Organizational Culture and Organizational Performance: Investigating the Mediatory Role of Leadership in the Banking Sector of Pakistan

Abstract

The revolution of IT has increased the competition manifold, consequently enforcing the businesses to target international customers belonging to different culture. Therefore, the current study investigates the relationship between organizational culture and organizational performance. It goes one step ahead and also measures the mediatory role of leadership in the relationship between organizational culture and organizational performance, in the Banking sectors of Pakistan. The instruments used to collect the data regarding organizational culture were developed by Denison and Mishra (1995), organizational performance was developed by Qureshi, (2010) and Leadership was developed by Sergiovanni, Metzeus and Burden (1969). The data was collected through a questionnaire from the banking sector of Pakistan by using convenient sampling technique. SPSS version 20 was used to analyze the results after testing the reliability. Regression analysis was performed to measure the said relationship between the study variables. Findings indicated that organizational culture has a significant and positive impact on performance of the banks. Further the study also evidenced that leadership partially mediates the relationship between organizational culture and banking performance.