EFFECT OF OUTSOURCING ON STRATEGIC COMPETITIVENESS OF COMMERCIAL BANKS IN KENYA; A CASE OF KISUMU COUNTY
Abstract
Crucial challenges facing organizations is to build sustainable competitive organizations. Change in strategic initiatives; mergers and acquisitions, new product and market strategy, joint ventures, strategic alliances, diversification, and outsourcing calls for organizational restructuring and embrace an integrative mechanism that cements this changes. In highly competitive financial industry in Kenya, restructuring decision is considered necessary for out weighing competitors. Therefore, this study sought to establish the effects of outsourcing on strategic competitiveness of commercial banks in Kenya Kisumu County; Kenya. The study employed descriptive survey research design on Population target of the management of commercial banks from the region. A sample size of respondents was drawn from the population using stratified random sampling method. Data collection was done by use of structured Questionnaires.Analysis of data was done by use of statistical package for social sciences (SPSS 24) for the purpose of solving concerned information of descriptive and inferential content of the study based on descriptive statistics of (frequencies, percentages and means), correlation analysis, and regression analysis. The results revealed that Outsourcing effects of organization restructuring influenced strategic competitiveness of commercial banks in Kenya, Kisumu County; Kenya. The study concluded Outsourcing had a significant influence on Strategic Competitiveness of commercial banks in Kenya. Study recommendation was that the more an organization outsourced the higher her organizational growth and organizational productivity. More so, the study recommended for further research on Outsourcing practice to be carried out on identifying other elements that could be critical to the success of organization development.
Key words: Outsourcing, Organization Restructuring, Strategic Competitiveness.
CITATION: Muhadia, C. J., Kadima, M. J., & Miroga, J.(2022). Effect of outsourcing on strategic competitiveness of commercial banks in Kenya; A case of Kisumu County. The Strategic Journal of Business & Change Management, 9 (1), 1014 – 1029.
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DOI: http://dx.doi.org/10.61426/sjbcm.v9i1.2238
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