Strategic Management Practices, Information Technology and Performance at Equity Bank Kenya Limited

Abstract

Every organization should not only have a clear vision, but also a coordinated strategy to achieve its goals and objectives. Strategic management techniques are essential to increase productivity within a company thus increasing its output and competitiveness. Additionally, Information technology, plays an important role in supporting and realizing the strategies put in place. To ensure both survival and success, commercial banks adopt strategic management practices and employ the latest technology to achieve their strategic objectives while maintaining a healthy balance between the business and its market environment. The key aim of this study was to determine the effect of strategic management practices and information technology on the performance of Equity Bank Kenya Limited. This research was anchored on Resource-Based View Theory (RBV) and Diffusion of Innovation Theory (DOI). The researcher used a case study design. For this study, the researcher used primary data collected from five members of the executive team of Equity Bank Kenya Limited. Given that insight drawn from this study depended on qualitative data, the researcher employed an interview guide during data collection as this helped gather detailed original information on the research subject. Interviews were conducted with the Head of Equity Investment Bank, Head of Corporate Banking, Regional Strategy Director, Group HR Director, and Head of Investor Relations. In order to gather common themes from the various responses received during the interviews, content analysis was used to gain perspective on the impact of strategic management practices and IT on the performance of Equity Bank Kenya Ltd. The findings showed that strategic management practices and information technology played a major role in the success of Equity Bank Kenya Ltd. The study found that the business strategies used at Equity bank included the formulation of an all-inclusive mission and vision statement comprehensible to all employees, environmental scanning, strategy implementation, people operation strategies, corporate strategies, telecommunications networks and commissioning the right products through the use of information technology to ensure competitive advantage and maximize stakeholder interests. The study found that IT can and is frequently used to deliver on these organizational strategic focus areas because IT enables rapid or immediate decision-making systems and increases the likelihood of success. The study also found that Equity Bank's top managers were able to assess the effectiveness of strategy formulation and execution in competitive market conditions by continuously scanning the environment to ensure that the strategy was fully aligned with the bank's objectives. The study also found that commercial banks face an ever-changing market environment in which customers demand better service and this increases the bank’s reliance on information technology to develop customer-centric products that provide a competitive advantage and promote sustainability. The study concluded that strategic management practices and information technology have played a critical role in the remarkable growth and performance of Equity Bank Kenya Ltd over the years. The research recommends that Equity Bank should consider focusing and investing more in its customer services to increase customer satisfaction and retention.