Strategy Implementation and the Firm’s Performance of Kenya Commercial Bank in Nairobi City County, Kenya

Abstract

Despite having developed strategic work plans that are aimed at fostering performance, many organizations are struggling with the implementation of the developed plans. The Kenya Commercial Bank was identified for going through a comprehensive planning process with the aim of enhancing its working environment only to stagnate at the implementation phase due to identified challenges like inadequate finances and limited human resources. The main objective of this study was to investigate the effect of Strategy Implementation and Performance of Kenya Commercial Bank, Nairobi City County Kenya. Specifically, the study sought to determine the effect of technology, leadership, resource utilization and innovation on performance of the Kenya Commercial Bank in Nairobi City County Kenya. The study was guided by the Resource-based view theory, and the accompanying theories of Issue-based Planning Model and Contingency theories. A descriptive study design was employed. The study population comprised of 371 staff from 11 targeted branches. Stratified random sampling was used to get a sample of 281. Data was collected by use of questionnaires. A pre-study was done to measure how valid and reliable the study tools are. Validity tested content, functional and criterion validity by help of experts while reliability was measured by Cronbach alpha test, at a threshold of 0.7. Descriptive statistics was measured using frequencies and percentages and inferential statistics was measured using correlation as well as regression coefficients. Analyzed data was presented using tables and figures. The general objective of this study was also interested in knowing the effect of each of the variables on banks performance when all these constructs were entered as a block on the model. From R square, it was deduced that all the variables accounted for 52.6% variance in banks performance (R square =.526, P=0.000) implying that 47.4% of the variance in banks performance was accounted for by other variables not captured in this model. All four variables had significant effect on the banks performance. It was revealed that information technology had largest unique significant contribution to the model with B=.270, p=.009 suggesting that controlling of other variables in the model, a unit change in information technology would result to significant change in banks performance by 0.270 in the same direction as a result of greater information technology. From the findings, the study concludes that strategy implementation influences positively banks performance in Kenya Commercial Bank Kenya. The study recommended that strategy implementation could enhance banks performance through the following ways: effective application of new modern technologies, effective leadership, efficient resource utilization and constant innovation.