Determinants of Strategic Plan Implementation in

Commercial bank the Case of Bahirdar Administration

Yom Institutes of Economic Development

College of Business and Economics
MBA Program

Thesis Paper Submitted To Yom Institutes of Economic Development

College for Management Department to Partial Fulfillment of The
Requirements For The Degree Of Master Of Business Administration

Prepared By: Gasha Tadesse

ID NO: GSRB/1285/14

Advisor: Dr. Zereyahu Eshete (PHD)

June, 2023
Bahirdar, Ethiopia
 Statements of Declaration
I, Gasha Tadese, declare that the thesis entitled “Determinants of Strategic Plan
Implementation in Commercial bank the Case of Bahirdar Administration” is result of my
own attempt and study with evidences of information taken for the research has been properly
recognized. I have done it exclusively except for the relentless help of my advisor. This research
is submitted by me for the award of the degree Masters of Business Administration is an original
work and has not been presented for the award of any other degree, diploma or other universities.

Name: Gasha Tadese Signature: _______________Date:________________

I
 Statement of Certification
This is to certify that the thesis prepared by Gasha Tadese entitled “Determinants of Strategic

Plan Implementation in Commercial Banks the Case of Bahirdar Administration”

submitted in partial fulfillment of the requirements for the Degree of Masters of Business
Administration in Yom Institutes of Economic Development Collage, confirm with the regulation
of the Collage and meets the accepted standards with respect to originality and quality.

_________________________ ________________ ________________

Research Advisor Signature Date

II
 Yom Institutes of Economic Development
School of Graduate Studies
Name of the Candidate: Gasha Tadese: GSRB/1285/14

Title of the Thesis: Determinants of Strategic Plan Implementation in Commercial bank the Case
of Bahiradr Administration

We, undersigned, members of the Board of Examiners, have read the thesis and evaluated the
final open defense of the candidate. The Thesis is written for partial fulfillment of the
requirements for Masters of Business Administration (Specialization: Master of Business
Administration, 2023).

This is, therefore, to certify that the thesis has been (put √ mark):

Accepted with no change Accepted with minor modification

Accepted with major modification Rejected

______________________ _______________ _________________

Name of External Examiner Signature Date

Name of Internal Examiner Signature Date

Name of Chair Person Signature Date

I here under confirm that the student has incorporated comments given by board of examiners
during defense session conducted on 24/06/2022.
Internal Examiner ____________________ Signature ______________Date ____________

Chair Person _______________________ Signature ______________Date____________

Approved by (Official Use)

Head, Department ____________________Signature _______________Date____________

Dean, College/school__________________Signature________________Date___________

III
Dean. SGS ___________________Signature ________________Date___________

Acknowledgment
First of all I would like to express my deepest and heart full thanks to Almighty God. next to that
I would like to thank you for my advisor Dr. Zereyehu Eshete , to his valuable professional
advice from the beginning to the end of this proposal paper, next I am going to thanks all
respondents in commercial bank of Ethiopia, who spent their valuable time in filling
questionnaire. In addition, thanks to my families and all my friends who assisted indifferent
aspect throughout my Study. My last but not least thanks for Yom Institutes of Economic
Development department of Management for design such project through which students
develop their knowledge.

IV
 Abstract

The objective of the study was to determine strategic plan implementation in commercial bank
the case of Bahiradr administration. The research was follow a mixed research approaches that
combined both Qualitative and Quantitative with in descriptive and explanatory research design.
Also, the researcher would use purposive, from non-probability and stratified, from
probability .the sample size would determine using a stratified random sampling procedure. The
Investigator purposively select commercial bank of Ethiopia from public bank. The study would
have used primary sources of data. For the purpose of data analysis, the researcher would use
both descriptive and inferential statics through SPSS (statistical packages for social science)
software and multiple regression models. The aim of this study was determine the result of all
these variables (Leadership quality, resource availability and utilization, effective and timely
communication, organizational structure, organizational culture, balanced scorecard),
significantly affect strategic plan implementation in commercial bank. The finding indicate there
is poor leadership in commercial bank caused by absence managerial skill, insufficient
supervision, reluctant of leader to perform the role, poor decision making and problem solving
skill. Moreover during strategic plan bank lacks human capital, financial, technological
resource and no proper allocation system. The study identify in bank there weak internal,
horizontal, external and one way communication, the bank structure extremely rigid and
hierarchy cause delay decision, also less culture of tolerating risk ,less focus on cooperative,
involvement . Bank not conduct skill assessment and Organizational assessment. Finally the
study recommend that bank provide training for leader, adapt clear resource allocation, revise
all over communication system, and promote decentralization to decrease hierarchy, provide
continuous improvement skill.

Key words: - Strategic plan, strategic plan implementation, leadership quality, resource,
communication, organizational structure, organizational culture and balanced scorecard

V
List of Acronyms and Abbreviations
ANOVA: - Analysis of variance
ATM: - Automated Teller Machine
BSC:-Balanced scorecard
CBE: - Commercial Bank of Ethiopia
CSA: - Central statically Agency
EC: - Ethiopian calendar
FSD: - Financial Sector Development
POS: - Point of Sale
SD: - standard deviation
SPSS: - statistical packages for social science
SWOT:-strength, weakness, opportunity, treat
VIF: - variance inflation factor

VI
Table of Contents Page
Statement of Declaration……………………..……………………………….……….…......IV
Statement of Certification………….……………………………………………………..…...II
Acknowledgement……………………………………………………………………………IV
Abstract……………………………………………………………………………………......V
Acronyms and Abbreviation……….………………………………………………………....VI
Table Contents…………………………………………………………………………...….VII
List of Table ……..………………………………………......................................................X

List of Figure …………………………………………………………………….......….......XI

Chapter One: Introduction ……………...…………………………………………………1
1. Introduction………………………..………………………………………………...….1
1.1. Background of the Study…………….…….…………………...………………………..1
1.1.1. Background of the organization………………..……………………………………...3
1.2 Statement of Problem ……………………………………………………………………4
1.3. Research Questions ..………………………………………………………..……...…...6
1.4. Objectives of the Study …………………………………………………………...…….7
1.4.1. General Objective……………………………………………...………………………7
1.4.2. Spesfic Objectives………...……………………………………………………..…….7
1.5. Research Hypotheses………….………………………………..……………………….7
1.6 Significance of the Study …………………………………………………………….....8
1.7. Scope of the Study………………………………………………………………………8
1.8 Limitation of the Study………………………………………………………………….8
1.9. Organization of the Study……………………………………………………………….9
1.10. Operational Definition of Terms………………..……………….……………………..9
Chapter Two : Literature Review ………………………………………………………..10
2. Introduction……………………..……………………………….……………………….10
2.1. Strategy Plan Implementation……………………………………………………….…10
2.2. Strategic Plan Implementation Process…………………………………………..…….11
2.3. Theoretical Models on Strategic Plan Implementation ………………………………..12
2.3.1. Behavioral Theory………………………………………………………………..…..12

VII
2.3.2 Upper-Echelon Theory……………………………………………………………..…12
2.3.3. Resource Based View………………………………………………………….....….13
2.3.4. Charles Handy Concept………………………………………………………………13
2.4. Empirical Evidence of Strategic Plan Implementation …………………………..……14
2.4.1. The Influence of Leadership on Strategic Plan Implementation……………………..14
2.4.2. The Influence of Resource Availability on Strategic Plan Implementation…….....…15
2.4.3. The Influence of Communication on Strategic Plan Implementation…………….….15
2.4.4. The Influence of Organizational Structure on Strategic plan Implementation……....16
2.4.5. The Influence of Culture in Strategic Plan Implementation…………………………17
2.4.6 The Influence of Balance Scorecard in Strategic plan Implementation...…………….18
2.5. Gap of the study………………………………………..………………………………18
2.6. Conceptual Framework for Understanding Strategic Plan Implementation...…….…...19
Chapter Three : Research Methodology ………………….……………………………..20
3. Introduction………...…………………………………………………………………….20
3.1 Description of the Study Area…………………………………………………………..20
3.2. Research Design……………………………………….……………………………….20
3.3 Data type and Source ……………………………..……………………………………20
3.3.1 Types of data…………………………………………...……………………………..20
3.3.2 Source of Data………………………………………………………..…………….....21
3.4. Target Population and Sampling Methods………………………………………..…...21
3.4.1. Target Population…………………………………………………………………….21
3.4. 2. Sampling Technique…………………………………………………………………21
3.5. Sample size………………………………………………………………………..……22
3.6 Method of data collection………………………………………………………...……..23
3.7. Data Analysis Techniques…………………………………………………….………..23
3.8. Validity of the Research………………………………………………………………..24
3.9. Ethical Consideration………………………………………………………….……….24
Chapter Four : Data Analysis and Interpretation ………………………………...……25
4. Introduction……..…………………………………………………….………………….25
4.1. Response rate on questionnaire………..……………………………………………….25
4.1.1. General Background of Respondents…….………………………………….……….25

VIII
4.2. Reliability test………………………………………………………….………………28
4.3. The influence of leadership qualities on strategic plan implementation in banks….….29
4.3.1. Assessment of leadership quality…………………………………………………….29
4.4. Influence of resource availability& utilization on strategic plan implementation….….32
4.4.1. Assessment of Resource availability and utilization……………………..…………..32
4.5. Influence of effective& timely communication on strategic plan implementation…….34
4.5.1 Assessment of Effective and timely communication…………………………………35
4.6. The Influence of Organizational structure on strategic plan implementation………….37
4.6.1 Assessment of organizational Structure………………………………………......…..38
4.7. The Influence of Organizational Culture on Strategic Plan Implementation………..…40
4.7.1. Assessment of organizational culture………………………………………..……….41
4.8. The Influence of Balanced scorecard on Strategic Plan Implementation……………...43
4.8.1. Assessment of Balanced score card………………………………………………….43
4.9 Overall assessment on Strategic Plan Implementation of commercial banks…………..46
4.9.1. Assessment of strategic plan implementation of Commercial banks………...…...…47
4.9.2. Overall Assessment of independent variables……………………………………….49
4.10. Major findings from Interview Analysis…………………………………….……….50
4.11. Inferential statistics Analysis.................................................................................…...52
4.11.1. Correlation Analysis………………………………………………………………..52
4.11.2. Checking Assumption………….…………………………………………………...54
4.11.2.1 Multi-collinearity test ………………………...........…….………….……………54
4.11.2.2 Autocorrelation test……………………………………………………………….54
4.11.2.3 Normality test……………………………………………………………………..55
4.11.3. Multiple Regression Analysis…………...………………………………………….56
4.11.4 .Hypotheses testing..............................................................................................…...58
Chapter Five: Summary of Findings, Conclusion and Recommendation …………….62
5. Introduction ……………………………………………...………………………………62
5.1. Summary of Findings………………………………...…………….…………………..62
5.2. Conclusion………………………………………………………………………..…….65
5.3. Recommendation………………………………………………...……………………..66
5.4. Future Research Direction………………………………...……………………………67
References…………………………………………………………………….…………….68

IX
 Appendix One …..……………………………………………………………...…………..73
Appendex Two………………………………………………………………….…………..81

List of Tables
Table 1: Classification of employee based on position
Table 2: Response Rate on Questionnaire distributed to Bank Employees
Table 3: Demographic Characteristics of the Survey Sample
Table 4: Reliability statistics
Table 5: The influence of leadership qualities on strategic plan implementation in banks
Table 6: Assessment of Leadership quality
Table 7: The influence of resource availability on strategic plan implementation
Table 8: Assessment of resource availability and utilization
Table 9: The influence timely of communication on strategic plan implementation
Table 10: Assessment of effective and timely communication
Table 11: The influence of Organizational structure on strategic plan implementation
Table 12: Assessment of organizational Structure
Table 13: Influence of organizational culture on strategic plan implementation
Table 14: Assessment of organizational culture
Table 15: Influence of Balanced scorecard on strategic plan implementation
Table 16: Assessment of Balanced scorecard
Table 17: Assessment of Commercial bank strategic plan implementation
Table 18: Overall Assessment of independent variables
Table 19: Correlations between dependent and independent variables
Table 20: Multi-collinearity test
Table 21: Autocorrelation test
Table 22: Model summary
Table 23: Statistical significance ANOVAa
Table 24: Estimated model coefficient
Table 25: Summary of Hypotheses Test

X
List of Figure
Figure 1: Conceptual Framework
Figure 2: The range of leadership qualities influence on the strategic plan implementation
Figure 3: level of resource availability &utilization influence on strategic plan Implementation
Figure 4: The extent of communication Influence on strategic plan implementation
Figure 5: The extent of organization structure Influence on strategic plan implementation
Figure 6: The Extent of organizational culture influence on strategic plan implementation
Figure 7: The extent of balanced scorecard influence on strategic plan implementation
Figure 8: The extent level of commercial bank properly implemented its overall strategic plan.
Figure 9: Histogram diagram to test normality
Figure 10: Graph of Normal probability plot to test normality
Figure 11:- Scatter plot for linearity check

XI
 Chapter One
1. Introduction

This chapter includes background of the study, statement of problem, research questions.
Moreover, general and specific objectives of the study, significance of the study, scope of the
study, limitation of the study , organization of the study and definition of terms are also contains.

1.1. Background of the study

Historically, the idea of strategic planning was mostly raise in 1943 by John Vieg, interested in
politics in the period (Bryson, 2010). During the last time of the Great Depression and beginning
of World War II, Vieg give an opinion, the US have been adequate of pessimistic planning and it
was a period to change to optimistic planning (Bryson, 2010). He opposed that municipal
planning was used by every role of urban governments, not only quite a few of the physical role.
Therefore, strategic planning begin in the 1940s and was believed in general the 1960s and 1970s
(Lisiński & Šaruckij, 2006). During the year 1965 concept for strategy were becoming well-
liked, and by the 1980s majority investigation had been written on the effect of strategic planning
on a firm's working effectiveness and its function in strategic decisions (Grant,2003).Strategy
implementation is the full step that changes general to particular activities so as to achieve
institutional objectives. Implementing a strategy is a significance as establishing it (Olsen, 2018).
According to Yabs (2007), strategy implementation insists the existence of known wants. These
contain influences that come from the outside environment and effects emanate from inside the
environment. The outside environment influences contains whole inputs that alteration into a
firm substituting them into finished products. These are raw materials, manpower, energy, and
fuel. Inside environment influences contain accessibility, machinery, internal structures, human
resources, financial strength and leadership. However; most reminds the moving pace of
discovery and increase in sub-Saharan African economies is forcing recent chances for financial
inclusion. Almost all financial organizations incorporated in the study have a process for yearly
strategic planning, even though there are basic distinguish in how organizations go about
evaluating tendency and information, what the outcome of the strategy is and how it is changed
into corporate action plans to be implemented (Financial Sector Development/FSD Africa,
2015).
According to Mesfin (2017), Ethiopia entertains a banking industry which is remote less African

1
and worldwide excellence with few address of banking services, beyond city focus and fall and
incompetent central bank. It is also characterized by lower infrastructure and affected from lack
of skilled human power for more knowing and strategy planning implementation. Specifically in
dire dawa city the above problem is more serious. Due to that, this study concentrated on
Strategic plan implementation that mainly focused on leadership Quality, Resource availability,
communication, organization structure, organizational culture and balanced scorecard, which
supported by (Rajasekar, 2014; Dabari, 2015; Kaplan& Norton, 2006). Rajasekar (2014) notes
that leadership is further a great significant influence to achieve strategy plan implementation in
service sector. Noble (2006) explains the skills needed by a leader is an alliance of technical
capability, interpersonal capability and responsiveness to requires of different roles. Cater and
Pucko (2010), during successful strategy plan, convincing and actual collection of competency,
and personnel capital are highly significant resources for strategy effective, weak leadership is
one of the major hindrance for effective strategy implementation. As much as possible, the leader
must full fill important ranks with qualified person devoted to modification attempts (Bryson,
2012). The researcher additional admire that Leadership Quality follow by the institution must be
allow to the strategy for achieve strategy plan implementation. Hickson et al. (2003) examine
resource availability like people, finance, and time are the great significant to determine the
influencing of effective implementation strategies. The implementation of the strategic plans is
affected by resources allocation (ndegwah, 2014).It is understood that resource availability is one
to be a major determine in effective goal of all strategy implementation (Obeidat, Al-Hadidi and
Tarhini, 2017).Researcher attention resource can affect organizational strategy implementation.
Effective communication must briefly describe the different responsibilities, obligations and jobs
which will be completed by specific staff (Peng and Littleljohn, 2001). At the whole
implementation procedure, communication should move lower-upper to permit leader to control
the implementation operation and decided whether flexibility to the method are necessary (Beer
and Eisenstat, 2000).Organizational structure able to enhance strategy implementation
manipulate: (1) decision-making steps; (2) purpose of transparent and responsibilities; (3) human
resource spread, and (4) organization change (Rajasekar, 2014). Bushardt, Glascoff and Doty
(2011) indicated that organizational structure had a direct impact on strategy implementation
among simplify decision-making procedure and resource distribute. Organization culture
mention to that includes shared values and belief that parts of an organization distribute in

2
general (Pearce & Robinson, 2014). Kamaamia (2017) assumed the whole includes elements of
organizational culture contains target oriented standards, task oriented standards, staffs oriented
standards, access culture system, and professional task culture increase institutional
effectiveness. According to Kaplan and Norton (2000), effective implementation of the balanced
scorecard is when an institution’s strategy changes into action and gain advantage. According to
Atkinson (2006), forcastedted 70% of BSC implementations have unsuccessful. And there are
many literature on the BSC context, there is a shortage of research on how the context must be
correctly implemented (Kumru, 2012). Also, there is a scarcity of research on the strategies of
organizational managers use to bring their workers in the proper manner during updating
administration motivates like the implementation of the BSC (Lueg & Vu, 2015). Therefore the
researcher have an interest to study on determine the impact of leadership qualities, resource
availability and utilization, effective and timely communication, organization structure,
organizational culture and balanced scorecard on strategic plan Implementation at Commercial
Bank of Ethiopia in Bahirdar Administration.
1. 1.1. Background of the Organization
Commercial bank of Ethiopia (CBE) established in 1942 as the state bank of Ethiopia and
formally started as a share company in 1963. In 1974 CBE combine with the privately owned
Addis Ababa bank. Since then it has been playing significance roles in the development of the
country. And it also pioneers to introduce modern banking to the country. At present CBE is the
leading African bank with assets of 565.5 billion birr as on June 30rt 2018. And now CBE has
more than 1500 branches across the country. And it introduces the first ATM service for local
user and as of June 2018 it has 1708 ATM machines and 11,796 POS machines across the
country. CBE has reliable and long-standing relationships with many internationally acclaimed
banks throughout the world and now working strongly to achieve its vision “to become a world
class commercial bank by the year 2025”.and has a mission “we are committed to best realize
stakeholders needs through enhanced financial intermediation globally and supporting national
development priorities. By developing highly motivated, skilled and disciplined employees as
well as state of the art technology. We strongly believe that wining the public confidence is the
best of our success”.
1.2. Statement of the Problem
According to Pride and Ferell (2003), strategic implementation is the process of changing

