions. Design/methodology/approach To test the proposed research model, the authors collected field data from seven telecommunication companies located in the Islamabad Capital Territory of Pakistan. Through a two-wave data collection design, a total of 411 participants reported their perceptions about psychological empowerment and psychological capital at Time 1 and their job satisfaction, normative organizational commitment and turnover intention at Time 2. Findings Results supported the hypothesized relationships, showing that psychological capital fully mediates the relationship between perceived psychological empowerment and employee job satisfaction, normative organizational commitment and turnover intention. Research limitations/implications This study relied on cross-sectional data, which does not fully satisfy the conditions of establishing causality. Practical implications Results of this study will help organizations and practitioners to understand the importance of psychological empowerment and psychological capital and how they positively influence organizational performance, including employee job satisfaction, normative organizational commitment and turnover intention. Originality/value Drawing upon the self-determination theory of Deci and Ryan (2000), this study contributes to organizational behaviour literature by proposing and testing psychological capital as an underlying mechanism that can explain the impact of psychological empowerment on employee satisfaction, normative organizational commitment and turnover intention.


2017 ◽  
Vol 36 (9) ◽  
pp. 1137-1148 ◽  
Author(s):  
Taghrid S. Suifan ◽  
Hannah Diab ◽  
Ayman Bahjat Abdallah

Purpose The purpose of this paper is to investigate the effect of organizational justice on turnover-intention via the mediating influences of organizational commitment and job satisfaction. In addition, the study aims at incorporating all four facets of organizational justice (procedural, distributive, interpersonal and informational) in an attempt to test the model in a developing country context. Design/methodology/approach The study targeted employees in the airline industry working for airline companies currently operating in Jordan. A count of 323 questionnaires were directly distributed and completed and returned by employees yielding a response rate of 81 percent. Multiple regression analysis was used to test the hypotheses. Findings The results led to the acceptance of all hypotheses. Most importantly, it was confirmed that both organizational commitment and job satisfaction had a mediating effect on the relationship between organizational justice and turnover-intention. While job satisfaction fully mediated the relationship, organizational commitment only had a partially mediating effect. Originality/value The study took a step beyond the simple linear models typically used in the literature by proposing a more complex one that investigated the mediating role of job satisfaction and organizational commitment. Moreover, the researchers applied this model to a developing country setting in order to bridge the research gap.


2016 ◽  
Vol 34 (5) ◽  
pp. 773-796 ◽  
Author(s):  
Eddy Balemba Kanyurhi ◽  
Déogratias Bugandwa Mungu Akonkwa

Purpose – The purpose of this paper is threefold: first, testing the relationships between internal marketing and employee satisfaction; second, investigating the links between employee satisfaction and perceived organizational performance; and finally, testing the relationship between internal marketing and perceived organizational performance. Design/methodology/approach – Data were collected from 419 employees working in 53 microfinance institutions (MFIs) in Kivu (DR Congo). Data processing was performed using structural equations modeling through LISREL 9.1. Findings – The results revealed that there is a positive and significant relationship between internal marketing and employee satisfaction. The results also revealed that there is a positive and significant relationship between internal marketing and perceived organizational performance. However, no significant relationship between employee satisfaction and perceived organizational performance was identified. Research limitations/implications – There is a need to conduct a large qualitative survey aiming to understand why MFIs apply internal marketing and marketing practices in general. The results from such a study would serve to prepare a global quantitative study, which integrates in the same model internal marketing, external market orientation, employee job satisfaction (EJS), and organizational performance. Practical implications – Results invite MFIs managers to change their mind and focus more on their employees. In fact, employees generate the most cost in general but they can also contribute to sustain growth and profitability. This is possible if they are better rewarded for their efforts. Originality/value – This study links internal marketing, EJS and perceived performance in a sector and country which have been less or not studied in the marketing sector.


2017 ◽  
Vol 29 (1) ◽  
pp. 133-146 ◽  
Author(s):  
Mary Agnes Wambui Kiarie ◽  
Loice C. Maru ◽  
Thomas Kimeli Cheruiyot

Purpose The purpose of this paper is to determine the effect of leader personality traits on employee job satisfaction. A leader personality trait on employee job satisfaction remains a cause of concern in the contemporary business environment. Design/methodology/approach The study employed an explanatory research design to establish the cause-effects between leader personality traits and employee job satisfaction. Path goal theory and Big Five-factor model of personality traits underpinned the study. Questionnaire was used to obtain data pertaining to the model’s constructs. A multiple regression equation model tested the hypotheses. Findings The study showed that leader extraversion; openness to new experiences; emotional stability; conscientiousness and agreeableness have significant effects on employee job satisfaction. The study thus concluded that leaders who portray extraversion; openness to new experiences; emotional stability; conscientiousness and agreeableness enhance employee job satisfaction. Research limitations/implications This study was only limited to leader personality traits and employee job satisfaction; as such further research area could be undertaken in leader personality traits and organizational adaptation to change. Practical implications Leaders need to communicate to employees effectively, listen to their input and feedback, mentoring and empowering them, be innovative and creative, embracing the determination of standards for task performance and be empathetic. Social implications As organizations are exposed to changes, not only to prosper but also to survive in the current dynamic changing environment, leaders must be cognizant of the fact that employee job satisfaction is the bedrock of sustainable organizational performance. Originality/value The paper enhances on how leader personality traits (Big Five-factor model of personality traits) affects employee job satisfaction and performance in organizations.


