The Impact of Organizational Capabilities on Organizational Performance: Empirical Evidence from Banking Industry of Pakistan

The main purpose of conducting this study is to test the relationship among organizational commitment, high performance work systems and job stress; and their impact on the organizational learning capabilities of the banking sector in Pakistan. The data was collected through a structured questionnaire from 302 bank employees. These banks comprised of commercial banks only that were situated in Lahore Pakistan. The Structural Equation Modeling was used to analyze the data. The main findings showed that workload left an inverse impact on the organizational performance. Also, continuance commitment did not hold any importance in the results. However, high performance work systems showed a significant positive impact on the organizational learning capabilities and the organizational performance. This study will be useful for the internal and external stakeholders, especially the managers, in order to identify attitude of employees and their behavior that may improve their performance. Due to time constraint this study was limited to a cross-sectional design only involving the collection of data at one specific time period. However, no such study has been found in Pakistan yet which provides unique insights regarding the intrinsic factors that determine an organizational performance.