Effect Of Innovations Management On Growth Of Micro finance Banks In Nairobi

Abstract

Today, it has become increasingly unfavorable for companies to tie themselves to the traditionally used methods of production. Due to the highly dynamic and competitive environment, companies have been compelled to be more innovative in order to survive. This study sought to establish the effect of innovations management on the growth of microfinance banks in Kenya. The researcher sought to understand the concepts and context of study by critically evaluations previous studies to understand the research gaps. The study was prompted by the fact that microfinance banks were on the rise in Kenya. Literature was review was done on the key areas of the study which were innovations management and growth of microfinance banks in Kenya. Moreover, a review of previous empirical studies was conducted on the interactions of the two concepts in an attempt be better understand the relationship between the two variables. After critical analysis of previous studies, the researcher identified a number of research gaps that needed further investigation. The impact of innovation management on the growth of microfinance banks in Kenya had not been clearly established. It was this gap that the study endeavored to fill. The study used primary data that was gathered though use of self-administered structured questions. Data collected was sufficient enough to warranty conclusions about the study. The response rate was high enough at 90% and all questions in the questionnaires were filled well. The data was analyzed with the assistance of Statistical Package for Social Sciences software and presented through tables and figures. Regression analysis was also done to establish the relationship between the variables of the study. Interpretations were made on the results of the study and revealed that the microfinance banks were increasingly innovative overtime. Evidence from primary data also revealed that the microfinance banks had achieved significant growth in the past five years as measured through branch network, number of staff, average client deposits and level of assets among other parameters. Finally, recommendations and conclusions were made as well as suggestions for further studies.