Factors Influencing Strategy Implementation: A Study on Oromia International Bank, North West Showa (NWS) District, Ethiopia

Belay Adamu Dunfa

doi:10.7176/ejbm/11-34-01

Abstract

The importance of strategy to a firm cannot be gainsaid. The fact that financial institutions have strived from various stages alongside the adoption of various organizational strategies indicates that it has not been easy to achieve optimum strategy implementation. The motive of this study was to examine factors influencing strategy implementation at Oromia International bank NWS district. Based on different literature the identified factors were: age, sex, experience, education, organizational culture, organizational structure, organizational process, and leadership and employee commitment. The result of multiple linear regression model moreover revealed that organizational culture, organizational structure, leadership and employee commitment were significant for strategy implementation of OIBNWSD with β value .262, .127, .047 and .056 respectively. Based on the research results, it was recommended for OIBNWSD bank’s in study area to improve the influence of strategy implementation factors dimensions through providing training to their leaders and employees, allocating resource based on relative importance of factors, carrying out depth research on strategy implementation influencing factors, continuously evaluating factors influence and giving prioritize for employees’ needs. Key w ords: Culture, Structure, Process, Leadership and Commitment DOI : 10.7176/EJBM/11-34-01 Publication date: December 31 st 2019

Highlights

Many studies depict that strategies often fail not because of insufficient strategy formulation, but because of insufficient implementation, strategy implementation has attracted less research than strategy formulation
Research Hypotheses In order to answer the research question study, literatures review of previous studies were conducted to drive the hypothesis based on existing knowledge and the following hypotheses were developed for this research, that are: H1: Organizational process effects strategy implementation at Oromia International Bank, NWS District H2: Organizational culture influences strategy implementation at OIBNWSD H3: Organizational structure influences strategy implementation H4: Leadership effects on strategy implementation H5: Employee commitment influences strategy implementation
The study concluded that Organizational Culture positively influences Strategy Implementation to a great extent at OIBNWSD

Summary

Introduction

Many studies depict that strategies often fail not because of insufficient strategy formulation, but because of insufficient implementation, strategy implementation has attracted less research than strategy formulation. Research Hypotheses In order to answer the research question study, literatures review of previous studies were conducted to drive the hypothesis based on existing knowledge and the following hypotheses were developed for this research, that are: H1: Organizational process effects strategy implementation at Oromia International Bank, NWS District H2: Organizational culture influences strategy implementation at OIBNWSD H3: Organizational structure influences strategy implementation H4: Leadership effects on strategy implementation H5: Employee commitment influences strategy implementation. The following multiple linear regression was developed to make the research more effective in analyzing the influences of independent variables (organizational culture, organizational structure, organizational process, and leadership and employee commitment) on the dependent variable (Strategy Implementation). Checking goodness of-fit carry significant benefits for the research; because once the model is fitted it is effective in describing the outcome of variables

Result and discussion

Regression

Conclusion