THE RELATIONSHIP BETWEEN THE STRATEGIC SKILL COMPETENCE AND PERFORMANCE OF MERGERS AND ACQUISITIONS IN THE FINANCIAL SECTOR IN KENYA

Abstract

As a growth strategy, mergers and acquisitions are a common feature of modern business life that forms a major reason for organization growth. The purpose of this study is to look into the determinants of performance of mergers and acquisitions in the financial sector in Kenya, basically Banks and Insurance. The objective was to evaluate the relationship between skill competence and performance of Mergers and Acquisition. The study used a descriptive and cross-sectional design, and a mixed methodology. Data collection instruments were questionnaire for obtaining the primary data and published data for secondary data. A total of 93 responses were obtained and the hypothesized relationships were tested using multiple regression analysis. Data analysis was conducted for the purpose of obtaining usable and useful information, with the aim of, describing and summarizing data, identifying relationships between variables, comparing variables, identifying the difference between variables and predicting outcomes of the research, coding, and developing themes. The study reveals that skill competence contributes significantly to performance of M&A. The study offers practical insights to the; Policy makers, academician, scholars and researchers in strengthening organizational identification of the determinants of performance of M&A by considering the crucial role skill competence on the performance. Using behavioural theory, the study suggests that there is a direct correlation between the skill competence and performance, indicating that skill competence were highly positively correlated and regression showed that there was a relationship between the skill competence and performance of mergers and acquisition in the financial sector in Kenya. On the basis of these findings, it is recommended that skill competence brings a greater impact leading to superior performance.