STRATEGIC CHANGE MANAGEMENT AND ORGANIZATIONAL PERFORMANCE OF MICROFINANCE BANKS IN KENYA
Abstract
Purpose of the study: This research examined the influence of strategic change management on the organizational performance of Microfinance banks in Kenya.
Problem statement: The overall performance of Microfinance banks in Kenya has been on a downward trend in recent years.
Methodology: The study adopted a descriptive research design and made use of stratified random sampling method whereby, a target population of 201 managers from the 14 Microfinance banks licensed by the Central Bank of Kenya were selected. Data collection relied on Likert-scale questionnaires, which were administered to a sample of 134 participants. Data analysis involved both descriptive and inferential tests.
Results: The findings indicated that strategic change management has a statistically significant positive relationship with organizational performance.
Conclusion: The findings underscore that streamlined structures, strong cultural values and effective leadership are vital for creating resilient organizations that can adjust to shifting market conditions.
Recommendations: The study recommends that management communicate a clear and compelling vision and reinforce it through consistent engagement with employees at all levels. It also emphasizes the importance of fostering interdepartmental collaboration, as this builds confidence and trust between departments.
Keywords: Strategic change management, Organizational performance, Microfinance banks, Kenya.
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