3
strategies and plans into action in order to achieve needed results. Strategy implementation, as
defined by Partidario (2012), is the converting of strategies into practices. This method contains
drafting the forecasting of the institution, refining the effectiveness of institutional activity, and
better institutional drafting, structure, managing systems, and culture. Strategy implementation,
in the suggestion of Ehlers and Lazenby (2010), explains a management technique that needs a
leadership quality that stimulated by modify and caused by determination. Institutions may
collapse frequently due to the impossible to choose and implement their strategies correctly.
Strategic plan implementation, according to Jooste and Fourie (2009), is more important than
strategy formulation; if the development strategy collapse to implemented, it is no distinguish
from properly-organized piece of paper on a shelf. Direction (which gave a map of where to go),
structure (a comprehensive approach to how the implementation would be carried out), and
people (the resources for finishing the task) are the three common pillars of good strategy plan
implementation (Getz and Lee, 2011). Although public sector institutions have strategic
technique, but the outcomes of institutions do not much long-term goals (Sial, 2013).
Many researchers have conducted studies in this area. According to Mbaka and Mugambi
(2014), including employees in the strategic plan implementation formulation, to real achievable
implementation of strategy, conclude that employees are continuously informed, enough
resources be provided, and the institutions structure be meet with the recent strategy. Moreover,
correct structures are in area; pure and proper-made strategies are in area, motivation involved
and higher-level management help to give and technological accessibility is necessary to certain
effective implementation of strategy in water sector in Kenya. Zaribaf and Hamid (2010) studied
the factor pattern affecting implementation of strategic plans in Pasargad Bank branches in
Tehran. The study sought to determine the effects of leadership, organizational structure, human
resources, information systems and technology, on successful implementation of strategies in
service sector. It concluded that all these factors affect strategy implementation but their effects
rates are different .Nabwire (2014) conducted a study on factors affecting the implementation of
strategy at Barclays Bank found that resource allocation and information systems were major
factors affecting implementation of strategy. muthuri derick(2010), challenges of strategy
implementation at national bank of the kenya limited concludes that, government interference,
hostile political climate, Change of action by the competitor, and bank technology development
was a great challenges of strategy implementation due to its high cost of adoption of new

4
technology. And also in Ethiopia some researcher conducted in different place and conclude
specific variable affect strategic implementation for instance, According to Gizaw Kifle (2020)
study on factors affecting strategy implementation in the public sector case study on ministry of
urban development and construction and conclude that, Resource allocation is a major
management practice that feasible plan implementation. Kidane W/Giorgis(2020), effect of
internal factors in strategy implementation: the case of wegagen bank, the finding shows,
organizational structure as a critical component of effective strategy implementation processes.
Mussie Mesfin(2021), assessment of strategic planning and management practice in berhan
bank, the finding indicate, The bank lacks making Strategic planning as a top priority activity,
The bank has gap in reviewing the monitoring data regularly and revise strategic decisions as
appropriate, The bank has not facilitated the participation in strategic planning. Gudeta
Benda(2021), factors affecting strategic plan implementation: in case of oromia bank, he
conclude that , resources allocation is the most and the largest element that affects the Bank
during implementing strategic plan. These different studies conducted across various area
replaces the research gap and basis of conducting this study. When to examine the above
research which is conducted abroad Ethiopia focused on strategy implementation process,
challenges of Implementation of Strategy, by using a variable, employee competence, leadership
style , policy and procedure, external environment but the current study conducted on strategic
plan Implementation of commercial bank. And also as a conceptual Gap Researcher use,
Leadership Quality, resource availability, effective communication, organization structure,
organization culture and balanced scorecard as the variables. When come to in Ethiopia, even
though few studies there is lack of some important points. Firstly the studies general case does
not Bahirdar case. Secondly they does not conducted present problem. Finally does not conduct
on determinants of strategic plan implementation in commercial banks the case of bahirdar
administration. Due to the above reason researcher have an interest to study on this area because,
even if many Ethiopian, especially public institutions currently have strategic plans, but they
continuously decline to attend them until they consolidated and set on a shelf. Due to that, in
addition to decline to align the institutional objectives, it is impossible to ensure customer
satisfaction. This event has a negative influence in general on strategic goal of the nation. So that
the final aim of this study would be to announce the determinate which is highly influence
strategic plan and to give attention in order to reject the reluctant of strategic plan

5
implementation on commercial bank Therefore, this study would be to seek to investigate the
determinants of the strategic plan implementation in Commercial bank of Ethiopia in bahirdar
Administration.
1.3. Research Questions
1. What is the influence of leadership quality on strategic plan implementation in
commercial banks in bahirdar Administration?
2. What is the influence of resource availability and utilization on strategic plan
implementation in Commercial banks in bahirdar Administration?
3. What is the influence of effective and timely communication on strategic plan
implementation in Commercial banks in bahirdar Administration?
4. What is the influence of organizational structure on strategic plan implementation in
Commercial banks in bahirdar Administration?
5. What is the influence of organizational culture on strategic plan implementation in
Commercial banks in bahirdar Administration?
6. What is the influence of balanced scorecard on strategic plan implementation in
commercial banks in bahirdar Administration?

1.4. Objectives of the Study

1.4.1 General Objective
The general objective of the study was to identify the determinants of strategic plan
implementation in commercial bank the case of bahirdar Administration.
1.4.2. Specific objectives
The specific objectives of the research include
1. To investigate the influence of leadership quality on strategic plan Implementation in
commercial banks in bahirdar Administration.
2. To examine the influence of resource availability and utilization on strategic plan
implementation in Commercial Banks in bahirdar Administration.
3. To investigate the influence of effective and timely communication on strategic plan
implementation in Commercial Banks in bahirdar Administration
4. To examine the influence of organizational structure on strategic plan implementation in
Commercial Banks in bahirdar Administration

6
 5. To determine the influence of organizational culture on strategic plan implementation in
Commercial Banks in bahiradr administration.
6. To determine the influence of balanced scorecard on strategic plan implementation in
commercial banks in bahirdar Administration.
1.5. Research Hypotheses
H1: Leadership quality has a positive and significant effect on strategic plan implementation in
commercial banks in bahiradr administration.
H2: Resource availability and utilization has a positive and significant effect on strategic plan
implementation in commercial banks in bahiradr administration.
H3: Effective and timely communication has a positive and significant effect on strategic plan
implementation in commercial banks in bahirdar administration.
H4: Organizational structure has a positive and significant effect on strategic plan
implementation in commercial banks in bahiradr administration.
H5: Organizational culture has a positive and significant effect on strategic plan implementation
in commercial banks in bahirdar administration.
H6: Balanced scorecard has a positive and significant effect on strategic plan implementation in
commercial banks in bahirdar administration.
1.6. Significance of the Study
The study important for different stakeholder. For Board Members and Management – to
improve effectiveness and used as an evidence for future, offer information to make good
decisions, knowing and recognizing the internal workings of commercial bank. For Government-
The government and regulators set a policies that may direct and appreciate other firms inside
and outside in banking industry in implementing their strategies. For Researchers-significant to
present and future researchers who may want to conduct on the determinants of strategic plan
implementation, support them to wide their awareness in strategy plan. For Employees-The
employees always used the responsibility and achieve in identical evaluation when institution
strategy is correctly or poorly implemented. Therefore, the findings of this study may of
significance to employees since it would give perception on the determinants of strategy
implementation. For Customers -customers since they have major actors in the good manner of
running the institution. Customers may take the findings of this research to know the
sustainability and accurately of the institution to align their goal.

7
 1.7. Scope of the Study
Geographically, this research is limited to public commercial banks in bahirdar Administration.
The conceptual scope the study concentrated on identifying variables only, leadership quality,
resource allocation &utilization, effective &timely communication, organization structure,
organization culture and balanced scorecard, that influence on strategic plan implementation
commercial banks in bahirdar Administration. In addition, the study involved the elements that
affect strategic plan implementation, but not the effect of the strategic planning formulation
process. Also, the study focused on looking by choosing managers, employees connected in the
strategy plan implementation. Methodologically, researcher used both explanatory and
descriptive research design, the study used purposive and stratified sample technique, and finally
the research is conducted on November to June, 2015 E.C.
1.8 Limitation of the Study
During the collection of data for this study the researcher would face different limitation, like
Unwillingness of few concerned people to give the information the reason behind, busy of work.
Lack of enough and recent literature review on strategic plan Implementation, especially in
developing country like Ethiopia but researcher used developed global Literature as optional to
support the study of data. Finally researcher interviewed only top management.
1.9. Organization of the Study
The study contain five chapters .The first chapter contains, Introduction, back ground of
the study, statement of problem, objective of study, research question, significance, and scope of
the study. The second chapter contains an over view of the related literature review. Chapter
three contains research methodology like research design, sample technique, data presentation,
data type and source. Chapter four contain data analysis, presentation and interpretations. The
fifth chapter deal with, Summary, conclusion and recommendation.
1.10. Operational Definition of Terms
Strategic planning: - is a technique of direction created by a company or institution to explain
how it will succeed its goals and gives the starting to achieve so that anyone in the organization
have knowledge about what is going to occur and what should expected of them(Mintzberg,
2014).
Strategic implementation: - is a process for changing strategy into practices in order to enable
the anticipated results (Pride and Ferell, 2003).

8
Leadership quality: - Leadership qualities involves educational status, technical and
management skills, leadership experience, competencies, personal view, and other individual
attributes necessary for a certain role (Bryson, 2012).
Resource availability: - Physical, financial, and human resources are some examples of
organizational resources (Hill, C. & Jones, 2008).
Effective communication: Is the activity of transfer information from one person to another.
During the system implementation process, hierarchical consistency plays an important role in
the institution, distribution, and organizing of information. (Beach, 2014).
Organization structure: - The separate of work and people into fewer units referred to as
organizational structure and the division of labor within an institution has an effect on how
strategic plan converts are implemented (Robins and Coulter, 2012).
Organizational culture: - an organizational culture describe as organized of shared values and
beliefs that all employees share (Pearce & Robinson, 2014).
Balanced scorecard (BSC): an effective to handling context of changes an institution’s mission
and strategy indicate an inclusive process of effectiveness standard that supply the context for a
strategic evaluation and control mechanism (Kaplan & Norton, 2000).
Chapter Two
Literature Review
2. Introduction
In this chapter, literature, which is related to the topic and consistent with the objectives of this
study, is reviewed. Important theoretical and practical problems are brought out by relevant
literature on the aspects suitable to the determinants of strategic planning implementation.
2.1. Strategy Plan Implementation
For the organization, strategy implementation is more important than strategy formulation, since
if the strategic plan is not properly implemented by the employee and manager, the costs and
losses are larger than if the strategy is not effectively creation, (Abdulwahid Sial, Muhammad
Khawar Usman, Sehar Zufiqar, Arshad Mehmod Satti, Iftekhar Khursheed, 2013). According to
Pride and Ferell (2003), strategic implementation is the technique of changes strategies and plans
into act in order to establish needed results. These include who, where, when, and how to
implement a strategic plan properly. Consist of managers and staff in strategic planning

9
implementation, decision-making and effective communication for better to connect of all
members. The concept of strategy plan implementation necessary refers to the process used by
an institution to success its strategic goals, for most institution, strategy unsuccessful is a great
idea and problem. According to Elfie (2017), sufficient plan implementation is mainly focused as
one of the very significant effects and greatest institutional effectiveness is the outcome of basic
ranks of the strategy-making process. The better implementation of strategic selection is always
shown as decisive to perform corporate goals and objectives (Elbanna et al., 2015).When using a
strategy, different elements must consider (Yabs, 2007). These are necessary for implementation
consists resources, leadership abilities, leadership qualities, and unforeseeable personalities.
Factors derived from both the inside and outside environments identify as important. Inside
impact contain production materials, talented personnel, financial performance, internal
structure, and management skills. While all raw resources, energy, and effort that closed into
manufacturing materials are examples of outside impacts. The strategy plan implementation is a
vital moving tool for organizing all implementation practices. The accessibility of important
resources, employee involvement and engagement, vertical and horizontal cooperation to
connect gaps in technology, market, and organization. Internal abilities are whole part of the plan
implementation process, rearrangement of the internal structure of the institution , leadership or
championship in the implementation process, as well as top management commitment and
appreciate to the entire strategy process. The strategy plan implementation break down the work
into operational tasks that provide as strategy plan implementation method. (Pearce et.al, 2009)
finally, the proper strategic plan's implementation affected by the following vital factors: the
practice plan outlines the activities to implement each action plan as well as individual
responsibilities. Second, they are a significant element of the workforce who can changes the
strategies into action. Third, the strategy must be incorporated with current commercial activity.
Fourth, sufficient budget for the methods showed supply each year through the company's plans.
2.2. Strategic Plan Implementation Process
According to ELIF GENC, (2017), Effective plan implementation considered as one of the most
success technique for producing public assistance, satisfaction, and needs in public services
delivery. A strategy, according to Jones and Hill (2010), thought that does not have definition
until it implemented. Institutions may collapse frequently due to the improper to choose and
implement their strategies accordingly. Partidario (2012) states strategy implementation as "the

10
changing of strategies into practices." Drafting the institutions’ future, improving the strength of
institutional operations, and improving institution design, structure, evaluation systems, and
culture are whole part of this steps. Strategy implementation, according to (Leibbrandt, 2013,
and; Dhillon, 2014), is necessary to rearrangement the organization in meet with its objective.
This may entail reformation or re-engineering if significant. As defined by Jones and Hill,
business monitoring and strength the same to strategy plan implementation through the member
between stakeholder management and company performance. Strategic leadership is vital for
success the vision of the institution, there by performing its small-and large goals (Hough,
Thompson Jr, Strickland III, & Gamble, 2011).different institution collapse to know their goals,
as defined by Samad and Aziz (2016), because best institution strategies continuously poorly
implementation. To achieve in adequate strategy implementation, institutions occasionally
require to reposition in order to lies the performance standards needed, in addition, through
evaluating and controlling strategic operation (Parnell, 2014). To implement a great correct
strategy for further successive, management must put pure goals, assistance encourage systems,
rule and regulation (Leibbrandt, 2013), (Samad & Aziz, 2016), describes contains senior
management and favorite the proper allocation of resources to help process. In a result, the
formulation of an implementation plan is needed to change strategy into operation (Leibbrandt,
2013). According to (Parnell, 2014), strategy implementation is a major that institutional
strategic leadership should move all business activity together, which contains the mission,
vision, goals, ethics, culture, employee eagerness and communication. Strategy implementation,
in the suggestion of Ehlers and Lazenby (2010), explain a management steps that needed a
leadership quality that stimulated by convert and design by determination. The implementation
of strategy begins with corporate governance, in that higher management has the responsibility to
control that managers implement the strategy and evaluate its implementation (Gamble, Peteraf,
& Thompson, 2017). The largest of convert necessary by an institution determines whether
convert circle around the present institutional structure and culture (Ungerer, & Herhodt, 2015).
Management must offer converts within the present institutional symbol as they lead to the used
of new measures to taken to a modify environment, and, as Ehlers and Lazenby (2010) run on to
identify, strategy implementation envelop all of the necessary parts, which incorporated strategic
change, institutional structure, strategic monitor systems, strategic leadership, and sound
governance.

11
 2.3. Theoretical Models on Strategic Plan Implementation
2.3.1. Behavioral Theory
Behavioral theory concentrated on a leader's particular feature and operation rather than their
quality. Successful leadership, according to the opinion, is the result of a mixture of educate
ability. According to the theory, Leaders allowed have three mandatory skills: technical, human,
and intellectual skills to manage their supporters. Technical skills appropriate to a leader's
knowing of a procedure or steps; human skills refer to one's capability to perform with others;
and conceptual skills refer to the leader's capability to discuss with information for adequately
performing the organization. This theory is important to this research since it explain various
leadership experience and capability for institutional achievement.
2.3.2 Upper-Echelon Theory
According to the Upper-Echelon Theory, top manager’s impressions have an important effect on
institutional strategic decisions, which affect institutional effectiveness (Bell, 2007). This
theory's describes supporter conducted whether higher management had most effect on
institutional performance. According to Hollenbeck, DeRue, and Mannor (2006), the
demographics of the top management effect on suitable effectiveness and formulate. The
outcomes shows that profession intend about what elements reconstruct the top management
membership's values, attitudes, and cognitions. Experience, age, educational background, and
duration of the senior group evaluated to have an effect on the institution's effectiveness
(Carpenter et al., 2004). This theory is important to this research since it describe leadership
experiences, educational background, and duration of executive membership a significant effect
to institutional performance.
2.3.3. Resource Based View
The resource-based approach based on the information that a firm's competitive advantage
formulate from its inside resources rather than its location in the outside environment. Physical,
financial, human, and intangible assets entire prepare these resources and skills, (ROSELYNE
KOMELEI KIMIRRI, 2015). The occupied of resources strongly meet to strategy capital
allocation decisions as component of this difficult procedure. Managers who may have
controversy roles and are regularly at the middle level of the institutional hierarchy made. It also
explain how the method was structure by the shaped putting (Bower 1970). The resource-based

12
view is a significant theoretical lens for interpreting and knowing several institutions'
competitive effectiveness and comparative competitive advantages. The resource-based view
(RBV) considered on the institution's resources as the first formulates of competitive advantage
and effectiveness, Eric Lewa Katana, Esther W. Waiganjo, Fred M. Mugambi, 2016). As a result,
resource based view adopt to support determine how proper institutions should moving resources
to establish effective plan implementation. This theory is specific important to study since it
explains how a firm's resources are a significantly part to investigate before implementing plans,
assessing the environment, or control its leadership and top management. This information is
important to this study because resource allocation and utilization have an important effect on
organizations' capability to implement strategic plans.
2.3.4. Charles Handy Concept
This approach takes institutional structure to classified institutional culture into four groups:
power culture, role culture, task culture, and person culture. A Power Culture is one in which
power is focused within small people and evaluate distribute out like a design from the interest.
There are a few policies and minor bureaucracy in power cultures. People in a Role Culture have
defined occupied command within a successful institution. As a rule, these institutions
incorporated into hierarchical bureaucracies, where power come from an individual's rank and
skilled power is restricted. A task culture is one in which humans form association to reach
particular event. As long as a group needs expertise, power comes from expertise. A matrix
structure with most reporting case is well-known in these cultures. Person whose emotion they
are major to the institution form a Person Culture. Because the idea of institution indicate that a
team of well-minded persons attend the institutional objective, such teams may have problem in
living institutional objectives. This idea associated to this research institutional structure and
culture effect on strategic plan implementation.
2.4. Empirical Evidence of Strategic Plan Implementation
2.4.1. The Influence of Leadership on Strategic Plan Implementation
In every dimension of institutions, institutional effectiveness accept to associate to the organize
effect of leaders at several positional ranks, (Charles A. O'Reilly, David F. Caldwell, Jennifer A.
Chatman, Margaret Lapiz, William Self, 2010). Leadership, specifically strategic leadership,
often regarded as one of many significant effects in effective strategy implementation, (Kaplan &
Norton 2004). However, one of the main hindrance to effective strategy implementation has been

