The Impact of Strategic Management on the Effectiveness of the Strategic Decision-Making Process in Jordanian Commercial Banks

Abstract

This study investigates the critical role of strategic management in enhancing the effectiveness of the strategic decision-making process within Jordanian commercial banks. Operating in a dynamic and often turbulent economic landscape, these banks require robust strategic frameworks to ensure sustained competitiveness and organizational resilience. The study employed a quantitative descriptive-analytical approach, surveying a population of 350 executive managers, assistant managers, and department heads across various administrative levels in Jordanian commercial banks. A randomly selected sample of 210 participants provided data through a validated 30-item questionnaire. Statistical analysis, including multiple regression analysis, was performed using SPSS. The findings indicate a statistically significant positive impact (α ≤ 0.05) of strategic management, particularly its dimensions of flexibility, speed, and organizational capabilities, on the effectiveness of the strategic decision-making process. This effectiveness was assessed across three key dimensions: problem identification, situation evaluation, and alternative development. The results underscore those banks with higher strategic management capabilities exhibit more effective decision-making, contributing to enhanced overall performance. Based on these insights, the study recommends that Jordanian commercial banks strategically reallocate resources to foster adaptability to unforeseen changes, prioritize inter-departmental coordination, and invest in advanced technological tools and continuous training to elevate strategic decision-making competencies. This research contributes to understanding strategic management's practical implications in a crucial emerging market banking sector.