Information Technology Service Management and Organisation Performance of Commercial Banks in Kenya

Abstract

Commercial banks have been increasingly adopting information technology to assist carry out its operations effectively. So as to better manage these services effectively IT service management has been implemented through frameworks such as COBIT, ISO/IEC 20000 and ITIL which consists of procedures, practices and guidelines on how to best deliver and effectively manage IT services. This research project aimed to establish the effect of ITSM on the organizational performance across commercial banks in Kenya. The specific objectives of the project were to determine the extent to which IT service management has been adopted across commercial banks in Kenya, to determine the effect of IT service management on the organizational performance and establish the benefits and challenges of adopting IT service management across commercial banks in Kenya. The research project used strategic alignment theory, resource-based theory and contingency theory. Data collection in the study was done through the use of semi-structured questionnaires and analyzed using descriptive model analysis for two objectives while the third objective was analyzed through multiple regression analysis. Research findings established that ITSM version and ITSM function were significant predictors of organizational performance across commercial banks. It was recommended that ITSM framework functions be fully implemented and version upgraded so that commercial banks increase and enhance their performance. The research project will assist to bridge the gap in the study of ITSM effectiveness across organizations and will be used by policy makers, scholars and as reference to academic content.