STRATEGIC LEADERSHIP PRACTICES AND PERFORMANCE OF COMMERCIAL BANKS IN KENYA

Gilbert Mure Tupana, Dr. Paul Kariuki

Abstract


This study proposal embarked on findings out the influence of Strategic leadership on performance of commercial banks in Kenya. The main aim of this study was to establish the influence Strategic leadership and performance of commercial banks in Kenya. The study used the following specific objectives to; establish the influence of Strategy Control and human capacity development on performance of Commercial Banks in Kenya. This study was guided by following theories namely; contingency theory, and dynamic capability theory. The target population of the study consisted of employees of the 39 Commercial Banks licensed in Kenya. The unit of observation comprised of 39 listed Commercials Bank in Kenya while the unit of analysis was the employees in the carder of senior management team, middle-level managers as well as managers at functional level. Systematic random sampling was used to sample 384 employees at the management level. A pilot test of 38 respondents in 4 banks was conducted to detect weaknesses in design and instrumentation. The methodology looked at the research design, study area and population, the sampling procedures and the sample, instruments of data collection, validity and reliability of research instruments, data collection procedures and methods of data analysis. The study preferred a mixed research design. The questionnaire was used as the main mode of data collection. The data was analyzed through the use of descriptive statistics. ANOVA, t-test, Pearson correlation, p- values and coefficient of determination was used in the data analysis. Data was presented using tables, figures, graphs, frequency tables, pie charts and use of histograms, frequency polygons and bar charts. The findings emphasize that effective strategic leadership, characterized by well-communicated visions, data-driven resource allocation, and employee involvement in planning, significantly enhances bank performance. Key recommendations include strategic resource allocation and integrating ethical considerations into organizational culture, which are expected to improve customer satisfaction, loyalty, and overall growth in the competitive banking sector. The study concludes that strategic leadership is a critical factor in organizational performance and success.

Key Words: Strategic Leadership Practices, Strategy Control, Strategic leadership


Full Text:

PDF

References


Achuora, J. O., Guyo, W., Arasa, R. &Odhiambo, R., (2015), Effect of Green Supply Chain Management Practices on the Performance of Manufacturing Firms in Kenya, Ph.D. (SCM). Dissertation .Jomo Kenyatta University of Agriculture and Technology: Kenya.

Agbiogwu, A. A., Ihendinihu, J. U., &Okafor, M. C. (2016). Impact of Environmental and Social Costs on Performance of Nigerian Manufacturing Companies. International Journal of Economics and Finance, 8(9), 173.

Al Nimer, M., Warrad, L., & Al Omari, R. (2015). The impact of liquidity on Jordanian banks profitability through return on assets. European Journal of Business and Management, 7(7), 229-232.

Baechler, C., DeVuono, M., Pearce, J., M. (2013)."Distributed Recycling of Waste Polymer into RepRapFeedstock". Rapid Prototyping Journal. 19 (2): 118–125.

Ballot, B., &Fontane, F. (2010).Reducing transportation Co2 emissions through pooling of supply networks: perspectives from a case study in French retail chains: Production Planning & amp; Control, 21 (6), 640-650.

Bryman, A., Bell, E., Mills, A., Albert, J., &Yue, A.R. (2011). Business research methods (1sted). Oxford University Press, USA.

Butcher, B.; Xu, Y (2014). Chinese cooperatives and environmental social responsibility. China. Economy.47, 63–80.

Dauvergne, P., & Lister, J. (2010). The prospects and limits of eco-consumerism: shopping our way to less deforestation? Organization & Environment, 23(2), 132-154.

Dayuan, L, Cuicui,C, Zhang, L., Xiaohong, C., Shenggang, R. & Yini, Z. (2017). Effects of Corporate Environmental Responsibility on Financial Performance. Journal of Cleaner Production, 166 (3), 1323-1334

Dean, K., Joseph, J., Roberts, J. M., & Wight, C. (2006). Realism, philosophy and social science. New York: Palgrave Macmillan.

Dietrich H. E., Madhu, K. & Lyon, P. T. (2014). Corporate Environmental Strategies in Emerging Economies. Review of Environmental Economics and Policy8 (2), 164–185

Dosi, G. (2010). The Nature of the Innovative Process. In Technical Change and Economic Theory;

Elkington, J. (2013). Enter the triple bottom line. In The triple bottom line (pp. 23-38). Routledge.

Elkington, J., & Rowlands, I. H. (1999). Cannibals with forks: the triple bottom line of 21st century business. Alternatives Journal, 25(4), 42.

Enofe, A., Chijioke, M., Uyioghosa, O., & Otivbo, E. (2013). Environmental Management Auditing and sustainable development in Nigeria. Research Journal of Finance and Accounting, 4(11), 91-98.

Epstein, M. J., &Buhovac, A. R. (2014). Making sustainability work: Best practices in managing and measuring corporate social, environmental, and economic impacts. Berrett-Koehler Publishers.

Fathema, N., Shannon, D., & Ross, M. (2015). Expanding the Technology Acceptance Model (TAM) to Examine Faculty Use of Learning Management Systems (LMSs) In Higher Education Institutions. Journal of Online Learning & Teaching, 11(2).

G.S.I.A. Global Sustainable Investment Review (2017). Available online: http://www.gsi-alliance.org/wp-content/ uploads/2015/02/GSIA_Review_download.pdf.

