Strategic Intelligence and Firm Performance, an Analysis of the Mediating Role of Dynamic Capabilities from Commercial Banks in Kenya

Abstract

Commercial Banks in Kenya supports economic development by providing finances to businesses and individual investors. In addition, banks facilitate savings, create jobs opportunities, assist in wealth creation, and eradication of poverty. However, not all the banks have had positive growth trend in the period 2016 to 2018. Records indicate that some banks such as Chase Bank, Imperial bank and Charterhouse Bank had poor performance impeding continuity. The hypothesis of the study was that Dynamic capabilities had no significance mediating effect on the relationship between strategic intelligence and performance of Commercial banks in Kenya. This study was anchored on resource-based view, dynamic capabilities theory and balanced scorecard model. The study used both primary and secondary data. Primary data was collected through 143 questionnaires distributed to the respondents while secondary data was obtained through the annual reports and publications of the Central Bank of Kenya, for the period 2016 to 2018. Data was analyzed using multiple linear regression and the findings of the study indicate that dynamic capabilities had a statistically mediating effect on the relationship between strategic intelligence and the performance of commercial banks in Kenya. The study recommends that commercial banks policy makers should considers restructuring their internal and external competitive strategies, by involving behavioural scientists to device better ways of achieving the intended competitive advantage that can lead to superior performance of their banks.