The effects of technological innovations on the financial performance of the commercial banks in Kenya
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Date
2010-11Author
Kimingi, Catherine N
Type
ThesisLanguage
enMetadata
Show full item recordAbstract
A fundamental assumption of much recent research in operations improvement and operations
learning has been that technological innovation has a direct bearing on performance
improvements (Upton and Kim, 1999). This study therefore sought to investigate the effects of
technological innovation on the performance of commercial banks in Kenya.
This study used a descriptive survey. The population of interest in this study comprised
commercial banks in Kenya. The study conducted a census survey owing to the small number of
commercial banks in Kenya. Primary data was collected using a questionnaire with close ended
and open ended questions administered to the management staff of the commercial banks. The
respondents were senior, middle and low management staff in the respective banks. Secondary
data on financial data were obtained from annual reports of commercial banks which were
obtained from the central bank and from individual commercial banks. Data for this study was
both quantitative and qualitative hence both descriptive and content analysis techniques were
employed. Content analysis was used to analyze the qualitative data collected while descriptive
methods were used to analyze quantitative data. Tables were used to summarize responses for
further analysis and facilitate comparison. This generated quantitative reports through
tabulations, percentages, and measure of central tendency.
The study concludes that the banks had employed various technological innovations. These
included ATM services, mobile phone transactions and internet based banking services. The
study further concludes that technological innovations had lead to improved financial
performance of commercial banks in Kenya. This was through increased bank sales, profits
increment and return on equity. The study recommends that for banks to be highly competitive,
they need to employ modern technological innovations such as internet based banking services.
Citation
MBA ThesisSponsorhip
University of NairobiPublisher
School of Business, University of Nairobi