Strategic Orientation and External Environment on Organizational Commitment

Abstract

Aims of this study is to investigate the impact of the dimensions of strategic orientation (i.e. customer orientation, competitor orientation and interfunctional coordination) and the aspects of external environment (i.e., market turbulence and competitive intensity) on organizational commitment in the agricultural bank in AL-Qadissya governorate in Iraq. Materials and methods -To achieve the aim the data collected through questionnaire survey applied to 54 employees in various departments of the bank. The data analysis performed by using SPSS (version 20) and R program. Results -Statistical findings revealed there is a significant relationship between competitor orientation, interfunctional coordination, competitive intensity and organizational commitment. There is no significant relationship between market turbulence, customer orientation and organizational commitment. Conclusion - These findings introduce useful views and conclusion for the management to take into account for developing organizational commitment among their employees. According to the study, all the dimensions of strategic orientation and influences of external environment to increase organizational commitment could enhance findings. Besides, findings have significant implications for a bank’s strategies to develop organizational commitment and to uncover the influences of market turbulence and competitive intensity. Managers should take interest in the role of strategic orientation besides external environment to improve organizational commitment. Managers should also develop a robust culture which reflects organizational commitment in order to ensure the survival of the bank and its growth when facing competitors and overcoming any challenges.