Competitiveness of Tier three Commercial Banks in Kenya: The Role of Strategic Leadership Practices
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Date
2024-03
Authors
Okwiri, Mark Isaac Oluoch
Muathe, Stephen Makau
Journal Title
Journal ISSN
Volume Title
Publisher
IJMRES
Abstract
The banking industry in Kenya has been dynamic, with only eight (8) out of the
forty (40) banks controlling over 74% of the market share. The tier three banks,
despite being the majority (22), only have 8.8% market share. The banks have also
been characterized by turbulent operating market, declining revenues and profits,
and shrinking capitalization. This has seen some of these banks being held at
receivership and others put under statutory management. This prompted the study
to assess whether strategic leadership has been a concern in these banks, and
whether this has a hand in competitiveness of third tier banks in Kenya. The study
was anchored on Porter’s theory of competitive advantage and the contingency
theory of leadership. A cross-sectional research approach informed collection of
data though a questionnaire from 112 participants drawn from 22 third-tier banks in
Kenya. SPSS was used in analysis. The findings revealed that strategic leadership
practices through financial resource mobilization, human resource development,
strategic innovation, strategic direction and customer focus had a significant
influence on competitiveness of tier three commercial banks in Kenya. The study
concluded that strategic leadership practices through financial resource
mobilization, human resource development, strategic innovation, strategic direction
and customer focus were instrumental in enhancing the competitiveness of tier three
commercial banks. The findings from the study could be significant to strategic
management practitioners, managers of tier three commercial banks, the
government and policy-makers and future researchers.
Description
Article
Keywords
Strategic Leadership Practices, Tier Three Commercial Banks, Firm Competitiveness
Citation
Okwiri, M. I. O., & Muathe, S. M. (2024). Competitiveness of Tier three Commercial Banks in Kenya: The Role of Strategic Leadership Practices. International Journal of Management Research and Emerging Sciences, 14(1).