Strategic Attributes and Organizational Performance: Toward an Understanding of the Mechanism Applied to the Banking Sector

Honglei Tang; Zeeshan Rasool; Muhammad Sarmad; Ammar Ahmed; Umair Ahmed

doi:10.3389/fpsyg.2022.855910

Strategic Attributes and Organizational Performance: Toward an Understanding of the Mechanism Applied to the Banking Sector

Front Psychol. 2022 May 12:13:855910. doi: 10.3389/fpsyg.2022.855910. eCollection 2022.

Authors

Honglei Tang¹, Zeeshan Rasool^{2

3}, Muhammad Sarmad⁴, Ammar Ahmed⁵, Umair Ahmed⁶

Affiliations

¹ School of Economics and Management, Huzhou University, Huzhou, China.
² NFC Institute of Engineering and Technology, Multan, Pakistan.
³ School of Economics and Management, Shaanxi University of Science and Technology, Xi'an, China.
⁴ Riphah School of Leadership, Riphah International University, Islamabad, Pakistan.
⁵ Department of Management Sciences, MNS University of Engineering and Technology, Multan, Pakistan.
⁶ Department of Management Sciences, Arab Open University, Manama, Bahrain.

Abstract

The study examines and theorizes the importance of strategic attribute constructs (strategic orientation, organizational culture, and organizational internal market orientation) as applied to Pakistan's banking sector by identifying their roles in enhancing organizational performance and the mediating effect of organizational commitment. The current study adopted quantitative research designs and methods to determine structural relationships between the proposed constructs. A total of 10 hypotheses were tested underpinned by the Resource-Based View of the Firm and Social Exchange theories. The strategic attributes studied were significantly and positively related to, and enhance, organizational performance if the banks: (1) focus on strategic positioning, (2) fostering a strong organizational culture, (3) strategize internal marketing practices, and (4) boost organizational commitment. The findings supported the mediating role of organizational commitment between strategic attributes and organizational performance. This study contributes to existing literature and supports prior research while filling in gaps in the literature concerning developing countries.

Keywords: organizational commitment (OCO); organizational culture (OCU); organizational internal market orientation (IMO); organizational performance (OP); strategic orientation (SO).