The Effect of Internal Factors on Strategy Implementation: (A Case in Nib International Bank S.C at Addis Ababa

Abstract

The main objective of this study was to investigate the effect of internal factors on strategy implementation at NIB International Bank S.C. in Addis Ababa. The specific internal factors examined include leadership style, employee competence, resource allocation, management information systems, and organizational culture. The study aims to provide insights into how these factors influence strategy implementation within the banking context. The researcher used a quantitative approach. Besides, a descriptive and explanatory research design was used. The study population includes 310 department heads, middle management, district managers, and branch managers, from those 175 respondents were selected and given questionnaires out of which 171 correctly filled and returned questionnaires were used for analysis purposes. Cluster random sampling technique was used to select respondents. Data was analyzed by using descriptive statistics including means, standard deviation, and inferential statistics to analyze and interpret the gathered data. Data was analyzed by SPSS version 26. Pearson’s Correlation test statistics were applied to test the relationship between dependent and independent variables. Inferential statistical tools like multiple linear regressions were used. A regression model was applied to show the effect of internal factors on strategy implementation. The research findings reveal significant relationships between these factors and strategy implementation. Effective leadership styles, competent employees, appropriate resource allocation, advanced management information systems, and a positive organizational culture were found to positively influence strategy implementation. These findings underscore the importance of these internal factors in achieving successful strategy execution. Based on the results, it is recommended that NIB International Bank invest in leadership training, employee development programs, strategic resource allocation assessments, advanced information systems, and fostering a positive organizational culture to enhance strategy implementation and achieve strategic objectives.