Organizational Performance in Banking Sector of Pakistan: Assessing the Impacts of Strategic Orientation and Organizational Culture

Abstract

This study investigated the moderating effect of organizational culture on the relationships between organizational strategic orientation and organizational performance. Data were collected from 281 middle managers of the banking sector in Pakistan. Partial least squares structural equation modelling (PLS-SEM) was used to test the hypotheses. The results showed that strategic orientation and organizational culture have significant and positive impacts on the performance of the organization. Unexpectedly, organizational culture does not moderate the relationships between strategic orientation and performance. The findings of the study show that organizations that are strategically positioned as well as have a strong culture can be high-performing organizations. As there is a clear lack of research on the moderating effect of culture on the relationships between an organization’s strategic orientation and organizational performance, the current study fills this gap. Likewise, the present study highlights both practical and theoretical implications for the banking sector in Pakistan.