Effect of Strategy Implementation on Performance of Bank of Abyssinia
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Date
2023-06-10
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A.A.U
Abstract
The main objective of this study was to assess the effect of strategy implementation on
organizational performance of Bank of Abyssinia in Ethiopia. The study was theoretically guided
the by Okumus Strategy Implementation and Key Variables Framework and Higgins 8S
Framework. The study employed a survey research design. As a first step, descriptive statistical
analysis was carried out. Correlation and Regression analysis was also carried out. Based on the
data gathered and regression analysis done, the findings reveal that there is a positive relationship
between Organizational Performance and Organizational Culture, Organizational Performance
and Strategic Human Resource Allocation, and Organizational Performance and Organizational
Communication in the case of Bank of Abyssinia. The findings of the regression analysis also
reveal that there is an inverse relationship between Organizational Performance and
Organizational structure. Additionally, based on a t-test at a 95% confidence interval, the findings
also reveal that Organizational structure, Organizational Culture, and Strategic Human Resource
Allocation had a significant relationship while Organizational Communication had a statistically
insignificant relationship which indicates that although organizational communication affected
organizational performance, it is not significant in explaining observed variations. Based on the
findings, the study recommends that, given the significant role of Strategic Human Resource
Allocation in the organizational performance of Bank of Abyssinia, the bank’s leadership and
management should pay increased attention to allocating sufficient human resources to implement
the strategies and plans. The leadership and management should pay increased attention to
assigning people in all functional areas with requisite skills and experience to carry out the tasks.
Furthermore, the bank should ensure that the resources allocated are utilized effectively as per
the organizational set objectives to improve the organizational performance of the Bank. The study
also recommends Bank of Abyssinia leadership and management should pay increased attention
to aligning the bank’s strategy with the organizational culture of the bank. The leadership and
management should strengthen the deliberate and formal process of culture formation within Bank
of Abyssinia, enhance a culture of tolerating new ideas, flexibility, and adaptability when changes
are necessary and foster a culture of innovativeness within the bank to enhance strategy
implementation and achieve improved organizational performance.
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Keywords
Bank of Abyssinia, Strategy Implementation