Strategic Planning and Corporate Performance in the Nigerian Banking Industry

Abstract

The study evaluated the different factors that influence the choice of strategic planning adopted by banks in the country. It also examined the effects of Strategic Planning on Corporate Performance. Primary data was used for the study. Lagos metropolis was used as the area of the study because 20 banks out of 21 post consolidated banks have their head offices in Lagos. Ten banks listed on the Nigerian stock exchange market with stable corporate identity were selected out of 21 Deposit Money Banks in Nigeria using purposive sampling technique. 200 senior staff of banks in the Nigerian banking industry was used as the population. Sample was selected using multi-stage sampling technique. Ten senior managers of the selected banks who are involved in strategic planning decision and coordination of resources in the banks were selected using purposive sampling techniques. Thus, the sample size for the study was 100 respondents. A well structured questionnaire was administered to the respondents. Data was analysed using descriptive and inferential statistics. The findings of the study revealed that the factors influencing the choice of strategic planning adopted by banks in the country include technological environment (85%); global environment (81%); management style (76%) and political/legal environment (70%). It also revealed that strategic planning proxied by environment by environmental scanning (t=4.624, p< 0.05); strategy formulation (t=3.000, p< 0.05); feedback and evaluation t=2.019, p< 0.05) had significant effect on organisational performance. The study concluded that strategic planning if properly integrated by Nigerian banks could make significant improvement on their performance in the industry.