Strategy Implementation Practices and Performance of Commercial Banks in Nakuru County

Abstract

Organizational performance entails recurring duties like establishing organizational goals, monitoring progress towards those objectives, and making modifications to enhance their accomplishment in a more efficient manner. Strategy implementation represents a significant phase within an organization; however, existing literature consistently underscores a notable failure rate in the implementation process across numerous organizations. The prevalence of poor performance in banks is attributed to issues such as inadequate coordination, suboptimal structural frameworks, and insufficient personnel proficiency in executing rebranding strategies. As a result, the goal of this study was to look into how Nakuru's commercial banks implemented their strategies and how well they did so. General Systems Theory, Contingency Theory, and Resource-Based Theory served as the study's guiding theories. The study targeted 108 workers from 24 commercial banks in Nakuru County using a descriptive survey research approach. A sample of 54 respondents was chosen using a stratified random selection procedure to assure representation. Structured questionnaires were used to obtain data, and they were chosen for their propensity to do so with little bias and mistake. Pilot research was done in Narok County commercial banks prior to the main investigation. The data was analysed using both descriptive and inferential statistics. Percentages, frequencies, measurements of central tendency (mean), and measures of dispersion (standard deviation) were examples of descriptive statistics. Correlations were used for inferential analysis of qualitative data. To analyse quantitative data, Version 25 of the Statistical Package for the Social Sciences (SPSS) was utilized. The study found that resources, organizational change, structure, and leadership significantly influence the performance of commercial banks in Nakuru CBD. Effective resource allocation, strategic change management, well-defined organizational structures, and strong leadership positively impact operational efficiency and overall performance. The study recommends investing in employee training, optimizing IT services, and aligning organizational structures with strategic goals. Further research should examine how organizational capabilities and market dynamics shape performance outcomes.