The Effect of Blue Ocean Strategies on Organizational Performance in Some Selected Commercial Banks in Mogadishu, Somalia

Abstract

This research explores the impact of Blue Ocean Strategies (BOS) on organizational performance within selected commercial banks in Mogadishu, Somalia. Utilizing a descriptive research approach, the study examines how critical components of BOS—such as Breaking the Value-Cost Trade-Off (BCT), Creating and Capturing New Demand (CCND), and Pioneering Uncompetitive Markets (PUM)—influence organizational performance. Data were gathered from 308 participants across five significant banks and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results reveal that BCT, CCND, and PUM significantly enhance organizational performance, while Differentiation and Low Cost (DLC) and Making the Competition Irrelevant (MCI) show no significant impact. The findings underscore the strategic importance of BOS in improving banks' competitive positioning and overall performance in a developing economy context. The study contributes to the growing body of knowledge on BOS by providing empirical evidence from Somalia. It suggests avenues for future research on the role of BOS in different sectors and environments.