Corporate Strategies and Financial Performance among Foreign Commercial Banks in Bujumbura, Burundi
Keywords:
Corporate strategies; financial performance; linear regression analysis; foreign commercial banks; Burundi
Abstract
This study investigated the relationship between corporate strategies and financial performance among foreign commercial banks in Burundi. The study used cross-sectional descriptive research design using a quantitative approach. The target population was 219 employees including technical staff and management. A sample size of 142 respondents was determined and simple random sampling was used to select the respondents. The questionnaire was used as the main data collection instrument and data was analyzed using linear and multiple regression analysis. The study revealed that corporate strategy significantly affects the financial performance of foreign commercial banks in Bujumbura (Adjusted R2=0.281, p=0.000). In addition, it was found that competitive strategy significantly affects the financial performance of foreign commercial banks in Bujumbura (Adjusted R2=0.147, p=0.000). Similarly, the study revealed that operational strategy significantly affects the financial performance of foreign commercial banks in Bujumbura (Adjusted R2=0.229, p=0.000). The study concluded that corporate strategies significantly affect financial performance. The study made the following recommendations: management of foreign commercial banks should employ the use of a total quality management system, should make use of a customer relationship management system, should employ advanced and constant methods of market research, and continuously develop new processes of delivering quality services to their customers.
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References
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Edward, J. B. (2014). Effects of Operations and Innovation Strategy Fit on Company Performance. The University of Texas at Arlington.
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Gatwiri, M., Bichanga, W. O., Loki, M. & Makau, N. F. (2014). Effects of expansion strategies on performance of selected commercial banks in South Nyanza Region, Kenya. Master’s Thesis, University of Nairobi.
Ginting, G. (2015). Open innovation model: Empowering entrepreneurial orientation and utilizing network resources as a determinant for internationalization performance of small-medium agroindustry. Agriculture and Agricultural Science Procedia, 3, 56-61.
Gituma, M. M. (2017). Effects of Marketing Mix on Sales Performance: A Case of Unga Feeds Limited (Doctoral dissertation, United States International University-Africa). Retrieved December 28, 2018, from http://erepo.usiu.ac.ke/handle/11732/3664
Gopesh, A. (2006). Continuous Improvement and Operations Strategy: Focus on Six Sigma Programs. PhD Dissertation, the Ohio State University.
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Ireland, D. R., Hoskisson, R. E. & dan Hitt, M. A. (2012). Understanding Business Strategy, 3rd edition, South-Western College.
Jackson, S. L. (2009). Research Methods and Statistics: A Critical Thinking Approach 3rd edition. Belmont, CA: Wadsworth.
Jahanshahi, A. A., Rezaei, M., Nawaser, K., Ranjbar, V. & Pitamber, B. K. (2012). Analyzing the effects of electronic commerce on organizational performance: Evidence from small and medium enterprises. African Journal of Business Management, 6(22), 6486-6496.
Kariuki, M. W. (2014). Evaluation of Competitive Strategies Implemented by Barclays Bank of Kenya. Unpublished Master of Business Administration Research Project of the University of Nairobi.
Keragia, S. M., Shukla, J., Warren, K. J. & Kibachia, J. (2017). Effect of Market Entry Strategies on the Performance of Foreign-Owned Commercial Banks in Rwanda. European Journal of Business and Social Sciences, 6(7), 33-41.
Kharatyan, D. (2016). Ratios and indicators that determine return on equity (Doctoral dissertation). Retrieved January 9, 2019, from https://bibliotecadigital.ipb.pt/handle/10198/13313
Kimando, L. N., Njogu, G.W. & Sakwa. M. (2012). An analysis of Competitive strategies employed by private universities in Kenya. Management Science and Engineering journal, 6(2), 55-70.
Kinyeki, J. (2016). Effects of Expansion Strategies on Performance by Equity Bank Ltd. Unpublished MBA Project.
Kwabena, J. A. (2016). Strategic Planning and Performance of Micro and Small Family Businesses in Ghana. The Resource-Based Approach. Master’s Thesis, Kwame Nkrumah University.
Liu, H., Ke, W., Kee Wei, K. & Hua, Z. (2013). Effects of supply chain integration and market orientation on firm performance: Evidence from China. International Journal of Operations & Production Management, 33(3), 322-346.
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Published
2023-12-27
How to Cite
Shingiro, J. O., & Awolusi, O. D. (2023). Corporate Strategies and Financial Performance among Foreign Commercial Banks in Bujumbura, Burundi. Journal of Economics and Behavioral Studies, 15(4(J), 87-105. https://doi.org/10.22610/jebs.v15i4(J).3659
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