| dc.description.abstract | This study sought to identify the strategic responses of commercial banks in Kenya to the
changes taking place in their environment. The second objective of this study was to
establish the factors that may have influenced the strategic responses adopted by the
commercial banks in the study.
Data was obtained through responses to the questions that were contained in a
standardized questionnaire. A response rate of55% was achieved with 23 out of the 42
licensed commercial banks in Kenya taking part in the research study.
Strategic responses identified included the formation of stable inter-organizational tics
(39.13%), mergers and acquisitions (2l.73%), improved distribution channels (52.17%),
geographical diversification (26.09%), diversification into non-traditional banking
products (47.83%), consolidation (73.91%), customer base diversification (69.57%), the
increased emphasis on non-interest income (56.52%), changed their business orientation
(69.57%) and adoption of 'Judo Strategy' (34.78%). Factors found to appear to have
influenced the choice of strategic response included the length of time a commercial bank
has been in operation, and ownership.
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As a result of the research findings, it was recommended that in a fast changing
environment, commercial banks in Kenya need to carry out environmental analysis
consistently and frequently as this provides the means of matching or fitting the
organization to its environment.
Another recommendation made was that more commercial banks in Kenya, particularly
those not keen on taking on stronger competitors head-on, should consider formally
embracing Judo Strategy as a strategic response. Further research should be undertaken in
this area to identify how commercial banks can use this strategy to overcome their
competitors . | en |
