Relationship Between Benchmarking and Operational Performance in the Kenyan Banking Industry
Abstract
This study sought to investigate the relationship between benchmarking and operational
performance in the Kenyan Banking Industry. It addresses the type of Benchmarking
pursued by the banking industry. Internal, competitor, Industry and World class types of
benchmarking practices were studied. It also addressed the issue of the measures in place
to ensure that for the benchmarking type pursued, there is information gathering about it.
The major aim of this research was to establish if there is a relationship between the type
of benchmarking pursued and the operational performance measured in terms of
profitability. This was achieved by circulating a questionnaire to test the type of
benchmarking pursued in the various banks in Kenya.
The findings of the study indicated that there was an agreement among the respondents
that internal benchmarking is strongly pursued in Kenya. Generally there is presence of
all the benchmarking types with world class benchmarking having the least preference.
The study recommended that the Kenyan banking industry should engage in activities to
provide them with benchmarking strategy information and should also consider world
class benchmarking so as to exploit its benefits. They should share information within the
departments and also establish links with their peers/best in industry and world class
performers so as to tap their best operations performance. If these recommendations
would be implemented, Kenyan banking industry would have an edge above other
financial institutions that provide other forms of banking services.
Publisher
University of Nairobi
Rights
Attribution-NonCommercial-NoDerivs 3.0 United StatesUsage Rights
http://creativecommons.org/licenses/by-nc-nd/3.0/us/Collections
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