ASSESSING THE INFLUENCE OF PERSONALIZATION ON PERFORMANCE OF COMMERCIAL BANKS IN KENYA
Abstract
The objective of the study was to examine the influence of personalization on performance of commercial banks in Kenya. As organizations seek to improve their operational effectiveness, enhance regulatory capacity and modernize systems and processes, they are driven by different needs and hence use diverse strategies to capture, develop, share and manage knowledge. For this reason organizations should seek to generate unique database of knowledge for effective delivery of their mandate. Personalization was identified as one of the strategies that an organization can employ to manage knowledge. In carrying out the study, it was observed that there was a shortage of documented empirical studies demonstrating the actual relationship between the strategy and performance of commercial banks in Kenya. A descriptive study of the 43 commercial banks in Kenya as at December 2017 was carried out. Qualitative as well as quantitative research design informed the study. For the purpose of the final report, a census of all the 43 banks constituted the target population. The unit of analysis comprised of 172 senior managers drawn from the Human Resource Department, Risk and Compliance, Credit and the Finance department. The sample size was 172 respondents drawn from the various departments. Data was collected from primary and secondary sources. Primary data was collected using self-administered semi-structured questionnaires and interviews. Binary logistic regression model was employed based on the dichotomy nature of the dependent variable. The study finding revealed a positive and significant relationship between personalization strategy and performance of commercial banks in Kenya. The study pointed out that commercial banks that adopted personalization strategy to manage knowledge have a higher probability of recording high performance compared to those without the strategy in place. Exploration, spatial / managerial cognition, practice based knowledge, symbiosis approach were found to be meaningful to banks that sought to improve overall performance. The study recommended commercial banks to adopt the strategy to enable employees gain insights and become more enlightened about the best practices. The findings pointed out that the odds of commercial banks that embraced personalization strategy were more than banks that operated without the strategy.
Keywords: Personalization, Knowledge, Management, Strategy, Performance
CITATION: Njenga, J. N., Karanja, N., & Odhiambo, R. (2019). Assessing the influence of personalization on performance of commercial banks in Kenya. The Strategic Journal of Business & Change Management, 6 (4), 942 – 953
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DOI: http://dx.doi.org/10.61426/sjbcm.v6i4.1440
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