Influence of Strategic Direction on Performance of Commercial Banks in Juba, South Sudan

Abstract

Performance of organizations has been a focal point of research, particularly in understanding how effectively they implement strategic plans to achieve their mission and vision. Strategic planning practices play an important role in enhancing operational efficiency and achieving a competitive advantage. This study established the influence of strategic direction on the performance of commercial banks in Juba, South Sudan. The study adopted a cross-sectional research design. The unit of analysis comprised 31 licensed commercial banks, while the unit of observation included 186 managers. A stratified random sampling technique, in addition to the Taro Yamane formula, was used to select 128 participants. Data was collected using questionnaires with both open-ended and closed questions. The questionnaires were administered both physically and electronically. Descriptive statistics, including frequency, percentage, mean, and standard deviation, summarize the data, while a binary logistic regression model was applied for inferential analysis. The findings were presented in tables and narratives. Findings revealed that strategic direction setting, including well-documented vision, mission, and core values, significantly improved performance (p-value =0.001), with banks having structured direction setting showing a 12.784 times higher likelihood of achieving better performance than unstructured ones. The study recommends that managers of banks in Juba actively set strategic direction through the formulation of vision, mission, objectives, and core values statements.