EFFECT OF STRATEGIC CHANGE ON PERFORMANCE OF COMMERCIAL BANKS IN NAIROBI CENTRAL BUSINESS DISTRICT
Abstract
The main objectives of the study was to determine the effect of strategic change on performance of Commercial Banks in Nairobi central business District. The study specific objectives was to determine the; effect of organization structure change on performance of Commercial Banks in Nairobi central business district; determine effect of leadership style change on performance of Commercial Banks in Nairobi central business district; determine effect of new technology adaptation change on performance of Commercial Banks in Nairobi central business district and determine effect of employee training change on performance of Commercial Banks in Nairobi central business district. The study was informed by Organizational Life Cycle Theory, Contingency theory, three-step change theory and lippitt’s phases of change theory. The study adopted a descriptive survey research design. The current study, in carrying out the investigations, adopted a descriptive survey research design. The total population was 255 head of departments drawn from 25 banks within Nairobi CBD. Stratified and random sampling technique were used to select 119 respondents. The study used the questionnaire in data collection. Data analysis was conducted using descriptive statistical measures such as, mean, standard deviation and variance to give glimpse of the general trend. The findings indicate organization structure change, leadership style change, technology change and employee training change has significant effect on performance of commercial banks. The study recommends that technology change, employee training change and organization structure change is of essence and therefore there is need for employee training so that they can develop the appropriate knowledge and skills to work efficiently, and achieve bank objectives, banks to embrace new technology in bank operations so that they are ahead of the competition. The study concludes that technology change, employee training and organization structure should be tailored to improve the performance of Commercial Banks in Nairobi central business District.
Keywords: performance, organization structure, leadership style, technology, employee training and commercial banks
Full Text:
PDFReferences
Avolio, B. & Luthans, F., (2003). Authentic Leadership: A Positive Development Approach. In K. S. Cameron, J. E. Dutton, & R. E. Quinn (Eds.), Positive organizational scholarship (pp. 241–258). San Francisco, CA: Berrett-Koehler
Avolio, B. J. (1999). Full leadership development: Building The Vital Forces In Organizations. Thousand Oaks, CA: Sage.
Bakar, R.A. and Ahmad, K.Z. (2003) „The Association between Training and Organizational Commitment among White Collar Workers in Malaysia‟, International Journal of Training and Development, 7(3): 166-185.
Balkin, D.B. and Gomez-Mejia, L.R. (2000), “Matching Compensation And Organization Strategies”, Strategic Management Journal, Vol. 11, pp. 153-69.
Balogun, J. & Hope-Hailey, V. (2008). Exploring Strategic Change. UK : FT Prentice Hall.
Balogun, J. and Hope Haily, V. (2004) Exploring Strategic Change, 2nd Edn (London: Prentice Hall)
Burnes, B. (2015), Understanding Resistance to Change – Building on Coch and French: A Journal of Change Management15(2): 2015
Calantone, R.J., S.T. Cavusgil and Y. Zhao (2002) Learning Orientation, Bank Innovation Capability, And Bank Performance. Industrial Marketing Management, 31, 515‐524.
Central Bank of Kenya (2013).Annual Report. 14 May 2011
Chang, S., and H. Singh. (2000). Corporate And Industry Effects On Business Unit Competitive Position. Strategic Management Journal, 21(7), 739-752.
Chawla A E. Kelloway K, (2004),"Predicting Openness And Commitment To Change", Leadership & Organization Development Journal, Vol. 25 Iss 6 pp. 485 - 498
Cheramie, R.A., Sturman, M.C., Walsh, K. (2007) Executive Career Management: Switching Organizations And The Boundary Less Career, Journal of Vocational Behavior, 71: 359-374
Cornett,S.a.(2004).Newevidencefromthefinancialcrisis.Journalofbanking,56-67.
Crespi, I 2003, ‘Socialization and gender roles within the family: a study on adolescents and their parents in Great Britain’, viewed 8 April, 2012,
Du, R., Farley, J., (2001). Research On Technological Innovation As Seen Through The Chinese Looking Glass. Journal of Enterprising Culture 9 (1), 53-89.
Farooq M. and Aslam M. K. (2011), “Impact of Training and Feedback on Employee Performance”, Far East Journal of Psychology and Business, Vol. 5 No. 1, Pp 23-33.
Ford, J. D., & Ford, L. W. (2008), Conversational Profiles: A Tool For Altering The Conversational Patterns Of Change Managers, Journal of Applied Behavioral Science, vol.44: No. 4
Hall, B. H. (2011). Using productivity growth as an innovation indicator, Available from: http://ec.europa.eu/commission Accessed: 2012-07-31
Hanel, P., and A. St‐Pierre (2002) Effects of R&D Spillovers On The Profitability Of Banks. Review of Industrial Organization, 20, 305–322.
