The Role of Strategic Leadership in Banking Profitability

Description

Vugt and Ronay’s research on corporate leadership failure in the U.S. revealed a 60% failure rate among business leaders to meet profitability goals, often due to insufficient strategic leadership experience. This single case study aimed to investigate how strategic leadership affects bank profitability, involving twelve senior bankers and board members from western Tanzania, each with over a decade of banking and profitability experience, and at least three years in senior management. The study, which used the resource-based view to discuss necessary strategic leadership skills for enhancing bank profits, gathered data through semi-structured interviews, social media, company websites, and annual reports. Analysis followed the modified van Kaam method, identifying themes that underscored the pivotal role of strategic leadership training in banking success. Key themes included strategic leadership’s impact on performance, planning, risk management, training, skills development, and leveraging unique resources. These insights could boost bank profitability, create jobs, and foster social improvement for Tanzania’s impoverished and unbanked populations.