MST-Department of Business Administration

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Browsing MST-Department of Business Administration by Subject "Adoption"

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    The Adoption of Bancassurance as a Competitive Strategy to Improve Performance of Commercial Banks: A Case Study of Selected Commercial Banks in Nakuru County, Kenya
    (Kenyatta University, 2021) Karanja, Jane Nduta; Abel Anyieni
    The financial performance of the commercial banks in Kenya is facing intense competition from the interbank and the non-bank financial services providers including Microfinance Institutions (MFIs), Saccos, mobile payment service providers such as Mpesa and unregulated financial services providers such as shylocks and merry go round schemes. These sources of competition has led to the shrinking of revenue from traditional sources of revenues for commercial banks such as loans both commercial and personal, custodial services, credit cards, maintenance fees, amongst others. The commercial banks must therefore look for competitive strategies to increase their margins from the traditional sources of revenues either from decreasing the costs of servicing these sources or increasing the scope of these services. The commercial banks must also invent and embrace new sources of revenue generation. The bancassurance platform offers a competitive strategy that help to increase financial performance for commercial banks through economies of scope, economies of scale, cheap acquisition of lending funds, and commission from insurance sales. The overall aim of this study is to analysis how bancassurance can be adopted as a competitive strategy in order to improve financial performance of commercial banks with a case study of selected commercial banks in Nakuru County, Kenya. To achieve this, three main specific objectives were applied. The theoretical review of the study consisted of financial intermediary theory, theory of economies of scale and the modern portfolio theory. Population of 800 bank employees was targeted with 89 respondents as the size of the sample. Collected data were analyzed statistically using SPSS version 21 software. For frequency analysis, mean, standard deviation, linear correlation and regression tools were used for data analysis. Three financial performance indicators were used in the analysis including non-funded income, deposit mobilization and market share. Tables were used for data presentations. Bancassurance is generally received well in the market though with some challenges. All independent variable, including non-funded income, deposit mobilization and market share are statistically significant predictors on their own, for financial performance of banks. In terms of the order of influence, deposit mobilization was highly ranked, followed by non-funded income while market share was lowly ranked. Therefore, deposit mobilization influenced financial performance than either non-funded income or market share. This study recommends the use of bancassurance products by commercial banks as a competitive strategy for better financial performance. This is because financial performance decreases in the absence of these strategies. The study further recommends that deposit mobilization be undertaken as a priority in the adoption of bancassurance products in commercial banks so as to increase financial performance. Banks have wider customer trusted base in comparison to insurance companies. Marketing should therefore be taken aggressively. This can be achieved by making sure insurance products are integrated in bank sale management framework for the sole purpose of selling more. The two sectors should sell and market their products jointly and simultaneously. Researcher recommends further studies in this topic through examining other strategies that can improve the financial performance for commercial banks.
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    Adoption of Financial Innovations by Tier One Commercial Banks and Financial Deepening in Kenya
    (Kenyatta University, 2021) Winga, Emily Akinyi; Fredrick W. S. Adede
    Kenya envisions that by 2030 it will realize the three pillars of success that is social, economic and political development. These pillars are not likely to be achieved if the country adopts same way of doing things, thus innovations in all sector is vital. Innovation accelerates growth in all the three pillars and more so economy. Although, bank innovations are of convincing importance when checked in terms of financial performance, the effect created by the innovation on financial deepening is still not clear. The general objective of the study was to establish the effect of the adoption of financial innovations by tier one commercial banks and financial deepening in Kenya. Specifically, the study sought to establish mobile, agency, automated teller machine and internet banking on financial deepening in Kenya. The study was based on diffusion theory of innovation and theory of financial deepening. The study adopted correlation research design. In the current study the target population composed of 6 banks in tier one. Census approach was used to select 6 tier one commercial banks from 2010 to 2018. Data was analysed using descriptive statistics, correlation analysis and multiple regression analysis with the aid of STATA 12. The regression coefficients were tested for significance using t-statistics at 5% confidence level. Diagnostic tests that conducted include auto correlation, multicollinearity, heteroscedasticity, fixed and random effects and normality. The study findings found that commercial banks in tier one had an average financial deepening of 16.61. Regression analysis revealed that mobile banking, agency banking, automatic teller banking and internet banking have positive and significant effect on financial deepening of tier one commercial banks in Kenya. There is need to take advantage of agency banking services especially in regions which have low mobile phone penetration and adopt agency banking services owing to proximity to banking agents. Data security should be provided to enhance authorization procedure when using automatic teller machines banking services. Owing to positive reception and adoption of internet banking there is need for commercial banks to take advantage of it since it will minimize operational costs and optimize provision of banking services. Banking regulators such as Central Bank of Kenya and Capital Market Authority for listed tier one commercial banks should liberalize financial innovation. To bank managers, since adoption of financial innovations has significant effect on financial deepening, there is need for them to develop innovative approaches to optimize their financial performance. This indicates that there is need for development and adoption of mobile banking, agency banking, automatic teller machines banking and internet banking that would minimize operational costs. There is need for regulation and control of agency banking services to optimize financial performance of banks.
