EFFECT OF AGILE STRATEGIES ON PERFORMANCE OF COMMERCIAL BANKS IN KENYA
Keywords:
Agile Strategies, Performance and Commercial BanksAbstract
Purpose: The main purpose of the study was to establish the effect of agile strategies on performance of commercial banks in Kenya.
Methodology: The study adopted descriptive research design. The target population for this study was 449 senior and middle level management staff of the commercial banks in Kenya. Sampling frame was drawn from the Operations, Human Resources and Administration, Finance, Sales and Marketing departments of the commercial banks. A sample size of 2017 was calculated using Nassiuma (2000) formula. The study selected the respondents using stratified proportionate random sampling technique. Primary data was obtained using self-administered questionnaires. Data was analyzed using Statistical Package for Social Sciences (SPSS Version 25.0). All the questionnaires received were referenced and items in the questionnaire were coded to facilitate data entry. After data cleaning which entailed checking for errors in entry, descriptive statistics such as frequencies, percentages, mean score and standard deviation was estimated. Multiple regression analysis was used to establish the relations between the independent and dependent variables.
Results: The study found out that commercial banks ensuring there is frequency of perspective review within their system it improves their performance. Further the study revealed that if commercial banks ensure there is high level of top team members collaborating and they have common interest while undertaking their tasks this improves the performance of commercial banks. The study revealed that level of ownership concentration leads to resource fluidity hence it improves performance of commercial banks. The study also revealed that number of cross-selling arrangement and number of strategic venture enhances performance of commercial banks.
Unique contribution of the study: The study recommended that commercial banks need to adopt the use of ICT in their daily operations, as ICT adoption was found to enhance internal efficiency through reduction of operational cost and thus enhancing management.
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