| dc.description.abstract | The financial health of Tier One commercial banks in Nairobi County has been challenged by operational inefficiencies, regulatory compliance issues, and the need for technological adaptation. Despite demonstrating strong financial performance, these banks faced rising operational costs, increasing competition, and a growing burden of non-performing loans, factors that necessitated strategic innovation to maintain market dominance. This study aimed at evaluating the effect of strategy implementation on the performance of Tier One commercial banks in Nairobi County, Kenya. Specifically, the study: examined the effect of resource allocation on bank performance; assessed the influence of leadership style; determined the effect of organizational structure; and evaluated the impact of attention to technological requirements. The research was grounded in the Resource-Based View (RBV), Dynamic Capabilities Theory, and Transformational Leadership Theory, providing an integrated theoretical foundation for understanding how strategic components interact to influence performance outcomes. The study adopted a descriptive research design. The population comprised 263 senior and middle-level managers across 11 Tier One banks, from which a purposive sample of 88 respondents from 8 banks was selected. Primary data were collected using structured questionnaires and analysed with SPSS Version 26.0. Descriptive, diagnostic and inferential statistics were used; inferential procedures included Pearson correlation analysis, analysis of variance (ANOVA) and multiple linear regression to determine the independent contributions of each strategy variable. At the bivariate level, significant correlations were observed between bank performance and Resource Allocation (r = 0.630, p < 0.001) and Attention to Technological Requirements (r = 0.644, p < 0.001). Leadership Style showed a positive correlation with performance (r = 0.357, p = 0.002), while Organizational Structure correlated negatively but not significantly (r = −0.187, p = 0.113). Multiple linear regression results indicated that the model explained a substantial proportion of variance in performance (R = 0.747; R² = 0.558; Adjusted R² = 0.532; Std. Error = 0.44660). Regression coefficients were: Resource Allocation (B = 0.332, β = 0.389, t = 3.905, p < 0.001); Leadership Style (B = 0.056, β = 0.048, t = 0.510, p = 0.611); Organizational Structure (B = −0.093, β = −0.081, t = −0.951, p = 0.345); and Attention to Technological Requirements (B = 0.471, β = 0.436, t = 4.680, p < 0.001). These results show that Resource Allocation and Technological Requirements were the strongest and statistically significant predictors of performance in the combined model, whereas Leadership Style and Organizational Structure did not contribute significantly when all variables were considered simultaneously. The study concluded that an integrated strategic approach is required to optimise bank performance: prioritising investments in technology and ensuring flexible, strategic resource allocation are critical; leadership effectiveness should be aligned with these investments for maximum impact; and structural misalignments should be addressed to avoid undermining strategic execution. The study recommends targeted leadership development, greater investment in adaptable digital infrastructure, agile resource-allocation frameworks, and periodic structural reviews to enhance strategic fit. Future research could examine the mediating or moderating role of organisational culture and the long-term effects of emerging fintech on strategy implementation and performance in the banking sector. | en_US |
