Does Strategic Planning & Planning Resources Influence the Performance of Financial Institutions? Roles of Managerial Involvement and Institutional Capability

Abstract

This article examines how does strategic planning & planning resources influence the performance of financial institutions in Ethiopia? Besides this, the study investigates the mediating role of institutional capability & moderating role of managerial involvement. The study used cross-sectional research that relied on survey. This study employs Hierarchical Linear Model (HLM) and MLMED for mediation hypothesis. These data consisted of 142 managers from 35 different financial institutions. This study expands the knowledge edge in the field of strategic management through the discovery that strategic planning affects the performance of financial institutions directly, and indirectly through the mediation of institutional capability and managerial involvement has moderating role on the relationship between strategic planning & financial performance, which has a positive and significant effect. The results of this study have guidance for managers how to configure strategic planning & planning resources to obtain competitive advantage through institutional capability to enhance the performance of financial institutions. Implications of the findings are explained with theoretical contribution; recommendations and future research are discussed.