Six-Sigma Enablers And Service Quality Of Commercial Banks In Kenya

Abstract

The banking industry in Kenya has always faced numerous challenges with many banks struggling to stay afloat. Stiff competition in the banking industry, increased cost of operations leading to diminished profits, rapid changes in technology, high rates of staff turnover, strict regulation by authorities, high expectation by customers on quality and diversity of services or banking products on offer and high levels of non-performing loans due to inadequate vetting procedures of potential borrowers are a few of a myriad challenges that face the industry. The study was guided by the following objective; to establish the six-sigma enablers among commercial banks in Kenya and to determine the relationship between six-sigma enablers and service quality of commercial banks in Kenya. A descriptive research design was used in this study. The target population for this study is 40 Commercial banks in Kenya. A census survey was used given the sample size of the study is small. The study was randomly collect data from 40 operation managers. Self-administered questionnaires were distributed among operation mangers of each bank. Descriptive statistics namely percentages, frequencies, means and standard deviation were used to analyze quantitative data. A multiple linear regression was used to establish the relationship between six-sigma enablers and service quality among commercial banks in Kenya. The study found that strategic six-sigma enablers, tactical six-sigma enablers and operational six-sigma enablers had a positive and significant relationship on service quality of banks. The study also concluded that the bank that encourages teamwork and management support have good service quality. In addition, banks management that avail adequate funds for implementation of six-sigma have good service quality. The study recommends that the banks‟ top management should be trained on handling six-sigma implementation. In addition the banks top management should be involved in the implementation of six-sigma. The study also recommends that bank management should avail adequate funds for implementation of six-sigma.