A survey of factors affecting choice of strategy in Kenya commercial banks

Abstract

The selection of a suitable strategic option is not an easy decision; it involves a lot of complex consideration. Several factors affect the choice of strategic option. They include both tangible and intangible elements. The aim of this study was assess factors affecting choice of strategy by Kenya commercial bank. The specific objectives of the study were be to find out how technology affect choice of strategy, to establish the effects of organizational culture on the choice of strategy, to examine to what extent does organizational resources affect choice of strategy, to determine the relationship between top management preferences and the choice of strategy and to find out how industry competition affect choice of strategy. The population under study comprised of 505 Kenya commercial bank's staff from credit, operations, information technology, research, innovation and strategy and human resources divisions. A sample of 252 staff was drawn using stratified sampling. The study was sought to assess factors affecting choice of strategy, specifically on information technology, organizational culture, industry competition, organizational resources and top management preferences. Each respondent was expected to fill and submit a structure questionnaire that was posted on the KCB divisional intranet web page and others were hand delivered. The researcher used statistical data analysis programme (SPSS) to carry out data analysis to describe the relationship between the dependent variable (strategy choice) and the independent variable, information technology, organizational resources, organizational culture, industry competition and top management preferences. Findings have here in chapter four been presented by way of charts, graphs and tables.