EXAMINING THE EFFECT OF ORGANIZATIONAL LEADERSHIP ON ORGANIZATIONAL PERFORMANCE: THE MODERATING EFFECT OF ORGANIZATIONAL CULTURE
EXAMINING THE EFFECT OF ORGANIZATIONAL LEADERSHIP ON ORGANIZATIONAL PERFORMANCE: THE MODERATING EFFECT OF ORGANIZATIONAL CULTURE
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Date
2022
Authors
APPIAH, EDWARD ASAMOAH
7201790007
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Abstract
In today’s fiercely competitive banking industry in Ghana, banks require the necessary set of leadership skills to promote innovation in order to survive within the industry. However, many leaders in the industry have failed to grasp what motivates followers to change their behavior. This study therefore seeks to investigate the moderating role of organisational culture in the relationship between organizational leadership and organizational performance in the banking industry in Ghana. The quantitative study involved the survey of 324 staff of ten selected commercial banks in Kumasi and the data analysed using hierarchical regression modeling method. The result reported transformational leadership style as the dominant in the banking industry. Transformational, transactional, democratic and bureaucratic leadership styles were all found to positively influence the performance of the banking institutions. Democratic leadership produced the highest effect on the performance of the banking institutions and subsequently followed by the transactional leadership style. Nonetheless, charismatic leadership had no significant effect on the performance of the banking institutions. The dominant culture of the banking institutions was the clan and hierarchical cultures. The cultural environment of the banking institutions positively influenced the performance of the banking institutions in the industry. Marketing culture produced the highest effect on the performance of the banking institutions. The dominant cultures, hierarchical and clan cultures, nonetheless, produced no significant effect on the performance of the banking institutions in the industry. The cultural environment was further revealed to positively moderate the effect of transformational, transactional, democratic and bureaucratic leadership on the performance of the institutions. The form moderation was quasi-moderation. Based on these findings, the study recommends promotion of democratic and transactional leadership styles and marketing orientation.