STRATEGIC SENSITIVITY AND COMPETITIVENESS OF COMMERCIAL BANKS IN MOMBASA COUNTY
Abstract
Competitiveness in the banking sector is essential for ensuring financial stability, innovation, customer satisfaction, and economic growth. Despite advances, Kenya’s banking sector exhibits erratic trends in competitiveness. The disparities in competitiveness necessitate a deeper understanding of how strategic capabilities affect the competitiveness of banks, especially in dynamic environments such as Mombasa County. Therefore, the main objective of the study is to establish the effects of strategic sensitivity on the competitiveness of commercial banks in Mombasa County, Kenya. The study was guided by the Dynamic Capabilities Theory. The study adopted the descriptive cross sectional survey and targeted 26 commercial banks in Mombasa County from which the accessible population comprised of Senior Management and Executives, Mid-Level Managers and Operational Staff, and Regulators and Policymakers. Stratified random sampling was used to select 112 respondents. Data were collected through questionnaires and was analyzed using descriptive methods with the aid of SPSS 25.0. The results were presented in tables and discussed. The study concludes that strategic sensitivity significantly influences the competitiveness of commercial banks in Mombasa County. The study recommended that commercial banks should institutionalize strategic sensitivity by embedding structures that foster continuous environmental scanning, stakeholder engagement, and knowledge-sharing across organizational boundaries.
Key Words: Open Strategy Process, Co-strategizing, Experimentation
CITATION: Nyaga, V. M., Mukhanzi, C., & Okello, B. (2025). Strategic sensitivity and competitiveness of commercial banks in Mombasa County. The Strategic Journal of Business & Change Management, 12 (2), 980 – 998. http://dx.doi.org/10.61426/sjbcm.v12i2.3253
Full Text:
PDFReferences
Adede, S. M., & Kising'u, T. M. (2024). Dynamic Capabilities and Firm Performance in Commercial Banks in Mombasa County, Kenya. The Strategic Journal of Business & Change Management, 11 (4), 619 –640. http://dx.doi.Org/10.61426/Sjbcm.v11i4.3108
Aloulou, W. J., Alsadi, A. K., Ayadi, F. M., & Alaskar, T. H. (2024). Exploring the Effects of Entrepreneurial and Digital Orientations on the Competitive Advantage of Saudi Firms: Is Strategic Agility the Missing Link? Administrative Sciences, 14(11), 306.
Andersen, T. J., Holsæter, J., & Sveen, J. (2021). Strategic experimentation: Learning and adapting in turbulent environments. Strategic Management Journal, 42(6), 987–1005.
Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99-120.
Barno, A., & Alice, M. (2018). Human resource agility and leadership dynamics in Kenyan banks. Strategic Journals of Business & Change Management, 8(2), 113–127. Retrieved from https://strategicjournals.com
Bassey, D. N., Uwa, K. L., & Okurebia, S. (2023). Strategic Agility and Organizational Performance in Selected Manufacturing Firms in South-South Nigeria. International Journal of Business and Management Review, 11(11), 72-95.
Chooi, W. S. (2023). Malaysia small medium enterprises (SMES) strategic orientation and access to financial technology (fintech) financing moderate by entrepreneur innovativeness (Doctoral dissertation, UTAR).
Claver-Cortés, E., Pertusa-Ortega, E. M., & MolinaAzorín, J. F. (2022). Characteristics of organizational structure relating to hybrid competitive strategy: Implications for performance. Journal of Business Research, 65 (7), 993-1002.
Creswell, J. W., & Creswell, J. D. (2023). Research design: Qualitative, quantitative, and mixed methods approaches (6th ed.). SAGE Publications.
Cytonn (2024). Kenya Listed Banks H1’2024 Report. https://cytonn.com/topicals/kenya-listed-banks-22#:~:text=Asset%20Quality:%20Asset%20quality%20for,%2Dyear%20average %20of%2011.0%25.
