Business Process Re-Engineering Practices and Organizational Performance of Selected Commercial Banks in Nairobi City County, Kenya
The organizational performance of Kenyan commercial banks has continually declined of due to stiff competition from other financial institutions. The innovations of lending applications and mobile banking have given room for loan defaults by customers from the main banks hence reduced organizational performance. The main study objective was to establish influence of re-engineering practices of business process on Kenya commercial banks’ organizational performance. Specifically, this research sought to initiate the impact of leadership change, customer focus, information technology and innovation on organizational performance of Nairobi County’s commercial banks. The study scope was limited to Nairobi County commercial banks. The study focused on 43 commercial banks in Nairobi County. A descriptive research design was utilized for the study. A population of 1020 staff from the 43 commercial banks at Nairobi headquarters in Kenya was used, where a sample of 278 staff was selected. A descriptive design and stratified sampling were utilized for the research. The study utilized primary information.The data gathered was analysed using inferential and descriptive statistics. Multiple linear regressions was used. The study revealed that leadership change while maintaining all the other factors constant would positively change commercial banks’ performance. Customer focus has a significance influence on commercial banks’ performance. Most banks identify all their customers and address customer’s complaint immediately. A change in information technology change while keeping other factors constant can affect commercial banks’ performance. Most banks have introduced new technologies and adoption of m-commerce is growing fast in banks. A unit increase in innovation while holding all the other factors constant would positively change commercial bank performance. The study recommended that firms need to invest in information technology and educate their employees on how to use the technologies to reduce operation costs, increase operation speed and improve service and product quality. The research also recommended that studies in the future need to focus on non-commercial banks since the current study was only limited to commercial banks in Kenya.