THE EFFECTS OF STRATEGIC MANAGEMENT PRACTICES ON ORGANIZATIONAL PERFORMANCE IN BANKING INDUSTRY IN PALESTİNE

Abstract

This study investigates the impact of strategic management practices on organizational performance in Palestinian banks. The research objectives included assessing the influence of environmental scanning, strategy formulation, strategic implementation, and strategic evaluation on organizational performance, as well as measuring employees' opinions regarding these practices. A quantitative research design was employed, with data collected through questionnaires from a sample of 340 employees in Palestinian banks. The data was analysed using descriptive statistics, measurement model analysis, and structural model analysis. The results revealed significant and positive relationships between all strategic management practices and organizational performance, with strategic evaluation having the strongest influence. The findings also indicated that employees' perceptions of these practices were moderate to high, suggesting room for improvement. The theoretical contribution of this study lies in its exploration of strategic management practices in Palestinian banks, which can help to expand the understanding of these practices in a unique context. Practically, the study provides valuable insights for bank managers and policymakers to enhance their strategic management processes, ultimately improving organizational performance. Limitations of the study include its cross-sectional design, reliance on self-reported data, and potential cultural differences within the Palestinian context. Future research is recommended to explore the impact of other factors on organizational performance, conduct longitudinal studies, and investigate the moderating effects of contextual variables.