dc.description.abstract | An organization’s superior performance mostly results from its strategic choice that provides the firm a better positioning in the industry structure. As a result of dynamic environment banks face arising from high competition posed by the other commercial and non-commercial banks. Therefore, in a highly uncertain and changing environment, strategic managers need to have the strategic flexibility to respond to problems speedily. Therefore, the aim of this study was to investigate the effect of strategic responses on performance of commercial banks in Garissa County, Kenya. The study specifically determined the effect of product design, strategic planning, process design and employee empowerment on the performance. The study was anchored on Ansoff matrix theory, human capital theory, structural contingency theory and quality management theory. This study employed a descriptive survey research design. The population for this study was four commercial banks in Garissa County namely: Kenya Commercial Bank, Equity Bank, Cooperative Bank and National Bank in Garissa County, Kenya. The respondents were managers in top, middle and low level management employees. A census of 82 respondents was carried out. Primary data was collected using a structured questionnaire. Validity was ensured through content, criterion and construct validity to make sure that the instruments measures what they are intended for. Cronbach’s alpha reliability coefficient was used to test the reliability of the questionnaire. Quantitative data was analyzed using descriptive statistics such as mean and standard deviation and presented in form of tables and figures. The study further carried out correlation analysis and multiple regressions to determine the effect between variables. The study determined that product design (t= 2.781, p < 0.05), strategic planning (t= 2.980, p < 0.05), process design (t= 3.313, p < 0.05) and employee empowerment (t= 1.532, p < 0.05) had a positive and significant effect on the performance. The study concluded that the banks have a very effective product design implementation that has enhanced their performance by attracting more consumers, providing ease, and making services available to their customers. Banks were able to be proactive through strategic planning, increasing operational efficiency and increasing market share and profits. The banks had a good communication system in place, and their activities were in line with their plan. Banks were able to persuade their staff to become more interested in their work by empowering them. The study recommended that the commercial banks should create a solid understanding of their opportunities by looking at the entire market based on their customer to determine the actual potential. The commercial banks should have a process and employ it regularly and consistently. The commercial banks in Garissa County their current workflow through getting the right employee with the right skills in the right place at the right time, map out and evaluate their processes and improve on technology. The commercial banks in Garissa County should delegate work and responsibility for them to take ownership of their work. | en_US |