Management Perception of the Influence of Strategic Choice on Performance of I & M Bank Limited Kenya

Abstract

Management decisions on the strategic choices to be adopted in an organization for improved organizational outcomes, depends on how they interpret and perceive the environment impinging on the organization. It is imperative to explore managerial cognitions to gain knowledge on their roles in deciding on the appropriate strategic options. However, studies on strategic choice and organizational performance are incomplete as they have not provided conclusive evidence of the role managerial perception or cognitions play in deciding on the strategic options. To address this gap, the inclusion of management perception in the relationship between strategic choices and performance at I&M Bank was warranted. A survey was adopted and the population of interest were 356 managers employed at the bank. The study used Yamane’s formula to narrow down the target population to a sample 188 managers. Stratified sampling was used to ascertain the type and number of managers to administer questionnaires to. Primary data was collected with the aid of a questionnaire and was analyzed using descriptive statistics. The overall finding using the t test showed that managers had a positive view of the positive role strategic choice had on performance of I & M Bank. With regard to the individual strategic choices the bank had adopted to implement the iMara strategy, reshaping of the workforce was perceived by the managers to be the most significant choice to influence on the bank’s performance, followed by adoption of new digital technologies, then product/service diversification and lastly, internal customer management system. This study recommends that I & M Bank should continue implementing the iMara strategic choices as they were perceived to improve performance. The continued implementation of the iMara strategy will drive business growth, build resilience and optimize operations, key functions in the bank’s operations and performance.