The Influence of Consular Strategy on Performance of Commercial Banks’ Diaspora Remittances in Kenya



Abstract Views
215

Downloads
207

Citations

Share

##plugins.themes.bootstrap3.article.sidebar##

Submitted Jan 19, 2023
Published Mar 8, 2023
10.24018/ejbmr.2023.8.2.1834

Abstract viewed = 215 times

Table of Contents

##plugins.themes.bootstrap3.article.main##

The study was conducted to examine the influence of consular strategy on performance of Commercial banks’ diaspora remittances in Kenya. The evolution of globalization, regionalization and deregulation experienced in the world of business has exposed the business entities to a lot of competitions both locally and internationally. Commercial banks in Kenya have not been spared of the stiff business competitive environment. The commercial banks have resulted into using competitive strategies such as consular strategy. Theory of risk returns was incorporated in the study since it widely supports the establishment of partnerships and the building of agency networks. Explanatory research design was used. Both primary and secondary data were collected. Primary data was collected using questionnaire while the secondary data was collected from relevant literature materials, the organization’s annual reports and website. The data collection instrument of the study was considered reliable since it attained the Cronbach’s alpha coefficient of 0.795. The study targeted 126 managers of the commercial banks based in their specific headquarters offices in Nairobi. The sampling procedure was done by use of Krejcie & Morgan sampling table giving a sample of 95 managers. The pilot study was based on 10% of the research population giving 13 respondents that were randomly selected. Descriptive statistics which comprised of mean and standard deviations were computed. Inferential statistics which included correlation and regression analysis were also computed. SPSS version 25 was used to aid in data analysis. The study results established R2 of 0.608. Data was presented using tables. The study concluded that consular strategy significantly influences performance of commercial banks’ diaspora remittances in Kenya. The study recommends that banks in Kenya should have more agency networks and partnerships with banks in the diaspora and other financial institutions use in order to enhance efficient transfer or sending of remittances from diaspora to home country. The study recommended that banks adopt consular strategy to enhance performance of Commercial banks’ diaspora remittances in Kenya.
Keywords: Agency Networks Consular Strategy Online Outreach Partnership Performance

Downloads

Download data is not yet available.

References

  1. Buencamino, L., & Gorbunov, S. (2002). Informal Money Transfer Systems: opportunities and challenges for development finance. DESA Discussion Paper No. 26, Discussion Paper of the United Nations Department of Economics and Social Affairs, United Nations, New York.
     Google Scholar
  2. CBK (2018). Commercial banks category. Retrieved from www.centralbank.go.ke/category/banking-sector.
     Google Scholar
  3. Central Bank of Kenya (2019). Commentary on Diaspora Remittances. Nairobi, Kenya. Available at https://www.centralbank.go.ke/reports/bank-supervision-and-banking-sector-reports/.
     Google Scholar
  4. Creswell, J. W. (2016). Research Design: Qualitative, Quantitative, and Mixed Methods Approaches (5th Ed.), Thousand Oaks: CA: Sage.
     Google Scholar
  5. Demirgüç-Kunt, A., López-Córdova, E., Martínez-Pería, M. S., &Woodruff, C. (2011): Remittances and banking sector breadth and depth: Evidence from Mexico. Journal of Development Economics, 95(2), 229-241.
     Google Scholar
  6. Fonta, W. M., Ayuk, E. T., Chukwu, J. O., Onyukwu, O. E., Agu, C. C., & Umenwa, I. O. (2015): Dynamics of remittance utilization by Nigerian households. Progress in Development Studies, 15(4), 343-357.
     Google Scholar
  7. Ketkar, S. L., & Ratha, D. (2007). Development Finance Via Diaspora Bonds Track Record and Potential. Policy Research Working Papers. https://doi.org/10.1596/1813-9450-4311.
     Google Scholar
  8. Kothari, C. R., & Garg, G. (2014). Research Methodology: Methods and Techniques. New Delhi: New Age International Publishers.
     Google Scholar
  9. Miller, M. (2013): Monetary Dynamics: An Application of Counteraction and Error-Correction Modeling. Journal of Money, Credit and Banking, 139- 154.
     Google Scholar
  10. Nkongolo-Bakenda, J., & Chrysostome, E. V. (2013): Engaging Diasporas as international entrepreneurs in developing countries: In search of determinants. Journal of International Entrepreneurship, 11(1), 30-64.
     Google Scholar
  11. Show, J. (2010). Making Housemaids Remittances Work for Low-Income Families in Sri Lanka. Development in Practice, 20(1), 18-30.
     Google Scholar
  12. Tarus, D. K. (2015): Do diaspora remittances affect banking sector development in sub-Saharan Africa? International Journal of Commerce and Management, 25(3), 356-368.
     Google Scholar
  13. Tuuli, M. (2015). The impact of remittances on the real exchange rate: Empirical evidence from Ghana. Journal of Economic Cooperation & Development, 36(3), 43-66.
     Google Scholar