| dc.description.abstract | Growth strategies constitute plans that organizations develop to expand their business in specific aspects
such as revenue, market share, customer base, or product offerings. Notably, the competitive environment
within the market has resulted in financial institutions scaling back their operations. This study was guided
by four objectives: to establish the effect of market penetration on the performance of commercial banks
in Kenya, specifically NCBA Bank; to determine the effect of market development on the performance
of commercial banks in Kenya, focusing on NCBA Bank; to establish the effect of product development
on the performance of commercial banks in Kenya, with a case study of NCBA Bank; and to determine
the effect of market diversification on the performance of commercial banks in Kenya, again with NCBA
Bank as the case study. The study adopted a descriptive research design with the aim of identifying the
study phenomenon under investigation, specifying the research questions, defining sources and types of
data, and clarifying how data was analyzed and interpreted to answer the research questions. The research
was conducted at NCBA Bank, based in Nairobi and Upper Hill offices. The target population consisted
of 207 employees at NCBA Bank’s head office. The researcher adopted a random stratified sampling
technique, focusing on the target population. Primary data collection involved the administration of
research questionnaires. A pilot study was conducted with 13 individuals from NCBA Bank Limited who
were not included in the final data collection process. Reliability of the study was assessed to ensure
consistent findings, while validity was established to confirm the accuracy of the research instruments.
Data analysis was performed using SPSS version 25 and presented in the form of charts, graphs, and pie
charts. The study reported a moderately significant positive correlation between market penetration on
financial performance, 𝑟(261) = .41, 𝑝 < .001. The findings suggested that enhanced market
penetration methods like agency banking and digital financial services significantly boost financial
performance. Moderately significant positive correlation between market development and financial
performance, 𝑟(261) = .42, 𝑝 < .001. The finding implied that the adoption of financial innovations
such as mobile banking, internet banking, and agency banking has positively impacted the performance
of commercial banks. The computed Pearson Correlation results as shown in Table 4.9 further revealed a
strong significant positive correlation between product development and financial performance of
commercial banks, 𝑟(261) = .62, 𝑝 < .001. There is a strong significant positive correlation between
market diversification and the financial performance of commercial banks in Kenya, 𝑟(261) = .65, 𝑝 <
.001. This study concludes that both marketing innovation, product diversification innovation, and
product innovation and market diversification strategies are integral to the success in the performance of
commercial banks. The study was recommended to the policymakers, practice and areas for further research. | en_US |
