The Role of Technology on Strategy Implementation in Tier Two Commercial Banks in Kenya

Abstract

An ever changing business environment characterised by stiff competition, changing customer and investor demands, changing regulation, and new compliance demands has become the norm for most organizations today. In order to compete in this kind of environment firms must continously review their current objectives and strategies in ways that make the organization more successful. The objectives of this study were: to determine the level of IT adoption among Tier II commercial banks in Kenya, and to determine the role of IT in strategy implementation among Tier II commercial banks in Kenya. The study used questionnaires as the primary instrument of data collection. Before processing the responses, the completed questionnaires were sorted, checked and edited for completeness and consistency. The data was then coded which enabled the responses to be grouped into various categories. Descriptive statistics technique was used to analyze the quantitative data. Coding was done in SPSS, analyzed and the output interpreted in frequencies, percentages, mean scores, and standard deviation. The study found that majority of Tier II banks set aside more than 10% of their budget for IT infrastructure, had between 41% to 60% level of computerization of activities and had functional website or social networking page. Furthermore, the study found out that staff had workstations with access to the intranet and internet for communications; the organization had a dedicated IT department; the organization has integrated software to manage their funding and budget; all staff able to access essential services and perform work outside the office and the finance department utilized all accounting software in their operations. The study recommends that the management of the Tier II banks should utilize IT in the strategy implementation in human resources planning, staff training and retention, business level and objectives business level and objectives business level and objectives designing,documentation and understanding.