Thesis:

Influence of strategic management practices on performance of banks in lower eastern region of Kenya: case study of KCB

The Business environment more than ever before is not only Turbulent but evolving at a very fast rate. Competition to win customers and the rapid market changes has brought about a major shift from the traditional Management practices to Strategic Management practices where the customer has become the epicenter of business in the market. In the recent past the market has witnessed mushrooming of small bank and continued growth to satisfy the changing market needs. Banks Continued to have robust growth in connectivity demand, high competition persistent cyber security challenges, and continuing innovation in product and services development to satisfy customer expectations, cost savings are among the trends facing the banking industry. The purpose of this study was to investigate the influence of Strategic Management practices on the performance of Kenya commercial bank in the eastern region of Kenya. The specific objectives this research sought to achieve were namely; to establish the influence of strategic planning, technological innovation, Employee Engagement and customer retention on performance of Kenya commercial bank in the eastern region in Kenya. The study was anchored on the upper Echelons theory, Traits Theory and Dynamic capability Theory. The study adopted a descriptive research design. The target population was made up of 106 top and middle level managers and entire staff derived from Machakos, Makens and Kitui counties in Kenya. Data collection instrument included survey questionnaires collected through a procedure called "drop and pick and call back". The collection tool was piloted to determine its validity and reliability before the actual study. The study collected both the quantitative data which was analyzed by the use of the descriptive and inferential analysis. Descriptive data was analyzed by using frequencies and percentages and presentation in APA table. Quantitative data that was obtained and examined using programs from SPSS software version 23. The study experienced a challenge of being restricted in one region and also reluctance of some of the respondents. However, choosing a large sample size addressed this challenge. The study revealed that strategic planning, technology innovation, employee engagement and customer retention had a positive significance towards influencing performance of KCB in the eastern region of Kenya. Specifically, the study established that KCB’s investment in strategic management tools such as strategic planning, technology innovation, employee engagement and customer retention directly and positively impacted on the bank’s strategic performance in the Lower Eastern Region.