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Asian Institute of Research, Journal Publication, Journal Academics, Education Journal, Asian Institute
Asian Institute of Research, Journal Publication, Journal Academics, Education Journal, Asian Institute

Economics and Business

Quarterly Reviews

ISSN 2775-9237 (Online)

asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
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doi
open access

Published: 13 December 2024

Leveraging Business Globalization to Accelerate Performance of Commercial Banks in Kenya

Elizabeth Wandia, Stephen Makau Muathe

Kenyatta University

asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, management journal

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doi

10.31014/aior.1992.07.04.636

Pages: 261-275

Keywords: Business Globalization, Market Liberalization, Technological Advancements, Competitive Intensity, and Global Financial Integration, Performance

Abstract

Commercial banks are facing a decline in revenues, indicating a potential downward trend. Banks have experienced intensified competition leading them to tap into foreign capital and expand their market internationally. In Kenyan banks, there has been a decline in the ROE from 26.6% in 2014, 25.2% in 2015, 24.5% in 2016, 21.8% in 2019 and finally 13.9% in 2020. The study sought to establish the effect of business globalization on performance of commercial banks in Kenya. The objectives were to analyze the effects of market liberalization, technological advancements, competitive intensity, and global financial integration. Descriptive research design was employed. The target population was all 39 banks in Kenya. The units of observation were the 1226 staff. Multiple linear regression was used in analysis employed. The study found that monetary policy, interest rate liberalization, and financial system changes have significant impact on commercial banks' performance. Technological innovations, Research and development, innovation, spread of new ideas and number of patents granted contributes to the success of banks in the region. Intensity of competition, brand preferences, business aesthetics greatly and expansion of the economy greatly affect the performance banks. Banks need to establish robust liberalized markets that provide easier access to global markets. The banks management should focus on increasing investments in patenting, digital innovation, and research and development to connect with the unbanked segments of the global market.

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