The Effect of Cultural Norms and Values on Virtual Organizations' Performance in Nigerian Banking Sector
International Business and Management
This paper examines the effect of cultural norms and values on the performance of virtual organizations of selected Nigerian banking sector. Virtual organization is a collection of geographically distributed, functionally and/ or culturally diverse entities that are linked by electronic forms of communication and rely on lateral, dynamic relationships for coordination. The effect of cultural norms and values in the virtual organizations as a result of individual differences may impede
... ay impede organizations' performance in Nigerian banking sector. In carrying out this investigation, three research objectives and three research questions were formulated along side with three research hypotheses. Data were reviewed. The main instrument for data collection was questionnaire designed for all level of management staff. The data was analyzed using Z-Test. The result of the study showed that cultural norms and values impact significantly and negatively on virtual organizations' performance. Regional and cultural differences also impact on the effects and consequences of virtual organizations. Alliances among firms from the same country could be less costly because they know their own culture and way of working. For this reason, monitoring each other is less and they spend less for this activity. High-context cultures are strongly driven by well-defined relationships between individuals or organizations and that, managers in low-context cultures tend to evaluate a state of affairs by facts that are immediately visible before them. Special issue makes an important advance in the adoption of organizational value for virtual organizations. Practical prescriptive statements about how to manage individual differences for virtual organizations should be developed to achieve the kinds of scientific knowledge required. The influence of cultural factors on virtual interaction deserves attention due to the importance of culture building. Organizations should build a strong organizational culture to enhance its success. Also, members of modern day organizations should facilitate effective and efficient cultural value-based relationship to enhance its capital base and remain competitive in today's turbulent market place.