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    Adoption of Integrated Financial Management Information System and Performance of National Treasury of Kenya
    (Kenyatta University, 2020-11) Njau, Cyrus Nganga
    Adoption of integrated financial management and information system (IFMIS) is for effective management and sourcing procedures within the government, and it is meant for streamlining the financial processes and provision of standard, real-time and accurate financial statements. IFMIS aims at cutting down cost of operations, corruption and fraudulent activities and increase transparency and accountability within government ministries and agencies. But the challenges associated with financial management are still prevalent as seen through misuse of financial resources, increased cases of collusion and corruption among senior management and inefficiencies within the internal control systems. This led the researcher to investigate on integrated financial management information system and performance of National treasury of Kenya; by looking at the internal control systems, staff competency, budgeting and financial reporting aspects. The study is anchored on technology acceptance model, open systems theory and institutional theory. Descriptive research design was adopted in the study and the population included the staff at the National Treasury of Kenya. The targeted staffs were those in the ICT, HR and finance and accounting departments and a sample size of 187 staff was obtained. Primary data was collected using questionnaire and the researcher adopted the drop and pick later method. A pilot test was conducted leading to testing of the validity and reliability of the research instrument and the collected data was entered into SPSS for descriptive analysis and inferential statistics using multiple regressions. The study findings were presented in charts, tables, graphs and prose discussions. A total of 140 respondents completed the data collection instruments and returned them for data analysis. The study concluded that IFMIS was significantly embraced in public finance management at the National Treasury, Kenya. It was concluded that the national treasury significantly incorporates and accrues effective internal control which has enhanced resource planning, allocation, accountability and integrity. The study further concluded that the staffs at the National Treasury to a significant extent have relevant and necessary skills, knowledge, expertise and experience to manage the system. It was also concluded that the National Treasury has streamlined its budgetary management through use of IFMIS. It was finally concluded that the IFMIS had improved financial reporting through timelines, accuracy and effectiveness. The study recommends that the National Treasury needs to enhance continued internal control improvement plan and strengthening. The National Treasury should enhance staff competency through training, mentorship and internal trainings to ensure they are able to use and manage the IFMIS. It was further recommended that the National Treasury should improve on use of IFMIS in budgeting to ensure significant public participation and involvement. The study also recommended that the National Treasury should ensure IFMIS is used more in financial reporting to enhance timely, accurate and effective reporting.
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    Information Technology Initiatives and Adoption among Senior Civil Servants in State Department for Youth in Nairobi City County, Kenya
    (Kenyatta University, 2021) Wanjohi, Rose Wanjiru; Shadrack Bett
    The ICT revolution has radically changed the world and can contribute immensely to the social-economic development of the country. The potential of ICT for increasing work efficiency and effective service delivery is however not fully exploited in many countries including Kenya. Studies adoption of ICT have dealt with the effects of other frontiers and hardly on the determinants of its adoption by senior civil servants in Government Ministries and their effect on performance. The research has earmarked the State Department for Youth since it handles issues surrounding youth who are the main consumers of Information Technology. The purpose of this research was to survey the determinants of ICT adoption among senior civil servants in State Department for Youth and establish the extent to which they can adapt ICT and its effect on their performance. The study objectives were to establish the extent to which legislation affects the adoption of ICT, to investigate how demographic factors such as gender and age influence adoption of ICT and to determine how top management support relates to the adoption of ICT. The study was conducted in Nairobi City County and targeted employees of the State Department for Youth. To achieve this, the study adopted a descriptive research design in which 30% of senior civil servants in the State Department for Youth were sampled using a simple random sampling method. The target population was 150 senior civil servants in the Directorate. Research instruments used self-administered closed and open-ended questionnaires. The questionnaires were dropped for the respondents to fill and collected after two days. Data collected were analysed using correlation analysis and descriptive statistics. Quantitative analysis began with field editing to minimize errors. The study found that ICT adoption is highly influenced by the availability of facilities and infrastructure, existing legislation, training/capacity building and top management support. Infrastructure needs to be always up to date to enhance the efficiency of ICT use among senior civil servants since the availability of ICT facilities makes work easier and therefore improves the morale of the employees. As part of the recommendations, there is a need to ensure that there are adequate, accessible and user-friendly ICT infrastructure/facilities to ensure that service delivery is enhanced in an organization. There is also a need to establish high-level inspiration, political goodwill and oversight to overcome resistance to change and also ensure that all Government Departments and Ministries adopt and utilize ICT in all their operations. These findings may be found useful by the Government and policymakers in developing policies related to deepening the adoption of ICT in the Government Ministries as well as addressing the gaps in the adoption and utilization of ICT in service delivery. Government training organizations such as KSG may also benefit from the study since they can use the findings to identify training needs and be able to develop training manuals and programmes relating to ICT adoption.