STRATEGIC ORIENTATION AND FIRM PERFORMANCE OF COMMERCIAL BANKS IN MOMBASA COUNTY, KENYA
Abstract
This study investigated the effect of strategic orientation on performance of commercial banks in Kenya. The study specific objectives are to establish the effect of technology orientation, market orientation, entrepreneurial orientation and learning orientation on performance of commercial banks. The study adopted descriptive survey research design. The target population of the current study was management level staff of tier 1 commercial banks in Kenya. A sample of 79 was chosen by use of Slovins formula. Primary data was collected by use of structured questionnaires. Data was checked for correctness and analysed quantitatively by use of Statistical Package for Social Science (SPSS) version 25 tool. Descriptive analysis was determined by use of mean and standard deviation while regression analysis was determined by model summary, ANOVA and regression coefficients. The study results revealed that the commercial bank uses advanced technologies in new product development as revealed in the study. It is established that the bank uses technology orientation to create brand differentiation from that of competitors. The cost of transactions is determined by the amount transacted and the bank technology orientation has improved its capability to respond to customers’ preferences in an effective way. It is concluded that the commercial banks seek intelligence about its competitors in order to improve its service delivery and that the firm has a high degree of co-operation between its different functions/departments. The customer orientation has helped the banks in developing appropriate service strategies that meet customer needs and demands. The study concludes that inter-functional coordination helps the firm to analyze and use information gained in its decision process. The study recommends that commercial banks should evaluate daily operations and be willing to accept new ideas easily. The commercial banks should be always willing to question its current thinking and practices. In addition, the commercial banks should actively encourage employees and customers to give feedback and suggestions for improvements. This would form basis for product improvement hence increased performance.
Key Words: Technology Orientation, Market Orientation, Entrepreneurial Orientation, Learning Orientation
CITATION: Hamisi, J., & Ibrahim, A. (2023). Strategic orientation and firm performance of commercial banks in Mombasa County, Kenya. The Strategic Journal of Business & Change Management, 10 (2), 545–561.
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DOI: http://dx.doi.org/10.61426/sjbcm.v10i2.2622
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