Influence of corporate culture on strategy implementation in tier one Commercial Banks in Kenya

Abstract

This study examined the impact of corporate culture on the effective implementation of business strategy in tier one commercial banks in Kenya. The specific objectives were to assess the influence of adhocracy, clan, market, and hierarchical cultures on strategy implementation. A descriptive survey was conducted, involving six tier one commercial banks as the analytical unit and the management team as the observation unit. The target population consisted of 240 individuals. Stratified sampling was used, and data was collected through questionnaires. Descriptive and inferential statistics were employed for data analysis. The findings were presented using tables and figures. The study revealed that adhocracy culture was prevalent in most tier one banks, as evidenced by adaptable working environments and employee involvement in task management. Clan culture fostered cohesiveness and a sense of belonging among members. Market culture was associated with profitability and organizational focus on key objectives. Hierarchical cultures influenced strategy implementation. Based on the results, the study concluded that adhocracy culture enables leaders to make instinctive decisions as was supported by 80% of the respondents, while clan culture promotes unity and support among employees agreed upon by 75% of respondents. Market culture contributes to organizational success, and hierarchical culture influences implementation approaches. The study recommended that tier one commercial banks in Kenya nurture adhocracy culture to enhance strategy implementation. Creating a clan culture could be achieved through brainstorming sessions, soliciting employee input, active listening by managers, and acting on feedback. Hierarchical culture could be reinforced by emphasizing job titles and roles, enforcing rules and order, promoting top-down communication, emphasizing individual achievements, and maintaining a rigid structure.