The performance of commercial banks : The role of organizational culture as a mediator and external environment as a moderator

Business environment has become very dynamic and highly competitive. This is occasioned by globalization and massive developments in the technological world, especially advancements in Information and Communications Technology (ICT). As a result, business organizations are faced with a lot of challenges. To cope with the
challenges and achieve superior performance, business organizations need to be entrepreneurially inclined, market-oriented, and strategically positioned. Similarly,
they need to develop and nurture appropriate and strong organizational culture for them to be entrepreneurially inclined, market-oriented, and strategically positioned. It is against this background that this study investigated the mediating and moderating effects of organizational culture and external environment on the relationship between corporate entrepreneurship, market orientation, strategic orientation, and performance of commercial banks in Nigeria. Data were collected from 297 bank managers through a self-reported questionnaire and data analysis was carried out using SPSS version 19. Findings revealed that corporate entrepreneurship, market orientation, and strategic orientation were positively and significantly related to organizational
performance. Further analysis indicated that organizational culture of teamwork mediated the relationship between corporate entrepreneurship, market orientation,
strategic orientation, and organizational performance. Also, data analysis showed that
external environment (competitive intensity) did not moderate the relationship between corporate entrepreneurship, market orientation, strategic orientation, and organizational performance. Thus, it was concluded that although corporate entrepreneurship, market orientation, and strategic orientation were positively and significantly related to organizational performance, even in the face of competitive challenges, however, the effects of corporate entrepreneurship, market orientation,
and strategic orientation on organizational performance will be greater if organizations develop and continuously nurture strong organizational culture of teamwork.