2017 ◽  
Vol 35 (4) ◽  
pp. 685-713 ◽  
Author(s):  
Charles Blankson ◽  
Seth Ketron ◽  
Joseph Darmoe

Purpose The purpose of this paper is to investigate employment of positioning strategies in the retail bank sector of Sub-Saharan Africa, specifically using Ghana as the study context. In addition, it explores the applicability of western-based typology of positioning strategies in the Sub-Saharan African environment. Design/methodology/approach Six retail banks – three national and three foreign – are studied, each through an in-depth case study method: covert and participant observation techniques; and face-to-face interviews of chief executive officers, marketing managers, and bank branch managers provided data for the study. Findings The results show that the “service” positioning strategy is the most popular strategy employed by retail banks. “Value for money,” “attractiveness,” “brand name,” and “country of origin” positioning strategies are also dominant. “Top of the range” and “selectivity” strategies are minimally pursued by the sample of banks studied. The results reveal that both foreign and national retail banks employ multiple positioning strategies in the face of competition. However, foreign retail banks consistently employ a; large number of strategies relative to national retail banks. This paper supports the applicability of a western-derived set of positioning strategies in the Sub-Saharan African marketplace. Research limitations/implications This study closes a gap in the understanding of positioning, as well as filling the empirical gap in the application of positioning. In addition, it helps resolve a contextual gap of knowledge in Sub-Saharan Africa’s retail banking sector. Originality/value This study responds to Porter (1996), Clancy and Trout (2002), and Knox (2004) for continued empirical research in positioning in service industries and specifically in Sub-Saharan African economies (Coffie, 2014, 2016; Coffie and Owusu-Frimpong, 2014). Moreover, this research adds value to the banking and marketing literatures through a qualitative case study method, which is an important yet overlooked research method (Yin, 2009).


2021 ◽  
Vol 4 (1) ◽  
pp. 67-78
Author(s):  
Atif Ali Gill ◽  
Riaz Hussain Ansari ◽  
Muhammad Waseem Tufail

The organizational commitment of employees plays a vital role in the success of any business. In the era of competition, companies are struggling to retain the employees committed to the organizations. There is a scarcity of research to investigate the factors that influence effective organizational commitment in a developing country. The researcher conducted a survey to collect data from employees working in the banking sector of Pakistan. The present study utilized the convenience sampling method to get responses. A total of 300 questionnaires were distributed, from which 215 responses were received, where 15 questionnaires were found partially filled, which were discarded for further analysis. The 200 questionnaires proceeded for statistical analysis using the partial least square structural equation modeling (PLS-SEM) technique. The software of SmartPLS ver 3.0 was used to analyze the significance of hypotheses. Current research revealed the significant relationship between trust and affective commitment mediated through job satisfaction. The present study provides several theoretical and practical implications by extending social exchange theory and delivering guidelines to banks' human resource departments to build trust among employees, and gauging job satisfaction to increase affective organizational commitment.


2015 ◽  
Vol 33 (7) ◽  
pp. 904-921 ◽  
Author(s):  
Harjit Singh Sekhon ◽  
Dima Al-Eisawi ◽  
Sanjit Kumar Roy ◽  
Adrian Pritchard

Purpose – The purpose of this paper is to develop and tests a service excellence model, thus providing a detailed understanding of the key antecedents of service excellence, from a customer ' s perspective. The model presented in this paper is rooted in cross-disciplinary literature and tested amongst customers of UK retail banking services. Design/methodology/approach – Following a systematic approach to scale development, the paper draws on survey data from 260 consumers of retail banking products, with the data collected on national basis in the UK. Findings – The theoretical framework was evaluated using a structural approach. Of the hypothesised antecedents, innovation has the greatest impact on service excellence while reputation the least, as far as customers are concerned. Research limitations/implications – The research was limited to one research domain, i.e. UK retail banking, and thus it is reasonable to hypothesise that other aspects of service excellence will be more or less relevant for other types of financial services or in other geographic regions. Practical implications – Given the challenges faced by the retail banking sector, there are implications for practitioners because the authors identified the key antecedents of service excellence. The antecedents can be used by practitioners to help demonstrate excellence on their part and they could differentiate what are homogenous services at a time when the retail banks are going through a period of recovery following the crisis within the sector. Originality/value – This work complements the understanding of service excellence and provides insight for scholars and practitioners by modelling services for a specific service sector.


2015 ◽  
Vol 27 (7) ◽  
pp. 1618-1640 ◽  
Author(s):  
Hyun-Woo Joung ◽  
Ben K. Goh ◽  
Lynn Huffman ◽  
Jingxue Jessica Yuan ◽  
James Surles

Purpose – The purpose of this study is to investigate the relationships between internal marketing practices, employee job satisfaction, organizational commitment and turnover intention in the foodservice industry. Design/methodology/approach – The target population was employees who were currently working at a restaurant in the USA. All respondents were recruited from different states for the generalization of the study results. A confirmatory factor analysis validated the measurement model, and subsequently, structural equation modeling tested the proposed model. Findings – Three internal marketing practices – vision, development and rewards – were good indicators for predicting employee job satisfaction, and two internal marketing practices – development and rewards – in addition to job satisfaction were significant predictors for employee organizational commitment. Finally, the findings indicated that job satisfaction and affective commitment had a significant impact on lowering employee turnover intention. Research limitations/implications – In further research, more internal marketing practices – such as employee motivation, customer orientation, sharing information, employee empowerment – can be added to the model to increase employee job satisfaction and organizational commitment. Practical implications – Foodservice operators should focus on internal marketing practices to have satisfied employees who, in turn, are more likely to deliver high service quality to customers. Originality/value – This study has not only extended the influential scope of the internal marketing theory to organizational commitment, but has also proposed the antecedents of organizational commitment (i.e. internal marketing practices and employee job satisfaction) and clarified the relationships among them.


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