The Effect of Strategic Thinking on Organizational Performance: The Case of Enat Bank S.C
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Date
2021-06
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Addis Ababa University
Abstract
The objective of the study was to examine the effect of strategic thinking on organizational performance in the case of Enat Bank. To investigate such effect, the study has used three strategic thinking dimensions namely system thinking, reframing, and reflection adopted from the study of Pisapia et al. (2005). A self-administered questionnaire was issued and distributed to the targeted population of 115 employees, from the total targeted population 93 (80.9%) responded representing a response rate of 80.9%. The study applied both explanatory research designs and a quantitative research approach. To examine the relationship and effect among variables, this study used Pearson correlation and multiple linear regressions. The findings of the study from regression analysis have shown that all the three strategic thinking dimensions namely system thinking, reframing, and reflection had a positive and a statistically significant effect on organizational performance as the p-value of each variable is less than 0.05 (p-value<0.05) and positive beta coefficient. Therefore, the study concludes that all basic components of strategic thinking affect organizational performance and the researcher recommends that Enat Bank, through strategic thinking, should formulate and implement a strategy that ensures organizational sustainability and growth which is responsive to environmental change and the bank committed to institutionalizing the practice of strategic thinking in the bank’s corporate culture and committed to institutionalizing the practice of strategic thinking in the bank’s corporate culture. This study indicates that the need for more research related to the relationship between strategic thinking and performance with incorporating additional variables and extend the study to be made on the industry level
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Strategic Thinking, Organizational Performance, Enat Bank