| dc.description.abstract | The banking industry in Kenya faces intense competition. According to Kenya Bankers Association Report of 2016/2017, the banks have experienced declining performance dropping in profitability by 12.3%. Commercial banks have to constantly redesign their strategies to remain competitive or to survive amid the challenges that they face which has translated to their declining performance over the recent years. Research shows how organizations have responded to changes in the business environment. Further, literature is on the subject of strategy has focussed on the subject of strategic planning, strategy implementation and touches on organizational control. Evidence on relationship of strategic approaches of cost reduction or innovation with competitive advantage in banks is unclear. This is despite the fact that these strategic approaches contribute to competitive advantage as argued in theoretical literature. Specifically, there is unclear empirical evidence that this relationship has been explored in commercial banks in Kenya yet the banks may benefit from information on effect of strategic approaches on competitive advantage as this may aid in solving the challenges they face. Therefore, this study seeks to establish effect of strategic approaches on competitive advantage of commercial banks in Nairobi, Kenya. Specifically, the study seeks to investigate effect of cost reduction strategies on competitive advantage and establish effect of innovation strategies on competitive advantage among these banks. The study will be guided by Resource Based View Theory. Correlation survey research design will be adopted. The population will comprise all the 44 chief executives of all the commercial in Nairobi City. Saturated sampling will be used. Data will be collected from secondary and primary sources. The former, from relevant documents of the banks and government and; the latter from respondents using structured questionnaire. Validity and reliability of questionnaire will be tested on pilot data targeting 5 respondents. Validity will be established through expert review. Reliability will be determined using Cronbach's Alpha test set at 0.7. Descriptive and inferential statistics data. Regression analysis will be conducted for the two objectives.. Findings will be presented in tables and graphs. The results may be used by policy makers in banking industry and government in formulating policies. Researchers may also pursue further research from the study. | en_US |