Harem, H., (2004). organizational behavior: behavior of individuals and groups in organizations, Amman, Hamid library,
Higgs, M.J., and Rowland, D. (2000). Building Change Leadership Capability: ‘The Quest For Change Competence’. Journal of Change Management; 1,2; pp. 116-131
Hoque, Z. (2014). A contingency model of the association between strategy, environmental uncertainty and performance measurement: impact on organizational performance. International Business Review, 13(4), 485-502
Houthoofd, N. (2006). Competitive and performance implications of business definitions. SAMAdvanced Management Journal, 71(3), 45-56.
Hult, G.T., Ketchen Jr., D.J., 2001. Does Market Orientation Matter? A Test Of The Relationship Between Positional Advantage And Performance. Strategic Management Journal 22, 899-906.
Iswati, K. and Anshoria, S. (2007).Social Media: Essential For Research, Marketing And Branding, Bulletin of the American Society of Information Science and Technology, 37.
Jang, Y. S. Shafritz, J. M., & Ott, J. S., (2001). Classics of organization theory (6th ed.). Fort Worth, TX: Harcourt.
Johnson, G., Scholes, K., & Whittington, R (2005). Exploring Corporate Strategy: Texts and Cases (7th Edition). London: Prentice-Hall.
Jung, D., & Sosik, J. (2002). Transformational Leadership At Work Groups: The Role Of Empowerment, Cohesiveness, And Collective-Efficacy On Perceived Group Performance. Small Group Research, 33, 313–336
Kibwana, K.M. (2012) Strategic Change Management Practices at Local Authorities in the Coast Province of Kenya Unpublished Master’s thesis. School of Business University of Nairobi
Kim, S. (2006), “Public Service Motivation and Organizational Citizenship Behavior In Korea”, International Journal of Manpower, Vol. 26 No. 8, pp. 722-40
Kirkpatrick, S. A., & Locke, E. A. (1996). Direct And Indirect Effects Of Three Core Characteristic Components On Performance And Attitudes. Journal of Applied Psychology, 81, 36–51.
Klette, Tor Jakob and Samuel Kortum (2004), “Innovating Banks and Aggregate Innovation,” Journal of Political Economy, 112: 986-1018
Korir J, Mukolive E, et-al (2012). Change Management Effects on Hotel Performance: Journal of social science tomorrow vol1, No.8.
Mwirigi, J.K. (2012) Management of Strategic Charge by Commercial Banks in Kenya Unpublished Master’s thesis. School of Business University of Nairobi
Naser, K. and Mokhtar, M. Z. (2004), Determinants of Corporate Performance of Malaysian Companies, Paper presented at the Fourth Asia Pacific Interdisciplinary Research in Accounting Conference, July, Singapore.
Nassiuma D. K. (2000). Survey sampling: Theory and methods. Njoro, Kenya: Egerton University Press
Neely A, Mills J, Platts K, Richards, H, Gregory M (2000). Performance measurement system design: developing and testing a process – based approach. Int. J. Operat. Prod. Manag., 20(10)
Ongaro, K. (2004), Strategic Change Management in Kenya, The case of Nairobi Bottlers Ltd, Unpublished MBA Research Project, School of Business, University of Nairobi
Ongeri,B.(2013).The Role of Kenya's Listed Commercial Banksin Economic Growth-An Econometric Analysis. Nairobi.
Oparanma, A. O. (2010). The Organizational Culture and Corporate Performance In Nigeria. International Journal of African Studies, 3, 34-40
Rowe, W. G. (2001). Creating Wealth In Organizations: The role of strategic leadership. Academy of Management Executive, 15, 81–94
Rukunga, J.K, (2003), Strategic Change Management Practices in Kenyatta National Hospital, Unpublished MBA Research Project, School of Business, University of Nairobi
Sekaran, U. (2003). Research methods for business (4th ed.). Hoboken, NJ: John Wiley & Sons.
Steele, R. & Mankins, M. C. (2005).Turning Great Strategy into Great Performance. Harvard Business Review, 65-72.
Thompson, A. A., Strickland, A. J., Gamble, J.E.(2007). Crafting & Executing Strategy. Texts and Readings (15th Edition). New York: McGraw-Hill Irwin
Verreynne, M-L, and D. Meyer. (2008) Small business strategy and the industry life cycle. Small Business Economics, doi:10.1007/s11187-008-9165-3
Walumbwa, F. O., Avolio, B. J., Gardner, W. L., Wernsing, T. S., & Peterson, S. J. (2008). Authentic leadership: Development and validation of a theory-based measure. Journal of Management, 34, 89–126
Wu, F., Mahajan, V., Balasujbramanian, S., 2003. An Analysis of E-Business Adoption And Its Impact On Business Performance. Journal of the Academy of Marketing Sciences 31, 425-447.
Zain, ZM, Ishak, R & Ghani, EK (2009). The Influence of Corporate Culture on Organisational Commitment: A Study on a Malaysian Listed Company', European Journal of Economics, Finance and Administrative Sciences 17, pp. 16-26.
DOI: http://dx.doi.org/10.61426/sjbcm.v4i1.413
Refbacks
- There are currently no refbacks.
This work is licensed under a Creative Commons Attribution 3.0 License.
PAST ISSUES:
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.