STRATEGIC LEADERSHIP AS A COMPETITIVE LEVER FOR FIRM PERFORMANCE: EVIDENCE FROM DIAMOND TRUST BANK BRANCHES IN NAIROBI CITY COUNTY, KENYA
STRATEGIC LEADERSHIP AS A COMPETITIVE LEVER FOR FIRM PERFORMANCE: EVIDENCE FROM DIAMOND TRUST BANK BRANCHES IN NAIROBI CITY COUNTY, KENYA
Faizah Shisia - MBA Candidate, School of Business, Economics and Tourism, Kenyatta University, Kenya
Joyce Gakobo (PhD) - Lecturer, School of Business, Economics and Tourism, Kenyatta University, Kenya
ABSTRACT
Inconsistent performance by Diamond Trust Bank (DTB) as compared to other Tier I Banks in Kenya is an ongoing problem for DTB, in terms of competitiveness in areas such as; Market Share, Improved Profitability, Operational Efficiency, etc. While there has been increasing emphasis placed on having a well-developed corporate governance framework, little is known about the degree to which these frameworks have affected the competitive positioning of firms through the use of effective governance strategies that include strategic leadership. The purpose of this research was to determine what effects corporate administration approaches have on the competition levels of the branches of Diamond Trust Bank, and to identify deficiencies in the current market power of commercial banks and to address those deficiencies through the application of a strong oversight structure. This research is based on three theoretical foundations; Stakeholder Theory, and Resource-Based Theory, which together provide insight into governance dynamics and competitive position. A descriptive research design was utilized in this study, and all participants of this study were targeted from a pool of 140. Both simple random and stratified random sampling techniques were applied to arrive at a sample size of 104, and the sample size was determined using Slovin's Formula. Preliminary studies were conducted to ensure reliability of the research instruments used in this study. Method on repeat testing was carried out, with consideration of Cronbach’s Alpha score of 0.7 and above as satisfactory. Scrutiny on numerical data involved statistics summary, encompassing average, central value, value that is most frequent, and dispersion. Interpretation of data was conducted in utilization of SPSS and Microsoft Excel. To interpret findings, both analyses for descriptive and inferential statistics were incorporated. Presentation was done using tables and figures. Results revealed that strategic leadership has a positive and significant effect on competitiveness of a firm. This demonstrates that visionary leadership, enhance agility of operations and market position of DTB. Recommendations drawn from the study emphasize leadership capacity strengthening to sustain competitive advantage in DTB and general banking sector in Kenya.