13
knowing as a shortage of leadership, particularly strategic leadership by the institution's higher
management (Kaplan & Norton 2004).According to Assefa Beyene,(2012), In order to perform a
strategy, the organization’s leaders must have strategic leadership qualities. Strategic leadership,
according to Reeves (2002), is the procedure of implementing, interpreting, and redesign plans
while also concentrating institutional resources and capacity in many effective strategies.
According to Thompson et al., (2007), strategy implementation should accompanied by an
implementation strategy, such as a program or plan. The plan must be put out in front of time,
with eligible state implementation periods and responsibilities. The strategy monitor the
institution’s control and evaluates attempt to determine if the implementation step was popular or
not. According to Dennis Juma, Jkuat Karen (2017), leadership competence has usually effect on
implementation of strategy. According to Michael (2010), leadership has immediate cause and
effect meet on both the organization and its popular. Lack of leadership particularly strategic
leadership is one of the problems to success strategic implementation, (IAJHRBA, 2019).
Furthermore, the event of leadership, especially strategic leadership by the institute's experienced
management, has showed as one of the most hindrance to effective strategy implementation.
Popular strategy, an extreme and successful substitute of skills, and combined human capital are
a large donation to strategic achievement and one of the hindrance to strategy implementation is
poor leadership, Pucko and Cater (2010). As an outcome, best leadership is most an important
than every other part. Beer and Eisenstat (2000), strategy Plan implementation has exemplary as
hampered by a shortage of varies-functional work together and leadership skills.
2.4.2. The Influence of Resource Availability on Strategic Plan Implementation
Iajhrba, (2019), defined that a powerful and successful skills pool and adequate work force are
necessary resources for strategy success. W.Wajganjo, (2017), describes that without higher
management help, resource distribute and technology, strategy cannot achieve. Technology
funding and suitable management are the crucial effects for successive strategy, (Abdullah H,
2017). Niclas Brinkschroder, (2017), explains that people are the great important for strategic
elements. Institutional resources are necessary effect that affect strategy implementation, (Esther
W.Wajganjo, 2017). It explain that the accessibility of resources was a main part in determining
the achievement of every plan implementation, (Obeidat, Al-Hadidiand Tarhini, 2017). Mesfin
Lemma and Melak Ferede(2018) defined that, there is fulfillment to take the success of persons
for the right responsibilities, as mentioned in the driving and planning part of the Strategy

14
implementation. Unless it is employed in the funding procedure, a strategic plan is of minimal
useful (Paris, 2003).Miller (1997) and Hickson et al. (2003), also mentioned that One of the first
elements that effect on the implementation of plans is resource accessibility in terms of humans,
finances, and time. Internal capacity and resources are important to start competitive advantage,
according to Ismail, Uli, and Abdullah (2012). Humans are the most significant strategic
resource; as a result, it is essential for businesses success effective their workers' understood in
the right places, Lorange (1998). Technology has had an important effect on human development
and strategy implementation entire history, according to Beaumaster (2009). Shortage of
financial resources, according to Nkosi (2015), stability is the most important barriers to achieve
plan implementation. The first effect for success implementation, according to Reid, Brown,
Nerney, and Perri (2014), were a shortage of financial and human resources. According to
Obeidat, Al-Hadidi, Tarhini, and Masa'deh (2017), sufficient financial resources, adequate
human resources, enough administrative resources, proper technological resources, and
satisfactory physical resources should all be require to help effective strategic implementation
during the period permit for implementation.
2.4.3. The Influence of Communication on Strategic Plan
Implementation
According to Dennis Juma, Jkuat Karen (2017), all outside and inside communication between
workers in the institution is vital to the success strategy. Niclas Brinkschroder (2017), defines
communication is necessary for inward knowledge strategy of institutions. Proper plan
implementation is Effective communication, Peng and Litteljohn (2001). Successful
communication should briefly explained the new responsibilities, duties and works, which will
act by objective employees (Pang and Little john, 2001). Beer and Eisenstat (2000),
Communication should move from the lower-top through the implementation procedure, permit
management to control the procedure and determine whether changes to the strategy are needed
and protect vertical communication has mostly poor effect on organization’s capacity to
implement and powerful its strategic objectives. Poor communication between strategy
formulator, personnel, and the management of the institution, according to Feurer, Chaharbaghi,
and Wargin (1995), is a focus effect on institutional strategy declines.
2.4.4. The Influence of Organizational Structure on Strategic plan Implementation
Meyer and Rowan (1977) state organizational structure as interrelated channels that organize and

15
affect institutional efficiency and outcomes. According to Root (2017), an institutions’ structure
start a rank of responsibility and begins several types of communication. institutional structure
has an influence on strategy implementation Because it maintains communication and idea flow,
controls resource allocation, assigns functions and responsibilities, and mentioned activities and
task teams such as project members, departments, and quality circles, (Veasey, 2001). Burns and
Stalker (1961) defined the nature taking intrinsic and mechanical parts to mention the idea adopt
in institutional structure. Institutions defined by their adoptability ability to correct
environmental modifications, strategic, and development situations. Organic or fundamental
structures are most unstable and flexible than ones that are more complicated, because they less
legal, wider, property horizontal and diagonal communication channels, and put a larger
advocate on group task. Mechanistic or complex Structures differ by a large type of regular,
vertical communication system, and a powerful advocate on concentrating on personal energy
rather than group task, (Moinkett Irene Siapei, 2015). According to Porter (1986), basic
structures are more suited in strategy implementation because the structures may easily adapt to
lies the implementation strategy or plan started by an institution and them fluid correct to the
outside institution. According to Rajasekar (2014), institutional structure may support with
strategy implementation by updating decision-making procedures, job descriptions and
obligations, human resource allocation, and institution flexibility.
2.4.5. The Influence of Culture in Strategic Plan Implementation
According to Maslowski (2001), organizational culture defined as distinguish set of opinions,
values, task types, and networks that differ one institution from another. According to Baird k.,
Harrison G., Reeve R. (2007), institutional culture and strategy are announce associated, and
they are even the two halves of the same coin. As a result, the writer made no suggestions about
the reality of a dependent and independent variable in the model. Depending on the harmonious
among cultural values and the selection strategy, institutional culture effects on strategy
implementation by formalizing or deformalizing the method. When culture formalizes strategy in
the view of employees and management, it acts strategy implementation most simple, and when
culture deformalizes strategy in the perspective of employees and management, it made strategy
implementation easily impossible, Nebojas janicijevic, (2012).Organizational culture and
strategy interrelated, with one being the destination and the other the effect. According to Pearce
and Robinson (1988), Culture may be powerful or not fit depending on how person view at it.

16
Culture has the influence to access communication, decision-making, and monitor, as well as to
keep work together and devotion. Culture, as a flaw, can prevent plan implementation by
instilling aversion to modify. Employee attitudes and behavior affected by organization’s
culture's values, conventions, and believes (Gregory et al. 2009; Nayak & Barik, 2013). An
assistance culture is one that develop on propose that an institution is a family, and that the
sufficient results come from collaboration. When persons shape consistent relationships with one
another, they achieve effectiveness. This culture ask to start an atmosphere of help, consistency,
and friendly and nearly interpersonal limit. Although an assistance culture shows better
leadership quality, it is well an outcome in proper levels of employee satisfaction and loyalty to
the institution, (Wallach. (1983). According to Elfie (2017), Culture regularly see as the most
significant exposure of every organization. When culture and strategy are unrelated and practice
on a barrier to strategy implementation, the risk of strategy decline referred to as cultural risk,
(Nebojas janicijevic, (2012). According to Naranjo-Valencia, Jimenez-Jimenez D., Sanz-Valle
R. (2011), organization strategy for market entry affected by corporate culture, specifically in
terms of selecting among original and fake strategies. Certain forms of institutional culture
require the built and implementation of known tactics, while other tactics offer to the growth of
different institutional cultures, (Nebojas janicijevic, (2012).
2.4.6 The Influence of Balance Scorecard in Strategic plan
Implementation
Mucheru, (2008), conducted by considering the function of the balanced scorecard to success
administration among commercial banks in Kenya. Karimi. (2010),a case study of Safaricom, on
the use of the balanced scorecard in strategy development and implementation and Ogendo,
(2010).According to Kaplan and Norton, the BSC is consist of: -Four strategic perspectives:
financial, customer, internal business process and learning and growth ones; Financial: To
succeed financially, how should we appear to our shareholders?, maximizing shareholder desire,
crucial aims and determines now broadly include (gross and/or net) profitability, return on
capital employed, residual income, economic value added, sales growth, market position and
share, cash flow. Customer: To achieve our vision, how should we appear to our customers? ,
concerning on “real” customer satisfaction, major targets and standards here in most emphasis all
customer focused such as delivery time, quality, service and cost. Internal business: To fulfill
our customers and shareholders, what business processes must we excel at? Main targets and

17
determines here should highlight critical skills and competencies, processes and technologies that
will deliver current and future organizational (customer/financial) success. Learning/growth:
To achieve our vision, how will we sustain our ability to change and improve?, supporting the
other three perspectives, major long-term aims and factors in this concern at most the same to
improving volatility and contribute for future development and new opportunities (Atkinson,
2006,). These roles s have made the balanced scorecard an effective management system for the
implementation of strategy. The balanced scorecard has been implemented effectively to private
sector companies, non-profit organizations, and government agencies. Fernandes (2003), notes
that the BSC’s effectiveness is so important that Harvard Business Review magazine declare that
BSC is one of the crucial role discoveries of the last 75 years in the business world it has been
transparent that the first concerned of Balanced Scorecard is to be a manage method for leader
(Kaplan,2000).
2.5. Gap of the study
The researcher try to examine various previous literature, journal, and thesis conducted from
international, continental, national which related to strategic plan implementation. When you see
abroad Ethiopia previous study mostly focused on challenges of strategy, implementation
process and use a variable employee competence, leadership style, policy and procedure,
external environment. However, as a gap the current study focused on strategic plan
implementation by using, Leadership Quality, resource availability, effective communication,
organization structure, organization culture and balanced scorecard as the variables. When come
to our country even if some study is conducted on bank strategy, they cannot conduct specifically
in bahirdar administration, also previous study conduct on private bank only like, wegagen bank,
berhan bank, oromia bank; however; the current study done on public Commercial bank of
Ethiopia in Bahirdar administration as a gap, finally researcher try to answer the current problem
which cannot identified by the previous study which conducted in our country.
2.6. Conceptual Framework for understanding Strategy Plan Implementation
The figure below would be indicate that the relationship between dependent variable (Strategy
implementation) and independent variables (Leadership qualities, Resources availability and
utilization, effective, and timely Communication, Organizational structure, organizational culture
and balanced scorecard). Figure 1: Conceptual Framework
Independent Variable Dependent Variable

18
 Leadership Quality

Resource
Availability &
Utilization

Effective & timely Strategic plan

Communication Implementation

Organizational
Structure

Organizational
Culture
Source:
BalancedKidane W/Giorgis (2020), Ishaq Buya (2019). Kaplan& Norton (2000)
scorecard
Chapter Three
Research Methodology
3. Introduction
This chapter include the methodology that would be taken in the entire study. It looks at study
design, data type and source, target population, sampling techniques, sample size, data
collection, and data analysis.
3.1 Description of the Study Area
Bahirdar is the beautiful city which Located on the shore of Lake Tana. It is 578 kilometers
from Addis Ababa, Ethiopia. It is the capital city of the Amhara region and a major getaway to
northern Ethiopia due to Bahir Dar Belay Zeleke international airport. Bahir Dar is crossed by
the Blue Nile, which takes its origin from Lake Tana. The city is known for its rapid urbanization
and moderate cost of living. It is home to Bahir dar University and was given UNESCO
Learning Cities Award in 2015.
3.2. Research Design
Research design refers to the conceptual structure within which research is conducted; it involves
the blueprint for the collection, evaluation and analysis of data. It is a particular outline detailing
how your select technique will be applied to answer a specific research question (Kothari, 2004).
To success the goal of the study the researcher used both Descriptive and Explanatory research

19
Design, because, Descriptive research design is used in order to collect detail information on
existing phenomena from respondents on their perceptions in relation to determinate of strategic
plan implementation, to justify the current condition and to draw final conclusion. While
Explanatory research design applied to examine the relation between the independent variables
(leadership quality, resource allocation and utilization, effective and timely communication,
organization structure, organization culture, balanced scorecard) and dependent variable
(strategic plan implementation).
3.3 Data type and Source
3.3.1 Types of data
The researcher used a mixed approach consisting of qualitative and quantitative types of data.
Borland (2001) assure that the differences between quantitative and qualitative researches are not
exclusive. He proposes that using both model in a study gives significant in result. The
quantitative approach includes the collection of quantitative data, which are put to strict
quantitative analysis in a formal and inflexible manner while as the qualitative approach takes
the technique of subjective assessment of suggestions, feature, factors and personal view.
3.3.2 Source of Data
The researcher used primary source of data, the primary data was collected from the employee
and manager of the organization. The primary data is collected by using open ended and close
ended questionnaires. Open ended questionnaires help respondents to write their opinion about
determinates of strategic plan implementation in commercial bank. Close ended questionnaires
important to that it requires relatively short period of time to collect data.
3.4. Target Population and Sampling Methods
3.4.1. Target Population
Population can be defined as the entire collection of particulars whom investigators seek to make
implication on (Cooper& Schindler, 2014). Even though one can argue that the ideal target
population for this study is all staffs of the bank, the researcher believes that the target
population shall be staffs of the bank at supervisory or above positions that have well
understanding of strategic plan implementation. Hence, the researcher would be focus on
respondents who oversee the strategy plan implementation and active implementers who is
placed in District Offices, and Branches. So that, The target population of the study would be

20
employee of commercial bank, both managerial and non-managerial employees of the respective
commercial bank of Ethiopia found in Bahirdar Administration, There are a total of 585
employees of in commercial bank, from this 391epmployes select from Branches of commercial
bank and the rest 194 employees is from Districts of commercial bank.
3.4. 2. Sampling Technique
The researcher was used both non-probability and probability sample technique. From the Non-
probability sampling, the researcher used purposive sampling to choose commercial bank of
Ethiopia purposefully. So based on this the researcher select commercial bank of Ethiopia from
public banks because commercial bank of Ethiopia is the largest state owned bank in Ethiopia in
terms of all factor such as the number of customer, employees, total deposit, loan and advance,
usage of technology, social responsibility, total profit and asset and contribution to the total
economy of the country (Bus.com, 2019). From probability sampling technique, the study would
be adopt a stratified random sampling technique to select the sample size of the respondent.
Stratified random sampling is considered to be a technique that attempts to restrict possible
samples to those which are „less extreme‟ by ensuring that all parts of the population are
represented in the sample in order to increase the efficiency. Stratified random sampling is
preferable because the population may be arranged in sub-groups and then a random sample may
be selected from each of these sub-groups (Lohr, 2010). It includes several subgroups, known as
strata together they contains the entire population. The strata in this study would preferable due
to various levels of management and employees working in different bureau/department in
Commercial Banks in Bahirdar Administration is incorporated.
3.5. Sample size
Muganda (2010) defined the sample size as a minor set of the total population. According to
Taro Yamane (1967), formula the researcher selects representatives among directorates and
experts. The researcher believed that the representatives of samples are controllable and
sufficient for data security. Therefore, using this formula, the researcher found out the sample of
the study as followed. n= N/1+N (e)2 (where n= sample size. N= total population.
e=sampling error. 1= constant. So the researcher takes sampling error of 5%.
Then n= 585/1+585(5%)2 = 237.56≈ 238 , where N is the size of the total employees in
Commercial banks in Bahirdar Administration and n is the required sample size & e is the limit
of error tolerance which is assured to be 5% (0.05) level of confidence. Because of the above

21
formula, the total population in the in commercial bank is 585; the researchers collected 238
samples. So that the researcher would be apply to the proportionate stratified random sampling
method for this study, if sizes of each stratum are comparable then equal sampling fraction can
be used. This is called proportionate stratified random sampling. N= N1+N2, for strata one= N1=
265 320
265, for strata two= and N2=320 ni= ni ( ¿¿ ), n1= 238( ) = 108, n2= 238( ) = 130,
585 585
Sample size (n) = n1+n2=108+320= 238
The sample size for each of the two strata shown in the table below.
Table 1: Classification of employee based on position
Name of bank employee based on Number of Percentage Sample
Commercial Bank of Ethiopia position Employee size

Managerial 94 16 38
Bahirdar District Non-Manager 171 29 70
Sub-total 265 45 108
Branches under Bahirdar District Managerial 57 10 23
Non-managerial 263 45 107
Sub-total 320 55 130
Grand Total 585 100 238
Source: - (own survey, 2023)
3.6 Method of data collection
In order to get adequate and accurate information about the topic under investigation, the study
used primary source of data. The primary data was collected by using self-administrate close
ended and open ended questionnaires spread to employee of the organization. The researcher
applied a five-point Likert scale to request respondents to explain their suggestion on provided
statements and they were predict to either strongly disagree, disagree, neutral, agree, or strongly
agree. The Likert scale is designed to investigate how strongly subjects agree or disagree with
statements on a 5-point scale (Uma Sekaran, 2003). And also, some interview questions were
designed to ask top managements such as, district manager, branch manager and experts of the
banks about determinates of variable influence on strategic plan implementation.
3.7. Data Analysis Techniques
To achieve the objective the researcher was used mostly descriptive and inferential statistics such

