INFLUENCE OF STRATEGIC CHANGE ON PERFORMANCE OF TIER TWO COMMERCIAL BANKS IN NAIROBI COUNTY, KENYA
INFLUENCE OF STRATEGIC CHANGE ON PERFORMANCE OF TIER TWO COMMERCIAL BANKS IN NAIROBI COUNTY, KENYA
Florence Kinya Kimathi - Master Of Science in Strategic Management, Jomo Kenyatta University of Agriculture and Technology, Kenya
Dr. Jared Deya - Lecturer, Jomo Kenyatta University of Agriculture and Technology, Kenya
ABSTRACT
The main goal of this study was to determine the Influence of Strategic Change on Performance of Tier Two Commercial Banks in Nairobi County, Kenya. The specific objectives of this study were; To determine the influence of leadership change on the organizational performance of commercial banks in Nairobi County, establish the influence of process change on growth of commercial banks in Nairobi County; To investigate the influence Structure change on the organizational performance of Commercial Banks in Nairobi County and To examine the influence of policy change on the organizational performance of commercial banks in Nairobi County. This study utilized a descriptive research design. The target population was 150 managers in the Tier II Commercial banks in Nairobi County, Kenya. Stratified sampling was used to select a sample of 45 managers for the study. The research used primary data. The primary data was assembled by use of questionnaires which were developed as per the study objectives and distributed to the respondents. The respondents were given a period of two weeks in order to have enough time to answer the questionnaires, before being collected for cleaning and coding. Data analysis was done by use of SPSS software, version 23, where the collected questionnaires were edited, coded and input into the software for analysis. The data was analyzed for inferential and descriptive statistics where measures of central tendency such as mean and standard deviation were deduced. Tables and bar graphs were used to present the findings. It was found out that Leadership change and process change have a positive influence on the performance of Tier II Commercial banks in Nairobi County. This means that positive change in banks leadership and processes results in improved performance in tier II banks. The study also found that structure change and policy change have a positive influence on the performance of Tier II Commercial banks in Nairobi County, Kenya. This means that positive change in Banks structure and policies improves performance of tier II banks. The study therefore recommends leadership change in relation to enhancing the performance and composition of the top management of the Tier II Commercial banks should be embraced and encouraged to be adopted by all organization. This is because from the study, leadership change acted as a facilitator of performance In of Tier II Commercial banks. Secondly, the Commercial banks needs to embrace new technology and embrace innovation in order to develop new products for purposes of enhancing the performance of the institution. this is because from the study, it was determined that Commercial banks were embracing new technology, undertook product development and had a good customer service management system in place which led to enhancement in performance. Thirdly, the Commercial banks needs to undertake restructuring within their organizations and decentralize power in order to enable the commercial bank operate smoothly. This will enable commercial banks expand their operations and have a good structure in place thus leading to improvement of performance Lastly, the Commercial banks needs to train their staff on banking policies and put in place credit regulation policies and ensure that they are conversant with the policies. This is because from the study, it was established that policy change had a major influence on the performance of Tier II Commercial banks.
