Influence of Strategic Planning on Performance of Tier 3 Commercial Banks in Kenya
DOI:
https://doi.org/10.47941/jbsm.3020Keywords:
Strategic Planning, Performance, Tier 3 Commercial BanksAbstract
Purpose: The general objective of the study was to determine the influence of strategic planning on the performance of Tier 3 Commercial Banks in Kenya.
Methodology: The study adopted the use of a descriptive research design. The study targeted a population of 427 respondents, with the sample frame being a list of respondents from Tier 3 commercial banks. Stratified random sampling was used in the study, and the sample size was 207 respondents from Tier 3 commercial banks. The study used semi-structured questionnaires to obtain primary data for analysis. The choice of this instrument was based on its ease of administration, analysis, and cost-effectiveness. The collected data were cleaned, edited, and entered into the Statistical Package for the Social Sciences (SPSS V. 28) software to enable the analysis. Both descriptive and inferential statistics were carried out, with data analyzed using descriptive statistics such as mean and standard deviation. Inferential statistics, such as linear correlation and regression analysis, were conducted to check the influence of strategic planning on the performance of Tier 3 commercial banks in Kenya. The analyzed results were presented using tables.
Findings: The study established that strategic planning statistically and significantly influences bank performance (β = 0.153, t (78) = 2.150, p = 0.05). The study concludes that strategic planning stands as a cornerstone in management, particularly within the banking sector, providing a systematic approach to navigate the dynamic and changing aspects of the environment.
Unique Contribution to Theory, Practice and Policy: The study recommends that strategic planning should remain a core practice, with a focus on top management commitment, long-term vision, and continuous environmental scanning.
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