22
as tabular representation, graphs, and percentage. The quantitative data would be analyze
through a statistical software program, namely, Statistical Package for Social sciences (SPSS),
and qualitative data would be narrate. Furthermore, the study used correlation and multiple
regression analysis to assess the association between strategic plan Implementation and the
research's variables (the relation between independent variables and dependent variables). The
regression model for this study is; - Y = β0 + β1X1 + β2X2 + β3X3 + β4X4 + β5X5 + β6X6 + ε
Where, Y=is strategic plan implementation
X1= Leadership quality
X2= Resource availability and utilization
X3= Effective and timely communication
X4= Organizational structure
X5= Organizational culture
X6= Balanced scorecard
β0 = constant term β1, β2, β3, β4, β5and β6 are the coefficients of regression equation for
each variables and ε is the error term.
3.8. Validity of the Research
Mugenda (2003), validity is the accuracy and meaningfulness of inferences, which are based on
the research results. This study taken both construct validity and content validity. For construct
validity, the questionnaire was classify into various parts to make sure that each part examine
information for a specific objective, and check the related alignment to the conceptual
framework for this study. To ensure content validity, the questionnaire was examined by Advisor
and other professionals. They were request to evaluate the statements in the questionnaire for
relevance. On the basis of the evaluation, the instrument was adjusted accordingly. Before start
it, the last data gathering activity, their review comments were taken to ensure that content
validity is enhanced.
3.9. Ethical Consideration
Ethical clearance and permission obtained from the Organizational review board Faculty of
Business and Economics of Management department in Yom Institute of Economic development
collage Bahirdar, Ethiopia. Permission is also granted from Commercial bank of Ethiopia
through formal letter. Participation in the study was on the voluntary basis and participants are
asked for willingness before they are provided the questionnaire. The subjects are also assured

23
that their responses used only for the purpose of the study. An attempt is made to first explain the
objectives and significance of the study to the respondents. Name, privacy, identity,
confidentiality and other identifying information are not used in the study. The researcher
secured all information related to the participants.
Chapter Four
Data Analysis and Interpretation
4. Introduction
This chapter presents analysis of descriptive statics and inferential statics which is qualitative
and quantitative data that collected from manager and employee of public and private
commercial bank by using questionnaires and interview. The return data was analyzed by SPSS
program.
4.1. Response rate on questionnaire
Out of 238 copies of questioners 108(45%) was distributed to bahirdar district of commercial
bank and 130(55%) was given for branches under bahirdar district of commercial bank. Among
distributed questionnaires for bahirdar district commercial bank 100(42%) and from branches
under bahirdar district of commercial bank 114(48%) were filled and returned. But 8 respondents
from bahirdar district of commercial bank and 16 from branches under bahirdar district of
commercial bank questionnaires were not returned. Generally 214 (90%) respondents give
response. This response rate was appropriate since Kothari (2011) argued that 50% response rate
is adequate, 60% good and above 70% rated as appropriate for analysis. This indicates that, the
banks under study were committed to give information relevant to the research understudy.
Table 2: Response Rate on Questionnaire distributed to Bank Employees
Questionnaire frequency Percentage
Filled and return 214 90%
not returned 24 10%
total 238 100
(Source: - own survey, 2023)
4.1. 1. General Background of Respondents
In this section, the general characteristics of the respondents were presented in the following
consecutive Tables 3, in the table show, gender, age, marital status, educational qualifications,
work experience, position and involvement in strategic plan of respondents was presented.

24
Table 3: Demographic Characteristics of the Survey Sample
No Item Respondent categories frequency percentage
1. Gender Female 83 38.8
Male 131 61.2
Total 214 100
2. Age 18-28 5 2.3
29-39 57 26.6
40-50 103 48.1
>50 49 23
Total 214 100
3. Marital status Married 159 74.3
Unmarried 37 17.3
Divorced 14 6.5
Windowed 4 1.9
Total 214 100
4. Educational Certificate - -
Level Diploma - -
Degree 137 64
Master 77 36
PhD - -
Total 214 100
5. Work < 1 year 2 1
experience 1-5 year 14 6.5
5-10 year 65 30.4
>10 133 62.1
Total 214 100
6. Position Expert 60 28
Senior expert 120 56.1
Lower manager 18 8.4
Middle manager 12 5.6

25
 Top manager 4 1.9
Total 214 100
7. Attending in Yes 176 82.2
strategic plan No 38 17.8
implementation Total 214 100
(Source: - own survey, 2023)

According to the above table 3 Item one indicate Gender distribution, from total of 214
commercial bank respondents, 131(61.2%) of respondents were male and 83(38.8%) of them
were female. The study conclude that, the respondents of male is dominate .therefore the
organization create favorable condition for female and revise its hiring policy to facilitate attract
new females in the organization from the graduates. Because female can contribute like male in
an organization.
As indicated in the above table 3 Item two the researcher divided the age of the respondent in to
four subsections. Hence, the age between 18-28, 29-39, 40-50 and above 50.From the total 214,
respondent of commercial bank 5(2.3%) of the respondents were found in age between
18-28, 57(26.6%) of the respondents were found between the age 29-39, 103(48.1%) of
respondents were found in between age 40-50 and 49(23%) the respondents were found between
the age above 50. The study concluded in commercial bank majority of the office employees
were found in the age interval of 40-50.
According to table 3 Item three, shows the marital status of the respondent, as shown in the
above table from a total of 214 commercial bank respondent 159 were married, while 37 were
unmarried, 14 were divorced and the reaming 4 respondent widowed. Further, the percentage of
commercial bank respondent those who have married, unmarried, divorced and windowed
accounted about 74.3%, 17.3%, 6.5% and 1.9% respectively. The study conclude that in
commercial bank majority of respondents were married.
From the above table 3 Item four indicate educational level of respondent, out of 214
commercial bank respondents were 137(64%) degree holder, and 77 (36%) respondents were
master holder. Finally in commercial bank there is no employee who have the certificate and
diploma holder in the organization. From this the researcher finding assessed that there is a well-
educated and performed employee in the organization. Here, most respondents have a degree and

26
above, so there is a good chance that they may better understand the questionnaire and respond
reasonably.
According to table 3 Item Five indicates work experience of respondent, commercial bank From
the total 214, respondent of commercial bank 2(1%) of the respondents were less one year work
experience, 14(6.5%) of the respondents were between 1-5 year work experience, 65(30.4%) of
respondents were between 5-10 year work experience and 133(62.1%) the respondents were
above 10 year work experience. Therefore in commercial bank most of the employees were have
above 10 year experience. As a result, the majority of respondents have been with the
commercial bank for ten years or more, and they may have a better understanding of the banks
strategic plan implementation and problems.
In terms of present work experiences, 60 (28%) experts, 120 (56.1%) senior experts, 18 (8.4%)
middle managers, lower manager 12 (5.6%) and 4(1.9%) top managers directly participated in
strategic plan implementation. This shows that in commercial bank majority of the respondents
are senior experts, Due to this, researcher expect that the employee understand the impact of
strategic plan implementation that associated problems occur throughout implementation and
supports to gives important information.
In terms of strategic planning implementation attending, 176 (82.2%) are attend, while 38
(17.8%) have not attend in strategic planning implementation over the last five years. The above
result indicate that majority of the respondents have been attending in strategic planning
implementation for the past five years and they are familiar about of implementation problems.
4.2. Reliability test
Cronbach's alpha is a coefficient of reliability that gives an unbiased estimate of data
generalization (Zinbarg 2005). An alpha coefficient is lie 0.6 accepted and an alpha coefficient of
0.7 or higher indicated that the gathered data are reliable as they have a relatively high internal
consistency and can be generalized to reflect opinions of all respondents in the target population
(Zinbarg, 2005).
Table 4: Reliability statistics

Dimensions Cranach’s Alpha Number of item Comments

Influence of Leadership 0.730 5 More Reliable
Influence of Resource 0.700 4 More Reliable
Influence of communication 0.768 5 More Reliable
27
 Influence of structure 0.765 5 More Reliable
Influence of culture 0.642 4 accepted valve
Influence of balanced scorecard 0.831 8 More Reliable
Over all scale reliability 0.954 31 More Reliable
Source: (own survey, 2023)
Reliability or consistency means, if a person were to take the assessment (test) again, and the
result of the test score would be similar. According to the above result, the reliability is 0.954,
which means if the questionnaire given to the same respondents; the chance of getting a similar
result for the study is 95.4%, so it is reliable.
4.3. The influence of leadership qualities on strategic plan implementation in banks
Table 5: the influence of leadership qualities on strategic plan implementation in
banks
Do you anticipate leadership quality Item frequency percentage
influence on strategic plan implementation Yes 194 90.7
of commercial bank? No 20 9.3
Total 214 100
Source: - (own survey, 2023)
According to the above table, for respondents give a chance to explain their point of view on
whether leadership quality influences strategic plan implementation, most of respondents
194(90.7%) in commercial bank of responded that it does and 20(9.3%) does not. Furthermore,
they are ask to rate the extent of effect of leadership quality on strategic plan implementation in
commercial bank responds as 15 (7%) low extent, 48 (22.4%) moderate, 116 (54.2%) great
extent, and 35 (16.4%) very great extent. Majority of respondents of banks were responds that
leadership is a great extent on strategic plan , So that the study conclude that Leadership quality
is one of the major great extent factor to influence the strategic plan implementation of
commercial bank in bahiradr administration, and has a significant influence on it.
Figure 2: The range of leadership qualities influence on the strategic plan implementation

28
 To what range does Leadership quality diminish strategic plan
implementation in commercial bank ?
60% 54.20%
50%
Frequancy

40%
30%
22.40%
20% 16.40%
10% 7.00%

0%
Low Extent Moderate Extent Great Extent Very Great Extent
Source: - (own survey, 2023)

4.3.1. Assessment of leadership quality

The participants also request to tell their level of agreement with statements expressing
leadership characteristics, which they responded by using a five point Likert scale where 1 -
Strongly Disagree (SD), 2 – Disagree (D), 3 - Neutral (N), 4 - Agree (A), 5 - Strongly Agree
(SA). After that researcher used frequency, percentage, mean and standard deviation to analysis
each question as accordingly, the final result indicated in the following table below.
Table 6: Assessment of Leadership quality
Statements SD D N A SA Mean S.devation

The leaders in commercial banks Freq 4 14 41 86 69 3.94 0.972

have adequate educational level, % 1.9 6.5 19.2 40.2 32.2
and work experience.
The commercial banks leaders Freq 6 10 58 86 54 3.80 0.964
are absence of a good % 2.8 4.7 27.1 40.2 25.2
conceptual, technical and human
skill.
Reluctant of Leader’s to Freq 6 10 47 110 41 3.79 0.901
accomplish their roles leads to % 2.8 4.7 22 51.4 19.1
the lower ranks of employees
failing to assist and instruct.
The leadership, management and Freq 2 13 50 95 54 3.87 0.894
supervision given by the % 0.9 6.1 23.4 44.4 25.2
commercial banks managers

29
were improper.
The commercial banks leaders Freq 6 7 58 95 48 3.80 0.919
have poor decision making, case % 2.8 3.3 27.1 44.4 22.4
analysis, problem solving and
Innovation skills.
Source: - (own survey, 2023)
As indicated on the above table respondents replied that 4(1.9%) Strongly disagree, 14(6.5%)
disagree, 41(19.2%) Neutral, 86(40.2%) agree, 69(32.2%) Strongly agree, in regarding to
adequate education level and work experience. Regarding this the researcher finding conclude
that most of respondents have adequate educational level and work experience, so it is greatly
support to apply strategic plan implementation properly in commercial bank in Bahirdar
administration . In terms of leader’s absence of managerial skills, 6(2.8%) strongly disagree,
10(4.7%) disagree, 58(27.1%) neutral, 86(40.2%) agree, and 54(25.2%) strongly agree. As
shown in the above Agree respondents were dominate in commercial bank in regarding to
absence of managerial skill for a leader. Accordingly the researcher can conclude in commercial
bank, there is absence of managerial skills (conceptual, technical and human skill) this result
major impact on strategic plan implementation.so that leaders must acquire good managerial skill
to be success in strategic plan implementation. Regarding to Reluctant of Leader’s to accomplish
their roles, in commercial bank respondents replied that 6(2.8%) strongly disagree, 10(4.7%)
disagree, 47(22%) neutral, 110(51.4%) agree, 41(19.2%) strongly agree. majority of respondents
agree on statement therefore, there is Reluctant of Leader’s to accomplish their roles in
commercial bank. According to Insufficient leadership direction and instructions, in commercial
bank respondent responds 2(0.9%) strongly disagree, 13(6.1%) disagree, 50(23.4%) neutral,
95(44.4%) agree and 54(25.2%) strongly agree. Because the majority of respondents agree with
the statement, the manager’s leadership direction and instructions in commercial bank were
improper. Regarding poor decision-making, case analysis, and problem solving skills, in
commercial bank respondents were responds 6(2.8%) strongly disagree, 7(3.3%) disagree,
58(27.1%) neutral, 95(44.4%) agree and 48(22.4%) strongly agree. According to the result, the
commercial bank leadersˈ were poor decision-making, case analysis and problem solving skills,
then, the study conclude this factor is directly affect commercial bank of strategic plan
implementation. Further the study sought mean value and standard deviation were measured for

30
each questions of Leadership Quality. According to the sample respondents very high level of
agreement on the statement were “The leaders in commercial banks have adequate educational
level, and work experience” (mean=3.94, S.D. =0.972). this indicate the cause of absence of
skill, reluctant to perform the role, poor problem solving skill ,improper supervision and
direction come from leaders cannot assigned on their filed, capability and ability even if they
were well educated and experienced. Furthermore, the overall respondents’ average agreement
with regard to leadership quality was mean 3.84 and standard deviation of 0.93. This showed that
most of the respondents had high level of agreement that leadership quality had influence on
strategic plan implementation of commercial bank. This supported by, (Chathoth and Olsen,
2002), Leadership quality is the style of authority practiced by the managers to influence the
remaining an organization regards to success the targets of the organization.
4.4. The influence of resource availability and utilization on strategic plan implementation
Table 7: The influence of resource availability on strategic plan implementation
Do you expect resource allocation influence Item frequency percentage
strategic plan implementation of commercial Yes 152 71
bank? No 62 29
Total 214 100
Source: - (own survey, 2023)
As describing in the above table most respondents’ 152(71%) replied that resource allocation is
major influencing factor to implement strategic plan implementation in commercial banks.
Whereas 62(29%) responds not familiar about resource allocation is influence on strategic plan
implementation in commercial banks. Furthermore, they are request to rate the extent of
influence of resource allocation on strategic plan implementation in commercial bank responds
as 16 (7.5%) low, 50 (23.4%) moderate, 107 (50%) great, and 41 (19.1%) very great. Most
respondent replied that resource allocation is great extent on strategic plan So that the
researcher conclude that resource allocation is one of the major great extent factor to influences
on strategic plan implementation and has a significant influence on it.

31
 Figure 3: The extent level of resource availability and utilization influence on strategic plan
implementation

To what extent does the level of resource allocation influnce

strategic plan implementation in commercial bank ?
60%
50%
50%
Frequancy

40%
30% 23.4%
19.1%
20%
10% 7.5%

0%
Low Extent Moderate Extent Great Extent Very Great Extent

Source: - (own survey, 2023)

4.4.1. Assessment of Resource availability and utilization
The Respondents asked to express their level of agreement with statements explaining resource
availability and utilization characteristics, they replied by using a five point Likert scale where
1 - Strongly Disagree (SD), 2 – Disagree (D), 3 - Neutral (N), 4 - Agree (A), 5 - Strongly Agree
(SA). After that researcher used frequency, percentage, mean and standard deviation to analysis
each question as accordingly, the final result indicated in the following table below.
Table 8: Assessment of resource availability and utilization
Statements SD D N A SA Mean S.devation

The commercial bank has not a Freq 7 9 48 86 64 3.89 0.989

transparent resource planning, % 3.3 4.2 22.4 40.2 29.9
allocation and utilization system.
The commercial bank had often Freq 4 14 46 97 53 3.85 0.934
lack of competent human capital % 1.9 6.5 21.5 45.3 24.8
(employee) during strategic plan
implementation.
The commercial bank often Freq 4 11 55 88 56 3.85 0.934
faced absence of financial % 1.9 5.1 25.7 41.1 26.2
resources during strategic plan
implementation.
The commercial bank had often Freq 10 10 52 106 36 3.69 0.963

32
deficiency of tools and % 4.7 4.7 24.3 49.5 16.8
technology that necessary for
strategic plan implementation.
Source: - (own survey, 2023)
According to the above table shows that the statement which is not a transparent resource
planning, allocation and utilization system, respondents in commercial bank reply that 7(3.3%)
strongly disagree, 9(4.2%) disagree, 48(22.4%) neutral, 86(40.2%) agree and 64(29.9%) strongly
agree. Most respondents agree on statement, researcher conclude that in commercial bank there
is no proper and effective resource planning allocation and utilization system. Regarding to lack
of human capital in commercial bank respondents respond that strongly disagree 4(1.9%),
disagree 14(6.5%), neutral 46(21.5%), agree 97 (45.3%), strongly agree 53(24.8%).the study
conclude that in commercial bank they were affected by shortage of competent human resource
during strategic plan implementation. According to the statements, absence of financial
resources, in commercial bank respondents responds that 4(1.9%) strongly disagree, 11(5.1%)
disagree, 55(25.7%) neutral, 88(41.1%) agree, 56(26.2%) strongly agree. The researcher
conclude that in commercial bank there were an absence of financial resource during strategic
plan implementation. In terms of deficiency of tool and technology in commercial bank
respondents replies that 10(4.7%) strongly disagree, 10(4.7%) disagree, 52(24.3%) neutral,
106(49.5%) agree, 36(16.8%) strongly agree. because of majority of respondent agree on
statements, there is deficiency of tool and technology in commercial bank. therefore it is highly
influence on strategic plan implementation of bank. On the other hand the study sought mean
value and standard deviation were measured for each questions of resource availability and
utilization. According to the sample respondents very high level of agreement on the statement
were “The commercial bank has not a transparent resource planning, allocation and utilization
system” (mean=3.89, S.D. =0.989). This implies that in commercial bank resource such as
financial resource, human resource and technological resources were not distributed in fair as
accordingly. Moreover, the overall participants’ average agreement with regard to resource
availability and utilization was mean 3.82 and standard deviation of 0.96. This indicated that
most of the respondents had high level of agreement that resource availability and utilization,
had influence on strategic plan implementation of commercial bank. This supported by,

