Relationship between Strategy Implementation and Performance in Commercial Banks in Nairobi County Kenya

  •  Jecinta Waititu    


A Strategy is an essential management contrivance in any organization today. The tests of the modern business environment and fast changing global economy demands high productivity speed and flexibility for organizations that seeks to thrive. In order to achieve the required efficiency and effectiveness, organizations must change their structure strategically. The main aim of this research work was to analyze the key drivers affecting strategy implementation in the commercial banks in Nairobi, Kenya. Specifically the study endeavored to determine whether communication systems affect implementation of strategy in commercial banks, establish whether leadership styles affect implementation of strategy in commercial banks, establish whether organizational structure affect implementation of strategy in commercial banks and establish whether organizational culture affects the implementation of strategy in commercial banks in Nairobi, Kenya. The study adopted a descriptive and quantitative design. The study targeted top management of the head offices of listed commercial banks in Nairobi consisting of a total of 191 respondents. The data generated by the study after fieldwork was edited, coded then entered into a computer for processing using the Statistical Package for Social Sciences (SPSS v. 21.0). Descriptive and inferential statistics were used to analyze information generated from respondents. The data collected has been presented by use of percentages, frequency distributions, tables and figures. From the research work findings, the study concluded that those listed commercial banks at NSE in Nairobi County-Kenya that invested heavily in innovation in effective communication systems, inspirational leadership, functional organization structure and culture recorded high level of strategic implementation performance revealed by unanimous consent of “Good strategies implemented has increased our profitability levels for the last five years”. The study recommends that, the managers should always give direction and supervision through different phases of strategy implementation. Implementing a change is often done in phases. The listed banks at NSE leadership need to be able to identify when each phase of a strategic implementation is complete and be ready to transition the organization to the next phase.

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