Influence of Management Capability to Envision and Strategize on the Performance of Commercial Banks in Kenya

Abstract

The purpose of the study was to investigate the influence of capability to envision and strategize on the performance of commercial banks in Kenya. This study adopted a descriptive cross-sectional design where both quantitative and qualitative data were collected. The target population was 42 banks and 5,432 employees out of which 358 respondents were selected for interviews. Multi-stage sampling procedure were used in the selection of representative sample involving stratified random sampling, random purpose sampling. The results show that management capability to envision and strategize significantly and positively influences the performance of commercial banks in Kenya.The study further shows that management capabilities to envision and strategize allow for critical assessment of strategic planning and has positive impact on the performance of commercial banks in the country. Effective envisioning and strategic management capabilities have direct influence on the performance of commercial banks in Kenya which is reflected in capital adequacy, asset quality and customer satisfaction. It is therefore fundamental that commercial banks should continuously engage in creating visions and missions' statements that spell their strategic focus in the future. And adapt differentiation strategy whist focusing directly on their products and occasionally review their market segmentation strategies to enhance their performance.