The research has investigated the effect of corporate governance on strategic change in rural banks in the Eastern Region of Ghana. It was also examined the importance of governance mechanism and strategic decisions on weaknesses and threats to the banks effective operation. It has examined the understanding of ownership, board, and the top management team in strategic change on banks values. It has also revealed the relationship between strategic/policy changes and the bank performance in the community. A quantitative methodology was used for the study. The main instrument used for data collection was self-developed questionnaire. It was revealed that the importance of governance mechanism and strategic decisions on weaknesses and threats to the effective operation of the banks were 80% very important and 90% important. However, 70% of the management personnel strongly support formal policy development and implementation of the bank. The research concluded that corporate governance has an effect on strategic change on rural banking. It is recommended that strategic changes in rural banks can be implemented if the top management team and Board of Directors agreed and placed high importance on it. A good implementation of strategic change in rural banks will really improve their performance.
Ambrosini, V. 1998. Exploring Techniques of Strategy Analysis and Evaluation. Prentice Hall.
Ansoff, H. I. 1965. Corporate Strategy. New York: McGraw-Hill.
Ansoff, H. I. 1968. Business Strategy. Penguin.
Barr, P. S., Stimpert, J. L., & Huff, A. S. 1992. Cognitive change, strategic action, and
organizational renewal. Strategic Management Journal, 13: 15-36.
Castrogiovanni, G. J. 1991. Environmental munificence deal with radical change. Long Range
Planning, 23: 44-55.
Chaffee, E. E. 1985. Three models of strategy. Academy of Management Review, 10, 89-98.
Child, J., & Smith, C. 1987. The context and process of organizational transformation-Cadbury
limited in its sector. Journal of Management Studies, 24: 565-593.
Clake, T. & Clegg, S. 2000. Changing Paradigms: The transformation of management
knowledge for the 21st. century. Harper Collins.
Colley, L. J. JR., Doyle, L. J., Logan, W. G., & Stettinius, W. 2003. Corporate Governance.
McGraw-Hill Companies, Inc. USA.
Cook, C. 1975. Corporate strategy change contingencies. Academy Management Proceedings:
14-18
Corsi, T.M., Grimm, C. M., Smith ,K. G., & Smith., R. D.1991. Deregulation, Strategic change,
and firm performance among LTL motor carriers. Transportation Journal, Fall: 4-13.
Dutton, J. E., & Duncan R. B. 1987. The creation of momentum for change through the process
of strategic issues diagnosis. Strategic Management Journal, 8: 279-295.
Dutton, J. E., & Jackson, S. J. 1987. Categorizing strategic issues: Links to organizational action.
Academy of Management Review, 12: 76-90.
Fombrun, C. J., & Ginsberg, A. 1990. Shifting gears: Enabling change in corporate
aggressiveness. Strategic Management Journal, 11: 297-308.
Fombrun, C. J., 1993. Envisioning strategic change. In P. Shrivastava, A. Huff, & J. Dutton
(Eds), Advances in strategic Management, vol 9: 157-188. Greenwich, CT: JAI Press.
Ginsberg, A. 1988, Measuring and modeling changes in strategy: Theoretical foundations and
empirical directions. Strategic Management Journal, 9: 559-575.
Ginsberg, A., & Abrahamson, E. 1991. Champions of change and strategic shifts: The role of
internal and external change advocates. Journal of Management Studies, 28: 173-190.
Ginsberg, A., & Buchholtz, A. 1990. Converting to for- profit status: Corporate responsiveness
to radical change. Academy of Management Journal, 33: 445-477.
Goodstein, J., & Boeker, W. 1991. Turbulence at the top: A new prospective on governance
structure changes and strategic change. Academy of Management Journal, 34: 306-330.
Goodstein, J., Gautam, K., & Boeker, W.1994. The effects of board size and diversity on
strategic change. Strategic Management Journal, 15: 241-250.
Graham, K. R., & Richards, M. D. 1979. Relative performance deterioration: Management and
strategic change in rail-based holding companies. Academy of Management Proceedings:
108-112.
