Strategic Leadership Practices and Performance of Banking Sector in Kenya: A Case Study of Equity Bank Limited, Head Office
Like other financial institutions, Equity bank Limited is constantly affected by changes in the external environment that include government regulations, trading blocks, increasing cost of inputs, increased competition and improved customer awareness. The main objective of this study was to establish strategic leadership practices and performance of Banking Sector in Kenya, with reference to Equity Bank Limited. Specifically, the study sought to; examine the influence of corporate strategic direction; corporate resource allocation; balanced organizational controls and ethical practices on performance of Equity Bank Limited. The study is anchored on leadership trait, institutional and goal setting theory. The study used descriptive research design. The target populations were 175 employees at Equity Bank head office that were selected using random stratified sampling procedure. Structured questionnaires were used for data collection. Data was analyzed using SPSS software. Descriptive statistics including mean, percentages, standard deviation and correlation analyses were used. The study established that corporate strategic direction affects organization performance to a large extent and therefore it concludes that corporate strategic direction is significant determinant in the performance of organizations. It also established that corporate resource allocation influences the performance of Equity bank and the study concludes that corporate resource allocation affects organization performance to a great extent, which denotes a strong positive correlation between corporate resource allocation and organization performance. It was also established that balanced organizational controls affects organization performance to a great extent and the study concludes that balanced organizational controls is a significant determinant of organization performance and finally the it was established that ethical practices affects organization performance to a great extent and the conclusion is that ethical practices significantly to organization performance. Recommendations for improvement includes: formulation of guidelines, governing structure and strategic plans for effective implementation of organization goals and objectives; investment in human capital. Board of directors and management of Equity Bank ought to understand that organizational controls facilitate making reactive and proactive corrective adjustments to strategies as they are implemented and to create and ensure a strong ethical ethos in the organization. Basing on the findings of this study, the conclusion and subsequent recommendation, there is need for a further study on strategic leadership practices and organizational performance in the telecommunication sector in Kenya whereby the study should seek to provide more insights on the current study findings and validate these findings.
Keywords: Corporate Strategic Direction, Corporate Resource Allocation, Balanced Organizational Controls, Ethical Practice, Organization Performance, Strategic Leadership Practices, Performance of Banking Sector and Equity Bank Limited
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