THE EFFECT OF KNOWLEDGE MANAGEMENT FACTORS ON IMPLEMENTATION OF BUSINESS STRATEGY AMONG COMMERCIALBANKS: A CASE OF BANKING INSTITUTIONS IN CHUKA TOWN, KENYA

Abstract

The objectives of the study were to determine the effect of Organization Culture and Information Technology on implementation of business strategy. Exploratory research design was used in the study. The target population of the study was seventy-nine staff, of the six commercial banks in Chuka town. A sample of seventy-four staff was selected from the population. There were two main sampling designs used in the study: Purposive sampling was used to select the middle level and management staff categories. A census survey of ten management staff was conducted. Stratified sampling was done between banks and within each bank stratification was done in the two levels: middle level and management. A proportionate sample size of sixty-four middle level staff was selected. Primary data was collected from employees of the banks through the use of questionnaires and interview schedules. Data was then analyzed using descriptive statistics such as percentages and frequencies through Statistical Package for Social Sciences.Information Technology was found to have the greatest effect on implementation of business strategy with 76% of the respondents indicating some level of importance. Organization culture affected implementation of business strategy by 67% rate. These research findings would be useful to commercial banks in helping them to carefully align their Organization Culture and Information Technology towards effective implementation of business strategy.