Effects of Strategic Management on Organizational Performance in Banking Industry

DOI: 10.46988/IJIHRM.04.01.2023.005

Abstract

In banking industry, there are many challenges from the internal and external environment that make this organisation in critical positions and need to make proper strategic management to survive and success. strategic management is a critical function in the banking sector, as it enables banks to navigate the dynamic and competitive environment in which they operate. By focusing on customer needs, risk management, and sustainability, banks can develop strategies that ensure their long-term viability and success. The dynamic capabilities theory supports strategic management and performance in banks by providing a framework for understanding how organizations can adapt and innovate in response to changing market conditions. In addition, the Contingency Theory supports strategic management and performance in banks by emphasizing the importance of tailoring strategies and management practices to the unique characteristics of the bank's environment. Therefore, this research is to proposed a conceptual framework for the impact of the strategic management practices (environmental scanning, strategy formulation, strategic implementation, strategic evaluation) on the organisational performance in the banking industry. This paper is conceptual paper to identify the most antecedents of strategic management that studied in the previous empirical studies of Banking industry. The next step of this research is to empirically examine the conceptual framework in banking sector in Saudi Arabia. In addition, scholars can examine the model in different countries to evaluate the proposed hypotheses and provide different results to compare between countries.