Abstract
The purpose of this paper is to examine the mediating role of internal service quality on the relationship between organizational culture and organizational performance. The study utilizes the  collaborative culture dimension. Data for the study were collected through a survey from 80 bank branches of 11 large and medium sized banks in Peshawar, Pakistan and responses were  analyzed to assess the relationships between collaborative culture, internal service quality, and organizational performance. A total of 564 questionnaires were distributed, 404 questionnaires  were returned, constituting the response rate of 71.63%. A total of 63 questionnaires were rejected. The total number of questionnaires usable for the study was 341. The findings revealed that  in the banking sector, collaborative culture and internal service quality have a direct and positive impact on the organizational performance, furthermore the results revealed that ISQ partially  mediates the relationship between collaborative culture and organizational performance. The findings provide useful insights for organizations, particularly in the banking industry, seeking to be  competitive and responsive to the increasing challenges. Conclusions emphasize that mechanisms to encourage and foster ISQ in the organization are likely to facilitate the introduction,  adoption, and diffusion of service quality both within and outside the organization which in turn, is likely to result in achievement of superior bank performance.
Keywords: Collaborative Culture, Internal Service Quality, Organizational Performance