Perceived Influence of Corporate Strategy on Performance at Equity Bank Limited, Kenya

Abstract

The influence of corporate strategy on organization performance is perceived differently by various stakeholders in organizations. Some scholars have observed that corporate strategy has been purported to have negative influence on performance of firms while in others it has been extolled as a key in driving performance. There has been no consensus on perceptions with regards to influence of corporate strategy on performance of a firm hence continued debate on this subject. Through the theoretical lenses of Cognitive Psychology theory, Attribution theory and Resource-Based theory, the study set out to establish the perceived influence of corporate strategy on performance of Equity Bank Limited. Using a descriptive cross-sectional research design, data was obtained from 176 managers of Equity Bank using a semi-structured questionnaire. This was analyzed using both descriptive and inferential statistics. The key findings along the study objective reveal that the managers perceive corporate strategy to have a positive influence on the Bank’s performance. The managers have a clear regard of corporate strategy as the direction and scope the bank has taken in achieving its goals. Consistent with the theories, organization resources like intellectual capital, technology employed have been revealed as key in enhancing performance. The findings also reveal that managers are involved in the strategy process in the Bank. Findings of this study also agree with other empirical studies that have perceived that strategy is a lead to superior performance. A critical discussion of this subject suggests a study on other banks and parallel organizations as areas for further study while also recommending a similar study to be conducted after a year or so because of the dynamism of the banking industry in Kenya and difference in strategic orientation of managers. Though successfully conducted, the study encountered challenges like limited resources in time and monetary, lack of confidence from respondents due to the nature of competition in the Banking industry which led to the researcher using a lot of time reassuring respondents that the research was purely for academic reasons; and delays in getting responses due to the busy schedules of the managers. Future researchers should consider working with research assistants to ensure that the questionnaire gets to respondents in good time, guaranteeing personalized approach hence improving the response rate. Researchers should also set aside a budget for research.