The influence of organizational climate, incentives and knowledge sharing on misconduct and risk-taking in banking

This study aims to establish whether a focused type of organizational climate, misconduct and risk climate (M&R climate), contributes to preventing misconduct risk and excessive risk-taking in banking. It also explores the effects on the relationship between organizational M&R climate and pe...

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Bibliographic Details
Published in:Risk management (Leicestershire, England) England), 2022-03, Vol.24 (1), p.55-80
Main Authors: Fernández-Muñiz, Beatriz, Montes-Peón, José Manuel, Vázquez-Ordás, Camilo José
Format: Article
Language:English
Subjects:
Banking
Banking industry
Banks
Behavior
Compensation
Corporate culture
Cultural capital
Economics and Finance
Employees
Finance
Incentives
Influence
International finance
Knowledge sharing
Measurement
Misconduct
Multivariate statistical analysis
Organizational aspects
Organizational climate
Organizational performance
Original Article
Retail banking
Risk
Risk Management
Risk taking
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Summary:This study aims to establish whether a focused type of organizational climate, misconduct and risk climate (M&R climate), contributes to preventing misconduct risk and excessive risk-taking in banking. It also explores the effects on the relationship between organizational M&R climate and perceived organizational performance of incentives associated with compensation, promotion and knowledge-sharing practices, transmitted via employee training and cross-functional collaboration. The study develops and validates measurement scales for these factors, using structural equation modeling to investigate the relationships among them on the basis of data collected from a sample of 110 bank employees in Spain. The results support the previous literature regarding the influence of organizational climate and reveal how, along with incentives and knowledge-sharing practices, it influences employees’ perceptions of organizational performance in addressing misconduct and risk-taking.
ISSN:1460-3799
1743-4637
DOI:10.1057/s41283-021-00083-6