Abstract: In the recent years, corporate restructuring has become a key strategy undertaken by many commercial banks in order to survive in the fierce business environment (World Bank, 2013). The main objective of the study was to establish the effect of restructuring strategy on profitability of commercial banks in Kenya. The study specifically aimed to; determine the effect of change of organizational structure; establish the effect of operational costs reduction; assess the effect of new technology adoption and examine the effect of competitive advantage on the profitability of commercial banks in Kenya. The study adopted a descriptive research design and the target population comprised of 43 commercial banks in Kenya. The study applied a stratified random sampling technique to select a total of 12 commercial banks as the sample size for the study. The main data collection instruments were the questionnaires and a pilot study was carried out to test the reliability and validity of the questionnaires. Descriptive statistics data analysis method was applied analyze data aided by Statistical Package for Social Sciences (SPSS) to compute responses frequencies, percentage mean and standard deviation results. Finally, Multiple Linear Regression model was employed to establish the significance of the independent variables on the dependent variable. The findings were presented using tables and charts. The study findings showed that implementation of restructuring strategy led to change of organizational structure; reduction of operational costs; adoption of new technology and increased banks competitive advantage in the target market hence leading to increased banks profitability.
Keywords: Operational costs, Restructuring and New Technology adoption.
Title: EFFECT OF RESTRUCTURING STRATEGY ON PROFITABILITY OF COMMERCIAL BANKS IN KENYA: A SURVEY OF COMMERCIAL BANKS IN KENYA
Author: MOGOI GEOFFREY MESESI, DR. SAMSON NYANG’AU
International Journal of Social Science and Humanities Research
ISSN 2348-3156 (Print), ISSN 2348-3164 (online)
Research Publish Journals
