INNOVATIONS MANAGEMENT AND PERFORMANCE OF COMMERCIAL BANKS IN NAIROBI CITY COUNTY, KENYA
Keywords:
Innovations Management, Marketing Innovation, Organizational Innovation, Performance of Commercial BanksAbstract
Commercial banks in Nairobi City County, Kenya, play a pivotal role in the country’s economy, serving as the backbone of the financial sector. Commercial banks in Nairobi City County, Kenya, face various challenges which can be significantly influenced by innovation management. The general objective of the study is to determine the influence of innovations management on performance of commercial banks in Nairobi city county, Kenya. Specifically, the study sought to determine the effect of marketing innovation on performance of commercial banks in Nairobi city county, Kenya and to assess the influence of organizational innovation on performance of commercial banks in Nairobi city county, Kenya. This study was guided by Diffusion of Innovations Theory and Resource-Based View (RBV). Descriptive research design was employed where data was collected one point in time. The unit of analysis for the study was 41 commercial banks in Kenya (CBK, 2021) while the unit of observation was management employees. The accessible population was 246 individuals comprising of 41 top managers, 82 middle level managers and 123 lower-level managers. The study’s sample size was reached at using Krejcie and Morgan sample size determination formula. Therefore, using the formula, the sample size for the study was 209 respondents. This study also used questionnaire to collect data relevant to this study. Quantitative data collected was analyzed using descriptive statistical techniques which are frequencies, mean, standard deviation. Inferential statistics which include Pearson correlation and the Regression Analysis Model was used to test the relationship between study variables. The significance of the model was tested at 5% level of significance. Data was analysed using Statistical Package for Social Sciences (SPSS) software. The study results were presented through use of tables and figures. The study concludes that marketing innovation has a positive and significant effect on performance of commercial banks in Nairobi city county, Kenya. The study also concludes that organizational innovation has a positive and significant effect on performance of commercial banks in Nairobi city county, Kenya. Based on the findings, the study recommends that the management of commercial banks in Kenya should implement automation of routine banking processes through advanced technologies. Automating tasks like data entry, customer onboarding, compliance checks, and loan processing can significantly reduce operational costs, minimize human error, and enhance service delivery speed.
Key Words: Innovations Management, Marketing Innovation, Organizational Innovation, Performance of Commercial Banks
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