Organizational Factors and Organizational Performance: A Resource-Based view and Social Exchange Theory Viewpoint

Abstract

To compete with the market challenges, organizations including the banking organizations are concerned to enhance their organizational performance. Considering this phenomenon, this study proposes the conceptual framework representing the organizational factors namely, strategic orientation, organizational culture and organizational commitment influencing the organizational performance. Overall, five research propositions have been framed grounded on the relevant review of the pertinent literature and focused on the vision and current situation of the banking sector of Pakistan. This study also attempted to highlight the crucial role of strategic orientation and organizational culture that work as important organizational factors in implementing the organizational strategies and influence the organizational commitment, ultimately enhances the organizational performance. The proposed framework is underpinned by the resource-based view and social exchange theory. In addition, this study provides a better understanding of the underlying concepts and offer very useful insights for further research in this regard and also for bank management to relook at these factors and its implementation to enhance organizational performance.