Effect of Organizational Structure on the Relationship between Porter’s Generic Strategies and Performance of Financial Institutions in Turkana Central Sub-County, Kenya

Abstract

The performance of financial institutions (PFI) has been declining and very few financial institutions have experienced a marginal upward trend in their performance. This study sought to investigate the influence of Porter’s Generic Strategies on the PFI in Turkana Central Sub-County, Kenya. The study sought to evaluate the influence of organizational structure on the relationship between porters’ generic strategies and performance of financial institutions in Turkana Central Sub-County. This study was anchored on the Resource Based View Theory and Theory of Financial Intermediation. The study employed a correlational research design. The target population consisted of 27 respondents drawn from seven (7) Financial Institutions in Turkana Central Sub-County. It was construed that the influence of organizational structure on the relationship between Porter’s Generic Strategies and PFI as the moderator led to the overall (average) regression coefficient (B) to change from 0.553 from 0.447. It was recommended that organizations should improve on their organizational structure to facilitate decision making process and communication making it fair, equitable and effective. The findings of the study would go a long way in helping the financial institutions in Turkana Central Sub-County to improve their performance through sound and robust generic strategies.