The Effect Of Strategic Orientation On Organizational Performance The Case Of Addis International Bank S.C.
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Date
2020-06
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Addis Ababa University
Abstract
The objective of the study was to examine the effect of strategic orientation on organizational performance in the case of Addis International Bank. To investigate such effect, most commonly used dimensions of strategic orientation such as market, entrepreneurial, learning and technology orientations were assessed. Data were collected from targeted population of 139 individuals, with census survey, 105 of them responded to the self administered questionnaire. The study employed explanatory research designs and quantitative research approach. Among several analytical techniques, Pearson correlation and multiple linear regressions were used to assess the relationship and effect among variables. The findings of the study have shown a significant effect of entrepreneurial and technology orientation on organizational performance as level of significance (α) is less than 0.05 while the effect of market and learning orientations have no significant effect on organizational performance as α>0.05. The regression result also showed that the adjusted R Square value was .474 and this implied that SO dimensions (predictors) accounts for 47.4% of the variation in organizational performance and 52.6% were other extraneous variables that can affect organizational performance.Only entrepreneurial orientation and technology orientation were predictors of organizational performance with beta value of .347 and .283 respectively that have positive contribution for the variation in organizational performance. Therefore, it can be concluded that entrepreneurial and technology orientations were dominant contributors to the performance of the bank; and Market and Learning orientations were not dominant in their contribution. Thus, to make these strategic orientations add value to the increase in performance, the bank has to make strategic co-alignment in strategy, structure, processes and culture. Therefore, it is recommended for Addis International Bank to fully implement and configure strategic orientations as a source of competitive advantage over its competitors in the industry and thereby achieve superior performance. Findings also indicated that the need for more research related to relationship between strategic orientation and performance with possible mediators and moderators that will explain the relationship more
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Strategic Orientation, Organizational Performance, Addis International Bank