Abstract:
The study seeks to evaluate the mediating role of ISQ on the relationship between
different internal organizational factors and organization performance, furthermore the study
also ascertains the influence of internal organizational factors on ISQ and organizational
performance. Additionally the study also evaluates the impact of ISQ on organizational
performance. The internal organizational factors include; organizational learning,
collaborative culture, organizational commitment, perceived organizational support, role
stress & internal marketing. The study is a descriptive cum correlational, focusing on the
performance and ISQ of different banks operating in Peshawar. The sample included 80 bank
branches, the data was collected from the employees working in different bank branches
located within the city of Peshawar. Banks selected as part of the population required to have
more than five branches. Stratified random sampling technique was utilized to collect the data
from different banks operating in the city of Peshawar. A total of 564 questionnaires were
distributed in 80 different branches of medium and large sized banks. In the present study 404
questionnaires were returned, constituting the response rate of 71.63%. A total of 63
questionnaires were rejected. The total number of questionnaires usable for the study was
341.
Evaluating the impact of different internal organizational factors on ISQ revealed tha
three out of six internal organizational factors namely; organizational commitment, role
stress, and internal marketing have a significant influence on the internal service quality.
While three factors namely; organizational learning, collaborative culture and perceived
organizational support did not have a significant influence on the internal service quality. The
results revealed that four out of six internal organizational factors namely; organizational
learning, organizational commitment, role stress, and internal marketing have a significant
influence on the perceived organizational performance. While two factors namely;
collaborative culture and perceived organizational support did not have a significant
influence on the perceived organizational performance. Mediation analysis proved partial
mediation between all internal organizational factors and perceived organizational
performance. The objective measure for bank performance used in the present study included
Return on Equity (ROE), Earnings per Share (EPS) and Return on Assets (ROA). Mediation
