Peer Reviewed Open Access

This paper is reviewed in accordance with the Peer Review Program of IRA Academico Research

An Evaluation of Adaptive Capability on Organizational Performance of Tier Two Commercial Banks in Kenya

Wambua Benjamin Mweu, Maria W. Mung’ara
DOI: http://dx.doi.org/10.21013/jmss.v17.n2.p6
Abstract
Banking sector rivalry has escalated which can be attributed to many factors including innovation, new legislation, problems caused by a global financial crisis, government regulations, among others that have resulted in increased competition in the banking sector. The objective of this study was to evaluate the influence of adaptive capability on the organizational performance of tier two commercial banks in Kenya. The study found that the application of adaptive capabilities in commercial banks in Kenya is influenced by mainly customer demands, staff expertise and the prevailing market trends.  The study results show that there is a positive and statistically significant relationship between Adaptive Capability and performance in tier two banks. The study concluded that adaptive capability has a positive and significant relationship with performance in tier two banks. The research findings recommended that the employees should be fully involved in the decision-making process so that they can own up to the strategies being formulated by the top management.
Keywords
Banking, tier two commercial banks, adaptive capability
Full Text:
PDF
References

Aburub, F. (2015). Impact of ERP systems usage on organization agility: An empirical investigation in the banking sector. Information Technology & People, 28(3), 570-588.

Babin, B. J.(2010). Multivariate data analysis: A global perspective (Vol. 7).

Brace, A. B. (2013). Handbook of survey research. Academic Press.

Bushuru, N. J., Namusonge, G. S., Oteki, E. B., & Wandera, R. W. (2014). Factors influencing supply chain performance in the public sugar sector: A Case of Nzoia Sugar Company Limited. International Journal of Recent Research in Commerce Economics and Management (IJRRCEM), 1(3), 18-28.

Castillo, L.K (2011). Seaport research: A structured literature review on methodological issues since the 1980s. Transportation Research, Part A: Policy and Practice, 45(7), 667-685.

Christensen, L. B., Johnson, B., Turner, L. A., & Christensen, L. B. (2011). Research methods, design, and analysis.

DeSarbo, W.S., Di Benedetto, C.A., Song, M. and Sinha, I. (2005) Revisiting the Miles and Snow Framework: Uncovering Interrelationships between Strategic Types, Capabilities, Environmental Uncertainty and Firm Performance. Strategic Management Journal, 26, 47-74. http://dx.doi.org/10.1002/smj.431

Dosi, G. (2000). Innovation, organization and economic dynamics: selected essays. Edward Elgar Publishing.

Forrant, R., & Flynn, E. (1999). Skills, shop-floor participation and the transformation of Brimfield precision: Lessons for the revitalization of the metalworking sector. Industrial and Corporate Change, 8(1), 167-188.

Gathungu, J. M & Mwangi, J. K. (2012). Dynamic Capabilities, Talent Development and Firm Performance. DBA, Africa Management Review Journal, 2(3), 83-100.

Gitonga, C. G. (2012). Factors influencing competitive advantage among commercial banks in Kenya (Masters dissertation, University of Nairobi).

Kiseli, J. M., Senaji, T. A., & Eng, R. (2016). Effect of knowledge management capabilities on competitive advantage in the Kenya hospitality industry: The case of five-star hotels in Kenya. International Academic Journal of Human Resource and Business Administration, 2(2), 106-129.

Mugenda, O. M., & Mugenda, A. (2003). G. (1999). Research Methods in Education.

Oyedijo, A. (2012). Strategic agility and competitive performance in the Nigerian telecommunication industry: an empirical investigation. American International Journal of Contemporary Research, 2(3), 227-237.

Miles, R. and Snow, C. (2001) Organizational Strategy, Structure, and Process. The Academy of Management Review, 3, 546-562

Sullivan, G.M. (2011). A Primer on the Validity of Assessment Instruments. Journal of Business Research

Tarutė, A., & Gatautis, R. (2014). ICT impact on SMEs performance. Procedia-Social and Behavioral Sciences, 110(0), 1218-1225.

Teece, D. J. (2000). Strategies for managing knowledge assets: the role of firm structure and industrial context. Long-range planning, 33(1), 35-54.

Tuan, N. P., & Yoshi, T. (2010). Organisational capabilities, competitive advantage and performance in supporting industries in Vietnam. Asian Academy of Management Journal, 15(1).


©IRA Academico Research & its authors
This article is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License. This article can be used for non-commercial purposes. Mentioning of the publication source is mandatory while referring this article in any future works.