EFFECT OF LEARNING AND LEADERSHIP ON IMPLEMENTATION OF BUSINESS STRATEGYIN THE BANKING SECTOR, KENYA

Abstract

In the Banking sector, banks have traditionally relied on asset bases and sizefor competitive advantage but this is becoming more difficult to sustain owing to competition. Despite the benefits gained by knowledge management in other industries, there is need to establish whether knowledge management would be of strategic importance in the banking sector. This study sought to establish the effect of knowledge management factors on implementation of business strategy at banking institutions in Chuka town. Exploratory research design was used in the study. The target population of thestudy was seventy-nine staff, of the six commercial banks in Chuka town. A sample of seventy-four staff was selected from the population. A census survey of ten management staff was conducted. Stratified sampling was done between banks and within each bank stratification was done in the two levels: middle level and management. A proportionate sample size of sixty-four middle level staff was selected. Primary data was collected from employees of the banks through the use of questionnaires and interview schedules. Data was then analyzed using descriptive statistics such as percentages and frequencies through Statistical Package for Social Sciences.Learning and Leadership affected implementation of business strategy at 74% and 71% respectively. These research findings would be useful to commercial banks in helping them to carefully align their Learning and Leadership style towards effective implementation of business strategy.