Factor Affecting Strategy Implementation Success: The Roles of Organizational Factors’ Alignment on Strategy Implementation Success in Ethiopian Commercial Banks

Abstract

Research conducted globally indicated that a significant number of business strategies failed to achieve their intended objectives owing to the failure to implement strategies successfully. Identifying the critical success factors for successful strategy implementation is thus of interest to various stakeholders including senior and middle level managers. Accordingly, the study aimed at assessing factors affecting the success of strategy implementation in the context of a developing economy. It investigated the roles of organizational factors’ alignment expressed in terms of organisational structure alignment, incentives and rewards alignment, and organisational culture alignment on strategy implementation success in Ethiopian commercial banking industry. The study used a qualitative research approach, and in-depth interviews were held with eight concerned bank officials to obtain the required qualitative data. The study employed a thematic analysis to examine and understand relationships in the qualitative data. The findings of the study revealed that organisational structure alignment, incentives and rewards alignment, and organisational culture alignment are the critical success factors for effective strategy implementation in Ethiopian commercial banks.

Keywords: organizational factors’ alignment, strategy implementation success, incentives and rewards alignment, organisational culture alignment, organisational structure alignment

DOI: 10.7176/EJBM/17-1-04

Publication date: January 30th 2025