Effect of E-customization Capability on Financial Performance of Commercial Banks in Kenya
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Date
2019
Authors
Mutuku, Morrisson Kaunda
Muathe, Stephen M. A.
James, Rosemary
Journal Title
Journal ISSN
Volume Title
Publisher
SSBFNET
Abstract
Financial performance of a commercial banks driven by a number of capabilities drawn from either the
internal or the external environment. The Kenyan Government and commercial banks in particular have
invested in e-commerce solution. Despite these invetments over the years, the impact is yet to be felt.
The empirical literure reveals that there is a link between commercial banks e-commerce custiomization
capability and financial peroformance.The study empirically analyzed the effect of e- commerce
customization capability on financial performance of commercial banks in Kenya. E-commerce
customization capability measured using online registration,online recommendation and realtime
support while financial performance was measured using Return on Assets (ROA). The study was
anchored on the Resource-Based View Theory. The study used explanatory design. A census of 43
commercial banks was taken; data for performance was extracted from audited banks statements for
financial year 2016/2017. Data for e-commerce customization capability was collected from commercial
banks websites. Data for financial performance was extracted from audited financial ststements of
commercial banks. Data analysis was done using descriptive and inferential statistics. The study
findings indicated that e-commerce customization capability had a significant effect on financial
performance of commercial banks in Kenya. The study concluded that e-commerce customization
capability significantly affected financial performance of commercial banks in Kenya. The study
recommends that the management of commercial banks in Kenya should invest more in customization
capability to improve their performance.
Description
Research Article
Keywords
Bank, Profitability, ROA, E-commerce customization capability, Commercial banks in Kenya
Citation
International Journal of Finance & Banking Studies, Vol 8 No 1, 2019