Strategic Management Practices and its Effect on Organizational Performance: The case of Wegagen Bank Dire Dawa District Branches
Year: 2025
Type: article
Abstract: Strategic planning is a systematic way of making key business decisions, determining the tactics and the implementation of actions that shape and direct the organization towards the future. The main purpose of this study is to examine strategic Management practice and its effect on organizational performance in the case of the Wegagen Bank Dire Dawa District Branches. Survey research design was used. The target population comprised of managerial and non-managerial employee of Wegagen Bank Dire Dawa district branches. The study selected 194 participants out of the total population 376 using Taro, Yemane (1973) formula, while 181 filled and returned the questionnaires making a response rate of 93.2%. The study used systematic stratified sampling techniques keeping proportion of the strata and ensure that the results were reliable enough to be generalizing, while structured questionnaire were used as research instrument. Quantitative analysis was used in analyzing and interpretation of data with the help of descriptive statistics and SPSS software version 23. The results showed that strategic management practice (Strategy formulation, Strategy Implementation, Formality of strategic planning and Employee participation in strategic planning) has a statistically significant impact on organizational performance. The results also showed Strategy evaluation and control is negative and statistically insignificant impact on organizational performance. Consequently, there is insignificant and negative relationship between Strategy evaluation and control and organizational performance. The study recommends that all aspects of strategic planning practice should be implemented in the banks under study, specifically Strategy Evaluation and Control perspective in Wegagen Bank Dire Dawa District Branches, focus should be given to Strategy Evaluation and Control in order to enhance business performance of bank. .
DOI: 10.20372/nadre:18768
Author: Getahun Arega
Language: English
Subfield: Strategy and Management
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W7082145520
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