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

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.