ORGANIZATIONAL DYNAMICS AND PERFORMANCE OF PUBLICLY QUOTED COMMERCIAL BANKS IN KENYA
ORGANIZATIONAL DYNAMICS AND PERFORMANCE OF PUBLICLY QUOTED COMMERCIAL BANKS IN KENYA
Sonia Mutende - School of Business and Economics, Daystar University, Kenya
Dr. Joanes Kyongo - School of Business and Economics, Daystar University, Kenya
ABSTRACT
The banking sector in Kenya operates in a dynamic and ever-changing environment. The success and sustained performance of these financial institutions are intricately tied to their organizational dynamics, encompassing factors such as organizational culture, market orientation, and organizational learning. Despite the acknowledged importance of these dynamics, there exists a gap in comprehensive empirical research exploring their collective impact on the overall performance of publicly quoted commercial banks in Kenya. In addition, despite the adoption of various organizational dynamics, the performance of commercial banks in Kenya still; remains poor. The purpose of this study therefore was to examine the relationship between organizational dynamics and performance of publicly quoted commercial banks in Kenya. The study was anchored on resource based view theory and survival based theory. The study adopted systematic review. The findings indicated that there is a positive and significant relationship between organizational dynamics and performance of publicly quoted commercial banks in Kenya. The findings indicated that organizational culture, market orientation, organizational learning had a significant relationship with firm performance. Organizational culture sets the tone for the workplace and influences employee behavior, decision-making, and overall performance. In addition, market orientation involves aligning organizational strategies with customer needs and market conditions. Banks that are customer-focused and responsive to market trends are better positioned to adapt, innovate, and succeed. Further, banks that prioritize learning and adaptation are more resilient, agile, and capable of capitalizing on opportunities, positively affecting performance. The study recommends that the management of commercial banks should foster a culture that emphasizes values aligned with the bank's mission, such as customer-centricity, innovation, and ethical conduct. They should implement employee engagement initiatives, recognition programs, and communication strategies that reinforce and embed the desired cultural attributes. To enhance market orientation, the management of commercial banks should invest in understanding customer needs, market trends, and competitive landscapes to inform strategic decision-making.
