An Empirical Analysis of the Relationship between Strategic Outsourcing and Performance of Kenya Commercial Bank in Kenya
Kinyua, Godfrey M.
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An organization’s superior performance mostly results from its strategic choice that provides the firm a better positioning in the industry structure. The decline is attributed to low interest rates, increased fees and commissions resulting from use of digital platforms, slowdown in economic activity and the political uncertainty experienced in the country. Therefore, KCB must look ahead for the various response strategies to be able to survive in this dynamic environment. This study aimed at investigating an empirical analysis of the relationship between strategic outsourcing and performance of Kenya Commercial Bank In Kenya. This study was anchored by agency theory. This study used descriptive research design. A target population of 130 respondents was obtained from corporate, functional and business level. Stratified sampling method was used together with simple random sampling method to select the respondents. Primary data was collected using structured questionnaires. The piloting exercise involved ten respondents to test the validity and reliability of the research instrument. Validity was ensured through content validity and reliability through Cronbach alpha coefficient. Quantitative data was analyzed using descriptive statistics such as mean and standard deviation and the analysis was presented using tables, figures and charts. Qualitative data obtained from the open ended questions was analyzed thematically in line with study objectives. In order to test the relationship between variables and the extent to which they are influence each other multiple regression analysis was conducted. The study established that strategic outsourcing positively and significantly influences organizational performance. The study concluded that the bank carries out a strategic outsourcing to improve its focus on core business activities in terms of its strengths, allowing employees to concentrate on their main tasks and on the future strategy. The study recommended that the bank should get people who have values that are aligned with theirs and those who subscribe to the Bank’s purpose and vision