Effect of Organizational Culture on Performance of Commercial Banks in Kenya

Abstract

The objective of this study was to investigate effect of organizational culture on the performance of Commercial Banks of Kenya. The study population comprised all the Commercial Banks in Kenya as at 31st July 2019, which stood at 41. Descriptive and inferential statistics was used to analyze data collected. The study findings show that 28.6 % of the banks had been in operation for 10 years. Over 71 % of the institutions had been in operation for greater than 10 years in Kenya. Measurements on organizational culture indicate serious employees concern for one another and individual risk taking (Means= 4.675 and 4. 656 respectively). The presence of mentoring was the heavies supported statement (Mean= 4.765). The high support provided to both mentoring and employee concern for one another are consistent with literature. The descriptive statistics on performance show that there was a strong agreement on all statements on performance except for enhancement of the bank’s performance (Mean = 3.567). The regression ANOVA indicate presence of statistically significant relationship between organizational culture and performance. The findings are consistent with the assumptions of the resource-based view in which resources give rise to greater competitiveness. Conclusions were made based on the findings and recommendation both for practice and further studies also proposed.