Exploring Strategic Alliances And Bank Performance: MGA And IPMA Perspectives
DOI:
https://doi.org/10.29284/kr5e2v31Keywords:
Bank performance; Strategic alliance, MSMEs commitment, PLS-MGA, IPMA.Abstract
In response to the growing demands for cooperation between banks and MSMEs to enhance performance, recognizing the impact of differences in managerial levels on overseeing bank performance is becoming increasingly crucial. This study aims to explore the influence of strategic alliance, MSMEs commitment and sharing knowledge on bank performance by considering the differing perspectives between junior and senior managers. A total of 309 respondents participated in this research using purposive sampling method. Data analysis was conducted using Partial Least Squares Structural Equation Modeling (PLS-SEM), Multi-Group Analysis (MGA), and Importance-Performance Map Analysis (IPMA). The results indicate that MSMEs commitment is a key contributor to improving bank performance in both manager groups. MSMEs commitment has also been shown to significantly strengthen the relationship between strategic alliance and sharing knowledge towards bank performance for both junior and senior managers. However, the impact of sharing knowledge in strengthening the relationship between strategic alliance and bank performance is only significant for junior manager. The findings of IPMA indicate that for junior managers, strategic alliance is the most significant factor in predicting bank performance, while for senior manager, the dominant role is actually played by MSMEs commitment. These findings provide strategic implications for the banking industry to develop tailored managerial approaches to strengthen strategic alliance and build MSMEs commitment to drive sustainable performance.
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