FACTORS AFFECTING SUCCESSFUL STRATEGY IMPLEMENTATION IN PRIVATE COMMERCIAL BANKS: IN CASE OF DASHEN BANK SC

Abstract

The purpose of this study was to examine the factors affecting successful strategy implementation in private commercial banks in case of Dashen Bank SC. The study was guided by a number of research questions, all with regard to Dashen Bank SC: how organizational resource affect strategy implementation; in what ways does organizational culture& structure affect strategy implementation; and to what extent leadership style affect strategy implementation? A descriptive research design was used for the study at a case study of Dashen bank at North Addis district and branches under the district to represent the views of staff with a sample of 136 respondents. The study used primary data. The primary data was collected using questionnaires and an interview. Qualitative data was collected and analyzed with the use of descriptive statistics using Statas the tool of choice and presented through diverse measures that included percentages, means, standard deviations and frequencies for categorical and continuous variables. The study further employed ordered logit model to study the cause-and-effect relationship between dependent and independent variables. The study found that organizational leadership style, organizational culture, organizational resource and structure influence strategy implementation to a great extent in Dashen Bank SC. From the findings leadership style in an organization affects resource allocation, attitude and quality of the leadership team, and delegation of task. The culture of the organization should be monitored to ensure that the organization didn’t lose the factors that improve strategy formulation and implementation. Resources were not equally distributed at timely bases and the bank lost experienced employees. Additionally, the finding showed that the current organizational structure didn’t invite to implement the stated plan due to the above combined factors. The study recommends that the organization should include its stakeholders in the planning and implementation of strategy, the researcher also recommends that the bank should offer training and development programs for employees. Given the findings, the recommendation of the study was that Dashen bank SC or any Commercial Banks that require to successfully execute a chosen strategy, need to deliberate on their resources, organization structure, and management support. Finally, the study suggested that it would be interesting investigated the factors affecting strategy implementation in another commercial bank that might have undergone strategy implementation findings can then be compared to assess areas of commonalities and unique features. This would create a platform for recommendations and areas of improvement.