ROLE OF STRATEGIC ORIENTATION ON PERFORMANCE OF COMMERCIAL BANKS IN KENYA

Jim Mushira Avung’ana, Dr. Rukia Atikiya

Abstract


The objective of the study was to establish the role of strategic orientation on performance of commercial banks in Kenya. Specifically, the study sought to assess the influence of market intelligence on the performance of commercial banks in Kenya and to determine the influence of innovation on the performance of commercial banks in Kenya. Descriptive survey design was useful in describing the features of the population that has been earmarked for study and providing answers to the research questions. The sample size of study was 280 and it comprised of senior management employees in all commercial banks in Kenya. The researcher distributed 280 questionnaires to the respondents by the researcher during data collection process and 271 were fully filled and returned to the researcher. Thus the response rate of was 96.8%. Kothari (2012) argues that a response rate which is more than 50% is considered adequate while excellent response rate is usually above 70%. This implies that the response rate in this research is good for making conclusions as well as recommendations. The target population was all 40 commercial banks in Kenya. The study concludes that market intelligence has a positive and significant influence on the performance of commercial banks in Kenya. Findings revealed that target Customer, competitors and information influence performance of commercial banks in Kenya. In addition, the study concludes that innovation has a positive and significant influence on the performance of commercial banks in Kenya. Findings revealed that new product, new behavior and research and development influence performance of commercial banks in Kenya. Based on the findings; this study recommends that the management of commercial banks in Kenya should ensure formulation and implementation of the effective strategies to enhance market intelligence. In addition, the management of commercial banks in Kenya should effectively embrace product innovation and market innovation to enhance performance of commercial banks.

Key Words: Strategic Orientation, Market Intelligence, Innovation and Performance of Commercial Banks


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