COMBINATION STRATEGY AND ORGANIZATIONAL PERFORMANCE OF LISTED COMMERCIAL BANKS IN KENYA

Abstract

This study examined the influence of financing strategy, banking innovations, relationship marketing and human capital focus on organizational performance of listed commercial banks in Kenya. The study adopted descriptive survey design. Self-administered structured questionnaires (closed ended questions) were utilized. The study found that the four independent variables (financing strategy, relationship marketing, banking innovations and human resource focus) significantly influenced organizational performance of listed commercial banks in Kenya. The study concluded that first, a well-crafted and effectively implemented financing strategy can enhance organizational performance of listed commercial banks in Kenya. Secondly, consistent application of relationship marketing approaches like bonding with customers, winning brand trust, reciprocity and swift conflict resolutions can attract and retain a significant customer base that can enhance performance of listed commercial banks. Thirdly, timely adoption of viable banking innovations can lead to a significant improvement in the organizational performance of listed commercial banks. Fourthly, commercial banks’ commitment to human resource attributes that can motivate employees to work extra hard for the overall organizational performance of banks. The study recommended that first, finance managers of listed commercial banks should craft a feasible financing strategy that viably realize significant contribution to the bank’s performance. Secondly customer service officers should consistently apply relationship marketing approaches like bonding, winning brand trust, reciprocity and swift conflict resolutions, to attract and retain a considerable customer base that can significantly enhance the performance of the bank. Thirdly, innovators in the banking sector should timely roll out viable banking innovations to cut operational costs and enable listed commercial banks realize a significant improvement in their organizational performance. Fourthly, the banks’ top management team should concisely focus on human services so as to attract and retain high flier and talented employees that can steer listed commercial banks to superior organizational performance. For further research, a similar study can be done on all commercial banks in Kenya so as to compare empirical findings and a similar study can be replicated on Micro Finance Institutions and deposit taking Saccos so as to compare empirical findings. Key Words: Finance, Banking Innovations, Relationship Marketing, Human Capital Focus , Commercial Banks CITATION : Ratemo, R., & Osieko,M. (2023). Combination strategy and organizational performance of listed commercial banks in Kenya. The Strategic Journal of Business & Change Management, 10 (3), 236 – 251.