Abstract:
'fhis rescarch explores the impact of the Leader-Mcmbcr Exchange (LMX) rclationship on
crnployee job perfonnancc, with a specific focus on the mediating rolc of organizational oulture
within thc banking scctor in thc Ampara Distriot, Sri Lanka. In thc cumcnt compctitivc banking
cnvironrncnt, cflcctivc lcaclcrship ancl a strong organizatronal oulture havc beoome essontial
factors for cnhancing errploycc cngagcment and pcrlormancc. Although past studies havc
cxamincd LMX and organi zational culturc scparatcly, limitcd rescarch exists on how these factors
intcraot to influcncc cmploycc pcrformance, particularly in thc Sri Lankan banking context. This
study addrcsscs this gap by investigating whether a positive organizational culture strengthens the
rclationship betwccn high-quality LMX and improved job performance'
A quantitative rcsearch <lcsign was adoptcd, using struoturcd qucstionnaires distributed to a sample
of 260 employees from various banks operating in the Ampara District. The study tests four key
hypotheses cxamining the direct and mcdiating cffccts alnong LMX, organizational culturc, and
job pcrlonnancc. Statistical analyscs, including oorrolation, rcgrcssiou, and modiation tcsting, arc
used to analyze thc data and validatc thc rcscarch framework'
T'hc fin4ings of this study are cxpected to offcr valuablc praotical recommendations for bank
managcrs to dcvolop strongcr leadcr-mcmber relationships and nurturc supporlive organizational
cultures that cncourage cmployccs to perfonn at thcir br:st. I3y applying the insights gaincd from
this rcscarch, banks can <icsign cffcctive leadership training programs, implement policies that
promote a positive work culturc, and ultimately improvc cmployec satisfaction and produc;tivity.
'l'his study contributcs not only to acaclcmic literaturc but also providcs actionablc stratcgics for
banking institutions ancl policymakcrs to sustain growth and maintain compctitivencss in thc
dynamic finanoial scotor of Sri Lanka.
Kcywords: I-cadcr-Mcmbcr llxchangc, Organizational Culturc, l,lmployce Job Performance,
Banking Scctor, Ampara District, Sri Lanka, Leadcrship
