Collaborative Partnerships and Financial Performance of Commercial Banks in Juba, South Sudan
Abstract:
This study explores the impact of collaborative partnerships on the financial Performance of commercial banks in Juba, South Sudan, a region characterized by economic instability and developmental challenges. Recognizing the vital role of these banks in fostering financial stability, inclusion, and economic growth, the research examines how collaborative partnerships with local and international stakeholders influence opera tional efficiency, risk management, and profitability. The study employs a mixed-methods approach, combining quantitative analysis of financial data from 30 selected banks with qualitative interviews of bank managers and stakeholders. The target population comprised 625 individuals, including CEOs, CFOs, COOs, middle management, and department heads, all possessing in-depth knowledge of their banks’ strategies and oper ations. The sample size was determined using Yamane’s (1969) formula to ensure accurate representation and precision. Data analysis was conducted using SPSS, with structural equation modeling (SEM) applied to evaluate the direct effects of partnerships on financial performance, enabling the simultaneous examination of multiple relationships while accounting for measurement error. Results reveal that collaborative partnerships significantly improve banks’ financial outcomes by enhancing resource access, innovative services, and risk mitigation efforts. All relationships were statistically significant (p < 0.001), with F-statistics ranging from 37.842 to 43.671, confirming robust linear relationships and rejecting the null hypothesis of non-linearity. R² values between 0.195 and 0.216 indicate that a substantial portion of the variance in financial performance is explained by partnership variables. The study concludes that fostering strategic alliances is crucial for strengthening financial sector stability and inclusivity in South Sudan. It recommends that commercial banks actively pursue partnerships with development agencies, international financial institutions, and local organi zations to support sustainable growth and contribute to national economic development. These findings pro vide valuable insights for policymakers and banking practitioners seeking to leverage partnerships to enhance resilience in fragile economies.
