Abstract:
The main objective of this study was to investigate the effect of internal factors on strategy
implementation at NIB International Bank S.C. in Addis Ababa. The specific internal factors
examined include leadership style, employee competence, resource allocation, management
information systems, and organizational culture. The study aims to provide insights into how these
factors influence strategy implementation within the banking context. The researcher used a
quantitative approach. Besides, a descriptive and explanatory research design was used. The study
population includes 310 department heads, middle management, district managers, and branch
managers, from those 175 respondents were selected and given questionnaires out of which 171
correctly filled and returned questionnaires were used for analysis purposes. Cluster random
sampling technique was used to select respondents. Data was analyzed by using descriptive statistics
including means, standard deviation, and inferential statistics to analyze and interpret the gathered
data. Data was analyzed by SPSS version 26. Pearson’s Correlation test statistics were applied to
test the relationship between dependent and independent variables. Inferential statistical tools like
multiple linear regressions were used. A regression model was applied to show the effect of internal
factors on strategy implementation. The research findings reveal significant relationships between
these factors and strategy implementation. Effective leadership styles, competent employees,
appropriate resource allocation, advanced management information systems, and a positive
organizational culture were found to positively influence strategy implementation. These findings
underscore the importance of these internal factors in achieving successful strategy execution.
Based on the results, it is recommended that NIB International Bank invest in leadership training,
employee development programs, strategic resource allocation assessments, advanced information
systems, and fostering a positive organizational culture to enhance strategy implementation and
achieve strategic objectives.
