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

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  • Beatriz Fernández-Muñiz

    (University of Oviedo)

  • José Manuel Montes-Peón

    (University of Oviedo)

  • Camilo José Vázquez-Ordás

    (University of Oviedo)

Abstract

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.

Suggested Citation

  • Beatriz Fernández-Muñiz & José Manuel Montes-Peón & Camilo José Vázquez-Ordás, 2022. "The influence of organizational climate, incentives and knowledge sharing on misconduct and risk-taking in banking," Risk Management, Palgrave Macmillan, vol. 24(1), pages 55-80, March.
    • Handle: RePEc:pal:risman:v:24:y:2022:i:1:d:10.1057_s41283-021-00083-6
    DOI: 10.1057/s41283-021-00083-6
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