Operations Management in Banking. Comparative Study of Islamic and Conventional Banks in Kenya
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Date
2011Author
Miriti, Lawrence M
Type
ThesisLanguage
enMetadata
Show full item recordAbstract
The study was set to analyze operations management in banking: - comparative study of
Islamic and conventional banks in Kenya. The objectives of the study were to compare
and document unique operational management practices between Islamic and
conventional banks in Kenya and to identify differences in service capacity, internal
layout and technology, between Islamic and conventional banks in Kenya. The study was
guided by the following research questions; Are product and service designs for Islamic
Bank similar to those of Conventional Bank?, Are there disparities in quality of
operations between Islamic Banks and Conventional Banks?, Are products offered by
Islamic Banks similar to those offered by Conventional Banks?, What are the unique
operational processes and practices between Islamic Bank and Conventional Bank?,
Are there differences in Information Technology platform for Islamic Bank as compared
to that of Conventional Bank? and Are supply chains in terms of correspondent banking
networks the same for Islamic Bank as those of Conventional Bank
The study adopted a case study method to achieve the research objectives. This method
was appropriate for this particular phenomenon where details and uniqueness were
emphasized. Islamic banks in Kenya constitute a small population and it's a relatively
new phenomenon. Descriptive statistics such as frequency and percentages were used to
analyze the responses and the findings were presented using charts and tables.
The study found that both Islamic and conventional banks had operation policies in place.
There was a significant difference in terms of auditing, that is, 90.9% of the respondents
from the Islamic bank were of the opinion that their bank carry out regular audit to ensure
specific faiths based compliance in operations and processes while none of the
convention bank carries out regular audit to ensure specific faiths based compliance in
operations and processes.
Majority of the respondents further expressed the opinion that all operation management
practices were not similar across the banking industry.
In terms of differences in service capacity, internal layout and technology, the study
found out that; functionality of IT used in Islamic bank differs from those used by other
banks while those from conventional banks indicated that the functionality of IT used in
their organization do not differ from those used by other banks, IT designed in the
Islamic bank supported Islamic Financing by providing firewalls to guard against Shariah
Breach in a transaction while IT designed for convention bank does not to support
Islamic Financing by providing firewalls to guard against Shariah Breach in a transaction,
the office layout for Islamic bank also differs from those of the convention banks and
both Islamic and convention bank had correspondent banking networks in terms of
service delivery.
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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