Moderating effect of Service Quality on the relationship between Corporate Culture and Organizational Performance (A Case Of Jubba Airways Limited)

Abstract

more so since the emergence of low-cost carriers (LCCs). Airlines that prioritize building and nurturing a positive Organizational performance are more likely to succeed in delivering exceptional service quality and maintaining a competitive edge in the industry. In recent years, there has been a lot of turbulence in the aviation business. The purpose of the proposed research study was to explore organizational performance as moderated by service quality at Jubba Airways Limited. The specific objectives were to determine the effect of clan culture, adhocracy culture, market culture, and hierarchy culture on organizational performance at Jubba Airways Limited. The following theories served as the foundation for this study: Contingency Theory, Institutional Theory and Stakeholder Theory. Explanatory research design was employed. A closed-ended questionnaire was used to collect primary data. A total of 310 personnel formed the target population and a sample size of 175 respondents was selected using proportional sampling for the period August-October 2023. The study used statistical techniques like descriptive analysis, factor analysis, Cronbach's Alpha, and correlation analysis. Findings were presented in figures, tables and descriptive summaries. Regression showed that the research findings revealed that clan culture (β1 = 0.456, p = 0.000<0.05), adhocracy culture (β2 = 0.346, p = 0.000<0.05), hierarchy culture (β3 = 0. 0.198, p = 0.003<0.05) had positive and significant effect on organizational performance at Jubba Airways Limited. However, market culture had insignificant effect on organizational performance at Jubba Airways Limited (β4 =-0.026, p = 0.675>0.05). Hierarchical regression results showed that service quality had significant moderating effect on the relationship between clan culture- organizational performance (β = 0.97, p < 0.05, R 2Δ = 0.026), adhocracy culture - organizational performance (β = 0.72, p < 0.05, R 2Δ = 0.025) and market culture- organizational performance (β = 0.51, p < 0.05, R 2Δ = 0.020). However, service quality had insignificant moderating effect on the relationship between hierarchy culture organizational performance (β = -0.01, p > 0.05, R 2Δ = 0.00). Thus, the study conclude that clan culture, adhocracy culture and hierarchy culture are key enhancers of organizational performance at Jubba Airways Limited. Therefore, the study recommends that management of airlines showed implement effective management strategies should focus on encouraging and sustaining key elements of clan culture, such as team building activities, cross-functional collaboration, and open communication. Management should also proactively promote flexibility, innovation, and a culture that encourages calculated risk-taking, prioritizing stability, reliability, support within the organization and take into account the varying employee perceptions and make concerted efforts to establish a consistent and high-quality service standard that seamlessly aligns with the organizational culture