Browsing by Author "Lundi, Patrick Mwemba"

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    Strategic Management Practices and Performance of Commercial Banks in Mombasa City, Kenya
    (International Journal of Business Management, Entrepreneurship and Innovation, 2025-03) Lundi, Patrick Mwemba; Muchemi, Anne Wambui
    Kenya’s commercial banks are well renowned for significantly contributing to the overall economic growth of the nation and for the attainment of Vision 2030. They have, however, demonstrated poor performance as seen by diminishing profitability, low customer satisfaction, a smaller market share, and a rise in loans that are not performing. The research set out to ascertain the impact of strategic management practices on the Performance of Commercial Banks in Mombasa City, Kenya. It also employed the use of the following theories; Resource Based View, McKinsey 7S model, Resource Dependence Theory and the Balanced score card. Descriptive research design was used in the study with a target population of 110 staff members from 22 Commercial Banks in Mombasa City. The research also used a census survey of five top management staff collected from each Commercial bank under the study. The key data collection tools that were used included self-administered questionnaires with closed-ended questions and the response rate achieved was 95%. Validity types that were used included face, content and construct validity while Cronbach alpha with a cut-off point of 0.7 was utilized to examine the reliability of the data and the research achieved a score of 0.839. A comprehensive variance analysis was conducted, and the results demonstrated that the model was statistically significant at 95% confidence level because the P – Value was 0.000b which is greater than 0.05. The study model’s R - Squared was able to expound the 41.8% of the variances in the success of Commercial Banks in Mombasa City, Kenya. Inferential analysis study results found that two variables; strategy formulation and strategy implementation are highly important in influencing the performance of Commercial Banks in Mombasa City, Kenya. However, strategy evaluation and control were not found to be highly important. As a result, the study thus recommends that strategy formulation and strategy implementation which were found to be statistically significant should be done by the Commercial Banks in Mombasa City, Kenya to improve their performance. In addition, strategy evaluation should not be ignored because it takes stock of what has been achieved in the strategy formulation and strategy implementation stages. Given that the model utilized demonstrated a significant influence on the Performance of Financial Institutions in Mombasa City, Kenya with a P-Value is 0.000b and R – Squared of 41.8 %, it is therefore recommended that Strategic Management Practices are crucial for the Performance of Commercial Banks. In conclusion, the top management of commercial banks in Mombasa City, Kenya will particularly benefit from this research by utilizing the strategic management practices to improve results.
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    Strategic Management Practices and Performance of Commercial Banks in Mombasa City, Kenya
    (Kenyatta University, 2025-10) Lundi, Patrick Mwemba
    Kenya’s commercial banks play a vital role in driving economic growth and supporting the attainment of Vision 2030. However, many have experienced declining profitability, reduced customer satisfaction, shrinking market share, and increasing levels of non-performing loans. This study sought to examine the effects of strategic management practices on the performance of commercial banks in Mombasa City, Kenya. Specifically, it focused on strategy formulation, strategy implementation, and strategy evaluation and control. The study was anchored on the Resource-Based View, McKinsey 7S model, Resource Dependence Theory, and the Balanced Scorecard. A descriptive research design was employed, targeting 110 staff members from 22 commercial banks in Mombasa City. A census approach was adopted, involving five top management staff from each bank. Data were collected using self-administered questionnaires with closed-ended items, achieving a response rate of 95%. Validity was tested using face, content, and construct approaches, while reliability was confirmed through Cronbach’s alpha, which yielded a score of 0.839. The findings revealed that strategy formulation and strategy implementation had a significant positive effect on bank performance. Although strategy evaluation and control did not show a strong direct effect, it remained essential for tracking progress, identifying gaps, and ensuring accountability in the overall strategy process. The model used was statistically significant at a 95% confidence level (P-Value = 0.000 < 0.05) and explained 41.8% of the variance in performance. The study recommends that commercial banks in Mombasa prioritize robust strategy formulation and effective implementation to enhance competitiveness and performance. Equally, greater emphasis should be placed on strengthening strategy evaluation and control mechanisms, as they provide critical feedback for refining strategies and sustaining long-term growth. Overall, the study concludes that strategic management practices are indispensable to improving the performance of commercial banks, with particular implications for top management in decision-making and execution