The association between organizational culture, innovation capability and firm’s performance at Ghana Commercial Bank Limited and Barclays Bank Ghana Limited.
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Date
2017-11
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KNUST
Abstract
The banking sector in Ghana is increasingly competitive. Banks are therefore expected to constantly improve their innovativeness as a way of maximising performance. Fortunately, organisational culture can be shaped to impact both
innovation and performance. This study therefore examined the association between organisational culture, innovation capability and performance across two commercial banks in Ghana. A quantitative research design was adopted in this study. The study‟s population was employees at the head offices of Ghana Commercial Bank Limited (GCB) and Barclays Bank Ghana Limited (BBGL). All 161 and 109 employees from GCB and BBGL respectively who met some selection criteria were made to participate in this study. A self-reported questionnaire was used to collect data. Descriptive statistics, Pearson‟s correlated test, T-test, and Confirmatory Factor Analysis were used to analyse the data through Amos 8 software. Data analysis confirms that at both banks organisational culture makes a significant positive effect on innovation capability and bank performance. Innovation capability also makes a significant positive effect on bank performance. This relationship is however stronger at GCB on the basis of producing a total variance of 68.3% and a lower Alkaike Information Criterion (AIC) of 43.22 in the factor analysis. In addition, the organisational culture of the two banks have no significant difference, but BBGL has a higher level of innovation capability and bank performance as compared to GCB. Innovation capability was found to partially mediate the relationship between organisational culture and bank performance. The study therefore concludes that improving organisational culture can increase both the level of innovation and bank performance. In view of the partial mediation, innovation capability is not a necessary requirement for organisational culture to impact bank performance.
Description
A Thesis Submitted In Partial Fulfillment Of The Requirements For The Degree Of Master Of Business Administration (Strategic Management And Consulting).