Browsing by Author "Birhanu Alene"

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    The Effect of Strategic Planning on Organizational Performance, in Case of Abay Bank S.C Addis Ababa, Ethiopia
    (Addis Ababa University, 2026-01-02) Birhanu Alene; Yohannes Workaferahu
    This study examined the effect of strategic planning on organizational performance in Abay Bank S.C., Addis Ababa, Ethiopia. Although strategic planning is widely recognized as a key management practice, there remains limited empirical evidence in the Ethiopian banking sector on how its major dimensions jointly affect performance, particularly in private commercial banks. Previous studies have often focused on individual planning elements or narrow performance measures, creating a gap in understanding the broader relationship between environmental scanning, strategic formulation, strategic implementation, strategic evaluation, and organizational performance. Accordingly, the study aimed to assess the effect of these strategic planning dimensions on organizational performance. The study adopted a quantitative research approach and descriptive survey design was used. Primary data were collected from 268 employees through structured questionnaires, and the data were analyzed using descriptive statistics, Pearson correlation, and multiple regression analysis with SPSS version 27. Organizational performance was measured using employee commitment, operational efficiency, service quality, customer satisfaction, market share, and profitability. The findings showed that strategic planning practices positively affect organizational performance in Abay Bank S.C. Among the dimensions, strategic implementation had the strongest influence, while environmental scanning and strategic formulation also showed significant positive effects. Strategic evaluation had a relatively weaker contribution. The study concludes that effective strategic planning is essential for improving bank performance and recommends stronger implementation, better environmental scanning, wider stakeholder participation in strategy formulation, and improved evaluation and corrective mechanisms to support sustainable organizational success