MATI Kawira Rita


The general objective of the study was to establish the relationship between strategic capabilities and performance of selected commercial banks in Nairobi City, Kenya. Specific objectives; to establish the influence of innovations capability on performance of selected commercial banks in Nairobi City, Kenya, and to determine the influence of technical knowledge capability on performance of selected commercial banks in Nairobi City, Kenya. The study adopted a descriptive cross-sectional survey. The target population of this study comprised 3 commercial banks in Nairobi County. The study population composed of 236 members of staff in at management level currently working at head office of the commercial banks.  The study sample was 149 respondents. Stratified and simple random sampling technique was used to select the sample. The questionnaire was the selected instrument or tool for data collection for the study. The researcher administered the questionnaire individually to all respondents of the study. The study carried out a pilot study to pre-test and validates the questionnaire. Quantitative data collected was analyzed by the use of descriptive statistics using SPSS and presented through percentages, means, standard deviations and frequencies. The information was displayed by use of bar charts, graphs and pie charts and in prose-form. Multiple regressions were done to establish the influence of strategic capabilities on performance of selected commercial banks in Nairobi County. The study found that relationship between innovations Capability and performance of selected commercial banks in Nairobi City, Kenya is significantly positive. Also, Technical Knowledge Capability and performance of selected commercial banks in Nairobi City, Kenya is significantly positive. The study therefore recommends management of the bank to embrace various forms of innovations including, product, service, market, and process innovations. It is also recommended for banks to become more proactive in developing products and services that create value for customers. Banks must also empower their frontline executives to become more customer oriented as that presents an opportunity to get customer inputs toward innovative decision making. Bank should improve its technical knowledge capacity through Knowledge management, talents and skills acquisition, Knowledge creation, Knowledge gathering, Knowledge diffusion and Knowledge use.

Key Words: strategic capabilities, innovations capability, technical knowledge capability

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