Ownership and Organizational Performance: a Comparative Analysis of Private and State-Owned Banks,
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Date
2025-03-19
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Publisher
AAU
Abstract
The purpose of this study was to compare the Organizational Performance of State owned and
selected privately Owned Banks in Addis Ababa. The study employed explanatory research design
in order to examine the effect of factors affecting organizational performance of state owned and
privately owned banks and compare their organizational performance. The study also used mixed
research approaches in order to organize the data needed to the research. Data was collected
through survey questionnaires and interviews. Both primary and secondary methods of data
collection were applied and questioner is used as a source of gathering the data. A total of 135
workers from each of the four banks i.e Bank of Abyssinia, Awash Bank, Zemen Bank, and
Commercial Bank of Ethiopia were chosen. All samples were taken from the head of each banks
based on their managerial roles, experiences and expertise knowledge. Both purposive and census
samples were used in this study. The collected data was analyzed using descriptive and inferential
statistics. The interview result showed that state owned banks had a greater performance
compared to private owned banks. The reason for this are government support and access to
government financial fund through National Bank. The findings of the regression analysis indicate
that all the independent variables had positive effects on the dependent variable. The model
summary table adjusted r-square value is 0.651 which means that 65.1. % of organizational
performance of Banks was explained by the variation of the four independent variables and the
other 34.9 % is due to other independent variables not included in the model and the random
error. Finally, the researcher recommended to the top management of the bank to put an emphasis
on effective asset management procedures, with a particular emphasis on conducting frequent
evaluations of asset usage and putting performance-enhancing plans into action, and privately
owned banks should improve their risk management procedures