Role of Innovation Capability on Firm Performance in the Context of Commercial Banks in Nairobi City County, Kenya
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Date
2020
Authors
Mugambi, Lucy Makena
Kinyua, Godfrey M.
Journal Title
Journal ISSN
Volume Title
Publisher
IJCAB Publishing Group
Abstract
The Kenyan banking industry is characterized by increased environmental dynamism brought
about by rapid technological development, customer sophistication and regulations. The
achievement and sustenance of competitive advantage is important as any organization that
does not gain and sustain this may not survive. In order for an organization to remain relevant,
it must be able to leverage on innovation capability for effective adaptation to changes in the
environment. This study therefore sought to assess the influence of innovation capability on
performance of Commercial Banks in Nairobi City County, Kenya.The study was anchored on
dynamic capabilities theory and resource-based view, Resource. Descriptive research design
was used for this study. The target population was Commercial Banks in Nairobi City County.
The unit of analysis was the commercial banks while the unit of observation was management.
Data was gathered using self-administered questionnaire then analyzed using Statistical
Package for Social Sciences (SPSS Version 25.0) software. Descriptive statistics such as
frequencies, percentages and mean and inferential statistics such as correlation coefficient was
used to analyze quantitative data. Charts, tables and graphs will be used to present the data.
The study established that innovations capability positively and significantly affects
performance. The study revealed that innovation capability is an important requirement for
the effective management of inventions and creativity and the introduction of transformative
technologies. The study recommends that in an era of faster competition and digitization,
commercial banks in Nairobi City County, Kenya must increase their innovation capability.
New innovations easily adopted in organizations enables banks to adjust to meet new customer
needs and market changes. Innovation also enables creation of new products and services from
time to time. Innovation capability of an organization affects organizational performance as it
determines organization’s productivity and effectiveness.
Description
A research article published in International Journal of Current Aspects in Finance, Banking and Accounting
Keywords
Dynamic Capability, Innovation Capability, Organizational Performance
Citation
Mugambi, L., & Kinyua, G. (2020). Role of Innovation Capability on firm performance in the context of Commercial Banks in Nairobi City County, Kenya. International Journal of Current Aspects in Finance, Banking and Accounting, 2(3), 14-23. https://doi.org/10.35942/ijcfa.v2i3.146