The Perceived Effect of Organizational Culture on Customer Loyalty through Customer Satisfaction in the case of Selected Private Commercial Banks

Abstract

The purpose of the present study was to investigate the perceived effect of organizational culture on customer’s satisfaction and loyalty in the Case of selected Awash International Bank branches established in Dire Dawa. Descriptive and explanatory research design and mix quantitative and qualitative research approached were employed. Using convincing sampling. 357 customers of AIB were participated. The descriptive result of the organizational culture revealed out that, the respondents were moderately agreed with mission (score mean=3.09); agreed with consistency, adaptation, involvement (3.95, 3.80 and 3.60 score means respectively). The Amos for the SEM result revealed that, the probability of getting a critical ratio in absolute value is found significant different from zero, revealed the regression weight for mission, adaptation, consistency and involvement in the prediction of satisfaction is significantly different from zero at the 0.001 level (two-tailed). The regression weight for mission, consistency, adaptation, involvement and satisfaction in the prediction of loyalty is not significantly different from zero at the 0.05 level (two-tailed). And, the regression weight for satisfaction in the prediction of loyalty is not significantly different from zero at the 0.05 level (two-tailed). Finally the study recommended that, AIB is needed to revise the items incorporated under tangibility and empathy.