Change management strategies and performance of commercial banks in Nigeria: The moderating role of technology

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Type of the article: Research Article

Abstract
Effective change management is essential for navigating the constantly changing business environment. This study examines the impact of change management strategies on the performance of commercial banks in Nigeria, focusing on the moderating role of technology. The research employs a survey method, collecting data from 354 senior and management staff across 17 commercial banks. An exploratory factor analysis was conducted to validate the research instrument, followed by an ordered regression technique to estimate the specified model due to the rank-ordered nature of the criterion variable. The results reveal that reactive, proactive, and incremental changes are significantly associated with the performance of commercial banks in Nigeria. However, transitional change does not affect performance substantially, unless moderated by technology. The study highlights the critical role of technology in bridging the gap between transitional change and improved performance, underscoring its importance in the Nigerian banking sector. The findings suggest that Nigerian commercial banks should adopt proactive change strategies and continuously invest in relevant technology to manage transitional changes effectively and enhance performance. The study’s generalizability may be limited due to its focus on commercial banks, which constitute a small subset of the financial sector. Nonetheless, the large sample size enhances the robustness of the findings.

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    • Table 1. Summary statistics and regression diagnostic tests
    • Table 2. Result of the exploratory factor analysis for the test items measuring the variables
    • Table 3. Ordered logit results for the dependent variable and the predictors
    • Table 4. Model summary on the moderating effect of technological change on the relationship between change management strategies and the performance of commercial banks in Nigeria
    • Conceptualization
      John Otalor, Alfred Edema, Celestine Igwebe, Fabrice Ashu
    • Data curation
      John Otalor, Alphonsus Kankpang, Grace Pepple, Fabrice Ashu, Francis Enya
    • Formal Analysis
      John Otalor, Celestine Igwebe, Alphonsus Kankpang
    • Funding acquisition
      John Otalor, Alfred Edema, Celestine Igwebe, Alphonsus Kankpang, Grace Pepple, Fabrice Ashu, Francis Enya
    • Investigation
      John Otalor, Alfred Edema, Celestine Igwebe, Alphonsus Kankpang, Grace Pepple, Fabrice Ashu, Francis Enya
    • Methodology
      John Otalor, Alphonsus Kankpang, Grace Pepple
    • Project administration
      John Otalor, Alfred Edema
    • Resources
      John Otalor, Celestine Igwebe, Alphonsus Kankpang, Grace Pepple, Fabrice Ashu, Francis Enya
    • Software
      John Otalor
    • Visualization
      John Otalor, Alfred Edema
    • Writing – original draft
      John Otalor, Celestine Igwebe
    • Supervision
      Alfred Edema, Celestine Igwebe, Alphonsus Kankpang
    • Writing – review & editing
      Alfred Edema, Alphonsus Kankpang, Grace Pepple, Francis Enya
    • Validation
      Alphonsus Kankpang, Grace Pepple, Fabrice Ashu, Francis Enya