Financial and Non-Financial Measures in Evaluating Performance: The Role of Strategic Intelligence in the Context of Commercial Banks in Kenya
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Date
2020
Authors
Kori, Blandina Walowe
Muathe, Stephen M. A.
Maina, Samuel Mwangi
Journal Title
Journal ISSN
Volume Title
Publisher
CCSE
Abstract
This study provides comprehensive discussion on role of strategic intelligence in commercial banks, in Kenyan
context. The primary focus was to evaluate the performance of commercial banks using both financial and
non-financial performance measurers. The financial measurers comprised return on equity (ROE), while
non-financial measures were customer satisfaction, learning and growth, and internal processes. The study was
anchored on resource-based view and balanced scorecard model. The target population comprised 40
commercial banks. Additionally, the sample size 181 was selected proportionately through stratified sampling
procedure. Data collection instruments comprised closed and open -ended questionnaires and online review. The
study used both primary and secondary data, where primary data was obtained from Kenya commercial banks
head offices, while secondary data, for the year 2016 – 2018, was obtained from the annual reports of the central
bank of Kenya. Data analysis was done using descriptive statistics and linear multiple regression analysis.
Findings of the study indicate that strategic intelligence has a statistically significance on the performance of
commercial banks in Kenya. Moreover, both financial and non-financial measures of performance are relevant in
the banking sector and growth of Kenyan economy. The study recommends that commercial bank in Kenya
should integrate their training focus and strategy implementation with investors interests based on balanced score
card.
Description
Article
Keywords
strategic intelligence, performance, financial and non-financial measures, Kenya commercial bank
Citation
Kori, B. W., Muathe, S. M., & Maina, S. M. (2020). Financial and non-financial measures in evaluating Performance: the role of strategic intelligence in the context of commercial banks in Kenya. International Business Research, 13(10), 130-130.