Mission Statements: Their Contribution to Performance of Commercial Banks in Kenya

Abstract

Mission statement is considered an essential part of the strategic management process. This study examined mission statements and their contribution to the performance of commercial banks in Kenya. The specific objective was to examine the contribution of each of the mission statement components to the performance of commercial banks. The study was anchored on the Resource Based Theory. The study employed a descriptive survey to establish the contribution of mission statements to the performance of commercial banks in Kenya. The target population was 44 commercial banks in Kenya. Data were collected using a structured questionnaire for the period 2021-2022 of the commercial banks in Kenya. In terms of data analysis, descriptive statistics have been employed. The results suggest that the mission statements' components, including concern for survival, growth, and profitability; the product/service, customers, technology, and markets, are significant for the performance of commercial banks in Kenya. The study, therefore, concludes that businesses must include in their mission statements: concern for survival, growth, and profitability; the product/service; customers, technology, and markets. The study, therefore, recommends that businesses must include in their mission statements: concern for survival, growth, and profitability; the product/service, customers, technology, and markets. The study drawback is the small sample size. The study has also proposed an area for further research and policy practice.