Influence of global strategies on the operations of foreign multinational commercial banks in Kenya

Abstract

The purpose of the study is to determine the influence of global strategies on the operational performance of foreign multinational commercial banks in Kenya. The study explores the relationship between global strategic initiatives and the operational performance of the foreign multinational banks in Kenya. It answers the questions; What Global strategies have multinational commercial banks in Kenya adopted? What is the influence of global strategies to operational performance of the foreign multinational commercial banks in Kenya? The researcher used cross sectional study method in undertaking the qualitative study. The target population was all the foreign multinational commercial banks in Kenya that operate in more than three (3) countries. Owing to the nature of the study only the senior and middle level management staff were target respondents. The study had a sample size of 32 respondents with a 65.6% response rate. A self-administered structured questionnaire was used and analysed using regression analysis, descriptive and inferential statistics and with the help of the Statistical Package for Social Sciences (SPSS). The study will be significant to scholars in the field of Global strategy, Government and regulatory bodies and the multinational banks operating in Kenya. The study found out that global strategies like product innovations and call centre services were adopted to a very high extent while niche marketing, mobile banking, mergers and acquisitions and online banking to a high extent. The study recommends that multinational commercial banks in Kenya should focus on product and service innovations strategies to improve their operations and competitive advantage. Further studies on the extent to which global strategies have impacted customer growth in the multinational banks are recommended.