Shaping Bank Trajectories during Disruption: Examining the Role of the Three Levels of Corporate Culture in Ethiopian Banks

Abstract This study investigates the role of corporate culture in shaping the trajectories of Ethiopian banks that are facing disruption, coming from regulatory reforms, technological shifts, and economic challenges, like no other time in history. Anchored in Edgar Schein’s three-level model: artifacts, espoused beliefs and values, and underlying assumptions, the study examines how culture influences their ability to navigate disruption. Using research onion model that shaped the entire method and materials, the study thematically analyzes data from 13 sample Ethiopian banks selected across generational and ownership strata representation. Findings reveal that while banks may share similar visible features and declared values, it is their underlying cultural assumptions that distinguish how effectively they adapt and transform. Where alignment exists across the three levels, banks demonstrate greater agility, coherence, and strategic foresight. In contrast, outdated, misaligned or performative cultures, where innovation is professed but not practiced, banks are stuck in fragmented or superficial responses. The study highlights that culture is not simply a luxury or auxiliary trait, but a dynamic force with direct implications for resilience and future-readiness. By making culture visible, aligned, and actionable, banks can respond more effectively to systemic shifts. This study, using Edgar Schein’s theory which is not usual for Ethiopian context, offers a fresh contribution to both organizational culture theory and the practical discourse on banking transformation in emerging market.