The Influence of Organizational Culture and Market Orientation on Performance of Microfinance Institutions in Kenya

Abstract

The objective of our study is to assess the influence of organizational culture and market orientation on performance. The population of the study comprise microfinance institutions that are members of the Association of Microfinance Institutions (AMFI) in Kenya. We used descriptive cross-sectional survey design. We collected primary data using structured questionnaire. We test our hypotheses through regression analysis. Our results demonstrate that organizational culture significantly and positively influence variations in performance. The partial mediation effect of market orientation on the relationship between organizational culture and performance was confirmed. The complimentary effect of organizational culture on market orientation implies that organizations need to spend more resources in nurturing market orientation to create sustainable competitive advantage through delivery of superior customer experience. We conclude that the influence of organizational culture and market orientation on performance is more plausible for mature industries regarded as diverse in terms of customer needs.

An environmental perspective extends market orientation: Green innovation sustainability

“…This study includes an overview of related literature, including early MO research on connections between MO and firm performance (e.g., Joseph & Francis, 2015; Yaprak, Tasoluk, & Kocas, 2015) and innovation (e.g., Grinstein, 2008; Tajeddini, Trueman, & Larsen, 2006). Among the many contributions, the important works of Kohli and Jaworski (1990) and Narver and Slater (1990) are acknowledged.…”

Organizational culture and Job performance in Microfinance Firms: A study of Yangon

“…Numerous researches evidence the influence of organizational culture on firm performance as a consequence of people's behavior since organizational culture create an expectation for employees to behave in a certain desired way. Several studies have linked the organizational culture with the different aspects of organizational performance (Joseph & Kibera, 2019;Oberföll, Adame, & García, 2018;Ahmed & Shafiq, 2014;Ogbonna & Harris, 2000). Ogbonna and Harris (2000) examined the relationship between organizational culture and performance of registered British companies with the moderating effect of leadership style.…”

“…Although several empirical studies have been done for the impact of organizational culture on employee performance (Joseph & Kibera, 2019;Oberföll, Adame, & García, 2018;Ahmed & Shafiq, 2014;Ogbonna & Harris, 2000) there is a gap to be fulfilled in MFIs in Myanmar. Therefore, this paper is an attempt to explore the employee perception on organizational culture with Hofstede's renowned five dimensions and to examine how cultural dimensions affect the job performance of employees in MFIs in Yangon.…”

The Relationship between Organizational Culture and Organizational Commitment

“…Organizational commitment is considered a significant issue, especially in management organization, because organizational commitment is related to organizational competiveness and profitability (Abdullah & Ramay, 2012). Organizational culture has been considered a determinant of business success (Joseph & Francis, 2015) and an indicator of organizational performance (Deshpandé & Farley, 2004). The increasing importance of economy and the increasing number of born global companies make it useful to study how they achieve this huge success (Zhang & Tansuhaj, 2007).…”