Strategic Response' and Competitive Advantage of Commercial Banks in Central Business District of Nakuru City, Kenya
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Date
2023
Authors
Ogega, Dominic Onyando
Journal Title
Journal ISSN
Volume Title
Publisher
Kenyatta University
Abstract
'Commercia.l banks in Kenyamust consider how to enter a market as well as how to
improve and maintain their competitiveness. The general objective of the study was to
investigate the strategic responses and competitive advantage in selected commercial
banks in Nakuru County. Kenya. The following specific the study specific objectives
were: to determine the effect of Information Technology, restructuring, marketing
strategiesand expansion investmenton competitive advantage in selected commercial
banks in Nakuru County, Kenya. The study was supported by Technology Acceptance
model (TAM), Porters five forces theory and Dynamic Capabilities Theory. This study
adopteddescriptive study design.The 31 commercial banks in Nakuru County were the
study's target population, and the respondents were their operations and strategy
managers.70 operations and strategy managers work for all 31 commercial banks in
Nakuru's CBD.In this study, census ‘method was applied.Primary data was obtained in
this research. The pilot study was done on commercial banks in Naivasha, and the
researcher ensured that the pilot study respondents were not used in the main study.The
data was examined with SPSS, and quantitative methods were utilized to interpret the
data.Tables were utilized to summarize the data. Analysis of the quantitative data was
done using correlation coefficient as well as multiple regression analysis.The R-squared
in this study was 0.572, which shows that the four independent variables (information
technology, restructuring, marketing strategies and expansion investment) can explain
57.2% of competitive advantage in selected commercial banks in Nakuru County.From
the study the researcher concluded that Institution have a well-established Information
ov System (0 support business functions. Organizations rely heavily on the
Technology System to support the strategic business operations.
sn technology is applied in making strategic business decisions.Establishing
senue streams has been achieved through business expansion program and
1 business expansion program my organization has been able to penetrate into
new markets. The study recommends that the banks management should consider ICT
usages through their organizational levels and try to expose the positive influences of
ICT in their organizations. This study shows that restructuring has a minimal effect on
the performance of financial institutions in Kenya.The researcher recommended
commercial banks to become more aggressive in their advertising, personal selling, and
sales promotion in order to reach potential customers who currently do have bank
accounts since the majority of respondents felt that they were not doing enough to
promote their products. Future research should examine the durability of the
competitive advantage attained by the companies in the banking industry, the report
advises.
Description
A Research Project Submitted to the School of Business, Economics and Tourism for the Partial Fulfillment of the Award of Master Degree in Business Administration (Strategic Management) of Kenyatta University 2023
Keywords
Strategic Response', Competitive, Commercial Banks, Central Business District, Nakuru City, Kenya