Effect of Strategic Orientations on Organizational Performance: Evidence from Top Management of a Private Bank in Ethiopia

Abstract

This study examined the effect of strategic orientations (market, entrepreneurial, learning, and technological orientations) on organizational performance in the case of Addis International Bank, Ethiopia (an emerging economy). The study employed explanatory research design and quantitative research approach. Data were collected from 105 survey respond dents using self-administered questionnaire. Descriptive and correlation analyses, followed by multiple linear regression analysis, were used to test the hypotheses stated and answer the research questions. The findings of the study revealed that there is a strong and positive effect of entrepreneurial and technological orientations on organizational performance whereas market and learning orientations didn’t have significant effect on organizational performance. Thus, to make these latter strategic orientations add value to the bank, it has to make co-alignment in strategy, structure, processes, and culture. Therefore, it is recommended that the Bank shall fully implement and configure strategic orientations as a source of competitive advantage and, thereby, achieve superior performance. Prior studies were made on strategy as a process and each construct individually. These findings contribute to the theory and practice of strategy and management by integrating all the strategy orientations together and providing recorded evidence from an emerging economy perspective.

Keywords: Strategic Orientations, Organizational Performance, Addis International Bank, Ethiopia, Emerging Economy

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