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Effect of strategic environmental scanning on the private bank performance in Ethiopia with mediating role of competitive strategy

Bibliographic Data

ID24219127
AuthorsWonsha Michael Didiso, Brehanu Borji Ayalewu, Sintayehu Assefa Yirga (0000-0002-1193-5974)
Year2026
Volume4
Issue1
Publication date2026-09-28
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueDiscover Global Society (JOURNAL)
Journal identifiersISSN: 2731-9687 • E-ISSN: 2731-9687
PublisherSpringer Science and Business Media LLC (PUBLISHER)
DOI10.1007/s44282-026-00620-2
OpenAlexW7214642845
LanguageEN
References cited70

In today's tough business environment the best way to improve performance is by combining strategic environmental scanning with competitive strategy something banks realize is essential for achieving their long-term goals. Thus the main aim of the present investigation was to discovering effect of strategic environmental scanning on the private bank performance in Ethiopia with mediating role of competitive strategy. In this study the researchers collected primary data using a structured questionnaire. The target population included 147367 employees working in private banks in Ethiopia. Researchers used a simple random sampling method supported by the formula fromKothari and selected 383 participants for the study. The study employed structural equation modeling (SEM) alongside exploratory and confirmatory factor analysis (EFA and CFA) to analyze data. The finding of this study reveals that strategic environmental scanning has a positive and significant effect on the performance of Ethiopian Private Banks. Similarly, there is positive and significant association among strategic environmental scanning and competitive strategy. Competitive strategy also positively influences the performance of Ethiopian Private Banks. Moreover, Competitive strategy was found partial mediate strategic environmental scanning and the performance of Ethiopian Private Banks. This study contributes by advancing the understanding of the strategic environmental scanning strategy, competitive strategy in banking sector, by offering methodological accuracy to bank performance in Ethiopia. In practice, it suggests that to get better results, Ethiopian banks should make strategic environmental scanning their main focus to improve their sustainable performance. Lastly, combining strategic environmental scanning with competitive strategies in the banking sector is important for creating a framework that supports sustainable bank performance in Ethiopia.

bank performance · competitive strategy · Ethiopian banking sector · mediating effect · private banks · sustainable performance · Banking Sector Performance and Management · Competitive and Knowledge Intelligence · Strategic Planning and Analysis

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