Browsing by Author "Kale-Kahingo, Caroline Muhonja"

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    Strategic Flexibility And Performance Of Commercial Banks In Kenya
    (Kenyatta University, 2025-05) Kale-Kahingo, Caroline Muhonja
    Commercial banks are essential to all sectors of an economy by providing resources that support creation of employment opportunities, improved productivity and poverty reduction in a country. Nevertheless, the performance of these institutions raises some concerns in regard to profitability, customer satisfaction, brand loyalty and corporate reputation. To remain competitive in an ever-changing environment, the banks must adjust their strategies to mitigate risks and benefit in favorable circumstances. Consequently, this study investigated the effect of strategic flexibility on performance of commercial banks in Kenya. The specific objectives were to establish the effects of human resources flexibility, coordination flexibility and competitive flexibility on performance. Additionally, the mediating and moderating effects of organisational competences and environmental dynamism, respectively, in the strategic flexibility and performance nexus were examined. The study was underpinned by dynamic capabilities theory, resource-based view theory, strategic choice theory and balanced scorecard model. Positivism philosophy, descriptive and explanatory research designs were adopted. Primary data was collected through a semi-structured questionnaire in a cross-sectional survey. The survey involved senior managers in charge of areas that are important for formulating strategies that enable the banks to adjust accordingly in dynamic environments. Face, content and construct validity were determined. A pilot study was conducted to determine the reliability of the instrument. The Cronbach's alpha index was 0.859, which exceeded the minimum recommended value of 0.7. Descriptive and inferential statistics were used to analyze quantitative data. Descriptive analysis employed standard deviations, percentages, mean scores and frequencies. For inferential statistics, linear regression was utilised to determine relationships between variables. Hypotheses testing was done using p-values to determine significance at 95% level of confidence. Qualitative data was analysed, interpreted, and conclusions drawn using thematic analysis. Quantitative data was presented using tables and statistical measures, while qualitative data was presented using narratives. Normality, linearity, multicollinearity and homoscedasticity tests were conducted as diagnostic tests. The study findings indicated strategic flexibility had a positive and significant effect on performance of commercial banks. Therefore, the study concluded that strategic flexibility has a direct effect on performance of commercial banks. Specifically, human resources flexibility, coordination flexibility and competitive flexibility have a positive and significant effect on performance of commercial banks. Furthermore, the study concludes that this direct effect is partially mediated and positively moderated respectively by organisational competences and environmental dynamism. Consequently, the study recommends that heads of human resource management should formulate flexible human resource practices, work schedules and competitive compensation that motivate employees to adjust their skills and behaviour to fit environmental changes, hence enhance strategic flexibility. Secondly, operations managers should streamline operations to strengthen their ability to reconfigure and redeploy their resources to respond to competition and customer needs by establishing dynamic organisational structures that allow rapid response to opportunities and threats. Moreover, functional heads in charge of corporate strategy should formulate policies that enhance competitive flexibility in their institutions by focusing on continuous monitoring of competitive dynamics to enable the banks to adjust their competitive strategies on pricing, products and focus flexibility to stay ahead of competition.