Marketing Outsourcing and Performance of Commercial Banks in Kenya

Abstract

Marketing of banking product offerings is an emerging phenomenon that has potential effect on performance of commercial banks especially in the prevailing situation where globally, the banking sector is struggling to bounce bank to positive performance since the 2007-2008 global financial crunch. In Kenya, commercial banks are facing performance challenges as evidenced by recent assumption of cost rationalization measures such as staff lay-offs and closure of redundant branches; acquisition, liquidation and statutory management of some due to liquidity problems. Despite appropriation of different strategies to mitigate the performance challenges, commercial banks continue to struggle to have sustainable performance. This study sought to establish the effect of marketing outsourcing (MO) on performance of commercial banks in Kenya. The study employed cross-sectional explanatory and descriptive research designs. The target population was thirty two commercial banks. Primary data were collected using self-administered questionnaires. Descriptive statistics were computed to describe the characteristics of the study variables while linear regression analysis was used to establish the nature and magnitude of the relationship between the independent and dependent variables. Statistical tests were subjected to 95 per cent level of significance (p=≤0.05). The study established that outsourcing marketing processes had a statistically significant positive effect on performance of commercial banks in Kenya ( =0.122; p=0.000). Owing to the findings, the study recommends that commercial banks should develop policies that embed marketing outsourcing

Antecedents of Organization Performance: Leveraging Assimilation Capacity in the Context of Insurance Companies in Nairobi City County, Kenya

“…Accordingly, the set of items for the distinct research variables were therefore found to be reliable for use in the final study. The benchmark alpha index of 0.7 has been adopted by past research for making decision on reliability of research instrument [33,24,12,15,28,34].…”