ABSTRACT

In the current 21st century where organizations are surrounded by all kinds of dynamics most of which threaten their existence and growth, strategic management remains the only way out. For an organization to adopt any new strategy, there are those drivers that ought to grease the strategy and make it effective. Strategic management drivers have been known to enhance the performance of organizations across the globe. Strategic management drivers are the key enablers of modern organizations to strategically place themselves in the market through which they gain competitiveness and improved performance. Performance of the tier three banks in Kenya has been declining as evidenced by overwhelming closure of branches, employee turnover and decreasing profit margins. Recently, some tier three commercial banks have been held under receivership while others being on the warning note by the Central Bank of Kenya due to continued underperformance. The main aim of this study was TO establish the influence of strategic management drivers on performance of tier three commercial banks in Kenya. Specifically, the study sought to assess the influence of information technology, customer relationship management, human capital, organizational culture, and organizational planning on the performance of tier three commercial banks in Kenya. The study was informed by five theories which included technology acceptance theory, commitment trust theory, resource-based theory, Durkheim’s theory of culture and systems theory. Descriptive research design was employed while the target population was the 22 tier three commercial banks in Kenya. Due to the minimal number of target population, a census was employed whereby all the 22 tier three commercial banks were included in the study. Purposive sampling was adopted to sample 4 managers from each of the tier three commercial banks which made a total of 88 respondents. Data was collected using structured questionnaire and analysed using mixed analysis method whereby qualitative data was analysed through content analysis and quantitative data analysed through descriptive and inferential statistics. The analysed data was presented in frequency tables, bar-graphs and pie-charts for easier interpretation. The findings revealed that information technology was a key strategic driver that had a significant (P-value=0.000