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Abstract:
The banking industry plays an important role in the development of a country. For sustainable economic growth, a country must have a strong banking sector. However, there have been challenges in robustness of banks' performance as a result of the current operating environment. This has resulted to loss of jobs, locking in of customer's deposits, erosion of shareholder,s wealth as well as a slowdown in economic growth of their countries. To enable optimal operation of banks' within the current changing environment, it is prudent for management of the banks' to study their strengths which may be a competitive advantage. Organization culture has been selected for this study as one of the strengths that an organization can utilize to exploit the opportunities in the environment and therefore boost its performance in line with stakeholders'expectations. This study sought to determine the influence of market culture on performance of the listed banks in Kenya. The study is of great significance to the management of the Banks in that they will know whether market culture can give them an edge to enhance their performance. The relationship between culture and performance has been studied by previous scholars. From the existing literature, organizational culture has been operationalized in different ways. This study adopted a different paradigm of the Competing Values Framework (CVF). Therefore, the independent variable for the research was one of the CVF culture namely market culture. On the other side, the dependent variable for the research was the organization performance which was measured in both qualitative and quantitative ways using return on assets, customer experience ratings and staff satisfaction index. Strategic leadership was taken as the moderating variable between the relationship of market culture and performance. This study adopted a descriptive research design. The population of the study was composed of all the licensed and listed commercial banks in the Nairobi Securities Exchange (NSE). For the study, multi-stage sampling was deployed and convenience and purposive sampling designs were used to come up with a sample of 100 respondents who were interviewed using questionnaires. Secondary data on the financial results was collected using data collection sheets. The data was analyzed for descriptive statistics and inferential statistics. Market culture emerged as a strong predictor of the banks performance. Strategic leadership was found to have a significant moderating effect on the relationship between market culture and performance. The key findings were that market culture has a significant influence on the banks performance. The study recommends that banks should focus on providing specific customer's need through research and avoid general products and services. The study also recommends that banks should be market led, innovative and customer focused.
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