Influence of Strategic Internal Factors on Competitive Advantage of Commercial Banks in Nairobi County, Kenya

Abstract

The objective of the study was to examine the influence of strategic internal factors on competitive advantage in commercial banks Nairobi County, Kenya. The specific objectives of the study were to: assess the influence of strategic planning on competitive advantage in commercial banks Nairobi County, Kenya; Find out the influence of strategic leadership on the competitive advantage in commercial banks Nairobi County, Kenya; Establish the influence of total quality management on competitive advantage in commercial banks Nairobi County, Kenya; Determine the influence of resource allocation on competitive advantage in commercial banks Nairobi County, Kenya. The study population was 86 (managers and deputies) of the commercial banks based within Nairobi County. The study adopted a descriptive research design and census was adopted to conduct the study. According to the regression model summary the correlation coefficient showed the relationship between the independent variables (strategic planning, strategic leadership, resource allocation and total quality management) and dependent variable (competitive advantage of commercial banks) and had a strong positive significant relationship. The practical implications of the study is that the research outcomes might assist regulatory bodies, policymakers and other financial institutions in their formulation of governance strategies to enhance performance of commercial banks. This study also provides a unique contribution to the literature of strategic internal factors and competitiveness of commercial banks in the emerging economies.