TURNAROUND STRATEGIES AND COMPETITIVE ADVANTAGE IN LISTED COMMERCIAL BANKS IN KENYA

Elizabeth Kimwoma, Dr. Millicent Mboya, Dr. Peter Ngatia

Abstract


Over the years banking in Kenya has experienced stiff challenges. These challenges include collapse of other banks, merging of banks, technology being disrupted especially part of mobile banking, globalization and external threats like telecommunications firms as key players in the provision of financial service. The general objective of the study is to examine the influence of turnaround strategies and competitive advantage in listed commercial banks in Kenya. Specifically, this study sought to evaluate how expanding branch networks strategy focusing on strengthening relationship management strategy may affect competitive advantage in listed commercial banks in Kenya. The study was guided by Ansoff matrix theory and commitment- trust theory. This study adopted a descriptive research design. The study targeted all the 43 commercial banks. The target population was 129 management employees in these commercial banks. The study used census method. This research used a questionnaire to collect primary data. Five questionnaires were piloted that represented 10% of the target population. The study collected quantitative data which was analysed using descriptive and inferential statistics using the Statistical Package for Social Sciences (SPSS) version 24. Multivariate linear regression was used to determine the relationship between the dependent and independent variables. The study results were presented through use of tables. The study concludes that expanding branch networks has a significant effect on competitive advantage in listed commercial banks in Kenya. The study also concludes that relationship management has a significant effect competitive advantage in listed commercial banks in Kenya. The study recommends commercial banks to allocate resources for ongoing research and development activities. This can involve establishing dedicated teams or collaborating with external entities to identify emerging trends, customer needs, and technological advancements. Given the influence of ICT and the use of technology by households on competitive advantage, it is crucial for commercial banks in Kenya to forge strategic partnerships with technology companies and fintech startups.

Key Words: Turnaround Strategies, Expanding Branch Networks, Strengthening Relationship Management, Competitive Advantage


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