Hamel, G. & Prahalad, C. K. 1993. Strategy as stretch and leverage. Harvard Business Review.
Vol 71, 2: 75-84.
Hart, S., & Banbury, C. 1994. How strategy-making processes can make a difference. Strategic
Management Journal, 15; 251-269.
Haveman, H. A. 1992. Between a rock and a hard place: Organizational change and performance
under conditions of fundamental environmental transformation. Administrative Science
Quarterly, 37: 48-75.
Johnson, G. 1992. Managing strategic change. Long Range Planning ,25(1): 28-36.
Johnson, R. I., Hoskisson, R. E., & Hitt, M. A. 1993.Board of director involvement in
restructuring: The effects of board vs. managerial controls & characteristics. Strategic
Management Journal, 114: 33-50.
Johnson, G. & Scholes, K. 1998. Exploring Corporate Strategy. Pearson Education (5th edn.).
Kelly, D., & Amburgey, T. L. 1991. Organizational inertia and momentum: A dynamic model of
strategic change. Academy of Management Journal, 34: 591-612.
Lant, T. K., & Mezias, S. J., 1992. An organizational learning model of convergence and
reorientation . Organization Science, 3: 47-71.
Meyer, A. D., Brooks, G. R., & Goes, J. B. 1990. Environmental jolts and industry revolutions:
Organisational responses to discontinuous change. Strategic Management Journal, 11: 93-
110.
Perspectives on strategic management: 105-236. Cambridge, MA: Ballinger.
Mintzberg, H., & McHugh, A. 1985. Strategy formation in an adhocracy. Administrative Science
Quarterly, 30: 160-197.
Mintzberg, H., & Waters, J. 1982. Tracking strategy in an entrepreneurial firm. Academy of
Management Journal, 25: 465-499.
Perman, R. & Scoular, J. 1999. Business Economics. 67-73. Oxford University Press.
Quinn, J. B.,1980. Strategies for change: Logical incrementalism. Homewood, IL: Irwin.
Simons, R. 1994. How new top managers use control systems as levers of strategic renewals.
Strategic Management Journal, 15: 169-180.
Staw, B. M., Sandelands, L. E., & Dutton, J. E. 1981. Threat-rigidity effects in organizational
behaviour: A multilevel analysis. Administrative Science Quarterly, 26: 501-524.
Van de Ven, A. H., & Huber, G. P. 1990. Longitudinal field research methods for studying
processes of organizational change. Organization Science, 1: 213-219.
Van de Ven, A. H., & Poole, M. S. 1990. Methods for studying innovation development in the
Minnesota Innovation Research Program. . Organization Science, 1: 313-335.
Van de Ven, A. H., & Poole, M. S. 1995. Explaining development and change in organizations.
Academy of Management Review, 20: 510-540.
Walsh, J. P. 1995. Managerial and organizational cognition: Notes from a trip down memory
lane. Organization Science, 6: 280-321.
Webb, J., & Dawson, P. 1991. Measure for measure : Strategic in an electronics instruments
corporation. Journal of Management Studies, 28: 9190-206.
Wiersema, M. F. 1992. Strategic consequences of executive succession within diversified firms.
Journal of Management Studies, 29: 73-94.
Wiersema, M. F., & Bantel, K.A. 1992. Top management team demography and corporate
strategic change. Academy of Management Journal, 35: 91-121.
Wiersema, M. F., & Bantel, K.A. 1993. Top management team turnover as an adaptation
mechanism: The role of the environment. Strategic Management Journal, 14: 485-504.
Zajac, E. J., & Kraatz, M. S., 1993. A diametric model of strategic change: Assessing the
antecedents consequences of restructuring in the higher education industry. Strategic
Management Journal, 14: 83-102.
Zajac, E. J., & Shortell, S. M. 1989. Changing generic strategies: Likelihood, direction, and
performance implications. Strategic Management Journal, 10: 143-430.
Copyright: © 2013 The Author(s)
Published by Knowledge Words Publications (www.kwpublications.com)
This article is published under the Creative Commons Attribution (CC BY 4.0) license. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this license may be seen at: http://creativecommons.org/licences/by/4.0/legalcode
