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International Journal of Management and Leadership
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International Journal of Management and Leadership Studies
2022; 4(ii): 15
ISSN: 2311 7575
ORGANIZATIONAL INNOVATIONS AND PERFORMANCE OF THE BANKING SECTOR IN KENYA: A CASE OF NCBA BANK
Mvori, E. W, Kanyanjua, D
Published: 02 May, 2022 Volume: 4 Issue: ii
Keywords: Technological Innovations, Product Innovations and Organization Performance
World Over, organizations are choosing strategic innovation as a response to rapid business environment turbulence and complexity. The objective of this research was assessing the effect of organization innovations on performance of the banking industry in Kenya. The specific objectives were; to examine the effect of technological innovations on the performance of the banking sector in Kenya; and to establish the effect of product innovations on the performance of the banking sector in Kenya. The research was based on dynamic capabilities theory. This research made use of a descriptive research design. The research population was the 42 NCBA PLC branches in Nairobi County, Kenya. 42 branch managers and the 42 branch operational managers giving a total of 84 respondents formed the target population. A questionnaire was used for collecting primary data from the respondents. To undertake data analysis, descriptive statistics were used. Frequencies and percentages were used in analyzing the demographic profiles of the respondents. Inferential statistics including regression and correlation analysis were applied in establishing how the dependent variable relates with the independent variables. Ethical considerations were observed throughout the study. The inferential results on the effect of technological innovation on organization performance show R = 0.594 indicating a strong positive correlation and R2 = 0.353 and there was a significant effect between technological innovation and organization performance (β = 0.216, p<0.05). The inferential results on the effect of product innovation on organization performance show R = 0.612 indicating a strong positive correlation and R2 = 0.375 and there was a significant effect between product innovation and organization performance (β = 0.437, p<0.05). The study recommends that NCBA bank ought to unceasingly implement technological and product innovation to boost the competitive edge it enjoys against its competitors in the banking industry.
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