Effects of Product Design on Performance of Commercial Banks in Garissa County, Kenya

International Journal of Research and Innovation in Social Science (IJRISS) | Volume V, Issue VIII, August 2021 | ISSN 2454–6186

Effects of Product Design on Performance of Commercial Banks in Garissa County, Kenya

 Abdirahman Mohamed Roble; Dr. Jane Wanjira
Kenyatta University, Kenya

Abstract: An organization’s superior performance mostly results from its strategic choice that provides the firm a better positioning in the industry structure. As a result of dynamic environment banks face arising from high competition posed by the other commercial and non-commercial banks. Therefore, in a highly uncertain and changing environment, strategic managers need to have the strategic flexibility to respond to problems speedily. Therefore, the study sought to determine the effect of product design on performance of commercial banks in Garissa County, Kenya. This study employed a descriptive survey research design. The population for this study was four commercial banks namely: Kenya Commercial Bank, Equity Bank, Cooperative Bank and National Bank in Garissa County, Kenya. The respondents were managers in top, middle and low level management employees. A census of 82 respondents was carried out. Primary data was collected using a structured questionnaire. Quantitative data was analyzed using descriptive statistics. The study further carried out multiple regressions to determine the effect between variables. The study found that product design had a positive and significant effect on the performance. The study concluded that the banks have a very effective product design implementation that has enhanced their performance by attracting more consumers, providing ease, and making services available to their customers. The study recommended that the commercial banks should create a solid understanding of their opportunities by looking at the entire market based on their customer to determine the actual potential.

Key words: Product Design, Organizational Performance, Organizational strategy

I. INTRODUCTION

The primary objective of any organizations is to make profit, grow and survive in the environment in which it operates. The environment tends, shape the outlook, and goal of the organization by placing constraints on them (Derek, 2016). These constraints in the environment of organizations goal could be in the form of competition, this sets a limit on the goals specify by the organization. According to Kareem (2017) organizations performance depends on the appropriate strategy adoptions to a complex and ever changing environment. Therefore, performance of the organization relates to how an organization understands and responds strategically to certain environment changes.

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