SYSTEMS THINKING AND ORGANIZATIONAL PERFORMANCE OF PENSION FUND ADMINISTRATORS IN NIGERIA: MODERATING ROLE OF EMPLOYEE INVOLVEMENT CULTURE

Abstract

Despite increasing emphasis on systems thinking as a strategic capability, limited empirical evidence exists on how employee involvement culture shapes its influence on organizational performance, particularly among Pension Fund Administrators in Nigeria. This study examined the moderating effect of employee involvement culture on the relationship between systems thinking including continuous learning, dynamic thinking, mental models, pattern recognition, process orientation and systems logic, and organizational performance of Pension Fund Administrators in Nigeria. The study employed cross-sectional survey design where a simple random sampling method was adopted to select two hundred and eighty two (282) employee of selected licensed PFAs in Nigeria, from whom data were collected through structured questionnaire. Data were analysed using Partial Least Squares Structural Equation Modelling (PLS-SEM) with Smart PLS 4.0. The findings reveal that continuous learning and dynamic thinking significantly and positively influence organizational performance. In contrast, mental models, process orientation, pattern recognition, and systems logic show no significant direct relationships with organizational performance, suggesting that these dimensions may not have significant direct effect within the study context. The moderation analysis shows that employee involvement culture positively moderates the relationship between systems logic and organizational performance but negatively moderates the relationship between process orientation and organizational performance. Overall, the findings indicate that learning and adaptive thinking capabilities are important predictors of organizational performance. The study recommended, among others, that Pension Fund Administrators should enhance continuous learning practices and foster employee involvement culture as strategic approaches for improving organizational performance.