THE CORE DETERMINANTS OF EFFECTIVE STRATEGY IMPLEMENTATION: THE CASE OF RURAL AND COMMUNITY BANKS IN GHANA

Abstract

Purpose: This study investigates significant factors that influence strategy implementation in the rural banks in Ghana. It focused on leadership commitment, organizational structure, and employee involvement as the core variables influencing strategy implementation.

Methodology: The researcher used random stratification to select fifteen (15) rural banks from the southern belt, (15) from the middle belt, and 360 participants from these rural and community banks in Ghana. The study used a five-point-Likert scale designed questionnaire to elicit information for data analysis.

Findings: The results revealed that some of the moderator variables of the predictor variables significantly influenced strategy implementation. Under leadership commitment; the variables found to be significant in influencing strategy implementation were leadership communicating a clear vision to the understanding of employees with statistical significance accepted at P=0.001>0.05,  leadership prioritizing the release of resources with statistical significance accepted at P=0.000>0.05, and leadership behaviours with statistical significance accepted at P=0.001>0.05. Under organizational structure; release of sufficient resources for organisational restructuring had the statistical significance of P=0.000>0.05; clearly defined roles and responsibilities P=0.000>0.05; Knowledge sharing' P=0.001>0.05; employee involvement in the structural reforms P=0.006 >0.05, and inability to provide technical information on the job had P=0.005>0.05. Under employee involvement: the right environment, good reward systems, and training were variables found to be statistically significant in influencing strategy implementation. The statistical significance was accepted at P=0.001>0.05, P=0.005>0.05, and P=0.030>0.05 respectively. 

Contribution to theory, practice, and policy/recommendation: The theoretical contribution made in this study is the investigation into strategy implementation in the rural and community banks in Ghana. There is no current literature that has examined strategy implementation in the rural and community banks in Ghana and examined the key variables used in this study to make predictions and conclusions on factors influencing strategy implementation. The study provides a framework for strategy implementation for the RCBs, with a universal applicability in the varying context of strategy implementation, contributing to the repository of knowledge in strategy implementation. The study recommends that leadership create a conducive environment to encourage creativity and idea generation to facilitate proper strategic activities to advance an effective strategy implementation, a clear vision to establish the nature, form, and content of the organizational structure that will fit the strategy, the release of resources, and a reward package for employee effort in the strategic process.