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
Commercial 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 Technology System to support
business functions. Organizations rely heavily on the Information Technology System
to support the strategic business operations. Information technology is applied in
making strategic business decisions.Establishing multiple revenue streams has been
achieved through business expansion program and through 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
Keywords
Strategic Response’, Competitive Advantage, Commercial Banks, Nakuru, Kenya