33
(Kraaijenbrink, Spender and Groen, 2010), Resources are among the greatest significance
exposures of strategic plan implementation.
4.5. The Influence of effective and timely communication on strategic plan implementation
Table 9: The influence timely of communication on strategic plan implementation
Do you believe effective and timely Item frequency percentage
Communication influence strategic plan Yes 184 86
implementation in the commercial bank? No 30 14
Total 214 100
Source: - (own survey, 2023)
According to the above table, respondents request to explain their suggestion on whether
effective and timely communication influences strategic plan implementation and the majority of
respondents in commercial bank 184(86%) responded it influence the implementation of
strategic plan and 30(14%) responded that it does not and they may not familiar about strategic
plan implementation. Furthermore, they rate the extent level of communication influence on
strategic plan implementation in commercial bank as 42 (19.6%) low, 57 (26.6%) moderate, 94
(44%) great, and 21 (9.8%) very great. From those results, researcher can conclude majority of
respondent in commercial bank replied that communication is highly influencing on strategic
plan implementation.
Figure 4: The extent of communication Influence on strategic plan implementation

To what extent does the level of timely communication influnce

on strategic plan implementation in commercial bank ?
50% 44%
40%
Frequancy

30% 26.6%
19.6%
20%
9.8%
10%
0%
Low Extent Moderate Extent Great Extent Very Great Extent

Source: - (own survey, 2023)

4.5.1 Assessment of Effective and timely communication
The Respondents invite to express their level of agreement with statements explaining effective
and timely communication characteristics, they replied by using a five point Likert scale where

34
 1 - Strongly Disagree (SD), 2 – Disagree (D), 3 - Neutral (N), 4 - Agree (A), 5 - Strongly Agree
(SA). After that researcher used frequency, percentage, mean and standard deviation to analysis
each question as accordingly, the final outcome shown in the following table below.
Table 10: Assessment of effective and timely communication
Statements SD D N A SA Mean S.devation

there is insufficient internal Freq 4 13 40 84 73 3.98 0.971

communication strategy among % 1.9 6 18.7 39.3 34.1
different managers and workers
Lack of Information systems in Freq 3 12 64 81 54 3.80 0.930
bank that used to monitor
% 1.4 5.6 29.9 37.9 25.2
strategic plan implementation.
One-way communication, only Freq 2 17 52 81 62 3.86 0.959
from top to down, is practiced
staff in bank are no permit to % 0.9 7.9 24.3 37.9 29
criticizing and feedback about
strategic plan of bank
weak horizontal communication Freq 8 12 44 107 43 3.77 0.959
among the offices and workers % 3.7 5.6 20.6 50 20.1
in the commercial bank
The commercial Bank has lack Freq 3 12 60 111 28 3.70 0.820
of external communication with
external organizations on the % 1.4 5.6 28 51.9 13.1
common and supportive strategic
plan implementation.
Source: - (own survey, 2023)
According to the above table in regarding to insufficient internal communication, majority of
participants in commercial bank replied that agree 84(39.3%), followed by strongly agree
73(34.1%), neutral 40(18.7%), disagree 13(6%), and strongly disagree 4(1.9%). the researcher
can conclude in commercial bank there is insufficient internal communication. Therefore, no
timely internal communication between workers were a major problem and directly influence on
strategic plan implementation of commercial bank. In term of lack of information system in

35
commercial bank majority of respondents responds that 81(37.9%) agree, followed by 64(29.9%)
neutral, 54(25.2%) strongly agree, 12(5.6%) disagree, 3(1.4%) strongly disagree. Due to majority
of respondents agreed on statements, in commercial bank there is lack of information system. In
terms of one way communication, respondents in commercial bank responds that 2(0.9%)
strongly disagree, 17(7.9%) disagree, 52(24.3%) neutral, 81(37.9%) agree,62(29%) strongly
agree. based on the result researcher conclude that in commercial bank there is one way
communication from upper to lower. In regarding weak horizontal communication among staff,
participants in bank replied that 8(3.7%) strongly disagree, 12(5.6%) disagree, 44(20.6%)
neutral, 107(50%) agree and 43(20.1%) strongly agree. This indicate in commercial bank there is
weak horizontal communication among employer, directorate and manager. This is greatly affect
to perform strategic plan implementation properly and accordingly. Regarding to lack of external
communication with external organization, on the statement bank participants replied that
3(1.4%) strongly disagree, 12(5.6%) disagree, 60(28%) neutral, 111(51.9%) agree, and
28(13.1%) strongly agree. Because of most respondents agree on statement, the researcher
conclude that in commercial bank absolutely there is no habit of an external communication with
other external organization who support their strategic plan implementation, this is highly
negatively affect strategic plan implementation of commercial banks in dire dawa administration.
In addition the study assesses the mean value and standard deviation were measured for each
questions of effective and timely communication. According to the sample respondents very high
level of agreement on the statement were “there is insufficient internal communication strategy
among different managers and worker” (mean=3.98, S.D. =0.971). This indicates that no regular
and timely internal communication between worker is a critical cause for unsuccessful of
strategic plan implementation of commercial bank in dire dawa administration. Additionally, the
overall participants’ average agreement with regard to effective and timely communication was
mean 3.82 and standard deviation of 0.93. This indicated that most of the respondents had high
level of agreement that effective and timely communication, had influence on strategic plan
implementation of commercial bank. This supported by, David (2003), both Leaders and staffs
should be participated in strategic plan implementation decision and sufficient communication
among all side is necessary for effective strategic plan implementation.
4.6. The Influence of Organizational structure on strategic plan implementation
Table 11: The influence of Organizational structure on strategic plan implementation

36
 Do you know Organizational structure influence Item frequency percentage
strategic plan implementation in the commercial Yes 183 85.5
bank? No 31 14.5
Total 214 100
Source: - (own survey, 2023)
According to the above table most respondents 183 (85.5%) in commercial bank replied that
there is well known about organization structure to influence strategic plan implementation.
31(14.5%) respondents respond that there is no knowledge about the issue of organization
structure that influence strategic plan implementation. Furthermore, regarding to the rate extent
level organizational structure influence strategic plan implementation respondents replied as
30(14%) low extent, 55 (25.7%) moderate, 81 (37.9%) great, and 48 (22.4%) very great extent.
Based on the results, researcher can conclude majority of respondent in commercial bank replied
that organization structure is major influencing factor on strategic plan implementation.

Figure 5: The extent of organization structure Influence on strategic plan implementation

To what extent does the level of organzation structure influnce

on strategic plan implementation in commercial bank ?
40% 37.90%
35%
30% 25.70%
Frequancy

25% 22.40%
20%
14.00%
15%
10%
5%
0%
Low Extent Moderate Extent Great Extent Very Great Extent

Source: - (own survey, 2023)

4.6.1 Assessment of organizational Structure
The Participants remind to mention their level of agreement with statements expressing
organizational structure characteristics, they answered by using a five point Likert scale where
1 - Strongly Disagree (SD), 2 – Disagree (D), 3 - Neutral (N), 4 - Agree (A), 5 - Strongly Agree
(SA). After that researcher used frequency, percentage, mean and standard deviation to analysis
each question as accordingly, the final outcome shown in the following table below.

37
 Table 12: Assessment of organizational Structure
Statements SD D N A SA Mean S.devation

The current Organizational Freq 5 12 37 92 68 3.96 0.963

structure of bank was not match % 2.3 5.6 17.3 43 31.8
with the strategic plan
The Organizational structure of Freq 4 10 53 9.6 51 3.84 0.905
the bank has unwilling to change % 1.8 4.7 24.8 44.9 23.8
according to strategic plan
Due to organizational structure Freq 5 9 45 101 54 3.89 0.912
in commercial bank horizontal % 2.3 4.2 21.1 47.2 25.2
communication, and team
working is impossible
The organizational structure of Freq 7 10 36 100 61 3.93 0.966
the bank is extremely % 3.3 4.7 16.8 46.7 28.5
formalized, rigid and centralized.
The bank has extremely Freq 5 9 51 113 36 3.78 0.859
hierarchy structure cause delays % 2.3 4.2 23.8 52.9 16.8
decision making.
Source: - (own survey, 2023)
According to the above table the commercial bank structure is not match with strategic plan
respondents responds that 5(2.3%) strongly disagree, 12(5.6%) disagree, 37(17.3%) neutral,
92(43%) agree and 68(31.8%) strongly agree. This shows structure of commercial bank cannot
matched with their strategic plan. In terms of banks structure unwillingness to change,
respondents replied that 4(1.8%) strongly disagree, 10(4.7%) disagree, 53(24.8%) neutral,
96(44.9%) agree and 51(23.8%) strongly agree. The finding indicates that most of respondents
responds agree on statements, the study can conclude in commercial bank there is unwillingness
of bank structure to change according to strategic plan, as a result this negatively influence on
commercial banks strategic plan implementation. Regarding to impossible team working and
horizontal communication in banks respondents replied that 5(2.3%), 9(4.2%), 45(21.1%),
101(47.2%) and 54(25.2%), strongly disagree, disagree, neutral, agree and strongly agree
respectively. Because of most respondents replied that agree on statement, the finding finalize in

38
commercial bank there is no team work and horizontal communication. According to banks rigid
and centralized structure of commercial bank respondents responds 7(3.3%) strongly disagree,
10(4.7%) disagree, 36(16.8%) neutral, 100(46.7%) agree, 61(28.5%) strongly agree. As a result
most participants agree and strongly agree on the statement, the finding finalize structure of
commercial banks were highly formalized, rigid and centralized. Regarding to highly hierarchy
structure cause delay decision in commercial bank respondents answered that 5(2.4%) strongly
disagree, 9(4.2%) disagree, 51(23.8%) neutral, 113(52.8%) agree and 36(16.8%) strongly agree.
Because of the most participants agreed on statement result researcher conclude that there is
absolutely hierarchal structure of commercial bank can a cause for delay decision which affect
highly strategic plan implementation. Furthermore when you assesses the mean value and
standard deviation were measured for each questions of organization structure. According to the
sample respondents very high level of agreement on the statement were “The current
Organizational structure of bank was not match with the strategic plan” (mean=3.96, S.D.
=0.963). This indicates that due to structure of bank there is a huge problem to apply strategic
plan means board of member and shareholder need only current success these may cause for
unsuccessful of strategic plan implementation of commercial bank. Furthermore, the overall
participants’ average agreement with regard to organization structure was mean 3.88 and
standard deviation of 0.92. This indicated that most of the respondents had high level of
agreement that organization structure, had influence on strategic plan implementation of
commercial bank. This supported by, (Porter, 2008). An organizational structure states how tasks
such as work assignment, coordination and supervision are instructed regarding to successes the
organizational goals.
4.7. The Influence of Organizational Culture on Strategic Plan Implementation
Table 13: Influence of organizational culture on strategic plan implementation
Do you accept Organizational culture influence Item frequency percentage
strategic plan implementation in the commercial Yes 161 75.2
bank? No 53 24.8
Total 214 100
Source: - (own survey, 2023)
As indicate above table, the majority of respondents in commercial bank 161(75.2%) responded
that organizational culture Influences the strategic plan implementation were as 53(24.8%) were

39
responded organizational culture does not influence strategic plan implementation and from this
result can understood the respondents may not have awareness about strategic plan
implementation. In addition to this, they also rate the extent level of organizational culture
influence on strategic plan implementation in commercial bank 26(12.2%) low extent, 51
(23.8%) moderate extent, 119 (55.6%) great extent and 18 (8.4%) indicated very great extent.
From those results, the study finalize that organizational culture extremely influences the
strategic plan implementation of commercial bank in dire dawa administration.

Figure 6: The Extent of organizational culture influence on strategic plan implementation

To what extent does the level of organzation Culture influnce on

strategic plan implementation in commercial bank ?
60% 55.60%
50%
Frequancy

40%
30% 23.80%
20% 12.2%
8.40%
10%
0%
Low Extent Moderate Extent Great Extent Very Great Extent

Source: - (own survey, 2023)

4.7.1. Assessment of organizational culture
The Respondents request to tell their level of agreement with statements explaining
organizational culture characteristics, they replied by using a five point Likert scale where 1 -
Strongly Disagree (SD), 2 – Disagree (D), 3 - Neutral (N), 4 - Agree (A), 5 - Strongly Agree
(SA). After that researcher used frequency, percentage, mean and standard deviation to analysis
each question as accordingly, the final outcome shown in the following table below.
40
 Table 14: Assessment of organizational culture
Statements SD D N A SA Mean S.devation

The bank has completely Freq 4 11 54 87 58 3.86 0.939

encourage organization culture, % 1.9 5.1 25.2 40.7 27.1
to enhance workers consensus
and loyalty.
The commercial bank has less Freq 6 7 48 112 41 3.82 0.877
culture of tolerating risks. % 2.8 3.3 22.4 52.3 19.2
The commercial bank have good Freq 5 11 54 100 44 3.78 0.911
culture to adapt new ideas % 2.4 5.1 25.2 46.7 20.6
The commercial bank less focus Freq 6 7 56 88 57 3.86 0.946
in loyalty and mutual trust, % 2.8 3.3 26.2 41.1 26.6
cooperative, consensus, and
involvement.
Source: - (own survey, 2023)
As describing in the above table related to enhance workers loyalty, in commercial bank
respondents answered 4(1.9%) strongly disagree, 11(5.1%) disagree, 54(25.2%) neutral,
87(40.7%) agree, 58(27.1%) strongly agree. Due to majority of respondents agree on statement
organizational culture of commercial banks were encourage a commitment to promote staff.
Regarding with a culture of tolerating risks, in commercial bank 6(2.8%) responded strongly
disagree, 7(3.3%) disagree, 48(22.4%) neutral, 112(52.3%) agree, 41(19.2) strongly agree, most
respondent agree to the statement this implies the commercial banks have less culture of
tolerating a risk. Therefore the banks have bad culture of tolerating risks. On the other hand in
terms of good adapting of new idea, majority of respondents answered in bank, 100(46.7%)
agree and followed by 44(20.6%) strongly agree, 54(25.2%) neutral, 11(5.1%) disagree, 5(2.4%)
strongly disagree majority of bank respondent agree on statement, this indicate there is a good
culture to adapt new ideas in commercial banks. In terms of less focus on cooperative and
involvement, the dominate respondents in bank replied that 88(41.1%) agree, 57(26.6%)
strongly agree, 56(26.2%) neutral, 7(3.3%) disagree, and 6(2.8%) strongly disagree. based on the
result the researcher conclude that in commercial bank there is lack of team work, cooperative
and involvement. This problem is negatively affect for the success of strategic plan

41
implementation in commercial banks because strategic plan by its nature needs the participants
of all staff like directorate, supervisor, manager and employee. More over when you see the
mean value and standard deviation were measured for each questions of organization culture.
According to the sample respondents very high level of agreement on the statement were “The
bank has completely encourage organization culture, to enhance workers consensus and loyalty”
(mean=3.86, S.D. =0.877). This valve shows that due to culture of bank employee highly inspire
to perform their role because the bank provide promotion of staff in time, bonus, over time,
subsidy for risk operation and pay attractive salary. The study conclude that culture of bank for
employee is good and support strategic plan to be effective. Additionally, the overall
respondents’ average agreement with regard to organization culture was mean 3.83 and standard
deviation of 0.92. This indicated that most of the respondents had high level of agreement that
organization culture, had influence on strategic plan implementation of commercial bank. This
supported by, Crittendens (2008) mention that strategic plan implementation cannot be effective
without knowledge of the organizational culture, since the culture of the organization includes
the key concept which support strategic plan implementation.

4.8. The Influence of Balanced scorecard on Strategic Plan Implementation

Table 15: Influence of Balanced scorecard on strategic plan implementation
Do you believe effective balanced scorecard Item frequency percentage
influence strategic plan implementation in the Yes 170 79.4
commercial bank? No 44 20.6
Total 214 100
Source: - (own survey, 2023)
According to the above table, respondents ask to express their opinion on whether balanced
scorecard influences strategic plan implementation, the majority of respondents in bank
170(79.4%) responded it influence the implementation of strategic plan and 44(20.6%)
responded that it does not and they may not well organized knowledge about strategic plan
implementation. Furthermore, they rate the extent level of balanced scorecard influence on
strategic plan implementation in bank as 32 (15%) low, 58 (27.1%) moderate, 108 (50.5%) great,
and 16(7.4%) very great. From those results, researcher finalize majority of respondent in

42
 commercial bank replied that balanced scorecard is absolutely influencing on strategic plan
implementation.
Figure 7: The extent of balanced scorecard influence on strategic plan implementation

To what extent does the level of balanced scorecard influnce on

strategic plan implementation in commercial bank ?
60%
50.50%
50%

40%
Frequancy

30% 27.10%

20% 15.00%

10% 7.40%

0%
Low Extent Moderate Extent Great Extent Very Great Extent

Source: - (own survey, 2023)

4.8.1. Assessment of Balanced score card
The Respondents invite to express their level of agreement with statements explaining balanced
score card characteristics, they replied by using a five point Likert scale where1 - Strongly
Disagree (SD), 2 – Disagree (D), 3 - Neutral (N), 4 - Agree (A), 5 - Strongly Agree (SA). After
that researcher used frequency, percentage, mean and standard deviation to analysis each
question as accordingly, the final outcome shown in the following table below.
Table 16: Assessment of Balanced scorecard
No Statement SD D N A SA Mean S. deviation

1.Customer perspective
1.1 bank conduct market Frq 0 13 47 73 81 4.04 0.919
research % 0 6 22 34.1 37.9
1.2 Commercial bank Frq 4 13 50 92 55 3.85 0.934
Customer handling % 1.9 6 23.4 43 25.7
system is good
2.Financial perspective
2.1 There is a poor Frq 3 9 60 95 47 3.81 0.874

43
 participatory approach % 1.4 4.2 28 44.4 22
for budget planning
system.
2.2 Bank Use Frq 9 11 57 83 54 3.76 1.024
opportunities and
% 4.2 5.1 26.6 38.8 25.3
develop new method
to increase revenue.
3.Learning and growth perspective

3.1 Commercial bank not Frq 3 13 48 90 60 3.89 0.931

conducts skills % 1.4 6.1 22.4 42.1 28
assessment.
3.2 To fill the gap bank Frq 4 14 44 93 59 3.88 0.950
giving training to the % 1.8 6.5 20.6 43.5 27.6
staff after feedback.
4. Internal process perspective
4.1 Bank has Setting Frq 6 8 58 86 56 3.83 0.954
objectives and % 2.8 3.7 27.1 40.2 26.2
prioritizing strategy
initiatives.
4.2 banks not adopt Frq 5 12 54 95 48 3.79 0.933
conducting of % 2.3 5.6 25.2 44.4 22.5
organizational
assessment(ex SOWT)
Source: - (own survey, 2023)
According to the above table in conducting market research, of respondents in bank responds
that 0(0%) strongly disagree, 13(6%) disagree, 47(22%) neutral, 73(34.1%) agree and 81(37.9%)
strongly agree. These implies that commercial banks give more emphasis to the activities of
conducting market research, these helps to maximize profit by identifying potential customer and
adding value to customers for their satisfaction .regarding to customer handling system in bank
respondents responds that strongly disagree 4(1.9%), disagree 13(6%), neutral 50(23.4%), agree
92(43%), strongly agree 55(25.7%) majority of respondent agree on statement the study

