MST-Department of Management Science

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Browsing MST-Department of Management Science by Subject "Automated Loans’"

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    Organizational Capabilities and Performance of Automated Loans’ Collection Projects in Commercial Banks in Kenya
    (Kenyatta University, 2023) Mang’eni, Fedinand; David Nzuki
    A significant number of banks in Kenya have experienced dismal performance of automated loan collection projects since the credit facilities supplied to customers are often paid late or not paid at all rendering the banks at risk of incurring losses. The major objective of1 this1 study1 was1 to1 investigate the ways in which organizational competencies influence the success of automated loan collection operations carried out by commercial banks in the African nation of Kenya. In order to accomplish this objective, the research was designed to accomplish a number of particular objectives, one of which was to investigate the influence that management capability, financial competence, human1 resource1 capability1, and1 information1 system capability1 have on1 the1 execution of automated loan collection initiatives in commercial1 banks1 in1 Kenya. The1 research1 was conducted using a1 descriptive1 survey1 approach, and the1 population1 of1 interest1 was comprised of 42 commercial1 banks1 in1 Kenya1 that were actively participating in banking automated loan collection. Since the population under this study was small, census approach was adopted. Therefore, all the employees that is the management personnel, technical staff, and project team members working for Kenya's 42 commercial banks were the unit of analysis. Semi-structured1 questionnaires1 were1 utilized to1 obtain primary1 data1 for this1 study. Descriptive2 and inferential2 statistics2 were2 used2 in this study. The2 findings2 indicated that managerial capability significantly impacted project success when p<0.05 was employed (p=0.00001, β=0.818). Results indicated that financial capabilities significantly impacted project success (β=0.805, p0.0001) at the1 p<0.051 level1 of1 significance. Additionally, the1 capability of1 the human resources had a favorable and large effect on the project's outcome (β=0.702, p=0.0001) at1 the p<0.052 level2 of significance. There2 was also a positive linear2 relationship2 between2 the2 capability of the information systems and the project's performance (β=0.563, p=0.00001) at1 the p<0.05 level of significance. The study recommended that bank management should implement transparency1 and1 accountability1 in1 management1 of1 funds. Also, the1 management should improve communication between managers and project specialists to enhance project performance. Senior administration should also ensure the recruitment of competent and qualified personnel to handle projects in the bank. For further research, other external factors that influenced variation of the loans’ project performance should be studied.