The EPRG (ethnocentric Polycentric Regiocentric Geocentric) model applied to KCB Bank Group as a multinational corporation

Abstract

Kenyan organizations including banks have been eyeing the East African region. KCB Bank Group has been leading in internationalization. This study sought to establish the EPRG strategy employed by KCB Bank Group in the management of its subsidiaries. The study employed a case study design on KCB Bank Group by way of interviews with managers across different shared functions and executives of KCB Bank Group with each taking approximately 40 minutes. The findings revealed that KCB Bank Group majorly employs a top-down management approach in executing its organization management function. Further, the KCB Bank Group majorly employs ethnocentric approach in managing the internationalized Bank Group. However, the Bank has neither an internationalization policy nor an EPRG policy. The researcher found out that the model is unpopular with the subsidiaries as envisaged by a strong push by the subsidiaries for independence from the host country. The respondents suggested that an integrated approach would allow the subsidiaries views, expertise, local understanding and individual competencies, irrespective of the source of a value adding virtue for the bank’s competitiveness. In the view of the findings, the researcher recommended that KCB Bank Group should adopt an integrated approach. This can enormously tame the resistance from the local subsidiaries as they would feel they are part of decisions making in the organization hence own the responsibilities. In the view of the findings of this research, other local banks eyeing the regional market should adopt an integrated EPRG strategy which should be backed by an appropriately framed internationalization policy.