44
conclude in commercial bank there is good customer handling system, this highly support
success in strategic plan implementation. In terms of poor participatory budget planning system
respondents respond that 3(1.4%) strongly disagree, 9(4.2%) disagree, 60(28%) neutral,
95(44.4%) agree, 47(22%) strongly agree, majority of respondents agree on statement, implies
that in bank low participatory approach for budget planning system, unwise resource use, bank
ineffective was great for contribution of internal financial system, and acceptance of financial
report in all level of bank performer was low. Regarding to Use opportunities and develop new
method to increase revenue, most participants of bank 83(38.8%) agree followed by 57(26.6%)
neutral, 54(25.3%) neutral, 11(5.1%) strongly disagree and3 (1.4%) strongly disagree. most
respondents agree on statement, this shows commercial bank use appropriate method to enhance
their profit. Accordingly not skill assessment in bank participants answered that 3(1.4%),
13(6.1%), 48(22.4%) 90(42.1%), 60(28%) strongly disagree, disagree, neutral, agree and
strongly agree respectively. The researcher finalize that because most respondents agree on
statement the bank assess skill of employees were improper manner, it leads skill of bank staff
undermine. Regarding to giving training to staff most respondents in participants of bank
revealed that 4(1.8%) strongly disagree, 14(6.5%) disagree, 44(20.6%) neutral, 93(43.5%) agree,
59(27.6%)strongly agree ,based on the result bank more focused on gives training to staff ,that is
good for strategic plan implementation because employee learn which is new operation to
perform accordingly. In setting objective in most respondents reveled 86(40.2%) agree followed
by 58(27.1%) neutral, 56(26.2%) strongly agree, 8( 3.7%) disagree, 6(2.8%) strongly disagree .
the result indicates that commercial bank have highly focused primarily to establish their goal
and draft there strategy effectively and efficiently .on the other hand in not conducting
organizational assessment in bank majority of respondents responds that 95 (44.4%), 54(25.2%),
48 (22.5%), 12(5.6%), 5(2.3%) agree, neutral, strongly agree, disagree and strongly disagree
respectively. Because most respondents agree on statement the finding conclude that there is
weak assessment in commercial bank to identify their weakness, strength, opportunity and treat,
this influence on strategic plan and it advocate the inefficiency as well as ineffectiveness for the
bank. Although the study try to see mean value and standard deviation were measured for each
questions of balanced scorecard. According to the sample respondents very high level of
agreement on the statement were “The bank conduct market research” (mean=4.04, S.D.
=0.919). Depend on the valve the study conclude market research is preferable and advisable for

45
a bank before to implement strategic plan because it gives many information like to know the
market, to know the customer need, which one is more profitable the organization. After that
bank implement a strategic plan achieve the goal as expected. Moreover, the overall respondents’
average agreement with regard to balanced scorecard was mean 3.87 and standard deviation of
0.94. This indicated that most of the respondents had high level of agreement that balanced
scorecard, had influence on strategic plan implementation of commercial bank. This supported
by, Seal and Ye (2014), the growth of adapting BSC in the organizations enhanced the outcome
overall effectiveness.
4.9 Overall assessment on Strategic Plan Implementation of commercial banks
The participant requested to put the extent to which commercial banks correctly implemented its
general strategic plan. Regarding, the study indicate in figure below, in commercial bank, the
majority 108(50.4%) responded to low extent, followed by 56(26.2%) moderate, 29(13.6%) great
and the remaining 21(9.8%) responded very great extent, this implies that the level of overall
strategic plan implementation of the commercial bank is low.

Figure 8: The extent level of commercial bank properly implemented its overall strategic
plan.

To what extent does the level of over all influnce of strategic

plan implementation in commercial bank ?
60%
50.40%
50%
Frequancy

40%
30% 26.20%
20% 13.60%
9.80%
10%
0%
Low Extent Moderate Extent Great Extent Very Great Extent

Source: - (own survey, 2023)

4.9.1. Assessment of strategic plan implementation of Commercial banks
The Respondents asked to express their level of agreement with statements explaining strategic
plan implementation of commercial banks characteristics, they replied by using a five point
Likert scale where 1 - Strongly Disagree (SD), 2 – Disagree (D), 3 - Neutral (N), 4 - Agree (A), 5

46
 - Strongly Agree (SA). After that researcher used frequency, percentage, mean and standard
deviation to analysis each question as accordingly the outcome shown in the following table
below.
Table 17: Assessment of Commercial bank strategic plan implementation
Statements SD D N A SA Mean S.devation

The bank has annual plans to Freq 3 12 43 81 75 4.00 0.952

implement strategies % 1.4 5.6 20.1 37.9 35
The bank hasn’t exact Freq 15 13 38 106 52 3.87 0.928
procedures followed for success % 2.3 6.1 17.8 49.5 24.3
strategic plan implementation
When implementing strategic Freq 1 10 36 102 65 4.03 0.839
plan the bank doesn’t usually % 0.4 4.7 16.8 47.7 30.4
examine progress against targets
During the implementation Freq 3 12 54 105 40 3.78 0.863
stage, the bank doesn’t revise % 1.4 5.6 25.2 49.1 18.7
their strategies if it is mandatory
The bank has shortage of Freq 6 9 47 107 45 3.82 0.907
allocating precise authority for % 2.8 4.2 22 50 21
strategic plan implementation
Source: - (own survey, 2023)

According to the above table regarding to bank has yearly plan respondents answered 3(1.4%)
strongly disagree, 12(5.6%) disagree, 43(20.1%) neutral, 81(37.9%) agree and 75(35%) strongly
agree. Most respondents agree on statement, this implies in commercial bank there is yearly plan
implementation. In terms of not follow exact procedure in bank responded that 5(2.3%) strongly
disagree, 13(6.1%) disagree, 38(17.8%) neutral, 106(49.5%) agree, 52(24.3%) strongly agree.
the result indicate that most of the respondents agree, so it revealed that in commercial bank not
have a specific procedures followed to be success in strategic plan implementation. Accordingly
banks not review target over progress in bank respondents answered 1(0.4%), 10(4.7%),
36(16.8%), 102(47.7%), 65(30.4%) strongly disagree, disagree, neutral, agree and strongly agree
respectively. This revealed during strategic plan implementation in commercial banks not usually
review target over progress. Accordingly not revise their strategy most respondents in bank

47
3(1.4%) strongly disagree, 12(5.6%) disagree, 54(25.2%) neutral, 105(49.1%) agree, 40(18.7%)
strongly agree. This show in commercial bank does not revise their strategies during the
implementation phase even if it is mandatory. According to shortage of allocating precise
authority most respondent’s responds in 107(50%) agree, followed by 47(22%) neutral, 45(21%)
strongly agree, 9(4.2%) disagree and 6(2.8%) strongly disagree. From this result the researcher
conclude that in commercial bank there is lack of authority assignment for strategic plan
implementation. Without assigning of authority among the stakeholder it is impossible to success
the strategic goals which will results the cause of collapse in strategic plan implementation.
Additionally the study try to assess the mean value and standard deviation were measured for
each questions of strategic plan implementation as general level. Regarding to the response of
respondents very high level of agreement on the statement were “When implementing strategic
plan the bank doesn’t usually examine progress against targets” (mean=4.00, S.D. =0.839). From
this outcome the study conclude one of the drawback for the bank is bank has not adapt to
examine progress over targeted goal ,so bank not aware weather the current performance is
enough or not, it enhances the infectiveness of strategic plan implementation of commercial
banks in dire dawa administration . Moreover, the overall respondents’ average agreement with
regard to commercial bank strategic plan implementation was mean 3.9 and standard deviation
of 0.90. This indicated that most of the respondents had high level of agreement that, less
managing force during the action, less focus on efficiency, generally, poor adapting of strategic
plan implementation of commercial bank. This supported by, Pearce and Robinson (2007) wrote
that each organization requires successful strategic plan implementation but different factors
occur which pose as problems consisting resource allocation, restructuring, cultural changes,
technological changes, policy changes, and leadership changes.
4.9.2. Overall Assessment of independent variables
Finally the Respondents request to rate the independent variable on strategic plan
implementation of commercial banks ,they respond as poor=1, satisfactory=2, good=3 and very
good=4, After that researcher used frequency, percentage, to analysis each question as
accordingly, the response outcome for each question shown in the following table below.
Table 18: Overall Assessment of independent variables
Independent Variables % Poor Satisfactory Good Very good
Leadership Quality Frq 113 35 41 25

48
 % 52.8 16.4 19.1 11.7
Resource Availability Frq 53 128 0 33
and Utilization % 24.8 59.8 0 15.4
Effective and timely Frq 115 31 43 25
Communication % 53.7 14.5 20.1 11.7
Organizational Structure Frq 51 98 39 26
% 23.8 45.8 18.2 12.2
Organizational Culture Frq 103 53 38 20
% 48.1 24.8 17.8 9.3
Balanced Scorecard Frq 44 91 47 32
% 20.5 42.5 22 15
Source: - (own survey, 2023)
According to the above table, respondents rated the leadership quality in bank as 113(52.8%)
poor, 35(16.4%) satisfactory, 41(19.1%) good and 25(11.7%) very good. Based on the result, the
leadership quality in commercial bank was poor. Regarding to resource availability and
utilization in bank respondents rate that 53(24.8%) were poor, 128(59.8%) satisfactory and
33(15.4%) were very good. So that the resource availability and utilization in bank was
satisfactory. In terms of effective and timely communication, in bank respondents response
115(53.7 %) rate it as poor, 31(14.5%) as satisfactory, 43(20.1%) good and 25(11.7%) as very
good. From the results, effective and timely communication in commercial bank was poor.
Regarding to organizational structure, in bank 51(23.8%) were poor, 98(45.8%) satisfactory,
39(18.2%) were good and 26(12.2%) were rate as very good. Therefore, this indicates that the
organizational structure of the commercial bank was satisfactory. The response of the
organizational culture of the respondent, in bank 103(48.1%) said it is poor, 53(24.8%)
satisfactory, 38(17.8%) good and 20(9.3%) responded very well. Based on these results, the
organizational culture of commercial bank was poor. Finally balanced scorecard in bank,
44(20.5%) poor, 91(42.5%) satisfactory, 47(22%) good and 32(15%) very good. Therefore, the
balanced scorecard commercial bank was satisfactory.
4.10. Major findings from Interview Analysis
To conduct the study the researcher prepared personal interview to commercial banks to support
the data collected by using questionnaires. During interview time researcher asked, three district

49
manager, three branch manager and three senior experts were participate in regarding the
Influence of Variables(Leadership quality, resource allocation, timely communication,
organizational structure, organizational Culture and balanced scorecard ) on strategic plan
Implementation in commercial bank. As the information gathered from branch and district of
bank office through interview, there are many challenges that faced them to successes
commercial bank on strategic plan in the bahirdar Administration. These are:-
1. How leadership qualities affect the commercial bank strategic plan implementation?
The result of Interview show that in commercial bank, Leadership Quality affect strategic plan
Implementation the cause are, Leader should not have habit a wide link of interaction and
evidences of information both formal and informal .moreover respondents response that,
negligence of leaders to do frequently visits to the activity, not fascinating employee at any
various levels, maintain inflexibility and block others to create strategic change as necessary.
This action generates negative energy and support demobilize institution efforts behind strategic
plan Implementation. This problem is a headache for strategic plan implementation. Best quality
leader needs to exhibits, clear vision, adaptive to change, motivate followers and communication
towards the strategic plan implementation.
1. To what extent resource availability and utilization influence commercial bank strategic plan
implementation?
Most respondents answered that influence resource availability in commercial bank on Strategic
plan implementation since have some challenges that face on commercial bank in regards of the
relation among strategic plan and resource include lack of controlling budgets, excess monetary
expectation of stakeholders, moreover, The finance department spends funds at the wrong time,
any strategic action are insufficiently funded at every levels of banks. Generally this and other
are a major factor that affect strategic plan in commercial banks.
2. Does effective and timely communication have influence on strategic plan implementation
in the commercial bank?
Regarding to timely communication influence on strategic plan implementation commercial
bank most respondents reply that “Yes” and clarify the reason like difficult to use
communication mechanism, unsecure communication method, difficult to get correct
information from organization, unavailable of work related communication within the
organization when necessary, top management are lack of knowledge and unawareness,

50
Management not to give a time to hear to other employees of personal view, this and other
problems are affect strategic plan implementation in commercial bank, this indicate timely
communication on strategic plan implementation have a gap on commercial banks.
3. Do you think Organizational Structure have influence on strategic plan implementation in
the commercial bank?
Respondent in commercial banks responds, answered say that “Yes”, They listed the cause such
as, There is unclear task arrangement within the bank, There is imperfect policy on work
delegation within the bank, There is an improper command structure within the task, There is
reluctant of authority in the task environment, There are rigid rules on how to do activities, For
any change to be done there is no a clear communication from the top management. This what
you have listed shows in commercial bank structure affect strategic plan implementation.
4. Do you know the commercial bank organizational culture is affect strategic plan
implementation?
According to Interview respondents reply that, “yes” Culture is a major influencing factor for
strategic plan implementation in banks. like doubt between staffs, Diversity of personal view is
ignored, poor habit of employee help each other to accomplish task, unwillingness sharing of
ideas and resources, Levels of output are inconsistent, Innovation is highly discouraged, There is
no periodic appraisals on progress, The long term organizational goals are not translated into
functional and individual goals, reluctant of bank to places high value in rules..etc are some
important idea which is related to culture influence in bank on strategic plan implementation.
5. How balanced scorecard face a challenge on strategic plan implementation of commercial
bank?
Majority of participant in interview response stated that balanced scorecard affect strategic plan
implementation in commercial bank if it is banks not afford a culture of change to the change
opposition, insufficient concentrate on strategic objective, top management did not appreciation
the employee for proper decision of strategy, not give measurement tool to measure the
performance of employees accordingly, not getting the results as they wanted from their plan,
however; respondents response that there are some standard to increase the efficiency of
balanced scorecard on strategic plan implementation in commercial bank such as, key issues of
Strategy and internal communication, Performance Indicators, Reward, External communication,

51
Business plan, attachment to resourcing and management processes must be good to be success
in strategic plan implementation for commercial bank .
4.11. Inferential statistics Analysis
4.11.1. Correlation Analysis
The study was used Pearson correlation to measure the degree of association between dependent
variables (strategic plan implementation) with independent variables (leadership quality,
resource availability and utilization, effective and timely communication, organization structure,
organization culture and balanced scorecard). Pearson correlation coefficients range from -1 to
+1. A negative value indicates negative correlation and positive values indicates positive
correlation. Correlation coefficient has both magnitude and direction. Regarding the magnitude
of correlation coefficient, a correlation coefficient between 0.0 and 0.19 is considered to be “very
weak”, between 0.20 and 0.39 is considered to be “weak”, between 0.40 and 0.59 is considered
to be “moderate”, between 0.60 and 0.79 is considered to be “strong” and between 0.80 and 1.0
is considered to be “very strong”. (Apopa, 2018).
Table 19: Correlations between Dependent and Independent variables
LQ RAAU EATC OS OC BSC SPI
LQ Pearson Correlation 1 .849** .831** .849** .847** .864** 896**
Sig. (2-tailed) .000 .000 .000 .000 .000 .000
N 214 214 214 214 214 214 214
RAAU Pearson Correlation .849** 1 .725** .810** .795** .794** .845**
Sig. (2-tailed) .000 .000 .000 .000 .000 .000
N 214 214 214 214 214 214 214
EATC Pearson Correlation .831** .725** 1 .820** .765** .784** .806**
Sig. (2-tailed) .000 .000 .000 .000 .000 .000
N 214 214 214 214 214 214 214
OS Pearson Correlation .849** .810** 820** 1 .845** .836** .882**
Sig. (2-tailed) .000 .000 .000 .000 .000 .000
N 214 214 214 214 214 214 214
OC Pearson Correlation .847** .795** .765** .845** 1 .838** .873**
Sig. (2-tailed) .000 .000 .000 .000 .000 .000
N 214 214 214 214 214 214 214

52
BSC Pearson Correlation .864** 794** .784** .836** .838** 1 859
Sig. (2-tailed) .000 .000 .000 .000 .000 .000
N 214 214 214 214 214 214 214
Pearson Correlation .896** .845** .806** .882** .873 859** 1
SPI
Sig. (2-tailed) .000 .000 .000 .000 .000 .000

N 214 214 214 214 314 214 214

**. Correlation is significant at the 0.01 level (2-tailed)

Source: - (own survey, 2023)
According to the correlation summary table 19 strategic plan implementation very strongly
associate to leadership quality (0.896), resource availability and utilization (0.845), effective and
timely communication (0.806), organizational structure (0.882), organizational culture (0.873)
and balanced scorecard (0.859). Depend on the result, researcher remind that dependent variable
(strategic plan implementation) and independent variables (leadership quality, resource
availability and utilization, effective and timely communication, organization structure,
organization culture and balanced scorecard) have a significant positive relationship. This
implies that as one variable increase, the other variable also increases and vice-versa.

4.11.2. Checking the assumptions

The researcher was used SPSS (Statistical Package for Social Sciences) software to compute the
measurements of multiple regression result for the study. Before to analysis of the data, multiple
regression assumptions tested, such as normality, autocorrelation, multi-collinearity, and
linearity made. The results of all diagnostic tests fit the assumptions that used.

4.11.2.1. Multi collinearity Test

According to Martz, (2013) collinearity (multicollinearity) is an occurrence in which two or
more variables can be linear predict from other by manipulate of a significance extent of
correctness.
As defined by Muijs(2010 ) Tolerance and Variance Inflation Factors (VIF) use precisely the
same thing, tolerance is the amount of variance in the individual variable not explained by the
other predictor variables. It varies from 0 to 1 a value close to 1 indicates that the other

53
predictors do not explain the variance in that variable. A value close to 0 implies almost all the
variance in the variable is explained by the other variables. To meet multiple regression
assumptions, tolerance score of above 0.1 and VIF scores below 10.
Table 20: Multi collinearity Test
model Collinearity Statistics
Tolerance VIF
1 LQ .140 7.158
RAAU .242 4.128
EATC .258 3.874
OS .180 5.553
OC .206 4.848
BSC .197 5.081
a. Dependent variable :SPI
Source: - (own survey, 2023)
From the above table 20 multi collinaerity test results indicates that the tolerance value for all
independent variables are greater than 0.1 whereas the variance inflation factor are less than 10.
This implies that there is no serious problem of multicollinearity of the test result.
4.11.2.2. Autocorrelation Test
In order to detect Autocorrelation assumption the value of residuals to be independent from one
another (or uncorrelated).Durbin-Watson statistic uses to test the assumption that our residuals
are independent or uncorrelated. This statistic can vary from 0 to 4. For no Autocorrelation
assumption, Durbin-Watson statistic value should be close to 2. A value of two indicates no
autocorrelation. A value of towards zero indicates positive autocorrelation. A value near to 4
indicates negative autocorrelation Saunders et al. (2009).
Table 21: Autocorrelation test
Model R R Square Adjusted R Std. Error of the Estimate Durbin-Watson
square
1 a .879 .876 .21974 1.588
.938
a. Predictors: (constant), LQ,RAAU,EATC,OS,OC,BSC
b. Dependent variable : SPI
Source: - (own survey, 2023)
As shown in the above table the Durban Watson valve lies 1.588 approach to 2. Therefore the
study can conclude there is no autocorrelation problem and can take multiple regression.

