Please use this identifier to cite or link to this item: http://hdl.handle.net/20.500.12306/14061
Title: Corporate strategies and financial performance among foreign commercial banks in Bujumbura, Burundi
Authors: Shingiro, Jean Oxas
Keywords: Corporate strategies
Financial performance
Foreign Commercial banks
Burundi
Issue Date: Mar-2020
Publisher: Kampala International University, College of Economics and Management
Abstract: There has been a drop in the financial performance of foreign commercial banks in Burundi. This has been attributed to the high level of competition, political interference, high level of poverty and low level of penetration to the rural ‘unbanked’, failure to recover loans/increasing non-performing loans, and decrease in return on assets. This study therefore investigated the relationship between corporate strategies and financial performance among foreign commercial banks in Burundi. The following objectives guided the study: to examine the effect of competitive strategy on the financial performance of foreign commercial banks in Bujumbura; to determine the effect operational strategy on the financial performance of foreign commercial banks in Bujumbura; and to establish the effect of resource governance on the financial performance of foreign commercial banks in Bujumbura. The study used cross-sectional descriptive research design using a quantitative approach. The target population was 219 employees who included technical staff. A sample size of 142 respondents was determined and the simple random sampling was used to select the respondents. Questionnaire was used as the data collection instrument and data was analyzed using frequency, percentage tables, mean, standard deviations, and linear regression analysis. The study revealed that competitive strategy significantly affects financial performance of foreign commercial banks in Bujumbura (R2=0.153, p=0.000). Similarly, the study revealed that operational strategy significantly affects the financial performance of foreign commercial banks in Bujumbura (R2=0.234, p=0.000). Lastly, the study revealed that resource governance significantly affects financial performance of foreign commercial banks in Bujumbura (R2=0.286, p=0.000). The study concluded that corporate strategies significantly affect financial performance. The study made the following recommendations: the management of foreign commercial banks should employ advanced and constant methods of market research so as to be on ‘the know’ of market threats, and opportunities; the management of foreign commercial banks should develop new processes of delivering their services to their customers; and the foreign commercial banks should continue improving the competence and skills of their employees through in-service training, conferences, meetings, and seminars. The study adds to the body of knowledge that in the banking industry of Burundi, the use of competitive strategies, operational strategies, and resource governance has significant effects on financial performance.
Description: A thesis submitted to the college of economics and management in partial fulfillment for the Requirements for the award of the Degree of Master’s in International Business of Kampala International University.
URI: http://hdl.handle.net/20.500.12306/14061
Appears in Collections:Masters of International Business

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