Innovation Strategies and Organizational Performance of Tier One Commercial Banks in Uasin Gishu County, Kenya

The need for innovation is crucial for commercial banks operating in a continuous uncertain and competitive environment. Most importantly, to survive and succeed in the current competitive global financial environment, commercial banks need to be innovative by producing a regular stream of innovations so as to gain competitive advantage. The main purpose of the study was to determine the effect of innovation strategies on organizational performance of tier one commercial banks in Uasin Gishu County, Kenya. The study answered the research questions: How do bank mergers affect organizational performance of tier one commercial banks in Uasin Gishu County, Kenya? And what is the effect of innovation strategies on organizational performance of tier one commercial banks in Uasin Gishu County, Kenya? The study was anchored on diffusion of innovations theory, as the main theory with transaction cost innovation theory, as the supporting theory. The study used a descriptive survey research design. The target population of the study was the tier 1 commercial banks in Uasin Gishu County with a sample size of 93 respondents selected using simple and stratified sampling technique. Data was collected by use of document analysis, self-administered questionnaires and interview schedules to the targeted respondents. Data was analyzed using the Statistical Package for Social Sciences Version 29, employing both descriptive and inferential statistical techniques to describe and depict the results. The study findings revealed the existence of a statistically significant effect for independent variables on organizational performance of the listed tier 1 commercial banks in Uasin Gishu County. The study concluded that the study variables had a statistically significant effect on organizational performance. The study further made recommendations on each of the variables for management consideration in future decision-making processes. The findings are expected to be of great assistance to management of other financial institutions as well as other firms listed or not listed at the securities exchange. Keywords: Innovation Strategies, Bank Mergers, Organizational Performance, Tier 1 Commercial Banks