The impact of organizational culture on cognitive empowerment in selected banks in Colombo District in Sri Lanka

Abstract

Cognitive empowerment plays a critical role in the banking sector in Sri Lanka as well as in the global financial industry which may enhance customer experience, efficient operations, effective decision making, innovations as well as adaptability while gaining an edge over competition. This study investigates how organizational culture (Clan, Adhocracy, Market, and Hierarchy) can enhance cognitive empowerment of bankers in Sri Lanka. A quantitative approach was used whereas, initially a preliminary investigation was conducted to gain a general understanding of the culture of few leading banks in Sri Lanka and eventually cascading down to four banks that covers all four cultures. Further, 239 responses were received through a structured questionnaire from four leading banks covering all four cultures. Results showed higher levels of cognitive empowerment in entities with strong clan, adhocracy, and market cultures, while higher hierarchy culture was associated with lower levels of cognitive empowerment.