Title:
EFFECTS OF ORGANISATIONAL CULTURE ON FINANCIALPERFORMANCEIN NIGERIAN BANKING SECTO

Authors:
Dauda, A. Ibrahim and Gimba, Felix Maiangwa

Abstract:
This study attempts to determine the effects of organisational culture and financial performance in Nigerian banking sector and to investigate its influence on banks financial performance. It uses both the primary and documentary data. Questionnaires were administered to randomly sampled staff and customers of the various banks in the two randomly selected geographical zones; one each from the northern and southern parts of Nigeria. The questionnaire sought for perceptions of the sampled bank’s staff and customers. Denison organisational culture model which include the following four essential elements: (a) adaptability, (b) mission, (c) consistency, and (d) involvement was adopted. The annual reports and accounts of these banks were used as the data source for financial performance variables (Return on Assets and Return on Equity). The regression analysis was used as the tool for data analysis. Results showed a significant and positive effect of adaptation on Return on Assets and a significant negative effect of mission on Return on Assets. On the other hand both involvement and consistency, positively and significantly affects Return on Equity. While concluding that organisational culture is multi – dimensional, hence affects financial performance of the banking sector, the study recommends the implementation of such practices that could foster culture strength and adaptation in order to maintain those core social values such as: customer satisfaction, corporate identity and image, integrity and ethics, social responsibility and corporate citizenship, respect and trust, quality and excellence, and teamwork and cooperation within the organization that could influence relationship with customers so as to create sustained value.