Strategic Innovations on Operational Performance of ABSA Bank Kenya PLC

Abstract

In a marketplace where different players are compelled with the market forces to bring their own unique solutions to satisfy the needs of their customers. organizations that is serious about competing in fast-changing markets with fast-changing technology must respond swiftly and develop original, hard-to-copy products in order to thrive in its performance. Strategic innovations are at the heart of any company's success in the current competitive business environment. For the last 105 years of existence Absa bank Kenya has undergone through various stages of evolutions and strategic transformation as a commercial bank in Kenya. The study aimed at establishing how the nature and application of strategic innovations influences operational performance of Absa bank Kenya, as well as establishing numerous elements that influence the development and implementation of strategic innovations in the bank. The study is supported by the knowledge based theory and supported by the resource based and dynamic capability theory. The study adopted a case study research design to facilitate in depth analysis of the case. An interview guide with open ended questions was applied as a research technique. The study used both the Primary and secondary data. The bank's strategic plans and reports provided secondary data, while an interview guide gathered primary data. The study revealed that the bank had a strong ICT core banking system that led to the automation of numerous back office processes enhancing convenience and minimizing errors while serving customers. Data management and capabilities to facilitate sound decision making, C360 analytics platform to intensify financial services, technology upgrades, front-end-state-of-the-art cards payments, front-end teller system, and new look mobile banking were among the identified innovation strategies. The study also established a positive relationship between strategic innovations on performance, it indicated that there was a greater efficiencies and effectiveness brought about by the strategic innovations adopted by the bank on the general performance. To summarize, strategic innovation is critical for businesses because as it improves performances by upgrading products, services, processes, business models, and marketing strategies. Strategic innovations, according to the study, are a necessary condition for any organization's progress and a critical component to all organizations.