Effect of Automated Teller Machines Usage on Operational Performance of Commercial Banks in Nakuru County, Kenya
International Journal of Economics, Finance and Management Sciences
Volume 5, Issue 3, June 2017, Pages: 162-167
Received: May 2, 2017;
Accepted: May 13, 2017;
Published: May 23, 2017
Views 2470 Downloads 249
Hussein Mohamed Abdullai, Faculty of Commerce, Department of Accounting, Finance and Management Science, Egerton University, Nakuru, Kenya
Richard Bitange Nyaoga, Faculty of Commerce, Department of Accounting, Finance and Management Science, Egerton University, Nakuru, Kenya
The aim of this paper was to determine the effect of Automated Teller Machines usage on operational performance of commercial banks in Nakuru County, Kenya. The study was guided by the research objective: to establish the effect of automated teller machines (ATMs) usage on operational performance of commercial banks in Nakuru County, Kenya.The study employed the following theories namely: Diffusion of Innovation and The Theory of Reasoned Action. The study adopted a correlational-cross-sectional research design. The study population comprised 56 employees of the 28 commercial banks. There are 31 commercial banks branches in Nakuru County, Kenya with Kenya Commercial Bank, Co-operative Bank and Equity bank having 3, 2 and 3 branches respectively which makes a total of 31 commercial banks out of which the researcher, through a simple random sampling, chose 28. Data was collected using structured questionnaires. A pilot study was conducted in Eldoret Town, Uashin Gishu County to determine validity of the research instruments where Cronbach’s alpha coefficient was employed. For the purpose of determining the effect of ATMs usage on operational performance, correlation and regression analysis were carried out. The study established that ATM usage has a positive significant relationship with operational performance. The study recommends that managements of commercial banks should highly invest in ATMs as it positively influences operational performance. The study suggests that further studies should be conducted to relate ATMs with other variables like quality and flexibility.
Hussein Mohamed Abdullai,
Richard Bitange Nyaoga,
Effect of Automated Teller Machines Usage on Operational Performance of Commercial Banks in Nakuru County, Kenya, International Journal of Economics, Finance and Management Sciences.
Vol. 5, No. 3,
2017, pp. 162-167.
Abdelaziz, S. G., Hegazy, A. A., & Elabbassy, A. (2010). Study of Airport Self-Service Technology within Experimental Research of Check-in Techniques: Case Study and Concept. International Journal of Computer Science, 7(3), 17–26.
Abdullahi, Y. (2012). Services Automation And Performance : Evidence From Deposit Money Banks in Nigeria. International Journal of Advanced Research in Management and Social Sciences, 1(2), 47–58.
Agboola, A. A. (2003). Information Technology, Bank Automation, and Attitude of Workers in Nigerian Banks. Journal of Social Sciences, 7(3), 215–222.
Bitange, R., Wang, M., & Obara, P. (2015). Testing the Relationship between Constraints Management and Capacity Utilization of Tea Processing Firms : Evidence from Kenya. Future Business Journal, 1, 35–50. http://doi.org/10.1016/j.fbj.2015.10.001
Jattani, G. (2014). Effect of Technology Adoption on Operational Efficiency of Commercial Banks in Kenya.
Jegede, C. A. (2014). Effects of Automated Teller Machine on the Performance of Nigerian Banks. American Journal of Applied Mathematics and Statistics, 2(1), 40–46. http://doi.org/10.12691/ajams-2-1-7
Katono, I. W. (2011). Student Evaluation of e-Service Quality Criteria in Uganda : The Case of Automatic Teller Machines. International Journal of Emerging Markets, 6(3), 200–216. http://doi.org/10.1108/17468801111144049
Kumar, V., Batista, L., & Maull, R. (2011). The Impact of Operations Performance on Customer Loyalty. Service Science, 3(2), 158–171.
Kyuska, J. M. (2015). Effect of Logistics Outsourcing on The Operational Performance of Shipping Industry in Kenya. University of Nairobi.
Narteh, B. (2015). Perceived Service Quality and Satisfaction of Self-Service Technology: The Case of Automated Teller Machines. International Journal of Quality & Reliability Management, 32(4), 361–380.
O’Brien, R. M. (2007). A Caution Regarding Rules of Thumb for Variance Inflation Factors. Quality & Quantity, 41, 673–690. http://doi.org/10.1007/s11135-006-9018-6
Oduor, R. A. (2012). Adoption of The Automated Bill Enquiry And Bill Payment System by Customers of The Kenya Power and Lighting Company in Kisumu. University of Nairobi.
Olatokun, W. M., & Igbinedion, L. J. (2009). The Adoption of Automatic Teller Machines in Nigeria : An Application of the Theory of Diffusion of Innovation Louisa Joyce Igbinedion. Issues in Informing Science and Information Technology, 6, 373–393.
Oruma, W. B. (2014). Factors Influencing Implementation of Total Quality Management in Construction Companies in Kenya : A Case of Nakuru County. University of Nairobi.
Rahman, S., Laosirihongthong, T., & Sohal, A. S. (2010). Impact of Lean Strategy on Operational Performance : A Study of Thai Manufacturing Companies. Journal of Manufacturing Technology Management, 21(7), 839–852. http://doi.org/10.1108/17410381011077946
Rogers, E. M. (1983). Diffusion of Innovations (Third Edit). London: The Free Press.
Sanda, M.-A., & Arhin, E. (2011). Using ATMs as Workload Relievers for Ghanaian Bank Tellers: The Customer Behavioral Challenge. Journal of Economics and Behavioral Studies, 3(1), 13–21.
Sewpersad, S. (2010). An Investigation of The Bombing of Automated Teller Machines (ATMs) With Intent To Steal Cash Contents : Case Study From Gautng. University of South Africa.
Staughton, R., & Johnston, R. (2005). Operational Performance Gaps in Business Relationships. International Journal of Operations & Production Management,25(4),320–332. http://doi.org/10.1108/01443570510585525
Taj, S., & Morosan, C. (2011). The Impact of Lean Operations on The Chinese Manufacturing Performance. Journal of Manufacturing Technology Management, 22(2), 223–240. http://doi.org/10.1108/17410381111102234
Wang, Y.-S., Wang, Y.-M., Lin, H., & Tang, T.-I. (2003).Determinants of User Acceptance of Internet Banking : An Empirical Study. International Journal of Service Industry Management, 14(5), 501–519. http://doi.org/10.1108/09564230310500192
Zheng, M. (2015). Conceptualization of Cross-Sectional Mixed Methods Studies in Health Science: A Methodological Review. International Journal of Quantitative and Qualitative Research Methods, 3(2), 66–87.