The Effect of Marketing Strategy on Business Performance and the Moderating Role of Transformational Leadership in their Relationship: A Case Study on Bank of Abyssinia S.C
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2022-06
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Addis Ababa University
Abstract
The objectives of this research were to examine the relationship between Transformational Leadership and Business Performance, as well as to study the effect of Transformational Leadership on the relationship between Strategic Marketing and business performance. Specifically, this study evaluated the relationship between business performance and selected elements of marketing strategy such as advertising, branch image, price, distribution intensity, branch location at Bank of Abyssinia S.C. The research also sought to examine the effect of transformational leadership on the preceding relationship. To achieve these objectives data was collected using Convenience Sampling from Grade A branches of the bank. Data was collected using questionnaires. The data was obtained from a sample of 203 employees of the bank at grade A branches of the bank. Correlation analysis was used to establish the relationship between strategic marketing variables and business performance as well as transformational leadership and business performance. In general, the findings of the correlations analysis revealed that there is a positive relationship between an element of strategic marketing and business performance. The study revealed that Distribution Intensity had a positive and significant correlation with business performance while all the other elements in this study did not have significant correlations with business performance. Thestudy also used interaction analysis which depicted that transformational leadership does have significant effect on the relationship between an element of strategic marketing (i.e.,distribution intensity) and business performance. Through regression analysis, the study similarly revealed that transformational leadership and distribution intensity significantly affect business performance while advertising, price, branch location, branch image have insignificant relationship. It also advised for the bank to focus more on distribution intensity and leadership style as these have significant relationship with business performance than other variables. Thus, an improvement in this two is likely to enhance performance. Overall the study indicated that strategic marketing has a positive effect on business performance. The implications of this study for practitioners are indicated in the thesis.
Key terms: strategic marketing, transformational leadership, advertising, distribution
intensity, branch image, price, branch location, business performance
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business