RELEVANCE OF STRATEGIC MANAGEMENT PROCESS ON ORGANIZATIONAL PERFORMANCE OF COMMERCIAL BANKS IN NAIROBI METROPOLITAN

Asha Rashid Mwachuo, Dr. Patrick Kimaku

Abstract


This study investigated the relevance of strategic management process on the performance of commercial banks in the Nairobi Metropolitan Region. In particular, the study sought to evaluate how strategy planning, strategy formulation, strategy implementation and strategic leadership are relevant to the performance of commercial banks in the Nairobi Metropolitan Region. The study adopted a descriptive research design to implement the research strategy. The target population of the study comprised 10,217 employees working in 39 commercial banks located within the Nairobi Metropolitan Region that comprise: Nairobi, Machakos, Kajiado, Kiambu and Murang’a counties. A stratified sampling technique was used to select a sample of 384 participants for the study. Analysis of descriptive statistics was done using frequencies, and percentages. Analysis of inferential statistics was performed through multiple linear regression analysis to determine the nature of the relationship between the research variables. The analysis's findings indicated that strategy planning and strategy implementation had a positive effect on bank performance. Corporate level managers should conduct proper scanning of the environment to enhance the ability of the bank to optimize and leverage on strategic choices. Sound practices on environmental scanning will guide the management to develop optimal strategies that will improve performance of the commercial banks. The banks should ensure that the bank's strategy is communicated clearly and comprehensively to all levels of the organization.

Keywords: Strategy Planning, Strategy Implementation, Organizational Performance


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