Strategic Leadership and Competitive Advantage of Equity Bank in Kenya
Abstract
In the present-day global and interconnected economy, the source of a firm's competitive
advantage has shifted from physical capital to its ability to process information in a fastpaced
manner efficiently. The strategic leadership of a company represents the human
capital that plays a crucial role in establishing efficient strategic planning and
implementation. The study's objective was to establish the influence of strategic leadership
on the competitive advantage of Equity bank in Kenya. In addition, Upper Echelon Theory
and Porter's theory of competitive advantage are the theories that underpin the research.
The research design employed in this study was a case study approach and an interview
guide to collect data and it targeted the 3 banking functions; business, operations, and
corporate. Furthermore, content analysis was adopted to analyze the information obtained
from the interview guide. The findings show that Equity Bank stands out as a significant
player in the East African banking landscape. It boasts a substantial asset base of Ksh 1.45
Trillion and a presence across six East African countries with 358 branches. Furthermore,
the bank's international recognition, such as its ranking among the top 1000 banks globally,
reflects its competitive strength in the market. This suggests a strong market position and
stability within the banking industry. The bank's strategic objectives and goals are clearly
oriented towards customer satisfaction, risk management, market expansion, and
diversification of product ranges. These objectives underscore Equity Bank's commitment
to its customers' needs, risk mitigation, and continued growth in various dimensions. The
emphasis on customer satisfaction aligns with modern banking trends, as ensuring
customer-centric services is crucial for retaining and attracting clients. A focus on
customer-centricity and risk management characterizes strategic leadership within Equity
Bank. Identifying, developing, and nurturing strategic leaders involves talent identification
programs and robust succession planning. Equity Bank adopts recognition programs and
feedback mechanisms to ensure alignment between the bank's strategic vision and day-today
operations. These initiatives underscore the bank's commitment to keeping all
employees engaged and aligned with the strategic vision. Regular reviews and assessments
enable the bank to adjust its course as necessary, ensuring that its strategic goals remain
relevant. Equity Bank's approach to adapting its strategic vision to respond to market
dynamics and emerging opportunities involves engaging with key stakeholders and
embracing innovation. This indicates the bank's commitment to staying current with
market trends, maintaining agility, and evolving to address market dynamics effectively.
To foster a culture of strategic thinking and innovation, Equity Bank encourages
collaboration, establishes innovation workshops, and collaborates externally. The bank
should invest in talent identification programs, mentorship initiatives, and rotational
assignments to ensure a continuous pipeline of capable leaders who can effectively steer
the bank toward its strategic objectives. Encouraging a culture of learning and adaptability
should remain a priority, as it will enable leaders to respond to market dynamics and drive
innovation. In terms of policy, Equity Bank can consider collaborating more closely with
regulatory bodies to ensure that its initiatives for financial inclusion align with regulatory
changes. This collaboration can help the bank navigate the complex regulatory
environment more effectively. Furthermore, the bank should continue to expand its
services and product range to meet the evolving needs of diverse customer segments,
particularly in underserved areas.
Publisher
University of Nairobi
Rights
Attribution-NonCommercial-NoDerivs 3.0 United StatesUsage Rights
http://creativecommons.org/licenses/by-nc-nd/3.0/us/Collections
- School of Business [1422]
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