The Impact of business strategy on Corporate Performance: Empirical Study in Jordanian Private Banks

Author(s): Adnan M. Rawashdeh, Prof. Dr. Tayfun Turgay, Assoc. Prof. Dr. Serdar Saydam

The study evaluates the impact of business strategy on corporate performance in Jordanian private banks. A total of 193 employees from the human resource departments of Jordanian private banks had responded to adapted questionnaire that measured two independent variables (cost reduction and differentiation) and corporate performance. The results reflected a positive and statistically significant relationship of (cost reduction and differentiation) with corporate performance. This study recommends banks management to keep engaging in correcting their business strategy to manage challenges in this changing business environment in order to create and sustain superior bank performance.

Business strategy, corporate performance, Jordanian private banks

1. Abdul R (2007). HRM Sophistication and SME Performance: A Case of Ready Made Garment Manufactures and Exporters in Lahore. Pakistan. Unpublished Doctor Thesis. And Twente University. Pakistan
2. Arthur J. (1992). The link Between Business Strategy and Industrial Relations Systems in American Steel Mills. Indus. & Lab. Rel. Rev. 45: 488-506
3. Cheng C. (2003). Research of Relation between Business Strategy and Business Performance for R Recreation Resorts in Kenting Area. Taiwan. Unpublished Master’s thesis. Chang Jung University. Taiwan
4. Chiang C (2004).The Impacts of Business Strategy and Compensation Strategy on Organizational Performance. Unpublished Master’s thesis. Soochow University. Taiwan.
5. Chow H (2006). The Linkage of HRM and Knowledge-related Performance in China’s Technology-intensive Industries Hong Kong: The Chinese University of Hong Kong
6. Dess G, Gupta A, Hennart J & Hill C (1995). Conducting and Integrating Strategy Research at The International Corporate. and Business Levels: Issues and Directions. Manage. J. 21: 357–393
7. Duray R (1997).Mass Customization Configurations: an Empirical Investigation of Manufacturing Practices of Customization. Unpublished PhD Thesis. The Ohio State University. Columbus
8. Feng H, Tzai Z & Wann Y (2010) The Relationship Between Human Resource Management Practices. Business Strategy and Firm Performance: Evidence From Steel Industry in Taiwan, Int. J. of H R M. 21 (9) :1351-1372
9. Huselid M & Becker B (1997). The Impact of High Performance Work Systems Implementation Effectiveness. and Alignment with Strategy on Shareholder Wealth. Acad. of Manage. Proceedings :144-149
10. Irene H & Liu S (2009). The effect of Aligning Organizational Culture and Business Strategy With HR Systems on Firm Performance in Chinese Enterprises. Int. J. of HRM.20 (11): 2292-2310
11. Lee F, Lee T & Wua W (2010). The Relationship Between Human Resource Management Practices. Business strategy and Firm Performance: Evidence From Steel Industry in Taiwan, The Int. J. of HRM. 21 (9) : 1351–1372
12. Lee H (2000). An Empirical Study of the Relationship among Business Type. Strategy and Performance of Chinese Medicine Industry of Taiwan. Unpublished Master’s thesis. National Defense Management University. Taiwan
13. Leffakis Z (2009).The Effects of High Performance Work Systems on Operational Performance in Different Manufacturing Environments : Improving the Fit of HRM Practices in Mass Customization. Unpublished PhD Dissertation. Toledo University
14. Legge K (1995). Human Resource Management. Rhetoric’s and Realities. Macmillan. London
15. Liao Y (2005). Business Strategy and Performance: The Role of Human Resource Management Control. Person. Rev. J. 34( 3) : 294–309
16. Martell K, Gupta A, & Carroll S (1996). Human Resource Management Practices. Business Strategies. and Firm Performance: A Test of Strategy Implementation Theory. Irish Bus. and Admin. Res. 17 (1) : 18–35
17. Raduan C, Gegak U, Haslinda A & Alimin I (2009). A Conceptual Framework of the Relationship between Organizational Resources. Capabilities. Systems. Competitive Advantage and Performance. Res. J. of Int. Stud. 12 : 45- 58
18. Porter M (1985). Competitive Advantage, New York: Free Press
19. Wall T, Michie J, Patterson M, Wood S, Sheehan M & Clegg C (2004). On The Validity of Subjective Measures of Company Performance. Person. Psychol. J. 57 (1) : 95-118
20. Wendy R (2008) Organizational Culture, HRM and Firm Performance : Examining Relationships Using the Competing Values Framework in Call Centers. Unpublished Doctorate Dissertation. Saint Mary’s University. Halifax. Nova Scotia. Canada
21. Wheleen T & Hunger D (2008). Strategic Management & Business Policy.11thed. New Jersey Pearson Education. Inc. Upper Saddle River