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Investigating the Impact of Organizational Commitment on the Financial Performance in Indian Banking Sector

융합경영연구 / The Journal of Economics, Marketing and Management, (E)2288-7709
2017, v.5 no.4, pp.29-38
https://doi.org/https://doi.org/10.20482/jemm.2017.5.4.29
Naghshbandi, Nader (Department of Accounting- Hakim Nezami institution of higher education at Quchan-Iran)
Chouhan, Vineet (School of Management, Sir Padampat Singhania University)
Yousefpoor, Fatemeh (Islamic Azad University-Shirvan Branch-IRAN)
Mohammadi, Shaban (Department of Accounting- Hakim Nezami institution of higher education at Quchan-Iran)
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Abstract

Organizational commitment (OC) is one of the most important attitudes and/or organizational variables. It is one of the important factors for increasing organizational performance and consequently it has a significant impact on productivity enhancement. Study of behavior in the workplace due to the great importance of manpower compared to other resources within the organization is of great importance too. OC is a psychological state which represents kind of desire, a need and a requirement for continuing employment in an organization. It is considered as one of the most influential factors in getting success and competitive advantage in today's organizations. Investigating effect of financial and non-financial variables on financial performance for a long-term has engaged the minds of researchers. Intensification of competition in markets has increased importance of recognizing competitive advantage patterns and their effect on financial performance (FP).This research conducted to provide a better understanding for people as well as for aggregation of a research subject OC and FP is compared in Indian banking sector by taking sample of 2 public and two private banks the correlation between the OC and FP and the results included a positive and significant correlation. Desired FP to increase wealth is an essential and obvious issue. According to the issued subjects, today, commitments and their impact on FP of companies have become increasingly important. In Indian banks the correlation between the OC & FP were found significant.

keywords
organizational commitment, financial performance, market value, organizational performance

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