Strategic Implementation Practices and Organizational Performance of Commercial Banks in Western Kenya

Shitabule Inviolata. Wesonga, Kadian Wanyonyi. Dr. Wanyama and Dr. Mitalo Ruth
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Shitabule Inviolata. Wesonga: Department of Business Administration and Management Kibabii University
Kadian Wanyonyi. Dr. Wanyama: Department of Business Administration and Management Kibabii University
Dr. Mitalo Ruth: Department of Business Administration and Management Kibabii University

International Journal of Research and Innovation in Social Science, 2024, vol. 8, issue 7, 1715-1739

Abstract: Organizations which exist in the 21st Century face a myriad of challenges which require corporate strategic implementation for the organizations to remain competitive. Strategic implementation is a key challenge for today’s organizations and most strategies stagger at the implementation stage. Despite formulating strategic plans, commercial banks often struggle to translate these plans into successful actions that drive performance improvement. Commercial banks in Kenya may face challenges in aligning their strategic plans with the execution of key initiatives. There might be a disconnect between the formulated strategies and the actual implementation, leading to a lack of consistency and coherence in actions taken. This misalignment can hinder the bank’s ability to achieve its strategic objectives and deliver optimal performance. The purpose of the study was to establish how strategic implementation was carried out by commercial banks in Kenya. The specific objectives of the study were to determine the effects of strategic action planning, strategic consensus, strategy communication, and resource allocation on the performance of commercial banks in Kenya. The study utilized a descriptive and explanatory research designs. It targeted 300 respondents from the 30 licensed commercial banks in Western Kenya, who were selected through a census. The data was analysed using both descriptive and inferential statistics. Results indicated that strategic action planning had a positive and significant effect on organizational performance of commercial banks; strategic consensus was found to have a positive and significant effect on organizational performance; strategic communication had a positive and significant effect on organizational performance while resource allocation emerged as the strongest predictor of organizational performance among the strategic implementation factors examined. The study recommends that banks should invest in developing robust strategic action planning processes that involve key stakeholders and translate high-level strategies into specific, measurable actions; management should focus on building strategic consensus through inclusive strategy formulation, clear goal-setting, and efforts to align understanding across organizational levels; banks should enhance strategic communication by establishing clear communication channels, promoting two-way information flow, and regularly conveying strategic priorities to all employees and careful attention should be paid to resource allocation.

Date: 2024
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