Abstract: The study sought to examine the association between competitive strategies and performance of commercial banks in Uasin Gishu County. This research was based on theories of resource based view, open systems, strategic balancing, Porter's five forces model and theory of performance. These theories and variables of the study were related with the help of a conceptual framework. The study adopted descriptive research design. Population for the study comprised of 37 commercial banks and their management staff. The sample size was 34 commercial banks from which 102 respondents who were selected through purposive, stratified and simple random sampling. Data collection was done using structured questionnaires. The collected data was coded, cleaned and tabulated through the use of SPSS version 21 software. Descriptive and inferential data analysis including regression analysis were used to analyse the data. Pearson’s Product Moment Correlation Coefficient was also used to determine whether there is significant relationship between differentiation strategy, cost leadership strategy, focus strategy and product innovation strategy and performance of commercial banks in Uasin Gishu County. The results of the correlation analysis indicated no evidence of multicollinearity among the variables. Regression results indicated that the use of differentiation, cost leadership, focus and product innovation strategies had a positive and statistically significant influence on the performance of commercial banks with coefficients of (B=0.560, p<0.001), (B=0.314 p<0.001), (B=0.254 p<0.001) and (B=0.516 p<0.001) respectively. These results indicate that for each unit adoption of these strategies, there was a corresponding increase in commercial bank performance by the values of the coefficients. Based on the results of this study, therefore, it was concluded that competitive strategies positively impacted the financial results of banking institutions in Uasin Gishu County. The study recommended that commercial bank’s leadership teams should be keen on the use of competitive strategies as the success of a business or strategy primarily depends on the innovativeness, uniqueness, energy and expertise of its management staff.
Keywords: Competitive Strategies, Cost Leadership Strategy, Focus Strategy, Differentiation strategy, Product innovation strategy and Performance.
Title: Competitive Strategies and Performance of Selected Commercial Banks in Uasin Gishu County, Kenya
Author: Kenneth Otieno, Dr.Abel Anyieni
International Journal of Social Science and Humanities Research
ISSN 2348-3156 (Print), ISSN 2348-3164 (online)
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