STRATEGIC CONTROL AND PERFORMANCE OF COMMERCIAL BANKS IN KENYA
Abstract
This study investigated the influence of strategic leadership practices on the performance of commercial banks in Kenya. Among the specific objective included determining the effect of strategic control formation on the performance of commercial banks in Kenya. The study further looked on the mediating effect of corporate governance on the relationship between strategic control and performance of commercial Banks in Kenya. The target group included a total of 577 strategic leaders in commercial Banks in Kenya. The main respondents included; The Chief Executives, Executive Directors and Senior Managers. A total of 179 respondents filled and returned their forms out of 277 questionnaires. This represented a percentage rate of 75% response rate. A descriptive survey design was adopted in the study to show the relationship between strategic control and performance of commercial banks in Kenya. This design was adopted because it’s concerned with a description of phenomena and characteristics linked to the study giving information in regard to its natural occurrences and behavior. Self-administered questionnaires were used during the collection of data from the respondents. Collected data was analyzed using SPSS. Both descriptive statistics and inferential statistics were used for data analysis. The study finding clarified the relationship between strategic control and performance of commercial banks in Kenya. The statistics showed ANOVA statistic, F (1, 177) = 13.528, p <0.00. This showed that the regression model is statistically significant in predicting the dependent variable. Therefore, elements of Strategic control practices explain the variations in the firm performance of commercial banks in Kenya. The R2 = 0.071 indicates that approximately 7.1 per cent of the competitiveness is explained by the strategic control practices. The beta coefficients: constant, β0 = -0.012(t = 1.202, p> 0.05); strategic control practices, β1 = 0.266 (t = 3.678, p< 0.05) and p-values < 0.05 indicate that the coefficient is significant. the above regression model implies that a unit change in strategic control practices. would lead to a 0.266 change in the performance of banks. The results show that strategic control practices have a significant effect on firm performance such that a positive unit change in the strategic control practices of the commercial banks in Kenya has a 0.2660 increase in the performance of commercial banks. The study established that strategic control practices have a significant positive effect on performance of commercial banks in Kenya. The study therefore recommended that the top management teams of commercial banks in Kenya should enhance their operational controls as an effective tool of management.
Key words: Strategic Control, Performance, commercial banks, Kenya
CITATION: Kisiangani, B. W., Mukanzi, C., & Miroga, J. (2025). Strategic control and performance of commercial banks in Kenya. The Strategic Journal of Business & Change Management, 12 (2), 575 – 583. http://dx.doi.org/10.61426/sjbcm.v12i2.3229
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DOI: http://dx.doi.org/10.61426/sjbcm.v12i2.3229
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