Corporate Culture and Employee Motivation in Ethiopian Banks: ‎Using Denison’s Model

  • Authors

    https://doi.org/10.14419/xg9a7d79

    Received date: November 17, 2025

    Accepted date: December 16, 2025

    Published date: December 28, 2025

  • Corporate Culture; Employee Motivation; Denison Model; Commercial Banks; Structural ‎Equation Modeling

  • Abstract

    Purpose: Despite the crucial role of corporate culture in shaping employee behaviour, many ‎commercial banks in Ethiopia continue to experience declining motivation, inadequate staff ‎engagement, and cultural misalignment that hinder performance. This study investigates the ‎influence of essential cultural dimensions—involvement, consistency, adaptability, and ‎mission—on employee motivation within specific Ethiopian commercial banks. The main ‎problem found is that there isn't enough empirical data showing how much organisational ‎culture affects employee motivation in the Ethiopian banking sector, where quick changes, ‎competitive challenges, and structural reforms require a highly motivated staff. ‎Design/Methodology/Approach: A quantitative research design was utilised. A structured ‎questionnaire was used to collect data from 353 employees. We used Exploratory Factor ‎Analysis (EFA) and Confirmatory Factor Analysis (CFA) to test the measurement model. We ‎also used Structural Equation Modelling (SEM) to look into the suggested linkages between ‎culture and motivation. Findings: The findings indicate that all four cultural variables exert a ‎significant and positive influence on employee motivation. The structural model elucidated ‎‎51.0% of the variance in motivation, signifying that participative, coherent, adaptive, and ‎mission-driven cultural practices substantially enhance both intrinsic and extrinsic motivation ‎among employees. Practical Implications: The results show that commercial banks need to ‎create a culture that is supportive and encourages participation in order to keep employees ‎engaged and doing well. Leaders must improve employee engagement, strengthen shared ‎values, improve internal communication, and make sure that the organization's mission and ‎workers' work goals are still in line with each other. Originality/Value: This research ‎experimentally substantiates the Denison organisational culture framework within the ‎Ethiopian banking industry. It offers innovative perspectives on the strategic impact of ‎culture on motivation in financial institutions in emerging nations, thereby enriching both ‎organisational behaviour theory and practical banking management‎.

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    Gezahegn Badeg, D., & Murthy, K. V. R. . (2025). Corporate Culture and Employee Motivation in Ethiopian Banks: ‎Using Denison’s Model. International Journal of Accounting and Economics Studies, 12(8), 897-906. https://doi.org/10.14419/xg9a7d79