Publication: The Influence of Processes Innovation Strategy on the Performance of Commercial Banks in Kenya
Total Views 8
total viewsTotal Downloads 4
total downloadsDate
2022-11-08
Journal Title
Journal ISSN
Volume Title
Publisher
European Journal of Business and Management Research
Cite this Item
Abstract
The study was conducted to examine the influence of processes innovation
strategy on the performance of commercial banks in Kenya given the
dynamism in the business environment hence the need for organizations to
move with speed and make choices that add value to customers and those
which will enable the organization remains relevant in such a dynamic
business environment. Diffusion of innovation theory was incorporated in
the study since it widely supports the spread of agency banking, mobile
technology, and online banking. An explanatory research design was used.
Both primary and secondary data were collected. Primary data was collected
using a questionnaire while secondary data was collected from relevant
literature materials, the organization’s annual reports, and the website.
Cronbach’s Alpha coefficient was used to test the reliability of the data with
an acceptable level of 0.7 at a confidence level of 95%. The study targeted
tier 2 Commercial Banks in Kenya with the top management bank
employees as the key respondents. The target population was 144 top
management bank employees. The study employed a census targeting the
entire population of 144 top management bank employees. Out of the 144-
target population, 120 top management employees responded to the
questionnaire hence results from the findings were based on the 120
respondents. Descriptive and inferential statistics were used in analyzing the
data. Descriptive statistics entailed the measure of central tendency (mean)
and the measure of dispersions (standard deviation). The statistical package
for social sciences (SPSS) was used to generate the descriptive statistics.
Inferential statistics entailed regression and correlation analysis. Data were
presented using tables. The study established that there was a significant
influence of process innovation strategy on the performance of commercial
banks in Kenya. The findings of the study concluded that mobile banking
and internet banking have greatly enabled customers to access essential
services in the comfort of their homes or offices and without necessarily
having to go to the bank whereas agency banking has significantly reduced
the queues in the banking halls and customers do not have to wait for long
hours to be served at the bank. The study recommended that banks need to
adopt a process innovation strategy in order to enhance performance.
Description
Keywords
Agency Banking, Internet Banking, Mobile Banking, Performance, Processes Innovation Strategy