Influence Of Key Account Management Orientation On Performance Of Commercial Banks In Kenya

Abstract

In Kenya the performance of the commercial banks is strongly steered by the board and senior management decisions. the level to which practices of KAM are embraced in the institution affects performance both in non-financial and financial terms. Performance of banks’ takes into account real results or output of the firms as evaluated vis a vis its predefined objectives, goals or outputs. The iobjective iof ithis iresearch iis ito iestablish ithe iinfluence iof ikey iaccount imanagement iorientation ion iperformance iof icommercial ibanks iin iKenya. The research was anchored on two theories which include social exchange theory and resource-based theory and applied a cross sectional survey design was implemented. The study considered as all the 42 commercial banks in Kenya regulated and licensed by the Kenyan Government through its Central bank as the unit of analysis in the population. With primary data collection method was preferred for this study. The data was evaluated by employing statistics which entailed both inferential (Pearson’s Correlation Analysis and multiple regression analysis) and descriptive (standard deviation and arithmetic means). The independent variables constituted product knowledge, management commitment, internal alignment and customer trust. From the outcome of the study. Correlation findings indicated that all the independent variables (product knowledge, management commitment, internal alignment and customer trust) were positively associated to firm performance of Kenyan commercial banks. Furthermore, regression findings indicated that all the independent variables (product knowledge, management commitment, internal alignment and customer trust) had a positive relationship and were statistically significant to firm performance. The researcher recommends that banks’ management should make use of these research findings in assessing the how better to come up with innovative approaches and maintain the existing ones in the conduct of their business so as reach more clients with their products and services.