54
4.11.2. 3. Normality test
Normality test describes the residual errors should have normal distribution. Normal distribution
is described by a bell-shaped curve and exist when the data is spread deliberate around the center
of total valves. The normality test assumption was checked by plotting residual values on a
histogram with a fitted normal curve. In a normal distribution, skewness of the data is close to
zero. So, when you see below histogram diagram (figure, 9) the residuals are normally
distributed, thus fit the assumption of normality. Moreover, normal probability plot (NPP) has
been also taken to check the normality of the data and normal probability plot indicate approach
to a straight line when you see, (figure, 10) which can be said that variables of the study is
normally distributed.
Figure 9: Histogram diagram to test normality

Source: - (own survey, 2023)

Figure 10: Graph of Normal probability plot to test normality

Source: - (own survey, 2023)

55
 4.11.3. Multiple Regression Analysis
Multiple regression analysis used to determine the relationship between strategic plan
implementation and independent variable such as leadership quality, resource availability and
utilization, effective and timely communication, organizational structure, organizational culture
and balanced scorecard. The regression model for this study is;-
Y = β0 + β1X1 + β2X2 + β3X3 + β4X4 + β5X5 + β6X6 + ε
Where, Y=is strategic plan implementation, X1= Leadership quality, X2= Resource availability
and utilization, X3= Effective and timely communication, X4= Organizational structure
X5=Organizational culture, X6=Balanced scorecard, β0 =constant term, β1, β2, β3, β4, β5and
β6= are the coefficients of regression equation for each variables and ε = is the error term.
The regression model taken to indicate how the dependent variable diverse as the circumstance
changes. The dependent variable (strategic plan implementation), as well as the independent
variables (Leadership quality, Resource availability and utilization, effective and timely
communication, Organizational Structure, organization Culture and balanced scorecard), were
subjected to predictive regression analysis.
Table 22: Model Summary
Model R R Square Adjusted R Std. Error of the Estimate
square
1 a .879 .876 .21974
.938
a. Predictors: (constant), LQ,RAAU,EATC,OS,OC,BSC
b. Dependent variable : SPI
Source: - (own survey, 2023)
The model summary table 22 show that the dependent and independent variables have a
significant positive linkage (R=0.938). The R-square value of 0.879 demonstrate that 88%
variation of strategic plan implementation determined by the independent variables of the study
(Leadership quality, Resource availability and Utilization, effective and timely Communication,
Organizational Structure, organizational Culture and balanced scorecard). The remaining 12% of
strategic plan implementation determined by other factors not considered under this study. As a
result, the regression equation's predictions are correct, and the goodness of fit test satisfy.
Table 23: Statistical significance ANOVAa
Model Sum of Squares df Mean Square F Sig.
1 Regressio 72.705 6 12.117 250.946 .000b

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 n
Residual 9.995 207 .048
Total 82.700 213
a. Dependent Variable: SPI
b. Predictors: (Constant), LQ, RAAU, EATC, OS, OC, BSC
Source: - (own survey, 2023)
The F-ratio Table 23 in the ANOVA table shows the overall regression model fits the data well.
The table indicates that the independent factors statistically significantly predict the dependent
variable; the regression model is a good fit of the data (6, 213) =250.946, p < 0.05).
Table 24: Estimated model coefficient
Unstandardized Standardized coefficientsa 95.0% Confidence Interval for
Coefficients Coefficients
B
model B Std. Error Beta T Sig Lower bound Upper bound

1 Constant .212 .097 2.174 .031 .020 .404

LQ .259 .062 .268 4.143 .000 .136 .382
RAAU .127 .044 .141 2.881 0.004 0.40 .214
EATC .032 .044 .035 .734 .464 -.055 .120
OS .226 .054 .241 4.225 .000 .121 .332
OC .209 .052 .213 4.011 .000 .106 .311
BSC .106 .053 .108 1.991 0.048 0.001 .211
a. Dependent Variable :SPI
Source: - (own survey, 2023)
The generated model given by: Strategic plan Implementation (SPI) = 0.212 +
0.259*Leadership quality (LQ) + 0.127*Resource availability and Utilization (RAAU) +
0.032*effective and timely Communication (EATC) + 0.226*Organizational Structure (OS) +
0.209*Organizational Culture (OC) + 0.106*Balanced score card (BSC).
The estimated model coefficient Table 24 demonstrate that leadership quality, resource
availability and utilization, organizational structure, organizational culture and balanced
scorecard are significant at 5% level of significance and 95% level of confidence. The
Unstandardized coefficients indicate how much the dependent variable varies with an
independent variable when all other independent variables are held constant. Thus, it infers that
Leadership Quality and organization structure contributes the most for success of strategic plan

57
implementation in commercial bank in bahiradr Administration, followed by organization
culture, resource availability and utilization and balanced scorecard. Generally the expected
value of the predicted dependent variable (strategic plan implementation) must be 21.2%. With
1% change in bank leadership quality and no changes in other independent variables, it is
possible to change the strategic plan implementation of commercial bank by 25.9% on average.
In addition, the other variables remain constant and a 1% change in resource allocation and
utilization has the potential to improve the strategic plan implementation of commercial bank by
12.7% on average. A 1% change in the bank organizational structure would be increase the bank
strategic plan implementation by an average of 22.6%, also a 1% change in the bank
organizational culture would be improve the bank overall strategic plan implementation by on
average of 20.9% and a 1% change in the bank balanced scorecard could be increase the bank
strategic plan implementation by an average of 10.6%.
4.11.4. Hypotheses testing
When you see table 24 the regression outcomes the p-value shows that whether the independent
variable (leadership quality, resource availability and utilization, effective and timely
communication, organizational structure, organizational culture and balanced scorecard)
incorporated in the model is significant or insignificant effect on strategic plan implementation.
H1: leadership quality has a positive and significant effect on strategic plan
implementation.
The coefficient of leadership quality has a positive and significance effect on strategic plan
implementation at (B=.259, T= 4.143 and P= .000). This implies that there is a positive and
significant effect between leadership quality and strategic plan implementation. Because the
P- Valve of leadership quality 0.000<0.05. Therefore, the alternative hypothesis has accepted.
The finding supported by, Rajasekar (2014) explain that leadership is by far the most needed
determinate that affect effective strategic plan implementation in the service sector. Cater and
Pucko (2010) indicates that poor leadership is one of the vital barriers in effective strategic plan
implementation. Michael (2010), leadership has a generally a reason and result connect with both
the organization and its effectiveness.
H2: resource availability and utilization has a positive and significant effect on strategic
plan implementation.

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The coefficient of resource availability and utilization has a positive and significance effect on
strategic plan implementation at (B=.127, T= 2.881 and P= .004). This implies that there is a
positive and significant effect between resource availability and utilization with strategic plan
implementation. Because the P- Valve of resource availability and utilization 0.004<0.05.
Therefore, the alternative hypothesis has accepted. The finding supported by, Iajhrba, (2019),
mentioned that a strong and true skills pool and adequate work force are necessary resources for
effective strategic plan implementation. Abdullah H, (2017), Technology budgeting and
qualified management are the crucial factors for successful strategic plan implementation. Esther
W.Wajganjo, (2017), Organizational resources are the basic determinate that affect strategic plan
implementation. Obeidat, Al-Hadidiand Tarhini, (2017), It explained t h a t the availability of
resources was a vital part in determining for any effective strategic plan implementation.
H3: effective and timely communication has a positive and significant effect on strategic
plan implementation.
The coefficient of effective and timely communication has positive but insignificance effect on
strategic plan implementation at (B=.032, T= .734 and P= .464). This implies that there is a
positive and insignificant effect between effective and timely communication with strategic plan
implementation. Because the P- Valve of effective and timely communication 0.464>0.05.
Therefore, the alternative hypothesis has rejected. So that, effective and timely communication in
strategic plan implementation has not a significant effect on strategic plan implementation in
commercial banks of dire dawa Administration. Communication is insignificant on strategic plan
implementation. The finding supported by, Heide, Gronhaug and Johannssen (2002) describe
that communication faced many align problems. Ineffective communication from top-down,
bottom-up, across functions and division has negative effects on strategic plan implementation.
There is inconsistent finding regarding to the influence of effective and timely communication
on strategic plan implementation. Pearce and Robinson (2007) have looks communication is a
basic determinate in strategic plan implementation.
H4: organizational structure has a positive and significant effect on strategic plan
implementation.
The coefficient of organizational structure has a positive and significance effect on strategic plan
implementation at (B=.226, T= 4.225 and P= .000). This implies that there is a positive and

59
significant effect between organizational structure and strategic plan implementation. Because
the
P- Valve of organization structure 0.000<0.05. Therefore, the alternative hypothesis has
accepted. The finding supported by, Veasey, (2001) organizational structure has an influence on
strategic plan implementation because it provides communication and information flow,
manages resource allocation, assigns roles and responsibilities, and defines occupations and
work groups such as project teams, departments, and quality circles. Mbaka and Mugambi
(2014) suggests that linkage of organization structure with the new strategy, and appropriate
structure are vital for effective strategic plan implementation.
H5: organizational culture has a positive and significant effect on strategic plan
implementation.
The coefficient of organizational culture has a positive and significance effect on strategic plan
implementation at (B=.209, T= 4.011 and P= .000). This implies that there is a positive and
significant effect between organizational culture and strategic plan implementation. Because the
P- Valve of organization culture 0.000<0.05. Therefore, the alternative hypothesis has accepted.
The finding supported by, Chegini (2010), organization culture is the beliefs, values and
practices which form the characteristics of an organization. Lund (2003) examine at the concept
in a wide sense defining it as a system of shared values and beliefs that links with a company’s
people, organization structure and control systems to produce behavioral norms. Every
organization regardless of size has a culture that influences how people behave in a variety of
areas such as customer service, standard of performance and innovation (Flamholtz & Randle,
2011). The shared, internalized beliefs and values shape and account for the strength of an
organization culture (Pearce & Robinson, 2007).
H6: balanced scorecard has a positive and significant effect on strategic plan
implementation.
The coefficient of balanced scorecard has a positive and significance effect on strategic plan
implementation at (B=.106, T= 1.991 and P= .048). This implies that there is a positive and
significant effect between balanced scorecard and strategic plan implementation. Because the
P- Valve of balanced scorecard 0.048<0.05. Therefore, the alternative hypothesis has accepted.
The finding supported by, Balanced Scorecard methodology, consists how an organization can
goal areas most in require additional, benchmark opponent best-in-class institutions, and

60
undertake performance improvements (Jarrar, 2010). Staff motivates move to reinforce the
organizational objectives being measured by the Balanced Scorecard, Facilitate implementation
by control change and breaking down organizational obstacles (David Norton, 2008).
Table 25: Summary of Hypotheses Test
Hypostasis Significant Decision based
level P<0.05 on the finding
H1: leadership quality has a positive and significant effect on .000 Accepted
strategic plan implementation
H2: resource availability and utilization has a positive and 0.004 Accepted
significant effect on strategic plan implementation
H3: effective and timely communication has a positive and .464 Rejected
significant effect on strategic plan implementation
H4: organizational structure has a positive and significant effect .000 Accepted
on strategic plan implementation
H5: organizational culture has a positive and significant effect .000 Accepted
on strategic plan implementation
H6: balanced scorecard has a positive and significant effect on 0.048 Accepted
strategic plan implementation
Source: - (own survey, 2023)
As you observed in the above table in bahiradr commercial banks out of six independent variable
five (leadership quality, resource availability and utilization, organizational structure ,
organizational culture and balanced scorecard) has a significant effect on strategic plan
implementation . On the other hand the rest one (effective and timely communication) has
insignificant effect on strategic plan implementation.

Chapter Five
Summary of Finding, Conclusion and Recommendation
5. Introduction
The general objective of the study was to identify the determinants of strategic plan
implementation in commercial banks the case of bahiradr Administration and give an appropriate

61
solution for successful strategic plan Implementation. For the study to be collect necessary
information researcher taken the primary source of data. This chapter presents the summary of
finding, conclusion, recommendation and future researcher of the study.
5.1. Summary of Findings
 The Influence of leadership qualities on strategic plan implementation
The outcome indicate majority of respondents (90.7%) accept that leadership Quality affect
strategic plan implementation of commercial bank. Additionally, absence of managerial skill in
bank (40.2% agree, 27.1% neutral). Reluctant of leader to accomplish role in bank (51.4% agree,
22% neutral). Improper leadership and supervision in bank (44.4% agree, 25.2% strongly agree),
and poor problem solving and decision making skills in bank (44.4% agree, 27.1% neutral).
Interview analysis also support the same result which is negligence of leaders to do frequently
visits to the activity, not fascinating employee at any various levels, maintain inflexibility and
block others to create strategic change as necessary. This refers in bahiradr administration
commercial banks were leadership quality is poor.
 Influence of resource availability and utilization on strategic plan implementation
Most respondents (71%) reply that resource availability and utilization affect strategic plan
implementation of commercial bank. Regarding to banks has no transparent resource planning
allocation and utilization system in bank (40.2%% agree, 29.9% strongly agree), the respondent
stated that the banks had lack of competent human capital (45.3%agree, 24.8% strongly agree),
according to absence of financial resource in bank (41.1% agree, 26.2% strongly agree), and
bank have deficiency of tools and technological resource (49.5% agree, 24.3% neutral).
Interview also indicates there is lack of controlling budgets, excess monetary expectation of
stakeholders and the finance department spends funds at the wrong time. Generally there is no
transparent resource allocation, lack of human capital that aware strategic plan, absence of
financial resource and deficiency of tool and technology to implement strategic plan of bank in
bahiradr administration.
 Influence of effective and timely communication on strategic plan implementation
Majority of respondents answered that (86%) reply that Effective and timely communication
affect strategic plan implementation of commercial bank. In terms of insufficient internal
communication in bank (39.3% agree, 34.1% strongly agree), lack of information (37.9% agree,
29.9% neutral), one-way communication don’t permit participation of employee in bank

62
(37.9%agree, 29% strongly agree), weak horizontal communication in bank (50% agree 20.6%
neutral).and Regarding lack of external communication in bank (51.9% agree, 28% neutral) .The
interview analysis also support in commercial bank there is unsecure communication method,
difficult to get correct information from organization, unavailable of work related
communication within the organization when necessary and Management not to give a time to
hear to other employees of personal view, over all in dire dawa administration commercial banks
were weak communication among external as well as internal stakeholder.
 The influence of organization structure on strategic plan implementation
Majority of respondents (85.5%) reply that organization structure affect strategic plan
implementation of banks. Bank were doesn’t match with the strategic plan respondents responds
in, (43% agree, 31.8% strongly agree). Unwilling to change a strategic plan in bank (44.9% agree
but, 24.8% neutral). Due to impossible team work in bank (47.2% agree ,25.2% strongly agree),
according to bank structure is rigid and centralized in bank (46.7% agree ,28.5% strongly
agree) ,due to hierarchy delays decision making in (52.9 % agree, 23.8% neutral) .Interview also
indicates that ,unclear task arrangement within the bank, imperfect policy on work delegation
within the bank, improper command structure within the task, reluctant of authority in the task
environment, and rigid rules on how to do activities those are affect strategic plan
Implementation of commercial bank. Over all organization structure significantly affect strategic
plan implementation of commercial banks in bahiradr Administration.
 The Influence of organization culture on strategic plan implementation
Majority of respondents responded that (75.2%) in organizational culture highly influence
strategic plan implementation of commercial bank. Regarding to organization culture, bank
enhance workers consensus and loyalty (40.7% agree, 27.1% strongly agree), bank has less
culture of tolerating risks in (52.3% agree, 22.4% neutral), in terms of bank has a good culture
to adapt new ideas (46.7% agree, 25.2% neutral), Bank less focus in loyalty and mutual trust
(41.1% agree, 26.6% strongly agree). Interview also support doubt between staffs, poor habit of
employee help each other to accomplish task, unwillingness sharing of ideas and resources,
Therefore in bahiradr administration commercial bank affected by less culture of tolerating
risks.
 The Influence of Balanced scorecard on strategic plan implementation

63
Majority of respondents 79.4% reply that balanced scorecard affect strategic plan
implementation of commercial banks. Bank conduct market research respondent’s responds
(37.9% strongly agree, 34.1% agree). Regarding good customer handling system in bank (43
agree, 25.7% strongly agree). In terms of poor participatory approach for budget planning system
in bank (44.4% agree, 28% neutral), according to develop new method to increase revenue in
bank (38.8% agree, 26.6% neutral), bank not conduct skills assessment (42.1% agree, 28%
strongly agree). Giving training to the staff (43.5%agree, 27.6% strongly agree). Setting
objectives and prioritizing strategy (40.2% agree.27.1% neutral); regarding to not conducting of
organizational assessment (44.4% agree, 25.2% neutral). Interview also indicates that banks not
afford a culture of change to the change opposition, insufficient concentrate on strategic
objective, top management did not appreciation the employee for proper decision of strategy, not
give measurement tool to measure the performance of employees accordingly, not getting the
results as they wanted from their plan. Generally in commercial bank there is poor participatory
in budget planning system, not conduct skill assessment and weak conducting of organizational
assessment to identify the threat and weakness as well as to use the opportunities and to sustain a
strength.
 Assessment of strategic plan implementation of Commercial banks
According to the statement that, bank has yearly plan (37.9% agree, 35% strongly agree), bank
hasn’t exact procedures followed (49.5% agree, 24.3% strongly agree).Regarding bank doesn’t
usually examine progress against targets (47.7% agree, 30.8 strongly agree), the bank doesn’t
revise their strategies if it is mandatory (49.1% agree, 25.2% neutral), In terms of bank has
shortage of allocating precise authority for strategic plan implementation (50% agree, 22%
neutral).this refers low adapting of strategic plan implementation of commercial banks in
bahiradr administration.
Overall Assessment of Independent Variables
According to general assessments, leadership quality (52.8%), effective and timely
communication (53.7%) and organizational culture (48.1%) are poor in the commercial bank.
And also resource availability and utilization (59.8%), organizational structure (45.8%) and
balanced score card (42.5%) are satisfactory.
5.2. Conclusion

64
 The finding indicates that Lack of Leadership Quality because leaders of bank has an
absence of a good conceptual, technical and human skill, Reluctant of Leader to
accomplish their roles leads to the lower ranks of employees failing to assist and instruct,
The leadership, management and supervision given by the banks managers were
insufficient. The banks leaders have poor decision making, case analysis, problem
solving and Innovation skills. Researcher conclude unsuccessful strategic plan
implementation of dire dawa administration commercial banks were influence of poor
leadership Quality.
 The study conclude, Banks has not a transparent resource plan, allocation and utilization
system, lack of competent human capital during strategic plan implementation, bank
often faced absence of financial resources during strategic plan implementation and
Banks had often a deficiency of tools and technology that necessary for strategic plan
implementation has a great influence for effective strategic plan implementation in dire
dawa administration commercial banks.
 The study conclude insufficient internal communication, weak horizontal
communication, lack of external communication, one way communication and lack of
information system, Generally the cause of ineffective strategic plan Implementation in
commercial bank in dire dawa administration were lack of effective and timely
communication among stakeholder.
 The finding shows that, the current Organizational structure of bank was not match with
the strategic plan, has unwilling to change according to strategic plan, team work
impossible due structure, the bank has extremely rigid and hierarchy structure cause
delays decision making .this implies that organization structure in dire dawa
administration commercial banks were one of a major influence factor to achieve
strategic plan implementation as accordingly.
 The finding indicates that, the commercial bank has less culture of tolerating risks and
less focus on cooperative, involvement, loyalty, mutual trust, consensus, which directly
affect strategic plan. On the contrary, bank culture allow, adapt new idea and encourage
workers to enhance it is good for strategic plan implementation in commercial bank in
dire dawa administration.

