Janerose S. Omondi1, Gladys Rotich2, Paul Katuse3 and Thomas Senaji4

<1PhD Candidate, Jomo Kenyatta University of Agriculture and Technology (JKUAT), Nairobi - Kenya

<2Lecturer, Jomo Kenyatta University of Agriculture and Technology (JKUAT), Nairobi - Kenya

<3Lecturer, United States International University – Africa (USIU-A), Nairobi - Kenya

<4Lecturer, Kenya Methodist University (KeMU), Meru - Kenya

CITATION: Omondi J.S, Rotich G, Katuse P, & Senaje T,.(April, 2017). The Relationship between Organization Culture and Performance in Commercial Banks in Kenya: The Mediating Role of Innovation: International Journal of Economics and Finance (IJEF), VOLUME 4 (VI), 1-66. ISSN 2105 6008.

ABSTRACT

In a knowledge economy most business processes are viewed through their knowledge capability. However, the real challenge is in developing an adequate system of knowledge management in firms that will give them a competitive edge. The question is; how do firms develop knowledge capability, and what is the effect of strategic knowledge capability on a firm’s performance? This research sought to find out the relationship between strategic knowledge capability and performance in commercial banks in Kenya with specific interest on the mediating role of innovation. Specifically, the study sought to find out how organizational culture impacts on the performance of commercial banks in Kenya. The study employed the social survey methodology of study, using questionnaire as the main tool for data collection. To actualize this, data was collected using a single questionnaire distributed to each of the Chief Executive Officers of all forty-three banks. A drop and pick later procedure for questionnaire administration was used to distribute them. Data gathered was then analyzed quantitatively using both descriptive and inferential statistical tools; specifically Analysis of Variance (ANOVA) and regression analysis, with the finding that organization culture had no significant influence on both innovation and performance in commercial banks in Kenya. The conclusion that the strategic knowledge capability defined by organization culture had no significant effect on the performance in commercial bank was reached. View Full PDF Version