Analysis of Finance Strategy and Organizational Performance of Tier One Commercial Banks in Kenya
Abstract
Objectives: To determine the influence of finance strategies on performance of tier One listed commercial banks in Kenya. Finance strategy is crucial for banks to remain competitive. However, its influence on performance in banks has not been conclusively researched. Prior work: Studies have established a link between organizational performance and efficient management of assets. Use of mergers and acquisitions as a strategy has witnessed both successes and failures requiring deeper understanding on the application of finance strategies. Approach: Employing a positivist philosophy and a descriptive research strategy, data was gathered through structured questionnaires. Data analysis utilized descriptive statistics (frequencies, percentages, averages, standard deviations) alongside inferential statistics (correlation analysis). Research findings were presented using frequency tables. Results: The study found that there was a strong positive correlation between finance strategies and organizational performance of the banks. Implications and value: The study recommended development of guidelines on mergers and acquisitions, debt management, and financial restructuring by regulators to promote market stability. Banks could also encourage efficient resource allocation especially in digital infrastructure and prioritize high-return expenditures in technology to drive performance.
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