ASSESSING THE ROLE OF PORTER’S DYNAMIC CAPABILITIES ON PERFORMANCE OF COMMERCIAL BANKS IN KENYA

NEFA CHITELI, JAIRO K. MISE, PhD, BETTY ABONG'O, PhD

Abstract


The Kenyan banking industry contributes significantly to the government revenues yet financial reports indicate that Kenya’s listed banks recorded a negative EPS (earnings per share). This study assessed the role of Porter’s  dynamic capabilities on performance of commercial banks in Kenya. The study focused on the 11 listed commercial banks in Kenya with one being used for pilot. The findings revealed that Porter’s dynamic capabilities have a positive effect on performance (β=.364, p=.000) and accounts for 12.9% variance. It was concluded from the findings that dynamic capabilities have positive effects on performance of commercial banks. It was recommended from the findings that companies improve more implementing dynamic capabilities to realize better performance.

Key words: Dynamic Capabilities, Performance, Commercial Banks

CITATION: Chiteli, N., Mise, J. K. & Abong'o, B. (2024). Assessing the role of Porters dynamic capabilities on performance of commercial banks in Kenya. The Strategic Journal of Business & Change Management, 11 (1), 483 – 486. http://dx.doi.org/10.61426/sjbcm.v11i1.2864


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DOI: http://dx.doi.org/10.61426/sjbcm.v11i1.2864

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