Strategic Orientation and Performance of Commercial Banks in South-West, Cameroon.

Abstract

This study examined the effect of strategic orientation on the performance of commercial banks in South West Cameroon, focusing specifically on competitor orientation, operational efficiency, customer orientation and customer satisfaction. A descriptive survey design was adopted, with a population of 1,173 employees drawn from six purposively selected licensed commercial banks operating in the South West Region. Using Cochran’s formula, a sample of 397 respondents was determined and proportionately allocated across the selected banks. Data were collected through a structured questionnaire whose validity and reliability were established through expert assessment and pilot testing, with reliability coefficients exceeding the recommended 0.70 threshold. The findings revealed that competitor orientation had a positive and statistically significant effect on operational efficiency (β = 1.520; p = 0.021). Customer orientation also demonstrated a positive effect on customer satisfaction (β = 1.862; p = 0.007), although the relationship was not statistically significant at the 5% level. The study concludes that strategic orientation is an important mechanism for strengthening commercial bank performance, particularly through competitor-focused strategies that improve operational efficiency. Commercial banks should therefore intensify competitive intelligence, monitor market developments and strengthen customer-oriented service practices to improve efficiency, responsiveness and long-term competitiveness.