The Relationship between Board Members’ Knowledge and Organizational Performance of Private Commercial Banks in Nairobi County, Kenya

Abstract

Many organizations are striving to enhance their organization performance by creating and commercializing knowledge in a timely and cost-efficient manner. Given the intensifying competitive environment, the critical determinant of organizational success is the effectiveness of board of directors. The purpose of the study was to establish the relationship between board members’ characteristics and organizational performance, drawing empirical lessons from private commercial banks in Nairobi County, Kenya. Based on the study, this paper examines the relationship between board members’ knowledge and organizational performance. The study employed a correlation research design. It targeted 207 senior management staff drawn from 28 private commercial banks within Nairobi County. Stratified and random sampling technique was used to select a sample of 103 senior management staff, representing 50% of the target population. Primary data was collected using structured questionnaire while secondary data was collected using documentary guided. Content validity index was used to test validity of research instruments whilst Cronbach alpha method was applied to test reliability of the research instruments. Correlation analysis was used to determine the nature of the relationship between variables. The study found no significant correlation between board members’ knowledge and organization performance. The study therefore adds new knowledge to the existing body of literature since the extant literature suggests that board members’ knowledge has a positive influence on organization performance. There is however need for further studies on the same to establish if the study findings hold.

Keywords: Influence Board Members, Kenya, Knowledge, Nairobi County, Organizational Performance, Private Commercial Banks


Article Review Status: Published

Pages: 55-64 (Download PDF)

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