Competitive Intelligence Strategies and Performance of Commercial Banks in Garrisa County, Kenya
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Date
2018
Authors
Koriyow, Omar Ibrahim
Karugu, Janesther
Journal Title
Journal ISSN
Volume Title
Publisher
International Academic Journals
Abstract
The rapidly changing business climate
created by advances in technologies,
economic and social changes as well as fastshortening
product life cycles, which lead to
hyper-competition, demands that firms
embrace competitive intelligence as a
strategy. The design of competitive
intelligence, as a process that monitors all
elements of the external environment of an
organization is still recent. Commercial
banks have thus resulted in making use of
various competitive intelligence aspects to
ensure profitability. Despite the adoption of
this competitive intelligence there is no
study that has been done on the Kenyan
banking industry to date. The general
purpose of this study was to investigate the
relationship between competitive
intelligence strategies and performance of
the commercial banks in Garrisa County,
Kenya. The study was anchored on the
following objectives; to establish the effect
of product intelligence, market intelligence,
technology intelligence and strategic
alliance on performance of Commercial
Banks in Garissa County, Kenya. This
research study applied the descriptive
research design. Descriptive research design
was chosen because it enables the researcher
to generalise the findings to a larger
population. The target population composed
of the 191 staffs employed at the 10
commercial banks within the County.
Stratified random sampling technique was
used and a sample of 25% will be selected
which generates a sample of 48 respondents.
The study used a questionnaire administered
using a drop and pick later method. Data
collected was purely quantitative and it was
analysed by descriptive analysis. The
descriptive statistical tools such as Statistical
Package for Social Sciences (SPSS Version
21.0) were used to extract frequencies,
percentages, means and other central
tendencies. It was realized that majority of
the commercial banks in Kenya have
embraced Competitive intelligence practices
and have a functional CI framework. Some
of the practices include use of modern
technology, total quality management for
efficiency and effectiveness, competitor
analysis, updated document management
system and promoting efficiency and
effectiveness in operations and strategizing
on cost reduction and profit maximization.
The CI practices help in cost saving, time
saving, revenue enhancement, timely
delivery of service and quality output.
However, the challenges faced in its
implementation, the CI function is used to
monitor both internal and external business
environment, analyse competition, identify
economic trends, identify political and
regulatory issues and assess new technology
innovations. The study recommends that
commercial banks should embrace
competitive intelligence practices to enhance
their performance in terms of revenue and
profit margins coupled with customer/client
base.
Description
Research Article
Keywords
Citation
Koriyow, O. I. & Karugu, L. (2018). Competitive intelligence strategies and performance of commercial banks in Garrisa County, Kenya. International Academic Journal of Human Resource and Business Administration, 3(1), 371-394