65
  The study conclude, Regarding to balanced scorecard poor participatory approach for
budget planning system, bank not conduct skills assessment and conducting of
organizational assessment, this may result negatively influence on strategic plan
implementation of commercial bank. On the other hand banks permit, Conduct market
research, good customer handling system , develop new method to increase revenue,
giving training to the staff, and Bank has Setting objectives and prioritizing strategy
initiatives. This highly support the strategic plan implementation for commercial bank of
dire dawa administration.
5.3 Recommendation
Finally the study wants to give some recommendation on the possible solution that believe to
avoid or minimizing problems and weakness of the organization. To Commercial Bank of
bahiradr Administration to solve strategic plan implementation problems researcher recommend
as follow:-
 The finding indicates lack of leadership quality, so that, the bank should prepare and
provide better adequate training, conference, workshop for leaders of bank like manager,
supervisor, and director from district to branch in order to enhance good manager skill
such as technical, conceptual and human skill, to acquire problem solving skill, to make
good decision, to accomplish their role as intended. The bank better to Put strong limit
and a form of slight penalty for leaders of bank on those who are not perform the role as
accordingly and replace it. The bank should assigned leaders on their filed to be success
in strategic plan .Finally the bank should put the right person as the right position to be
success in strategic plan implementation of commercial banks.
 The study conclude shortage resource allocation and utilization system, so, the bank
should be adapt clear resource planning allocation and utilization system to the whole
from ordinary employee to top managements were aware when, where, for whom, for
what, why and how much to distribute the resource like financial and technological
resource and check the process is that equitable and equality. Bank should recruit
experienced, talented, well qualified person to fill the gap lack of human capital for
strategic plan. Bank also allow enough budget for strategic plan , More over the bank
should be using adequate technology and tools to accelerate their processing and giving

66
 service to the customers, to enhance the profit and to get comparative advantage from
their competitor and to be success in strategic plan implementation of commercial banks.
 The finding shows that weak communication among stakeholder, so that, the bank should
be revise over all communication system because to inform, to persuade, to evaluate, and
to instruct, to meet human and cultural need communication is mandatory. Banks follow
two-way communication from upper to lower like rules or direction and lower to upper
like criticize, question, complain or feedback to district and branches about strategic plan.
Strategic plan must be communicated to all stakeholders before implementation. Banks
adapt timely communication and modern information system.
 The study conclude rigid and hierarchy structure, so, Banks reconstruct the structure in
order to decrease hierarchy structure to minimize delays decision making.so that bank
promote delegation, decentralization, division of labor. The Bank must do current
structure of bank is suitable for strategic plan implementation. Bank permit willingness to
change with align strategic plan and the structure should be flexible. Generally bank
follow organic structure which allow vertical, horizontal communication and flexible
structure.
 The study identify lack of tolerating risk and lack of loyalty , so, Banks should provide
continuous empowerment through skill trend like sharing experience for ordinary
employee to top management to enhance culture of tolerating risks. More over the bank
focused on cooperation. Involvement, mutual trust and loyalty.
 Finally the study conclude poor habit to participate clients and conducting of
organizational assessment , so Bank should permit the participation of all stakeholder like
employee, manager, and shareholder during budget planning time, also bank should adopt
skill assessment. Finally Banks should be adapt conducting of organizational assessment
to know the external force like threat and opportunities, also to know internal force like
strength and weakness. Then avoid threat and weakness, use opportunities and strength.
5.4. Future Research Direction
The study identify the determinants of strategic plan implementation of commercial bank
bahiradr Administration only, future study focused other parts of a country. The study used only
six variable that is leadership quality, resource availability and utilization, effective and timely
communication, organization culture, organization structure and balanced scorecard that

67
influence strategic plan implementation. Future studies include other variable like stakeholder
engagement, staff competence, and employee motivation. This study done on profit organization
in branch and district, future study focus on non-profit organization and consider head office
level.
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APPENDICES ONE: - QUESTIONNAIRE

YOM INSTITUTES OF ECONOMIC DEVELOPMENT
COLLEGE OF BUSINESS AND ECONOMICS
MASTER OF BUSINESS ADMENSTRATION PROGRAM
Questionnaires: Consent Form
Dear Participant
My name is Gasha Tadese, I am a graduate student in Business Administration at Yom
Institutes of Economic Development Collage. Currently I am conducting a research on
determinants of strategic plan implementation in commercial bank the case of bahirdar
administration for the fulfillment of requirement on Master of business administration. So,
these questionnaires have been prepared to collect data to conduct a research. Your voluntary
participation in this study is greatly appreciated. As a participant, you are kindly requested to
participate by completing the study tools under the guidance of researcher/ research assistant.
Your identity will be concealed, privacy will be respected and any information you provide will
be confidential and for purposes of research only. You shall not be exposed to any harm by
participating in the study. Your participation is purely voluntary and you are free to withdraw at
any point without any penalty. No extra cost will be incurred. Kindly read and understand the
written consent form before signing. You are welcome to ask any questions or to seek any
necessary clarifications before you sign the document using the contacts below.
I Voluntary agree to participate in the research.
Signature………………………………………….Date………………………………
Principal researcher: Gasha Tadese(0918001548) or e mail.

Directions:

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  Do not write your name.
 Follow the instructions in each section.
 Respond to open-ended questions in a quick and concise manner.
 Closed-ended questions should be marked with a "X" in the box.
 Attempt honestly describing as per the questions in the area provided for questions
that require your opinion.

Thank you so much in advance for your cooperation!!!

Part one: Respondents Personal Information

1. Gender: A). Male B). Female

2. Age: A). 18-28 years B). 29-39 years C). 40-50 years D). > 50

3. Marital Status:

A). Married B). Unmarried C).Divorced D).Windowed

4. Educational Level :

A). Certificate B). Diploma C). Degree D). Master E).PHD

5. Work Experience

A). Less than 1 year B). 1-5 year C). 5-10 year D). Above 10 year

6. Position: A). Expert B). Senior expert C). Lower manager

D). Middle manager E). Top manager
7. Have you attend in strategic planning implementation in the previous five years?
A). Yes B). No

Part two: - influence of leadership quality on strategic plan implementation

8. Do you anticipate leadership quality influence on strategic plan implementation?
A). Yes B). No
9. If you say yes for question No.8 to what range does leadership diminish strategic plan
Implementation in commercial banks.
A).Low range B).Moderate range C). Great range D). Very great range

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 10. Please rate your level of agreement by putting (X) sign to the following statements.
Statements Strongly disagree Neutral agree Strongly
disagree agree
The leaders in commercial banks have adequate educational
level, and work experience.
The commercial banks leaders are absence of a good
conceptual, technical and human skill.
Reluctant of Leader’s to accomplish their roles leads to the
lower ranks of employees failing to assist and instruct.
The leadership, management and supervision given by the
commercial banks managers were improper.
The commercial banks leaders have poor decision making,
case analysis, problem solving and Innovation skills.

Part Three: influence of Resource availability and utilization on strategic plan implementation.

11. In your Suggestion do you expect resource allocation influence strategic plan
implementation in the commercial bank? A). Yes B). No
12. If your answer for Question No.11 is yes, to what extent does the level of resource influence
strategic plan implementation in the commercial bank?
A). Low extent B). Moderate C). Great extent D).very great extent

13. Please rate you level of agreement by putting (X) sign to the following statements:

Statements Strongly disagree Neutral agree Strongly

disagree agree
The commercial bank has not a transparent resource planning,
allocation and utilization system.
The commercial bank had often lack of competent human
capital (employee) during strategic plan implementation.
The commercial bank often faced absence of financial
resources during strategic plan implementation.
The commercial bank had often deficiency of tools and

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technology that necessary for strategic plan implementation.

Part Four: - Influence of Effective & timely Communication on strategic plan implementation.

14. Do you believe effective and timely Communication influence strategic plan implementation
in the commercial bank? A). Yes B). No

15. If your answer for Question Number, 14 is yes, to what extent does the level of
communication affect strategic plan implementation in the commercial bank?
A). Low extent B). Moderate C). Great extent D).Very great extent

16. . Please rate you level of agreement by putting (X) sign to the following statements:

Statements Strongly disagree Neutral agree Strongly

disagree agree
There is insufficient internal communication of strategy
among different managers and workers.
Lack of Information systems in commercial bank that used to
monitor strategic plan implementation.
One-way communication, only from top to down, is practiced
in commercial bank which didn’t permit participation of
workers in questioning, criticizing and providing feedback on
the commercial bank strategic plan implementation.
There is a weak horizontal communication among the offices
and workers in the commercial bank.
The commercial bank has lack of external communication
with external organizations on the common and supportive
strategic plan implementation.

Part Five: - Influence of Organizational structure on strategic plan implementation.

17. Do you know Organizational structure influence strategic plan implementation in the
commercial bank? A). Yes B). No

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 18. If your answer for Question Number, 17 is yes, to what extent does the level of
organizational structure affect strategic plan implementation in the commercial bank?
A). Low extent B). Moderate C). Great extent D).Very great extent

19. Please rate you level of agreement by putting (X) sign to the following statements:

Statements Strongly disagree Neutral agree Strongly

disagree agree
The current Organizational structure of commercial bank was
not match with the strategic plan
The Organizational structure of the commercial bank has
unwilling to change according to strategic plan.
Due to organizational structure in commercial bank horizontal
communication, and team working is impossible.
The organizational structure of the commercial bank is
extremely formalized, rigid and centralized.
The commercial bank has extremely hierarchy structure cause
delays decision making.

Part Six: - Influence of Organizational Culture on strategic plan implementation.

20. Do you accept Organizational Culture influence strategic plan implementation in the
commercial bank? A). Yes B). No
21. If your answer for Question Number, 20 is yes, to what extent does the level of
organizational Culture affect strategic plan implementation in the commercial bank?
A). Low extent B). Moderate C). Great extent D).Very great extent

22. Please rate you level of agreement by putting (X) sign to the following statements:

Statements Strongly disagree Neutral Agree Strongly

disagree agree
The commercial bank has completely encourage organization
culture, to enhance workers consensus and loyalty.
The commercial bank has less culture of tolerating risks.

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The commercial bank has a good culture to adapt new ideas
The commercial bank less focus in loyalty and mutual trust,
cooperative, consensus, and involvement.

Part Seven: - Influence of Balanced scorecard on strategic plan implementation.

23. Do you believe effective balanced scorecard influence strategic plan implementation in the
commercial bank? A). Yes B). No
24. If your answer for Question Number, 23 is yes, to what extent does the level of balanced
scorecard affect strategic plan implementation in the commercial bank?
A). Low extent B). Moderate C). Great extent D).Very great extent

25. Please rate you level of agreement by putting (X) sign to the following statements:

Statement Strongly disagree Neutral agree Strongly

disagree agree
1. Customer perspective
1.1 Commercial bank conduct market research
1.2 Commercial bank Customer handling system is good
2. Financial perspective
2.1 There is a poor participatory approach for budget
planning system.
2.2 Commercial bank Use opportunities and develop new
method to increase revenue.
3. Learning and growth perspective
3.1 Commercial bank not conducts skills assessment.
3.2 To fill the gap commercial bank giving training to the
staff after feedback.
4. Internal process perspective
4.1 Setting objectives and prioritizing strategy initiatives.
4.2 not conducting organizational assessment (ex SOWT)

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 Part Eight: - strategic plan implementation of commercial bank.

26. To what extent did the commercial bank properly implemented its overall strategic plan?
A). Low extent B). Moderate C). Great extent D).Very great extent

27. Please rate you level of agreement by putting (X) sign to the following statements:

Statements Strongly disagree Neutral agree Strongly

disagree agree
The bank has annual plans to implement strategies
The bank hasn’t exact procedures followed for success
strategic plan implementation.
When implementing strategic plan the bank doesn’t usually
examine progress against targets.
During the implementation stage, the bank doesn’t revise their
strategies if it is mandatory.
The bank has shortage of allocating precise authority for
strategic plan implementation

28. Please rate, the following independent variables in the commercial banks.
1= Poor, 2= satisfactory, 3= good , 4= Very good
Independent Variables: Poor Satisfactory Good Very good

Leadership Quality (LQ)

Resource availability and utilization (RAAU)
Effective and timely communication (EATC)
Organizational structure (OS)
Organizational culture (OC)
Balanced scorecard (BSC)

29. What is your opinion would you provide that will support the commercial bank to reduce
strategic plan implementation difficulties?
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30. Please put any other suggestion you may have important for the subject of this research.
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Interview questions
31. How leadership qualities affect the commercial bank strategic plan implementation?
32. To what extent resource availability and utilization influence commercial bank strategic plan
implementation?
33. Does effective and timely communication have influence on strategic plan implementation
in the commercial bank?
34. Do you think Organizational Structure have influence on strategic plan implementation in
the commercial bank?
35. Do you know the commercial bank organizational culture is foster strategic plan
implementation?
36. How balanced scorecard face a challenge on strategic plan implementation of commercial
bank?

Thanks for your contribution!!!

________________________”The end”_______________________

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 APPENDICES TWO; - TESTING RESULTS

1. Normality test

2. Multicollinearity test :- ( tolerance > 0.1 and Variance inflation factor < 10)

Coefficientsa
Collinearity Statistics
Model Tolerance VIF
1 LQ .140 7.158
RAAU .242 4.128
EATC .258 3.874
OS .180 5.553
OC .206 4.848
BSC .197 5.081
a. Dependent Variable: SPI

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3. Autocorrelation test (Durbin-Watson values lies b/n 1.5 and 2.5)
Model Summaryb
Adjusted R Std. Error of the
Model R R Square Square Estimate Durbin-Watson
1 .938a .879 .876 .21974 1.588
a. Predictors: (Constant),LQ, RAAU, EATC, OS, OC, BSC
b. Dependent Variable: SPI

4. Linearity test: linearity assumption can easily be checked using scatterplots or residual
plots: plots of the residuals vs. either the predicted values of the dependent variable or against
(one of) the independent variable/s. As it indicated from figure 11, linearity test assumptions that
used in this research for the test of regression analysis met the criteria.
Figure 11. Scatter plot for linearity check

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83
84
 Regression table
Significance, P< 0.05 and B-valve positive
Unstandardized Standardized 95.0% Confidence
Coefficients Coefficients Interval for B
Lower Upper
Model B Std. Error Beta t Sig. Bound Bound
1 (Constant) .212 .097 2.174 .031 .020 .404
LQ .259 .062 .268 4.143 .000 .136 .382
RAAU .127 .044 .141 2.881 .004 .040 .214
EATC .032 .044 .035 .734 .464 -.055 .120
OS .226 .054 .241 4.225 .000 .121 .332
OC .209 .052 .213 4.011 .000 .106 .311
BSC .106 .053 .108 1.991 .048 .001 .211
a. Dependent Variable: SPI

F-ratio significance, P< 0.05

ANOVAa
Model Sum of Squares df Mean Square F Sig.
1 Regression 72.705 6 12.117 250.946 .000b
Residual 9.995 207 .048
Total 82.700 213
a. Dependent Variable: SPI
b. Predictors: (Constant), LQ, RAAU, EATC, OS, OC, BSC

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Strong correlation if independent variables with dependent lies between 0.8 and 1
Correlations
LQ RAAU EATC OS OC BSC SPI
LQ Pearson Correlation 1 .849** .831** .849** .847** .864** .896**
Sig. (2-tailed) .000 .000 .000 .000 .000 .000
N 214 214 214 214 214 214 214
RAAU Pearson Correlation .849** 1 .725** .810** .795** .794** .845**
Sig. (2-tailed) .000 .000 .000 .000 .000 .000
N 214 214 214 214 214 214 214
EATC Pearson Correlation .831** .725** 1 .820** .765** .784** .806**
Sig. (2-tailed) .000 .000 .000 .000 .000 .000
N 214 214 214 214 214 214 214
OS Pearson Correlation .849** .810** .820** 1 .845** .836** .882**
Sig. (2-tailed) .000 .000 .000 .000 .000 .000
N 214 214 214 214 214 214 214
OC Pearson Correlation .847** .795** .765** .845** 1 .838** .873**
Sig. (2-tailed) .000 .000 .000 .000 .000 .000
N 214 214 214 214 214 214 214
BSC Pearson Correlation .864** .794** .784** .836** .838** 1 .859**
Sig. (2-tailed) .000 .000 .000 .000 .000 .000
N 214 214 214 214 214 214 214
SPI Pearson Correlation .896** .845** .806** .882** .873** .859** 1
Sig. (2-tailed) .000 .000 .000 .000 .000 .000
N 214 214 214 214 214 214 214
**. Correlation is significant at the 0.01 level (2-tailed).

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