2. Contingency Theory
The contingency theory dates back to the 1960s. It was developed to challenge the traditional structures as organization actively sought the best ways to deal with unpredictable environments (Hatch & Cunliffe, 2006). Bess & Dee (2008) described contingency theory as, “a process of achieving a ‘fit’ between the conditions of the environment and the design of the organization.” The contingency theory proposes that there exist no one universal structure that is employed to organize better, but rather for organizations to morph in accordance to their contingencies for the best performance (Bess & Dee, 2008; Donaldson, 2001; Hatch & Cunliffe, 2006; Scott, 1992).
There are two ways in which organization can adapt to a turbulent …show more content…
The investigation targeted senior and mid-level management in several of the banks’ branches and found out that Equity Bank employed diverse competitive strategies. These included cost leadership strategy, differentiation strategy, and focus group strategy (Kungu et al., 2014). The inquiry concluded that Equity Bank Kenya constantly examines its organizational approach to fit the current external environments while making adjustments. This strategy is part of the reason why it remains very competitive in the Kenyan financial sector.
These various studies reveal some interesting facts about Equity Bank Kenya. The bank has been classified under emerging markets as the only banking and finance institution in the country that surpasses the sustainability threshold. This is based on growth, innovation, and corporate sustainability. The leadership structure of the bank provides a conducive business environment that can be credited for its high performance and successful growth over the years. The innovation of Equity Bank has ensured that its financial performance is efficient without being detrimental to the lives of their millions of …show more content…
The study established that Equity Bank employed a strategic contingency approach when they faced turbulent environments and hence improving their organizational performance. In order to increase performance and maintain competitive edge over other financial service providers, Equity Bank used several strategic organization models to fit a particular situation. For instance, Equity Bank decided to branch into telecommunication and mobile banking through the launch of Equitel. This is because the only company that was offering mobile money transactions on large scale was Safaricom. Due to its large customer base and the growing trend of mobile money transactions, Equity Bank decided to launch it own SIM card
The contingency theory dates back to the 1960s. It was developed to challenge the traditional structures as organization actively sought the best ways to deal with unpredictable environments (Hatch & Cunliffe, 2006). Bess & Dee (2008) described contingency theory as, “a process of achieving a ‘fit’ between the conditions of the environment and the design of the organization.” The contingency theory proposes that there exist no one universal structure that is employed to organize better, but rather for organizations to morph in accordance to their contingencies for the best performance (Bess & Dee, 2008; Donaldson, 2001; Hatch & Cunliffe, 2006; Scott, 1992).
There are two ways in which organization can adapt to a turbulent …show more content…
The investigation targeted senior and mid-level management in several of the banks’ branches and found out that Equity Bank employed diverse competitive strategies. These included cost leadership strategy, differentiation strategy, and focus group strategy (Kungu et al., 2014). The inquiry concluded that Equity Bank Kenya constantly examines its organizational approach to fit the current external environments while making adjustments. This strategy is part of the reason why it remains very competitive in the Kenyan financial sector.
These various studies reveal some interesting facts about Equity Bank Kenya. The bank has been classified under emerging markets as the only banking and finance institution in the country that surpasses the sustainability threshold. This is based on growth, innovation, and corporate sustainability. The leadership structure of the bank provides a conducive business environment that can be credited for its high performance and successful growth over the years. The innovation of Equity Bank has ensured that its financial performance is efficient without being detrimental to the lives of their millions of …show more content…
The study established that Equity Bank employed a strategic contingency approach when they faced turbulent environments and hence improving their organizational performance. In order to increase performance and maintain competitive edge over other financial service providers, Equity Bank used several strategic organization models to fit a particular situation. For instance, Equity Bank decided to branch into telecommunication and mobile banking through the launch of Equitel. This is because the only company that was offering mobile money transactions on large scale was Safaricom. Due to its large customer base and the growing trend of mobile money transactions, Equity Bank decided to launch it own SIM card