Cytonn. (2024). Banking Sector Report H1 2024. Nairobi: Cytonn Investments.
Deloitte (2024). 2024 banking and capital markets outlook. Deloitte Center for Financial Services. https://www2.deloitte.com/us/en/insights/industry/financial-services/financial-services-industry-outlooks/banking-industry-outlook-2024.html
Doz, Y., & Kosonen, M. (2008). Fast strategy: How strategic agility will help you stay ahead of the game. Pearson Education.
Doz, Y., & Kosonen, M. (2020). Strategic agility: A framework for achieving competitive advantage. Wharton School Publishing.
Doz, Y., & Kosonen, M. (2024). Revisiting strategic agility: Balancing resilience and sensitivity in dynamic markets. Journal of Strategic Management, 45(2), 145–159.
Dumas, M., La Rosa, M., Mendling, J., & Reijers, H. A. (2023). Fundamentals of Business Process Management. Berlin: Springer.
Eisenhardt, K. M., & Brown, S. L. (2019). Patching: Restitching Business Portfolios in Dynamic Markets. Harvard Business Review, 77 (3), 72-82.
Eisenhardt, K. M., & Martin, J. A. (2000). Dynamic capabilities: What are they? Strategic Management Journal, 21(10/11), 1105-1121.
Hamed, S. A. (2023). The Role of Strategic Sensitivity in Sustainable Competitive Advantage. International Journal of Professional Business Review: Int. J. Prof. Bus. Rev., 8(7), 53.
Hernaus, T. (2018). Process-based Organization Design Model: Theoretical Review and Model Conceptualization. Paper presented at Third International Workshop on Organization Design, Aarhus School of Business, Aarhus.
Hernaus, T. (2020). Integrating macro- and micro-organizational variables through multilevel approach. (Unpublished doctoral thesis). Zagreb: University of Zagreb.
Isaiah, O. S., & Dickson, R. K. (2023). Strategic Sensitivity and Firm Competitiveness of the Nigerian Content Development and Monitoring Board in Yenagoa, Bayelsa State.
Kitemu, L., Sang, S., & Wachira, M. (2024). Challenges in Implementing Strategic Agility Among Kenyan Banks. African Journal of Business Management, 12(3), 45-61.
Kitemu, P. M., Sang, A., & Wachira, A. (2024). Organizational leadership in corporate change and its effect on performance of commercial banks in Mombasa County, Kenya. Galaxy International Interdisciplinary Research Journal, 12(3), 536-546.
Li, Q., & Liu, Q. (2023). Impact of digital financial inclusion on residents’ income and income structure. Sustainability, 15(3), 2196.
Mafimbo, N. B., & Gitari, J. (2024). Strategic integration leadership of middle level managers and competitiveness of listed commercial banks in Mombasa County, Kenya. The Strategic Journal of Business & Change Management, 11 (2), 959 – 969. http://dx.doi.org/10.61426/sjbcm.v11i2.2960
Mafimbo, P., & Gitari, G. (2024). Dynamic Capabilities and Market Adaptation in Mombasa's Banking Sector. Kenya Journal of Business Studies, 8(2), 23-39.
Maina, M. M. (2022). The Influence of Strategic Agility on Competitive Advantage of Insurance Firms in Kenya (Doctoral dissertation, University of Nairobi).
Mata, M. N., Moleiro Martins, J., & Inácio, P. L. (2024). Collaborative innovation, strategic agility, & absorptive capacity adoption in SMEs: the moderating effects of customer knowledge management capability. Journal of Knowledge Management, 28(4), 1116-1140.
Meyer, J. P., & Allen, N. J. (1991). A three-component conceptualization of organizational commitment. Human Resource Management Review, 1(1), 61-89.
Meyer, J. P., Stanley, D. J., Herscovitch, L., & Topolnytsky, L. (2002). Affective, continuance, and normative commitment to the organization: A meta-analysis of antecedents, correlates, and consequences. Journal of Vocational Behavior, 61(1), 20–52.
