Influence of Strategic Direction on Performance of Commercial Banks in Juba, South Sudan

John Ayuen Dhuor Deng, James Mbebe, Mary Mbithi

Abstract


Performance of organizations has been a focal point of research, particularly in understanding how effectively they implement strategic plans to achieve their mission and vision. Strategic planning practices play an important role in enhancing operational efficiency and achieving a competitive advantage. This study established the influence of strategic direction on the performance of commercial banks in Juba, South Sudan. The study adopted a cross-sectional research design. The unit of analysis comprised 31 licensed commercial banks, while the unit of observation included 186 managers. A stratified random sampling technique, in addition to the Taro Yamane formula, was used to select 128 participants. Data was collected using questionnaires with both open-ended and closed questions. The questionnaires were administered both physically and electronically. Descriptive statistics, including frequency, percentage, mean, and standard deviation, summarize the data, while a binary logistic regression model was applied for inferential analysis. The findings were presented in tables and narratives. Findings revealed that strategic direction setting, including well-documented vision, mission, and core values, significantly improved performance (p-value =0.001), with banks having structured direction setting showing a 12.784 times higher likelihood of achieving better performance than unstructured ones. The study recommends that managers of banks in Juba actively set strategic direction through the formulation of vision, mission, objectives, and core values statements. 

Keywords: Strategic Direction, Performance, Commercial Banks, Juba, South Sudan


Full Text:

PDF

References


Abdalla, Y. A., Ibrahim, A. M., Lasyoud, A. A., & Warsame, M. H. (2022). Barriers to implementing the balanced scorecard: Evidence from the banking sector in the developing market. Journal of Governance and Regulation, 11(2), 173-180.

Abueid, R., Rehman, S. U., & Nguyen, N. T. (2023). The impact of balanced scorecard on estimating the performance of banks in Palestine. EuroMed Journal of Business, 18(1), 34-45.

Ahmed, D. A. A. (2024). The role of Islamic banks in stimulating economic growth (Sudan as a model). Journal of Economics and Administrative Sciences, 30(142), 411-424.

Ali, B. J., & Anwar, G. (2021). The balanced scorecard's evolution as a strategic mechanism in banking sectors. Ali, BJ, & Anwar, G. (2021). The Balanced Scorecard’s Evolution as a Strategic Mechanism in Banking Sectors. International Journal of English Literature and Social Sciences, 6(1), 471-478.

Anhiem, N. G. M., Mungai, J., & Thuo, A. (2023). Exchange Rate Effects and Performance of Financial Institutions in South Sudan. Journal of Finance and Accounting, 7(6), 97-104.

Bernards, N. (2022). Colonial financial infrastructures and Kenya’s uneven fintech boom. Antipode, 54(3), 708-728.

Challoumis, C. (2024). Demystifying The Banking System: The Importance of the Money Cycle. SSRN Electronic Journal, 2 (8), 1-20

Gitau, J. N., & Mang’ana, R. (2021). The effect of cost leadership strategy on the performance of commercial banks in Nairobi County, Kenya. International Academic Journal of Human Resource and Business Administration, 3(10), 167-179.

Habib, M. A., Bao, Y., Nabi, N., Dulal, M., Asha, A. A., & Islam, M. (2021). Impact of strategic orientations on the implementation of green supply chain management practices and sustainable firm performance. Sustainability, 13(1), 1-21. https://doi.org/10.3390/su13010340

Hassan, A. O., Ewuga, S. K., Abdul, A. A., Abrahams, T. O., Oladeinde, M., & Dawodu, S. O. (2024). Cybersecurity in banking: a global perspective with a focus on Nigerian practices. Computer Science & IT Research Journal, 5(1), 41-59.

Kumar, S., Lim, W. M., Sureka, R., Jabbour, C. J. C., & Bamel, U. (2024). Balanced scorecard: trends, developments, and future directions. Review of managerial science, 18(8), 2397-2439.

Marcu, M. R. (2021). The impact of the COVID-19 pandemic on the banking sector. Management Dynamics in the Knowledge Economy, 9(2), 205-223.

Naburuki, S. J., Kiplagat, N., & Kipchumba, S. (2024). Influence of Strategic Direction on the Performance of Fintech Firms in Nairobi City County, Kenya. European Journal of Management and Marketing Studies, 9(2), 67-81.

Nthoki, J., Omwenga, J., & Litunya, R. (2021). Influence of strategic management capabilities on the performance of commercial banks in Kenya: Case of Nairobi Central Business District. The Strategic Journal of Business & Change Management, 8 (3), 606 – 617.

Odero, J. A. (2023). Strategic Direction and Firm Performance: Evidence from the SACCO Sector. Sustainable Business and Society in Emerging Economies, 5 (1), 41-52.

Olaka, M. H., Lewa, P., & Kiriri, P. (2017). Strategic leadership and implementation of strategy in commercial banks in Kenya: A case study of strategic direction. American Journal of Leadership and Governance, 1(1), 82-95.

Ongongo, L. A., & Mang’ana, R. (2022). Effect of strategic management practices on the performance of commercial banks in Kenya. Journal of International Business, Innovation and Strategic Management, 6(1), 58-72.

Oswago, C. A. (2018). Influence of strategic management capabilities on the performance of commercial banks in Kenya. American Journal of Leadership and Governance, 1(4), 82 - 95, 2017

Scolastica, C., & Mboya, M. (2022). Influence of Strategic Planning on Financial Performance of Listed Commercial Banks in Kenya. International Journal of Management and Commerce Innovations, 9 (2), 92-115.

Sikolia, B. W., & Miroga, J. (2018). Effects of Bank-Specific Guidelines on Financial Performance of Commercial Banks in Kenya: A Case of Kenya Commercial Bank, Nairobi County. Journal of International Business, Innovation and Strategic Management, 2(3), 41-60.

Stojkovski, V., & Nenovski, B. (2021). Balanced Scorecard model in the banking sector. International Journal of Science and Research, 10(03), 1627-1630.

Tongurai, J., & Vithessonthi, C. (2018). The impact of the banking sector on economic structure and growth. International Review of Financial Analysis, 56, 193-207.


Refbacks

  • There are currently no refbacks.