Performance Impact of Mission Statements in Ethiopian Business Enterprises: An Empirical Evaluation
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Date
2007-07
Authors
Degefu, Getachew
Journal Title
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Publisher
Addis Ababa University
Abstract
Many Ethiopian business firms are nowadays observed adorning their entrance
lobbies, annual reports and promotional materials with their ‘vision’ and ‘mission’
statements. ‘Do such statements of strategic intent, business purpose and values have
any meaningful impact on organizational performance?’ is the central question of this
research project.
The research has compiled and analyzed the mission statements and performance
records of some ten Ethiopian business firms in the financial service sector. Various
statistical inference techniques have been used to estimate whether there are any
significant differences in performance among groups of firms with and without
articulated mission statements, as well as among those with mission statements of
different strategic orientations.
The study has shown that there are no significant differences in performance between
the sample enterprises with mission statements and those without as well as among
those with mission statements of different strategic orientations. The reason is
probably due to the low strategic values of the articulated mission statements that are
not well supported by strategic management processes with in the organizations.
Description
Keywords
MISSION Statements in Ethiopian Business