Leadership Communication and Strategy Execution in Deposit Money Banks in Lagos State, Nigeria: The Mediating Role of Strategic Understanding

Chimsunum Orji Osanebi; Fatai Oguntade Aliu; Folakemi Ohunakin; Samuel Olugbenga Kusimo; Oluwatosin Temitope Adegbola

doi:10.58709/niujms.v12i3.2640

Chimsunum Orji Osanebi Trinity University, Yaba, Lagos, Nigeria
Fatai Oguntade Aliu Trinity University, Yaba, Lagos, Nigeria
Folakemi Ohunakin Trinity University, Yaba, Lagos, Nigeria
Samuel Olugbenga Kusimo Trinity University, Yaba, Lagos, Nigeria
Oluwatosin Temitope Adegbola Trinity University, Yaba, Lagos, Nigeria

DOI: https://doi.org/10.58709/niujms.v12i3.2640

Abstract

In competitive and rapidly evolving business environments, successful strategy execution remains challenging, particularly in highly regulated sectors such as banking. This study investigated the influence of leadership communication on strategy execution in Deposit Money Banks in Lagos State, Nigeria, with strategic understanding as a mediator. Leadership communication was examined through communication clarity, strategic direction communication, communication openness, and communication feedback. A quantitative cross-sectional survey design was adopted. Cochran’s formula yielded a sample of 632 employees, while 596 valid responses were analysed. Partial Least Squares Structural Equation Modelling (PLS-SEM) was employed to evaluate the measurement model, structural relationships, and mediation effects. Findings revealed that communication clarity (β = 0.446, p < 0.001), strategic direction communication (β = 0.474, p < 0.001), communication openness (β = 0.512, p < 0.001), and communication feedback (β = 0.522, p < 0.001) positively and significantly influenced strategy execution. Leadership communication significantly influenced strategic understanding (β = 1.351, p < 0.001), while strategic understanding positively affected strategy execution (β = 0.548, p < 0.001). Strategic understanding also partially mediated the relationship between leadership communication and strategy execution (β = 0.740, p < 0.001). The study concludes that effective strategy execution requires both clear leadership communication and employees’ understanding of strategic priorities and implementation responsibilities. It further establishes strategic understanding as an important mechanism linking leadership communication with strategy execution in Nigerian banking.

Keywords: Leadership Communication, Strategy Execution, Strategic Understanding, Deposit Money Banks, Lagos State, Nigeria.