Technology Infrastructure and Business Performance of Commercial Banks in Kenya

Technology Infrastructure and Business Performance of Commercial Banks in Kenya

April 2024 | Jeremiah Mugambi Ananga; Dr. Samson Nyang'au Paul; Dr. Tobias Mwalili
This study examines the role of technology infrastructure on the business performance of commercial banks in Kenya. The research is guided by the positivist philosophy and employs a correlational research design. The target population consists of all 42 commercial banks in Kenya, with a sample of 138 top managers selected using purposive sampling. A self-administered questionnaire was used to collect primary data, and a pilot study was conducted to ensure the validity and reliability of the data collection instrument. Quantitative data was analyzed using SPSS version 24, with descriptive statistics, regression analysis, and correlation analysis employed to determine the relationship between technology infrastructure and business performance. The study found a significant positive relationship between technology infrastructure and business performance of commercial banks in Kenya. Key components of technology infrastructure, including hardware/software, network, and database, were found to influence business performance. The results indicate that improvements in technology infrastructure can lead to enhanced business performance in commercial banks. The study concludes that technology infrastructure plays a crucial role in the performance of commercial banks in Kenya. The study recommends that commercial banks in Kenya should ensure they have adequate and up-to-date hardware/software to enable their employees to improve productivity. The findings highlight the importance of technology infrastructure in supporting business operations and enhancing competitive advantage. The study also underscores the need for continuous investment in technology infrastructure to sustain business performance in the dynamic banking sector. Overall, the study emphasizes the critical role of technology infrastructure in driving business performance in commercial banks in Kenya.This study examines the role of technology infrastructure on the business performance of commercial banks in Kenya. The research is guided by the positivist philosophy and employs a correlational research design. The target population consists of all 42 commercial banks in Kenya, with a sample of 138 top managers selected using purposive sampling. A self-administered questionnaire was used to collect primary data, and a pilot study was conducted to ensure the validity and reliability of the data collection instrument. Quantitative data was analyzed using SPSS version 24, with descriptive statistics, regression analysis, and correlation analysis employed to determine the relationship between technology infrastructure and business performance. The study found a significant positive relationship between technology infrastructure and business performance of commercial banks in Kenya. Key components of technology infrastructure, including hardware/software, network, and database, were found to influence business performance. The results indicate that improvements in technology infrastructure can lead to enhanced business performance in commercial banks. The study concludes that technology infrastructure plays a crucial role in the performance of commercial banks in Kenya. The study recommends that commercial banks in Kenya should ensure they have adequate and up-to-date hardware/software to enable their employees to improve productivity. The findings highlight the importance of technology infrastructure in supporting business operations and enhancing competitive advantage. The study also underscores the need for continuous investment in technology infrastructure to sustain business performance in the dynamic banking sector. Overall, the study emphasizes the critical role of technology infrastructure in driving business performance in commercial banks in Kenya.
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[slides and audio] Technology Infrastructure and Business Performance of Commercial Banks in Kenya