Competitive strategies and the financial sustainability of commercial banks in Kenya
Date
2020
Authors
Owaga, Beatrice
Journal Title
Journal ISSN
Volume Title
Publisher
Strathmore University
Abstract
There is a limited examination of the effect of competitive strategies on the financial
sustainability of commercial banks which created an empirical gap that this research was
premised. The current study sought to establish the effect of competitive strategies on the
financial sustainability of registered banks in Kenya. The focussed on the effect of innovative
strategies, differentiation, and marketing strategies on financial sustainability. The study was
anchored on the theory of competitive advantage and the innovation diffusion theory. The study
adopted an explanatory research design with the unit of analysis being the 41 registered
commercial banks in Kenya. The sample respondents were 94 respondents drawn from the
commercial banks. The study utilized a structured questionnaire in the data collection with the
collected data being analyzed using descriptive and inferential statistics. The findings of the
study indicated that there is a positive relationship between competitive strategies and the
financial sustainability of commercial banks. The study results show there is a significant
association between innovative strategies, marketing strategies, and the financial sustainability
of commercial banks. The study found an insignificant positive effect of diversification
strategies on the financial sustainability of commercial banks. The study recommends that
commercial banks should invest more in technological infrastructure to drive digital banking.
The research further recommends that commercial banks should foster customer relationship
building and market positioning strategies. The study also recommends that commercial banks
should review their operating environment to ensure that diversification efforts undertaken by
the bank meet the customer gaps existing in the institutions.
Description
A Thesis submitted in partial fulfillment of the requirements for the award of the Degree of Masters of Business Administration at Strathmore University Business School
Keywords
Financial sustainability, Competitive strategies, Banking