INFLUENCE OF OPERATIONAL STRATEGIES ON SERVICE DELIVERY AMONG COMMERCIAL BANKS IN KENYA; A CASE OF NCBA BANK
Abstract
In today’s dynamic environment, financial institutions are adopted technique of being competitive that is characterized by efficiency in service delivery aimed at quality and customer satisfaction. Banks have greatly strived in ensuring that it improves customers’ service level and tie their customers closer. The main objective of the study is to determine the effect of operational strategies on service delivery among commercial banks in Kenya; a case of NCBA. The specific objectives of study were to evaluate the effect of customer care/service on service delivery; to determine the effect of business processes on service delivery and to establish the effect of automation on service delivery. The study was guided by Neo-Classical Theory and Market Power and Efficiency Structure Theory. The study adopted descriptive research that was effective in establishing the relationship between the variables. The target population captured by the researcher was 67 employees of NCBA. A sample of 67 respondents obtained upon administration of census by the researcher. Data collection was primary and therefore the researcher relied on questionnaire. The study reliability was calculated using coefficient Cronbach’s alpha 0.7. To ensure that the instruments were valid, content validity was used. The collected data was analyzed with the help of Statistical Package for Social Sciences (SPSS) version 21. Percentages, means and standard deviation was used for descriptive analysis of the indicators for each variable of the study. Multiple regression analysis was done to test the hypothesis. Summary of data analysis results were presented in tables and figures. The hypothesis testing results at 0.95 significant level showed that customer care/service has a significance influence on service delivery (-0.041), while automation (-0.005) which suggested to have a negative influence on service delivery. The study therefore accepted that alternative hypothesis of bot customer care (p=0.03<0.05) and business processes (p= -0.41<0.05), which suggested that there is a statistically significant relationship between customer care and business processes. Finally, it is recommended in this study that other financial institutions should embrace operational strategies if they want to yield both short- and long-term success. The findings of the study may be useful in adding knowledge on operational strategies on service delivery. It also presumed that the study results may be useful to the NCBA Bank to make changes that will improve service delivery. The findings of study were of beneficial to financial institution and academicians.
Key Words: Customer Care/Service, Business Processes, Automation
CITATION: Agollah, E. S., Kimani, G., & Obunga, F. (2022). Influence of operational strategies on service delivery among commercial banks in Kenya; A case of NCBA Bank. The Strategic Journal of Business & Change Management, 9 (4), 1216 – 1227.
Full Text:
PDFReferences
Austin, J., & Bartunek, J. (2004). Theories and Practice of Organization Development. International Journal of Psychology , 12 (13), 309–332.
Banu, M. (2019). Operational Effeciency of Indian Banking Sector-A Comparative Analysis. International Emerging Technologies , 10 (3), 43-48.
Cheng, Q., Goh, B., & Kim, J. (2018). Internal control and operational effeciency . Contemporary Accounting Research , 35 (2), 1102-1139.
Creswell, J., & Creswell, J. (2017). Research design: Qualitative, quantitative, and mixed methods approaches. USA: Sage Publication.
Creswell, J., & Creswell, J. (2017). Research design: Qualitative, quantitative, and mixed methods approaches. USA: Sage Publication.
Creswell, J., & Creswell, J. (2017). Researdh design: Qualitative, quantitative and mixed methods approaches. USA: Sage Publications.
Dong, G., Zhu, J., Li, J., Wang, H., & Gajpal, Y. (2019). Evaluating the environmental performance and operational effeciency of container ports: An application to the maritime silk road. International journal of environmental research and public health , 16 (12), 22-26.
Kamau, F., Rotich, G., & Ogollah, K. (2021). Multiple Delivery Channels and Service Delivery in Huduma Centers in Kenya.
Korir, S., Rotich, J., & Bengat, J. (2015). Performance management and public service delivery in Kenya. European Journal of Research and Reflection in Management Science , 3 (4).
Kumasi, T. (2018). Financing sustainable water service delivery of small town water systems in Ghana: the gaps and needs. Journal of Sustainable Development of Energy, Water and Environmental Systems , 6 (3), 427-445.
Lofthouse, R., Leat, D., & Towler, C. (2010). Improving Teacher Coaching in Schools: A practical guide. London: CfBT Education Trust.
Masson, S., Jain, R., Ganesh, N., & George, S. (2016). Operational efficiency and service delivery performance. Benchmarking: An International Journal .
Mohamed, M., & Xavier, J. (2016). TRANSFORMING PUBLIC SERVICE DELIVERY IN MALAYSIA. Journal of Contemporary Management Research , 10 (1).
Mohamed, S., & Kassim, S. (2017). An Overview of E-Payment adoption among muslim micro-entreprenuers in Malaysia. International Journal of Accounting , 2 (5), 49-59.
Mosse, D., Farrington, J., & Rew, A. (1998). Development as Process; Concepts and Methods for Working with Complexity. London and New York : Routledge Research/ODI .
Newbury-Birch, D., Walker, J., Avery, L., Beyer, F., Brown, N., Jackson, K., et al. (2009). Impact of Alcohol Consumption on Young People: A systematic review of published reviews. London: DCSF.
Odunga, R., Nyangweso, P., Carter, D., & Mwarumba, M. (2013). Credit risk, capital adequacy ad operating effeciency of commercial banks in Kenya. International Journal of Business and Management Invention , 2 (9), 6-12.
Oghojafor, A., & Ighodalo, D. (2015). Performance Measurement System Effectiveness and Public-Private Partnership Assessment: Evaluating Service Delivery Efficiency in Lagos. Nigeria.
Riccardo, S., Andrea, C., & Francesco, T. (2021). Operational Effeciency and Interactive Effeciency in the Company: The Point of View of Work and Organizational Psychology. Academy of Entrepreneurship Journal , 27, 1-8.
Stachowiak, S. (2010). Pathways for Change: 6 Theories about How Policy Change Happens. Seattle, WA: Organizational Research Services.
Syntia, G., Fahira, J., Himawan, D., & Keke, Y. (2020). The Implementation of Delivery Order Online as an Effect of Operational Effeciency. In Journal of Physics: Conference Series , 1573 (1), 12-31.
Vogel, I. (2012). Review of the use of ‘Theory of Change’ in International Development: Review Report. London: UK Department of International Development.
Wang, C., Nguyen, T., & Dang, T. (2021). Analyzing operational effeciency in real estate companies: An application of GM And DEA malmquist model. Mathematics , 9 (3).
Weiss, C. (1995). Nothing as Practical as Good Theory: Exploring Theory-Based Evaluation for Comprehensive Community Initiatives for Children and Families. (pp. 2-30). Washington DC: The Aspen Institute.
Yahaya, O., & Awen, B. (2020). Bank-specific attributes and operational effeciency: Evidence from efficient-structure hypothesis. Journal of Business and Social Review in Emerging Economics , 6 (3), 1087-1098.
DOI: http://dx.doi.org/10.61426/sjbcm.v9i4.2488
Refbacks
- There are currently no refbacks.
This work is licensed under a Creative Commons Attribution 3.0 License.
PAST ISSUES:
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.