ENHANCING BANKING PROCESS EFFECTIVENESS THROUGH STRATEGIC CLUSTERS: AN APPLIED STUDY ON IRAQI PRIVATE BANKS

Abstract

The research attempts to identify the influence generated by SCs on the effectiveness of BPs at the selected set of Iraqi private commercial banks. SCs were measured based on six main dimensions, which included cooperation, competitive dynamics, OPs, SK, LS, and GSM. On the other hand, BP effectiveness was assessed based on three major dimensions such as CPE, OPE, and SIE. In order to meet the proposed research aims and objectives, the study employed the descriptive-analytical research approach. The primary data collection technique entailed distributing a structured questionnaire among 356 individuals holding managerial positions as general managers, deputy general managers, department managers, assistant department managers, division heads, and division officers working in the selected set of Iraqi private commercial banks. The empirical analysis considered several Iraqi private commercial banks, namely Bank of Baghdad, Iraqi Middle East Investment Bank, Investment Bank of Iraq, National Bank of Iraq, Sumer Commercial Bank, Gulf Commercial Bank, Union Bank of Iraq, Ashur International Bank for Investment, AL Mansour Bank, Trans Iraq Bank for Investment, and International Development Bank. Data analysis was conducted using the Statistical Package for the Social Sciences (SPSS). The data analysis techniques included weighted arithmetic mean, SD, coefficient of variation, simple and multiple linear regression analysis, Adjusted R², and t-test, z-test, and F-test methods. Statistical analysis yielded the evidence that SCs along with the related dimensions generate a considerable impact on BP effectiveness and explain about 80% of its variation.