Shared values and organizational effectiveness: a study of the Nigerian banking industry

Abstract

Purpose – The purpose of this paper is to examine the extent to which shared values influences organizational effectiveness and the extent to which shared values influences profitability, productivity, and market share. Design/methodology/approach – The correlational study adopted a cross-sectional survey design. Research questionnaires were administered; interviews were held with managers in the organizations studied. A total of 388 managers were randomly drawn from a population of 13,339 managers of all the 24 banks in Nigeria. The independent variable, “shared values” was measured by coordination and integration, agreement, and core values. The dependent variable, organizational effectiveness was measured by profitability, productivity, and market share. The measures used a five-point Likert scale ranging from 1-strongly disagree to 5-strongly agree. Spearman's rank correlation statistical tool was used to test the hypotheses. Findings – The result (ρ=0.555, p<0.05) (see Table II) shows a significant positive relationship between shared values and profitability. The result (ρ=0.504, p<0.05) (see Table III) shows a significant positive relationship between employee involvement and productivity. The result (ρ=0.359, p<0.05) (see Table IV) shows a positive relationship between employee involvement and market share. There is a significant positive relationship between shared values and organizational effectiveness. Research limitations/implications – The results cannot be generalized because the study was carried out only in the banking industry. Not all the questionnaires given out were retrieved. Some respondents were reluctant to give out information about their organizations because of fear that such information will get to their competitors. Relevant literature on the topic of African origin were scarce, thus most of the literature reviewed was from Europe and America. Practical implications – The results imply that increase in the level of shared values in organizations will enhance profitability, productivity, and market share. This means that “shared values” is associated with organizational effectiveness. Originality/value – The study provides increased understanding, prediction, and appreciation of human behaviour. It enables us analyse the relationship that exist between shared values and organizational effectiveness. The study significantly enhances the body of knowledge in this area of management as it provides reliable empirical results that can be used by scholars and practitioners. It will also help to alert managers on the implications of cultivating a culture of sharing values in the organization that can serve as a competitive advantage. The study will be a challenge to further research because of its findings.