Browsing by Author "Wandia, Elizabeth"

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    Business Globalization and Performance of Commercial Banks in Nairobi City County, Kenya
    (Kenyatta University, 2025-06) Wandia, Elizabeth
    Commercial banks are witnessing a revenue decline, which indicates a possible downward trend. The globalization of business signifies an increasing integration with the global economy, enabling companies to seamlessly access foreign capital and enhance their market presence by selling a substantial portion of their products internationally. The Kenyan commercial banks are grappling with challenges in customer performance due to intensifying competition. There has been a persistent decrease in the banks' Return on Equity (ROE), which began at 26.6 percent in 2014 and gradually decreased to 25.2 percent in 2015, 24.5 percent in 2016, and 21.8 percent in 2019, before sharply falling to 13.9 percent in 2020. The banks reported a decline in income growth in 2020, with provisioning levels rising by 48.0 percent to mitigate potential bad loans. Return on Assets fell to 1.6 percent from 1.8 percent, while Return on Equity dropped to 13.8 percent from 15.1 percent.. The study aimed to analyze the effects of market liberalization, technological advancements, competitive intensity, and global financial integration. A descriptive research design was utilized to investigate various elements. The target population consisted of all 39 commercial banks in Kenya that provided commercial banking services as of December 2023, located in Nairobi County. The units of observation were the 1226 potential respondents. Since a census approach was implemented, the sample size for the study was 39 commercial banks in Nairobi. A stratified sampling technique was adopted, categorizing commercial banks into large, medium, and small based on their market share, as defined by the Central Bank of Kenya (CBK). The drop-off and subsequent collection method was employed to distribute the questionnaires. Descriptive statistics techniques were used to synthesize the quantitative data and extract meaningful information. A multiple linear regression model was utilized. The findings indicate that market liberalization, technological progress, competitive dynamics, and global financial integration play a significant role in the performance of commercial banks. The study concludes that monetary policy, interest rate liberalization, and financial system reforms are vital components of business globalization that impact the performance of commercial banks. Research and development, the number of patents issued, and the processes of innovation and diffusion have a considerable effect on the utilization of opportunities, the deepening of global trade, financial transactions, and the exchange of information among businesses in a globalized context. The research concluded that brand loyalty, market desirability, and organizational growth are essential factors in the performance of commercial banks in Kenya. Companies that pay attention to global financial integration, international information sharing, cross-border licensing, and the use of information technology in their operations are more likely to excel in performance. Return on assets, market share, and customer satisfaction are critical performance metrics, as a solid asset base, market expansion, and happy customers tend to lead to improved overall business performance. To maximize the benefits of market liberalization, it is crucial for banks to develop strong liberalized markets that allow for easier access to global markets. It is vital for bank management to concentrate on boosting investments in patenting, digital innovation, and research and development to connect with the unbanked segments of the global market. In the pursuit of meeting customer expectations in a globalized marketplace, banks must prioritize providing outstanding service. To enhance their performance, banks should adopt strategies that foster financial globalization, particularly regarding political and social influences.
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    Leveraging Business Globalization to Accelerate Performance of Commercial Banks in Kenya
    (The Asian Institute of Research, 2024) Wandia, Elizabeth; Muathe, Stephen Makau
    Commercial banks are facing a decline in revenues, indicating a potential downward trend. Banks have experienced intensified competition leading them to tap into foreign capital and expand their market internationally. In Kenyan banks, there has been a decline in the ROE from 26.6% in 2014, 25.2% in 2015, 24.5% in 2016, 21.8% in 2019 and finally 13.9% in 2020. The study sought to establish the effect of business globalization on performance of commercial banks in Kenya. The objectives were to analyze the effects of market liberalization, technological advancements, competitive intensity, and global financial integration. Descriptive research design was employed. The target population was all 39 banks in Kenya. The units of observation were the 1226 staff. Multiple linear regression was used in analysis employed. The study found that monetary policy, interest rate liberalization, and financial system changes have significant impact on commercial banks' performance. Technological innovations, Research and development, innovation, spread of new ideas and number of patents granted contributes to the success of banks in the region. Intensity of competition, brand preferences, business aesthetics greatly and expansion of the economy greatly affect the performance banks. Banks need to establish robust liberalized markets that provide easier access to global markets. The banks management should focus on increasing investments in patenting, digital innovation, and research and development to connect with the unbanked segments of the global market.