The Role of Leadership on Strategy Formulation and Execution: The Case of Abay Bank S.C.
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Date
2021-08
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Addis Ababa University
Abstract
This study investigated the Role of Leadership on the Formulation and Execution of Strategy. Particularly, Leadership Commitment, Informed Decision Making, Communication, and Monitoring & Evaluation, were tested empirically and their correlation with Strategy Formulation and Execution in Abay Bank S.C. was examined. The study used a quantitative research approach, an explanatory research design based on data collected through questionnaires and a simple random sampling technique on a total sampling frame of 167 employees with a sample size of 118 employees found in four branches and the Head office of Abay Bank S.C. in Addis Ababa. The study concluded that all the independent variables studied had significant and positive effect on the dependent variable. It was found 51.6% of changes in Strategy Formulation and Implementation was explained by the variables under the study; namely, Leadership Commitment, Informed Decision Making, Communication, and Monitoring and Evaluation. Role of Communication was the strongest predictor on the Strategy Formulation and Execution in Abay Bank S.C. The study recommended that the leadership of the bank should work on the four roles of leadership, in particular in Communication, in order to increase the effectiveness of the strategic management process and get closer to the vision of the bank
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Leadership, Strategic Management Process, Strategy Formulation & Execution