Influence of Strategy Formulation Process Management Strategy on Organizational Performance of Top Tier Commercial Banks in Nairobi County – Kenya

Abstract

The firm's critical choices on innovation and performance are significantly influenced by the innovation management tactics that are used. This study sought to establish the effect of strategy formulation process on organizational performance of top tier commercial banks in Nairobi County, Kenya. This study was guided by Dynamic Capability Theory. A descriptive survey was used as the study design. The study population was 314 respondents. A total of 252 participants made up the study's sample size. The study used stratified and simple random sampling to identify the respondents. Descriptive statistical methods were used to analyze data and data was presented in form of tables, means, standard deviation, percentages, frequencies and figures. Simple linear regression was used to test the effect of variables Inferential statistics include regression analysis. The study concludes that strategy formulation process management strategy has a positive and significant effect on organizational performance of top tier commercial banks in Nairobi County, Kenya. The study recommends that the management of commercial banks should incorporate a bottom-up approach to strategy formulation. This could involve creating opportunities for employees at all levels to provide input on the organization's strategic direction. The management should also continue to invest in environmental scanning. This will help the organization stay ahead of the curve and identify new opportunities for innovation.