Mueni, K. N., & Githira, W. C. (2023). Strategic Sensitivity and Organization Performance of Commercial State Owned Enterprises in Kenya. International Journal of Social Sciences and Management Review, 6(5), 183 – 197
Mwaiwa, A., Kwasira, J., Boit, L., & Chelule, E. (2024). Role of Managerial Skills in Enhancing Strategic Agility among Kenyan Banks. Journal of Leadership Studies, 15(4), 71-89.
Mwaiwa, F., Kwasira, J., Boit, R., & Chelule, J. (2024). Assessing sustainable competitive advantage of commercial banks in Kenya. Reviewed Journal International of Business Management, 5(1), 162-173.
Ngugi, D., & Karina, F. (2013). Strategic agility in the financial sector. Kenya Financial Review, 12(3), 45-56.
Ngugi, M., & Karina, G. (2013). Strategic agility factors influencing organizational competitiveness: Evidence from Kenya’s commercial banks. Strategic Journals of Business & Change Management, 2(1), 69–77.
Okwiri, F., & Muathe, S. (2024). Strategic agility and bank performance: Evidence from Kenya. African Journal of Business Research, 18(1), 75-92.
Okwiri, M. I. O., & Muathe, S. M. (2024). Competitiveness of Tier three Commercial Banks in Kenya: The Role of Strategic Leadership Practices. International Journal of Management Research and Emerging Sciences, 14(1).
Okwiri, M., & Muathe, S. M. A. (2024). Digital transformation and strategic agility in Kenyan banking: Achieving competitive advantage. Strategic Journals of Business & Change Management, 10(3), 91–105.
Parasol, M. (2022). China's Digital Yuan: Reining in Alipay and WeChat Pay. Banking & Finance Law Review, 37(2), 265-303.
Pavlou, P. A., & El Sawy, O. A. (2011). Understanding the elusive black box of dynamic capabilities. Decision Sciences, 42(1), 239-273.
Sebastian, V. (2023). Financial Technology and Sustainability Strategies: In the Perspective of Banking Industry in Malaysia (Doctoral dissertation, University of Wales Trinity Saint David).
Seidl, D., Whittington, R., & Jarzabkowski, P. (2020). Open strategy: Transparency and inclusivity in practice. Long Range Planning, 53(3), 101954.
Tatoi, P., & Seneji, B. (2017). IT agility’s influence on commercial banks’ performance in Kenya. Strategic Journals of Business & Change Management, 5(3), 88–100. Retrieved from https://strategicjournals.com
Teece, D. J. (2007). Explicating dynamic capabilities: The nature and microfoundations of (sustainable) enterprise performance. Strategic Management Journal, 28(13), 1319-1350.
Teece, D. J. (2020). Dynamic capabilities and organizational agility: Risk, uncertainty, and strategy in the innovation economy. California Management Review, 62(3), 15-42. https://doi.org/10.1177/0008125620910283
Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic Management Journal, 18(7), 509-533.
Teece, D., et al. (2020). Dynamic capabilities and strategic agility. Journal of Management Strategy.
Turkulainen, V., & Ketokivi, M. (2023). The Contingent Value of Organizational Integration. Journal of Organization Design, 2 (2), 31-43.
Wang, C. L., & Ahmed, P. K. (2007). Dynamic capabilities: A review and research agenda. International Journal of Management Reviews, 9(1), 31-51.
Wernerfelt, B. (1984). A resource-based view of the firm. Strategic Management Journal, 5(2), 171-180.
Whittington, R., Cailluet, L., & Yakis-Douglas, B. (2022). Co-strategizing: Collaborative strategy-making and its impact on performance. Organization Studies, 43(4), 527–548.
DOI: http://dx.doi.org/10.61426/sjbcm.v12i2.3253
Refbacks
- There are currently no refbacks.
This work is licensed under a Creative Commons Attribution 3.0 License.
PAST ISSUES:
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.