The Effect of Dynamic Capability and Multichannel Integration Quality on Bank Performance in Case of Commercial Bank of Ethiopia: Application of Sequential QUAN-qual Explanatory Design

Abstract

The main objective of this study was to examine the effects of dynamic capability (DC) on bank performance (BP), mediated by multichannel integration quality (MCIQ) in the case of the Commercial Bank of Ethiopia (CBE), Ambo District. The study employed an explanatory sequential QUAN-qual design, a mixed-methods approach that begins with a quantitative phase to identify patterns and relationships, followed by a qualitative phase to provide deeper insights and explanations for the initial findings. Primary data were collected from 235 bank employees using simple random sampling to ensure representation across branches. The data were gathered through a standardized questionnaire and analyzed using AMOS version 23 and SPSS version 25, applying structural equation modeling to test the hypothesized relationships. The results revealed that both DC and MCIQ have significant positive effects on BP. Additionally, the effect of DC on BP was found to be partially mediated by MCIQ. The study contributes to existing literature by providing empirical evidence on the role of DC and MCIQ in enhancing bank performance. Based on these findings, it is recommended that practitioners and decision-makers focus on developing dynamic capabilities and enhancing multichannel integration quality to achieve sustainable performance. Future research could explore other mediating or moderating factors, and extend the study to other sectors or countries to improve generalizability.