Influence Of Information Communication Technology Innovations On Performance Of Kenya Commercial Bank Ltd.

Abstract

The Financial services sector in Kenya has undergone transformation in the past years with several innovation driven improvements. Commercial banks in Kenya and the rest of the world have continued to use huge investments in ICT based innovations and training of manpower to handle the new technologies. The relationship between the growing investments in ICT based bank innovations and the banks performance in Kenya needs to be studied and establish whether ICT innovations strategies have contributed to the performance of commercial banks in Kenya. The main objective of the present study was to find out the influence of Information Communication Technology Innovations on financial performance of Kenya Commercial Bank Ltd. The specific objectives being; To find out how technology innovations, product innovations, market innovation and process innovation influence performance of Kenya Commercial Bank Ltd. It attempts to draw on theoretical literature and empirical studies on innovation management and technological capabilities in an effort to explore the role of ICT innovations on performance of Kenya Commercial Bank Ltd. The development was intended to inform further research and enable organizations to develop pathways for ICT Induced innovations. The study employed descriptive research design and inferential statistics. The target population of this study was the management staff working at Kenya Commercial Bank Ltd. Primary data was collected using a questionnaire while secondary data was obtained from annual reports of the Kenya Commercial Bank Ltd. The data was then coded to enable the responses to be grouped into various categories. The results of the study established that technology innovations, process innovations and market innovations had a positive and significant effect on performance of Kenya Commercial Bank Ltd with t-values of 2.302, 2.065 and 2.175 respectively at significance levels of less than 0.05 while product innovations had a positive influence on performance of Kenya commercial Bank Ltd with the t-value of 0.195 but its influence was not statistically significant since the p-value was 0.846 which is greater than 0.05