EFFECT OF JOINT VENTURING STRATEGY ON PERFORMANCE OF COMMERCIAL BANK IN NORTH RIFT REGION, KENYA
Abstract
Poor institutional performance leads to job stress and burnout, which negatively impact job satisfaction, worker performance, and efficiency. Joint venturing strategies are widely regarded to improve performance by leveraging partnership strategies to enhance overall effectiveness. Despite their potential benefits, Joint venturing strategies face a high failure rate, with research indicating that 60 to 70 percent of these alliances fail to achieve their intended performance outcomes. However, some banks in Kenya have been experiencing poor performance due to liberalization and competition. Performance has elicited intellectual debates for many years, with empirical studies showing that firms with poor performance do not survive in the end. Joint venturing strategies have become a cornerstone of global competition. The objective of the study was to establish the effect of joint venturing strategy on performance of commercial bank in North Rift Region, Kenya. The study was guided by theory of Joint venture strategy. The population of this study was 300 respondents who are managers and bank tellers of the financial institutions. The sampling frame for the study was the list of the selected commercial bank in north rift region Kenya. Primary data was collected using questionnaires and secondary data through textbooks and journals. A pilot study was done where Cronbach alpha coefficient was used to test for reliability while content validity was used for validity test. Data processing and analysis was done by both descriptive and inferential statistics. Descriptive statistics involved use of mean, frequency, standard deviation and variance. Inferential statistics were correlation and multiple regression. The findings reveal that there was a positive linear effect of joint venturing strategy (β1=.138) on performance of commercial bank in north rift region, Kenya. The study concludes that joint venturing strategies were found to positively impact bank performance, underscoring their role in driving sustainable growth through resource sharing, risk mitigation, and market expansion. The study also recommends that banks should prioritize joint ventures in regions with stable and predictable economic environments to enhance operational effectiveness and long-term sustainability.
Keywords: Joint Venturing Strategy, Performance of Commercial Bank, North Rift Region
CITATION: Jepkorir, A., & Kwasira, J. (2025). Effect of joint venturing strategy on performance of commercial bank in North Rift Region, Kenya. The Strategic Journal of Business & Change Management, 12 (2), 690 – 703. http://dx.doi.org/10.61426/sjbcm.v12i2.3236
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DOI: http://dx.doi.org/10.61426/sjbcm.v12i2.3236
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