MCOM Theses and Dissertations (2017)

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Browsing MCOM Theses and Dissertations (2017) by Subject "Commercial Banks -- Kenya"

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    An Analysis of the effect of business diversification on the financial performance of Commercial Banks in Kenya
    (Strathmore University, 2017) Kitisya, Daniel Tamale
    This study sought to investigate the effect of business diversification on the financial performance of commercial banks in Kenya. The study was based on the fact that the banking sector in Kenya is highly regulated with significant business restrictions and attendant disclosures which have created incentives for the banks to diversify. However, the effect of business diversification on financial performance remains inconclusive with diverse studies finding minimal or no relationship while others finding positive significant effect. The study used a mixed research design where descriptive and quantitative research designs were used. The population for this study was all the forty two commercial banks in Kenya. Sources of data were both secondary and primary where quantitative techniques were used to undertake data analysis. To determine the relationship that existed between the variables, both multiple regression analysis and chi-square tests were adopted. The study found that business diversification significantly positively affected how the commercial banks in Kenya performed. The exact effect was however established to be largely dependent on bank-size. Business diversification significantly improved financial performance for small banks. Under medium sized banks category, only location diversification affected financial performance in a significant manner. For large banks all the four forms of business diversification did not have a significant effect on their financial performance. Respondents perceived business diversification to positively affect financial performance of commercial banks in Kenya to a moderate extent. The study was limited by examining financial performance by use of the CAMELS model in a developing country and being conducted in a single industry. Further, CAMELS was measured using a constructed index by data being obtained from the commercial banks’ annual audited reports. The study highlighted the need to develop business diversification strategies specifically tailored for each of the tiers of commercial banks with a focus on all forms of diversification for small banks, location diversification for the medium-sized banks and enhancement of existing forms of diversification among large commercial banks.
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    Influence of customer relationship management capabilities on performance of Commercial Banks in Kenya
    (Strathmore University, 2017) Githinji, Lisa Nyambura
    The purpose of this study was to investigate the influence of customer relationship management capabilities on the performance of commercial banks in Kenya. The study aimed to establish whether customer relationship management capabilities such as human resource capabilities, information technology capabilities and business architecture capabilities influence the performance of commercial banks. The performance measures used were non-financial measures which were assessed from the employees’ perspective. The target population was 41 commercial banks regulated by the Central Bank of Kenya. A descriptive and correlational research design was used. Semi-structured questionnaires were distributed to a sample size of 111 employees who work in the 37 commercial banks in Nairobi County. The data was analyzed using the Statistical Packages for Social Sciences (Version 16). Regression analysis was used to establish the relationship between customer relationship management capabilities and organizational performance. The findings established that the most dominant customer relationship management capability used by commercial banks was the human resource capability where building relationships with customers was emphasized on. Both the information technology and human resource capabilities had a significant positive effect on organizational performance. Based on these findings, the human resource capabilities should be enhanced by training employees on how to improve their skills and competencies by developing more profitable and sustainable relationships with customers. Additionally, information technology combined with the people skills would further improve the organizations effectiveness in service delivery. This is because the technological innovations provide suitable infrastructure to employees to increase their responsiveness to customer queries, increase their productivity and reduced the amount of time required in dealing with a large pool of customers. The study had its limitations. The use of a descriptive cross-sectional research design reduced the generalizability of the results. Future research should address these limitations by corroborating with a longitudinal research design and increasing the industries with which the study was conducted. Replication of the study to other industries could serve as a useful reference for future research.