Gall, M. D., Gall, J. P., & Borg, W. R. (2007). Educational research: An introduction. Boston, MA: Pearson Education

Gangolells, M., Casals, M., Gassó, S., Forcada, N., Roca, X., & Fuertes, A. (2011). Assessing concerns of interested parties when predicting the significance of environmental impacts related to the construction process of residential buildings. Building and environment, 46(5), 1023-1037.

Gatimbu, K. K., &Wabwire, J. M. (2016). Effect of Corporate Environmental Disclosure on Financial Performance of Firms Listed at Nairobi Securities Exchange, Kenya.

Gujarati, D., & Porter, D. (2003). Multicollinearity: What happens if the regressors are correlated? Basic econometrics, 363.

Gyula, V, Shndor, K. & Rondinelli, D. A. (2016). Evaluation of Corporate Environmental Management Approaches: A Framework and Application. International Journal of Production Economics 43 (1) 193-211

Haddach, A., Ammari, M., &Laglaoui, A. (2016). Role of Lean, Environmental and Social Practices to Increasing Firm’s Overall Performance. J. Mater. Environ. Sci, 7(2), 505-514.

Hall, T. J. (2011). The triple bottom line: what is it and how does it work?.Indiana business review, 86(1), 4.

Hawrysz, L., &Foltys, J. (2015). Environmental aspects of social responsibility of public sector organizations. Sustainability, 8(1), 19.

Heikal, M., Khaddafi, M., &Ummah, A. (2014). Influence analysis of return on assets (ROA), return on equity (ROE), net profit margin (NPM), debt to equity ratio (DER), and current ratio (CR), against corporate profit growth in automotive in Indonesia Stock Exchange. International Journal of Academic Research in Business and Social Sciences, 4(12), 101.

Hindle, T. (2009). “Triple Bottom Line: It Consists of Three Ps: Profit, People and Planet. Economist.

Hubbard, G. (2009). Measuring organizational performance: beyond the triple bottom line. Business strategy and the environment, 18(3), 177-191.

Ioannou, I., &Serafeim, G. (2015). The impact of corporate social responsibility on investment recommendations: Analysts' perceptions and shifting institutional logics. Strategic Management Journal, 36(7), 1053-1081.

Kamande, M. W. (2011). The Impact of Clean Production on the Performance of Kenya Manufacturing Firms. Ph.D (Economics). Dissertation .University of Dar es Salaam: Tanzania

Kinoti, M. W. (2011). Green marketing intervention strategies and sustainable development: A conceptual paper. International Journal of Business and Social Science, pg2 (23).

Laszlo, C. & Zhexembayeva, N. (2011) "Embedded Sustainability: A strategy for market leaders". The European Financial Review

Li, D. Y., & Liu, J. (2014). Dynamic capabilities, environmental dynamism, and competitive strategy: Evidence from China. Journal of Business Research, 67(1), 2793-2799.

Li, J.; He, H.; Liu, H.; Su, C. (2017). Consumer responses to corporate environmental actions in China: An environmental legitimacy perspective. J. Bus. Ethics, 143, 589–602.

Loeser, F., Erek, K., Schmidt, N. H., Zarnekow, R., & Kolbe, L. M. (2011, August). Aligning Green IT with Environmental Strategies: Development of a Conceptual Framework that Leverages Sustainability and Firm Competitiveness. In AMCIS.

Mårtensson, K. & Westerberg, K. (2016). Corporate Environmental Strategies Towards Sustainable Development. Business. Strategic Environment. 25(1), 1– 9

Odunga, R. M., Nyangweso, P. M., Carter, D. A., &Mwarumba, M. (2013). Credit Risk,“Capital Adequacy and Operating Efficiency Of Commercial Banks in Kenya”. International Journal of Business and Management Invention, 2(9), 6-12.

Ogaga, B. J., &Owino, O. J. (2017). The Moderating Influence of Industry Competition on the Relationship between Corporate Strategy and Organizational Performance. International Journal of Research in Business Studies and Management 4(4), 13-20.

Severo, E. A.; Guimarães, J. C. F.; Dorion, E. C. H.; Nodari, C. H. (2015). Cleaner production, environmental sustainability and organizational performance: an empirical study in the Brazilian metal-mechanic industry. Journal of Cleaner Production, v. 96, p. 118-125.

Yamakawa, Y., Yang, H., & Lin, Z. J. (2011). Exploration versus exploitation in alliance portfolio: Performance implications of organizational, strategic, and environmental fit. Research Policy, 40(2), 287-296.

Yang, C. (2015). "The integrated model of core competence and core capability". Total Quality Management. 26: 173–189

Yang, Z., Liu, W., Sun, J., & Zhang, Y. (2017). Corporate environmental responsibility and environmental non-governmental organizations in China. Sustainability, 9(10), 1756.

Zikmund, G.W., Babin, B.J., Carr, C.J. & Griffin, M.(2010). Business Research Methods. 8th edition. South-Western, Cengage Learning.

Zubcic, J., & Sims, R. (2011). Examining the link between enforcement activity and corporate compliance by Australian companies and the implications for regulators. International Journal of Law and Management, 53(4), 299-30.


Refbacks

  • There are currently no refbacks.