The Moderating Effect of Organizational Culture on the Relationship Between Total Quality Management, Entrepreneurial Orientation and the Performance of Banks in Yemen

The main purpose of this study was to investigate the moderating effect of organizational culture (OC) on the relationships between Total Quality Management (TQM), Entrepreneurial Orientation (EO) and the organizational performance (OP). However, this study was greatly motivated by the inconsistent findings in the contemporary literature regarding the relationships between TQM, EO and the organizational performance. Due to these inconsistencies, a new research stream emerged which suggests investigating the effect of third variable that may better explain the nature of these links. In the relevant literature, many theories have emphasized the necessity to establish the fit between organizations and intended strategies as the first and key success factor. Due to the acknowledged importance of OC as a critical variable for strategy implementation, this study integrated many theories such as the contingency theory and organizational change theory and get inspired by the congruence model to study the effect of organizational culture (OC) on successful strategy implementation. Due to the relative small population, this study targeted the entire population of branches to get the number of respendents that best represent the context of the study. Of 287 questionnaires distributed, using the self- administered mechanism, 201 questionnaires representing a response rate of 70% were returned and further analyzed. In fact, this study followed a rigorous process to establish the construct validity of the measure by employing EFA as well as CFA using both SPSS and AMOS statistical software packages. The findings of this study revealed that TQM and EO were significant predictors of organizational performance. This study, however, supported the premises of contingency theory, organizational change theory and the congruence model confirming the importance of supportive OC for any successful strategy implementation. These findings, therefore, strongly suggested that supportive OC should be developed in prior to any strategy implementation planning