FACTORS INFLUENCING STRATEGY IMPLEMENTATION ON THE PERFORMANCE OF COMMERCIAL BANKS IN KENYA, A CASE OF CO-OPERATIVE BANK OF KENYA
Abstract
Strategy implementation involves allocation of sufficient resources financial, personnel, time, and establishing a chain of command or organizational structure. It involves assigning responsibility of specific tasks or processes to specific individuals or groups. In the world of management, increasing numbers of senior people are recognizing that one of the key routes to improved business performance is better implementation of strategies. Strategy implementation is an enigma in many companies illustrated by the unsatisfying low success rate (only 10 to 30 percent) of intended strategies. The Kenyan economy has over the last five years, suffered major shocks including post-election violence, high oil and fertilizer prices, the global economic and financial crisis, exchange rate volatility, high inflation rates and severe drought that affected most parts of the country (CBK, 2010). However despite the unfavorable business environment, the banking sector's growth has been on an upwards trend posting double digit growth in profitability during the period. The study sought to investigate factors influencing strategy implementation on the performance of commercial banks in Kenya with particular reference to Co-operative Bank of Kenya. The study adopted a descriptive cross-sectional research design; descriptive cross-sectional research design was applied when the problem was defined specifically and where the research had certain issues to be described by the respondents concerning the problem. The target population composed of 486 staff in different managerial levels at bank. Stratified proportionate random sampling technique was used to select the sample while simple random sampling was used to select 91 respondents. The questionnaires were used to collect mainly quantitative data although some qualitative data was collected from the open ended questions. Quantitative data collected was analyzed by the use of descriptive statistics using SPSS (Version 20) and presented through percentages, means, standard deviations and frequencies. Content analysis was used to test data that was qualitative in nature and aspect of the data collected from the open ended questions.
Keywords: organization structure, staff training, managerial skills, innovation
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DOI: http://dx.doi.org/10.61426/sjbcm.v3i3.284
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