The Effect of Financial Deepening on Financial Performance of Financial Institutions in Kenya
Abstract
The objective of the study was to determine the impact of strategic leadership and
strategy implementation on performance of commercial banks in Kenya. The data
collected from the branch managers, finance mangers, human resource managers and
heads of sections of commercial banks was analysed using descriptive statistics such as
frequencies, percentages, means and standard deviations. The findings were presented
using tables and figures.In order to establish the the effect of organizational structure,
leadership, organizational culture, resources and environment on the performance of
commercial banks in relation to strategy implementation, regression analysis was carried
out using Statistical Package for Social Sciences (SPSS).The study established that
leadership affects strategy implementation and performance among commercial banks in
Kenya to a very great extent. Organizational structure, organizational culture, resources
and environmentaffect strategy implementation and performance among commercial
banks in Kenya to a great extent. On the extent to which strategic leadership, strategy
implementation and performance apply to commercial banks in Kenya, the study found
out that strategy implementation applies among commercial banks to a great extent. On
whether there is a positive relationship between, Strategic leadership, strategy
implementation and performance among commercial banks in Kenya, the study found out
that there was a high level of positive relationship between, Strategic leadership, strategy
implementation and performance among commercial banks in Kenya.The study
concludes that leadership affects strategy implementation and performance among
commercial banks in Kenya to a very great extent while organizational structure,
organizational culture, resources and environmentaffects strategy implementation and
performance among commercial banks in Kenya to a great extent. On the extent to which
strategic leadership, strategy implementation and performance apply to commercial banks
in Kenya, the study concludes that strategy implementation applies among commercial
banks to a great extent. On whether there is a positive relationship between, strategic
leadership, strategy implementation and performance among commercial banks in Kenya,
the study concludes that there was a high level of positive relationship between, strategic
leadership, strategy implementation and performance among commercial banks in
Kenya.The study also concludes that there is strong relationship (R= 0.723) between
organizational structure, leadership, organizational culture, resources, environment and
performance of commercial banks in Kenya. Further, the study concludes
thatorganizational structure, leadership, organizational culture, resources and
environmenthave a positive and statistically significant effect on the performance of
commercial banks in Kenya and accounts for 45.8% of the total variance in commercial
banks performance.This study therefore recommends that the shareholders of
performance of commercial banks in Kenyashould establish organizational structure and
leadership structures that encourage improved performance. The study also recommended
that the management of commercial banks in Kenya should establish an organizational
culture and business environment that enhances commercial banks performance. The
shareholders should also avail enough resources to facilitate the banks operations.
Publisher
University of Nairobi
Rights
Attribution-NonCommercial-NoDerivs 3.0 United StatesUsage Rights
http://creativecommons.org/licenses/by-nc-nd/3.0/us/Collections
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