The relationship between contingency and institutional factors and organizational performance through the performance measures of Libyan commercial banks

Organisational performance has a significant impact on the development and economic growth in any country. Libyan commercial banks suffer from poor performance that affects their contribution to Gross Domestic Product (GDP). Therefore, this study was conducted to examine the factors that influence o...

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Bibliographic Details
Main Author: Elnihewi, lsmail Mohamed
Format: Thesis
Language:English
English
Published: 2015
Subjects:
Online Access:http://etd.uum.edu.my/5388/
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Summary:Organisational performance has a significant impact on the development and economic growth in any country. Libyan commercial banks suffer from poor performance that affects their contribution to Gross Domestic Product (GDP). Therefore, this study was conducted to examine the factors that influence organisational performance. Specifically, it investigated the relationships between contingency factors (business strategy, organisational structure, and competition), institutional factors (coercive and normative pressures), and organisational performance. This study also examined the mediating effects of performance measures on the relationship between contingency and institutional factors, and organisational performance in Libyan commercial banks. To achieve these objectives, sixteen hypotheses were formulated based on previous studies and two theories were adopted: the contingency theory as the underpinning theory and institutional theory as supportive theory. In order to examine these hypotheses, data was collected from branch managers in Libyan commercial banks that constituted the population of this study. While the initial sample size of the study was 217, only 154 questionnaires were usable, and the data was subjected to tests of variance, descriptive statistics, factor analysis, correlations, and multiple regression analysis. The results revealed that business strategy, organisational structure and coercive pressures have a positive influence on organisational performance in Libyan commercial banks. The results also showed that competition and normative pressures have a negative influence on organisational performance. This study is expected to make useful contributions by providing insight into performance measures in Libyan commercial banks, and into factors that affect their performance. More importantly, this study opened the possibilities for further research on performance of Libyan banks, and in other developing countries, and worldwide.