Global Strategies and Performance of Listed Commercial Banks in Kenya

Benroldiers Mwanza Musiva, Dr. Millicent Mboya

Abstract


Modern organizations including banks operate in highly competitive environments pushing them to search for ways to improved performance and strategic advantage. The Kenyan banking sector has increasingly faced stiff competition leading to decline in return on equity. This study sought to examine the influence of global strategies on performance of listed commercial banks in Kenya. Specifically, the study sought to establish the influence of internationalization strategy on performance and to establish the influence of risk management strategy on performance of listed commercial banks in Kenya. The study employed a descriptive research design and targeted all the listed commercial banks in Kenya, which amount to a total of 42 banks as per the CBK report (2023). The banks served as the unit of analysis while the unit of observation was the 168 respondents who comprised Sales Managers, Loans Managers, Relationship Managers and Risk management managers. The sampling procedure was census method due to the fact that the sample was relatively small. Both primary and secondary data were collected through a structured questionnaire and a secondary data sheet. A Pilot test was conducted to test validity and reliability of the questionnaire while data obtained from the field was coded, cleaned, and analysed through descriptive and inferential using the SPSS version 26.The significant of each independent variable was tested at a confidence level of 95%. Analysed data has been presented in simple tables, figures and other statistical tools where applicable. The study concluded that internationalization strategy had a significant and positive effect on organizational performance in listed commercial banks in Kenya; and that risk management strategy had a significant positive effect on organizational performance in listed commercial banks in Kenya. Based on the findings, the study recommended that the management of listed commercial banks should adopt and consistently implement standardized operational procedures across all departments for sustainable superior performance. In addition, the study recommended that the management of commercial banks should actively pursue international expansion opportunities to enhance their market reach and strategic advantage.

Keywords: Global Strategies, Internationalization Strategy, Risk Management Strategy, Performance of Listed Commercial Banks


Full Text:

PDF

References


Acharya, V. V., Pedersen, L. H., Philippon, T., & Richardson, M. (2014). Measuring systemic risk. The Review of Financial Studies, 30(1), 2-47.

Adler, M., & Dumas, B. (2020). International portfolio choice and corporation finance: A synthesis. The Journal of Finance, 36(3), 925-984.

Aduma, L. K., & Kimutai, G. (2020). Project risk management strategies and project performance at the National Hospital Insurance Fund in Kenya. International Academic Journal of Information Sciences and Project Management, 3(2), 80-110

Ajayi, F., & Atanda, A. (2022). Monetary Policy and Bank Performance in Nigeria: A Two-Step Cointegration Approach. African Journal of Scientific Research, 9(1).

Al-Hyari, K., Al-Weshah, G., & Muhammed, A. (2022). Barriers to internationalization strategy in SMEs: evidence from Jordan. Marketing Intelligence & Planning, 30(2), 188-211.

Amemba, C. S. (2020). The effect of implementing risk management strategies on supply chain performance: a case of Kenya medical supplies agency. European Journal of Business and Management, 5(14), 1-16

Keller, K. L., & Swaminathan, V. (2022). Strategic brand management, Kotabe, M., & Helsen, K. (2023). Global marketing management (8th ed.). Wiley.

Kenya Bankers Association. (2022). Growth of the Bank Sector in Kenya. Nairobi: Government Press.

King, M. R. (2013). The Basel III net stable funding ratio and bank net interest margins. Journal of Banking & Finance, 37(11), 4144-4156.

Kinyua, E, Ogollah, K., & Mburu, D. K. (2020). The effect of implementing risk management strategies on supply chain performance: a case of Kenya medical supplies agency. International Journal of Economics, Commerce and Management, 3(2), 1-30

Mohamud, G. W., Mohamud, A. S., & Mohamed, B. H. (2021). The relationship between global strategies and organizational performance in Mogadishu-Somalia. European Journal of Research and Reflection in Management Sciences, 3(2), 42-51.

Molyneux, P., & Thornton, J. (2019). Determinants of European bank profitability: A note. Journal of Banking & Finance, 16(6), 1173-1178.

Muli, N. D. (2019). Influence of Market Entry Strategies on the Performance of Foreign Fast Food Firms in Nairobi County, Kenya (Doctoral dissertation, University of Nairobi).

Olang’o, S. O & Namusonge, G. (2020). Relationship between coordination strategy and organizational performance: a case of Kenya Water Institute. International Journal of Social Sciences and Information Technology, 4(5), 382-392.

Otieno, E. A, Ogutu, M Ndemo B & Pokhariyal, G. (2020). Influence of enterprise risk management on organizational performance: evidence from Kenyan state-owned corporations. DBA Africa Management Review, 10(2), 102-124

Toroitich, N. J & Osoro, A. (2024). Coordination strategy and organizational performance of west Pokot County Government, Kenya. International Journal of Management and Business Research, 6(2), 175-188.

Wyk, J. V, Dahmer, W & Custy. M. C. (2020). Risk management and the business environment in South Africa. Retrieved from https://www.researchgate.net/profile/


Refbacks

  • There are currently no refbacks.