PHD-Department of Business Administration

Permanent URI for this community

https://repository.ku.ac.ke/handle/123456789/203

Browse

Browsing PHD-Department of Business Administration by Subject "Commercial Banks"

Now showing 1 - 2 of 2
  • Thumbnail Image
    Item
    Business Process Outsourcing and Organisational Performance of Commercial Banks in Kenya
    (Kenyatta University, 2019-02) Gituma, Isaiah Murithi
    The overarching objective of any going-concern business entity is performance sustainability. However, performance sustainability challenges continue to persist in the banking industry despite appropriation of different performance management strategies. This challenge obtains in commercial banks in Kenya as evidenced by the recent assumption of cost rationalisation measures, increasing volumes of non-performing loans, acquisitions, liquidation, and statutory management of some banks due to liquidity problems. Thus, this study sought to establish the efficacy of business process outsourcing strategy in addressing performance challenges of commercial banks. Specifically, the study sought to establish the effect of outsourcing information technology, human resource management, marketing, and security processes on performance of commercial banks in Kenya; the mediating effect of competitive advantage and the moderating effect of organisational characteristics on the relationship between BPO and performance of commercial banks. The philosophical foundation of the study was positivism. The study employed descriptive and explanatory research designs and was longitudinal in nature. The target population was thirty two commercial banks. Four managers from each commercial bank at the headquarters (Information Technology, Human Resource Management, Marketing and Operations departments) were targeted thus yielding a sample size of one hundred and twenty eight respondents. Primary data were collected using self-administered questionnaires based on the 5-point Likert scale. Descriptive statistics were computed to describe the characteristics of the study variables while multiple linear regression analysis was used to establish the nature and magnitude of the relationships between the independent and dependent variables. All statistical tests were subjected to 95 per cent level of significance (p=≤0.05). The study established that outsourcing information technology, human resource management, marketing, and security processes, all had statistically significant positive effect on performance of commercial banks in Kenya. Competitive advantage was found to fully mediate the relationship between BPO and bank performance while bank size was found to moderate the relationship between BPO and bank performance. Owing to the empirical findings, commercial banks in Kenya should wholly embrace BPO as an effective performance management strategy and widen the bracket of the range of businesses processes to be outsourced. Extant literature shows that most commercial banks mainly outsource non-critical non-core business processes. Positive results of this study that focused mainly on critical non-core business processes should motivate and give more confidence to the top management in outsourcing more critical processes and gradually core business processes as is the case in developed countries. Management of commercial banks should give more attention to outsourcing of marketing processes as well as software development as they were highly correlated with bank performance. Whereas, outsourcing training was highly supported by respondents, outsourcing recruitment and performance management were not. Therefore, vendors should exercise due diligence in understanding specific requirements for different industries. Commercial banks should be more creative in managing their security processes as their outsourcing was the least correlated with performance. With the modern trend of housing banking halls under the same roof with other business entities especially in shopping malls, managing physical security can be collaboratively done in order to save on costs. The study findings are instrumental in informing the Central Bank of Kenya decisions when reviewing policies relating to business process outsourcing in commercial banks
  • Thumbnail Image
    Item
    Strategic Intelligence and Performance of Commercial Banks in Kenya
    (Kenyatta University, 2021) Walowe, Kori Blandina; Stephen M. A. Muathe; Samuel Mwangi Maina
    Commercial Banks are a great contributor to economic development and prosperity of a country. They facilitate the flow of funds, aid the accumulation of capital, mobilise savings and finance industries. However, between 2016 and 2018 there was high disparity on return on equity. Insider lending, fraud and mismanagement were the key causes for disparity and poor performance. This study investigated the effect of strategic intelligence on the performance of Commercial Banks in Kenya. In particular, the study sought to determine the effect of business intelligence, competitive intelligence and knowledge management on the performance of Commercial Banks in Kenya. The study further sought to establish the moderating effect of regulatory framework and the mediating effect of dynamic capabilities on the relationship between strategic intelligence and performance of the Commercial Banks in Kenya. The study was anchored on balanced scorecard model, resource-based view, dynamic capabilities, and Knowledge management model and stakeholder theories. It adopted positivism philosophy and used both descriptive survey and explanatory design. The target population comprised 40 Commercial Banks in Kenya. The respondents were obtained through stratified proportionate and random sampling technique. The study employed both primary and secondary data, where primary data was obtained using semi-structured questionnaires, administered through drop-and-pick method, while secondary data was acquired from annual publications of the Central Bank of Kenya found on the internet. The study further used themes and narratives to present qualitative data. Descriptive statistics were used to summarize the survey data which was later presented in frequencies, means, standard deviations and regression models. The study used ordinary multiple linear regression analysis to confirm the effect of strategic intelligence on the performance of Commercial Banks. In order to assess statistical significance, hypothesis testing was conducted at P-value<0.5. Findings indicated that business intelligence, competitive intelligence and knowledge management had a positive effect on both return on equity and non-financial performance indicators in Kenya Commercial Banks. Regulatory framework had a moderating effect on the relationship between strategic intelligence and non-financial performance measures, but it had no effect on relationship between strategic intelligence and financial performance measures of Commercial Banks. On other hand, dynamic capabilities had a mediating effect on the relationship between strategic intelligence and non-financial performance measures, but partially mediating effect on the relationship between strategic intelligence and performance of Kenya Commercial. The study, therefore, recommends that corporate level managers of Commercial Banks should engage more on strengthening strategic intelligence skills to remain a pertinent in a competitive banking industry. Moreover, the Commercial Banks need better functional forecasting methodologies, training, constructive application of both theories and practice, and innovative scientific approaches to capture more customers. Additionally marketing management teams should work closely to enhance dynamic capabilities in order to catch-up with volatile business environment. For more improvement, the Central Bank of Kenya should work closely with Commercial Banks policy makers to explore weaknesses of the ongoing banking regulations and improve where necessary, to attract more investors.