SUMMARY
AbstractBanking sector rivalry has escalated which can be attributed to many factors including innovation, new legislation, problems caused by a global financial crisis, government regulations, among others that have resulted in increased competition in the banking sector. The objective of this study was to evaluate the influence of adaptive capability on the organizational performance of tier two commercial banks in Kenya. The study found that the application of adaptive capabilities in commercial banks in Kenya is influenced by mainly customer demands, staff expertise and the prevailing market trends. The study results show that there is a positive and statistically significant relationship between Adaptive Capability and performance in tier two banks. The study concluded that adaptive capability has a positive and significant relationship with performance in tier two banks. The research findings recommended that the employees should be fully involved in the decision-making process so that they can own up to the strategies being formulated by the top management.