Corporate Entrepreneurship and Organizational Performance: A Case of Kcb Kenya Limited

Abstract

Corporate entrepreneurship has been regarded an important element of successful organizations since it has its consequences in increasing productivity, improving best practices, creating new industries, enhancing international competitiveness. Corporate entrepreneurial orientation plays a critical role in influencing bank performance in competitive market in Kenya. For instance, Kenya Commercial Bank Kenya Limited embraced corporate entrepreneurial approach and expanded with branches opened in Uganda, Burundi Rwanda, Tanzania and South Sudan becoming the bank with the widest network of banking outlets comprising over 222 branches and over 400 automated teller machines in Kenya. Despite increase in embracing corporate entrepreneurial role in Kenya Commercial Bank, there have been dearth studies focusing on effects of corporate entrepreneurship on performance of banking industry in Kenya. The broad objective of the study was to determine influence of corporate entrepreneurship on organization performance in the Kenya Commercial Bank Kenya Limited. The study was grounded in resource based view theory, human capital theory and Schumpeterian theory of innovation on the premise that corporate entrepreneurship efforts result in increased performance. The study adopted descriptive research design for it portrays an accurate profile of situations. The population of this study was 144 respondents ‘corporate relationship managers, financial managers, strategic managers, human resource managers, operational managers and IT officers from Kenya Commercial Bank Kenya Limited. Stratified proportionate random sampling technique was used to select the sample. The study took 50% of the population to select a sample size of 72 of the study population. The study collected both primary data and the data collection instruments were questionnaires. The descriptive statistics, the mean scores, the standard deviations and percentages were used to analyze quantitative data. Further inferential statistics correlation and regression was done. Correlation analysis was used to establish the strength of association between variables. Regression analysis was done to establish relationship between corporate entrepreneurship and organization performance in Kenya Commercial Bank Limited. The study established that corporate risk taking had a significant influence on bank performance. The findings revealed that corporate entrepreneurial culture had a significant influence on performance at Kenya Commercial Bank Limited. The results indicated that through bank corporate innovation, utilization of mobile banking, online banking, automated cheques clearing and RTGS transfers and innovation influence performance. This study revealed that bank pro-activeness has led to diversification of bank corporate services, enhance strategic alliance, and improve mergers and acquisitions and introduction of new bank products influence bank performance to a great extent. The study concluded that corporate entrepreneurship achieved bank performance. The results indicated that corporate entrepreneurship had led to an increase in bank market share, increase in bank profits, increased customer base and an increase in Return on assets.