Does Organizational Commitment Mediate the Relationship between Employee Relationship Management and Bank Performance? The Case of Banks in Ethiopia

The study concentrated on how organizational commitment mediates the relationships between employee relationship management and bank performance in selected commercial banks in Ethiopia, with organizational commitment playing a mediating role. The theoretical and empirical review of related literature has been used to construct the hypotheses and frame the study variables. Simple random sampling, purposive sampling, and multistage sampling techniques were used to select 336 samples from selected branches of commercial banks operating in two regions of Ethiopia: in Gambella town of Gambella region and Jimma town of the Oromia region. Questionnaires, interviews, and observation were used to collect data, and the Structural Equation Modeling was mainly used to see the relationship between employee relationship management and organizational performance moderated by organizational commitment using AMOS software. The result indicated that employee relationship management has a positive relationship with organizational performance, with organizational commitment playing a moderating role. The effect of employee relationship management on bank performance in Ethiopia is shown to be insufficient without organizational commitment as a moderating role. As a result, Ethiopian policymakers are advised to take into account both the employees' dedication and relationship management to enhance the performance of commercial banks in Ethiopia. This outcome is believed to be explainable in terms of the Human Capital Theory and the Human Relations Approach.