"Effect of Change Management Practices on Bank Competitiveness in the Case of Oromia Bank Head Office, Ethiopia’’

Abstract

This study was investigated the effect of change management practices on bank competitiveness in the context of Oromia Bank Head Office. A descriptive and exploratory research design was adopted, with primary data collected from 122 respondents through a structured five-point Likert scale questionnaire. Simple random sampling was used, and the sample size was determined via Yamane’s formula. Descriptive findings revealed leadership strengths in communication and vision, but weaknesses in innovation and resistance management; market adaptability was moderate, though service alignment lagged; strategic alignment was strong, but feedback mechanisms and monitoring were weak; readiness for change showed positive mindset but lacked resource support and timely communication. Correlation analysis showed all four variables had strong, statistically significant relationships with competitiveness, with Readiness for Change (r = 0.970) and Strategic Control (r = 0.913) being the most influential. Regression results indicated these variables collectively explained 86.8% of the variance in competitiveness (R² = 0.868), with all predictors significant. The study concludes that Oromia Bank has a foundational change management structure but must strengthen strategic control, innovation culture, and readiness planning to sustain competitive advantage. Recommendations include enhancing leadership capacity, aligning services with market trends, implementing robust strategic monitoring, and conducting formal readiness assessments before initiating change.