Strategic Planning Resources and Performance of Financial Institutions: Mediating Role of Institutional Capability

Meseret Ebabu Ejigu

Abstract


Abstract
Regardless of a growing body of literature on organizational performance, explaining why organizations in the same industry and markets differ in their performance remains a fundamental question within the strategic management field. The study was designed to examine the mediating role of institutional capability and planning resources on the performance of financial institutions in Ethiopia. This study has used a cross-sectional survey in dealing with the mediating role of institutional capability & planning resources on the performance of financial institutions. Out of 175 questionnaires, 142 usable ones were collected from the financial institutions which were operated in Ethiopia. We find that institutional capability was mediating the relationship between planning resources & performance of financial institutions, which has a significant positive influence. Besides, it was ascertained that planning resources have a significant positive effect on the performance of financial institutions. The finding of this research work offer guidance to managers considering how to configure and deploy planning resources and how to utilize capabilities to enhance the performance of financial institutions. Limitations and future research were discussed.

Keywords: Strategic planning resources, Institutional capability, Financial Institutions, Performance, Ethiopia.

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ISSN : 2251-1571