The role of strategic adoption of technology in competitiveness of commercial banks in kenya

Author: 
Samson Ole Kisirkoi., Esther Waiganjo and AGNES Njeru

Commercial banks play a critical role in the well being of the Kenyan economy. They also form a major portion of the financial sector in the country. Sustained competitiveness is of utmost importance in the National Economy. This study focused on the determination of factors that influence competitiveness of commercial banks in Kenya. Competitiveness often represents business comparison and rivalry among firms for market share and/or the economic strength of a business entity relative to its competitors in the market or industry. The research sought to establish strategic adoption of technology on competitiveness of commercial banks in Kenya. Technology, The study adopted a cross-sectional survey research design. The target population comprised of the forty three commercial banks in Kenya. The 43 commercial banks also served as the study’s unit of inquiry while the unit of analysis was the management and employees within each of the commercial banks. Further, the study relied on primary data that was obtained by administering questionnaires and interview schedules to three officials within the commercial banks. The collected data was made ready for analysis and cleaned through checking for errors and completeness by editing, coding, transcribing and entering them directly into SPSS software. The main results of the study were that there was positive relationship between strategic adoption of technology, and competitiveness of commercial banks in Kenya. The relationship was found to be 56.3%,. It is therefore recommended that commercial banks should endeavour to build, and entrench on a continuous basis, their in strategic adoption of technology. There is need for further research on what other factors influence competitiveness of commercial banks in Kenya. Further research also needs to be undertaken on how the Central Bank of Kenya could enhance its oversight and regulatory mandate on commercial banks to ensure their long-term survival and stakeholder satisfaction.

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