| dc.description.abstract | Much of the research done so far has focused on growth and its antecedents in commercial
banks. Firms are employing different strategies to accomplish growth and gain competitive
advantage in the market. Among the key strategies that firms employ in attaining and sustaining
competitive advantage is expansion. Commercial banks in Kenya have expanded regionally as
the industry has undergone internal and external expansion. The ongoing regional integration
efforts and the increasing competition in the banking sector have seen a number of Kenyan banks
establish their footprint in the East African Community partner states and South Sudan. This
research therefore sought to establish the effect of expansion strategy on the performance of
commercial banks in Kenya. The main purpose of the study was to determine if there was a link
between expansion and performance. The research target was the entire population of
commercial banks in Kenya data was collected from the managerial staff. Both primary and
secondary data were used. Primary data was collected by means of a questionnaire. The data was
coded, tabulated and analyzed using Statistical Package for Social Science (SPSS) software and
Excel. Descriptive statistics such as frequency distribution and percentages were used to analyze
the data. Research questions were analyzed using descriptive statistics. The study established that
commercial banks in Kenya are impacted positively by expansion strategies. Therefore, to gain
sustainable growth and achieve economies of scale, banks are embracing expansion strategy as
key competitive strategy. From the study it is clear that expansion strategy is one of the
strategies applied by banks in Kenya and has a positive effect on performance. Researchers’ and
banks have to establish further what other strategies when combined have positive impact on
performance. | en |
