Effect of Internet Banking on Operational Performance of Commercial Banks in Nakuru County, Kenya
International Journal of Economics, Finance and Management Sciences
Volume 6, Issue 2, April 2018, Pages: 60-65
Received: Jan. 10, 2018;
Accepted: Mar. 27, 2018;
Published: May 5, 2018
Views 1396 Downloads 142
Hussein Mohamed Abdullai, Department of Accounting, Finance and Management Science, Egerton University, Nakuru, Kenya
Elyjoy Muthoni Micheni, Department of Management Science and Technology, The Technical University of Kenya, Nairobi, Kenya
The purpose of this paper was to investigate the effect of internet banking on operational performance of commercial banks in Nakuru County, Kenya. The study was guided by the research objective: to investigate the effect of internet banking on operational performance of commercial banks in Nakuru County. The study employed the following theories namely: Bank-Focused Theory and The Technology Acceptance Model (TAM). This study adopted a cross-sectional research design. A cross-sectional research design is a research approach in which the researchers investigate the state of affairs in a population at a certain point in time. Very often, the elements in the sample survey are selected at random to make inference about the population as a whole . The study population comprised of 56 employees of the commercial banks. Since the banks are few, the study adopted a census survey. Data was collected using structured questionnaires. A pilot study was conducted in Uasin Gishu County to determine validity of the research instruments where Cronbach’s alpha coefficient (0.7) was employed. Data was analyzed using correlation and regression analysis. The study established that internet banking has a positive significant effect on operational performance of the commercial banks. The study recommends that managements of commercial banks should invest in internet banking as it positively influences operational performance. The study suggests that further studies should be conducted to establish the effect of internet banking on operational performance in other sectors other than banking as the study focused only on commercial banks in order to establish whether internet banking does affect their operational performance.
Hussein Mohamed Abdullai,
Elyjoy Muthoni Micheni,
Effect of Internet Banking on Operational Performance of Commercial Banks in Nakuru County, Kenya, International Journal of Economics, Finance and Management Sciences.
Vol. 6, No. 2,
2018, pp. 60-65.
Abdullahi, Y. (2012). Services Automation and Performance : Evidence from Deposit Banks in Nigeria. International Journal of Advanced Research in Management and Social Sciences, 1 (2), 47–58.
Aduda, J., & Kingoo, N. (2012). The Relationship between Electronic Banking and Financial Performance among Commercial Banks in Kenya. Journal of Finance and Investment Analysis, 1 (3), 99–118.
Agboola, A. A. (2003). Information Technology, Bank Automation and Attitude of Workers in Nigerian Banks. Journal of Social Science, 7 (3), 215–222.
Chibueze, Z., Maxwell, O., & Osondu, M. (2013). Electronic Banking and Bank Performance In Nigeria. Abia State University, Imo State University.
Davis, F. D., Bagozzi, R. P., & Warshaw, P. R. (1989). User Acceptance of Computer Technology: A Comparison of Two Theoretical Models. Management Science, 35 (8), 982–1003.
Foley, P., & Jayawardhena, C. (2000). Changes in the Banking Sector- The Case of Internet Banking in the UK Chanaka Jayawardhena and. Internet Research, 10 (1), 19–31.
Gizaw, B. (2016). The Effect of Suuply Chain Integration on Operational Performance in Ethiopian Trading Enterprises. Addis Ababa University.
Guyo Jattani. (2014). Effect of Technology Adoption on Operational Efficiency of Commercial Banks in Kenya. University of Nairobi.
Jenkins, H. (2007). Adopting Internet Banking Services in a Small Island State : Assurance of Bank Service Quality. Managing Service Quality: An International Journal, 17 (5), 523–537. http://doi.org/10.1108/09604520710817343.
Kagan, A., Acharya, R. N., & Rao, L. S. (2005). Does Internet Banking Affect the Performance of Community Banks (No. 85212). Arizona.
Kumar, V., Batista, L., & Maull, R. (2011). The Impact of Operations Performance on Customer Loyalty. Service Science, 3 (2), 158–171.
Muthami, J. (2015). Effect of Logistics Outsourcing on the Operational Performance of Shipping Industry in Kenya. University of Nairobi.
Njogu, N. J. (2014). The Effect of Electronic Banking on Profitability of Commercial Banks in Kenya. University of Nairobi.
Ngugi, K., & Karina, B. (2013). Effect of Innovation Strategy on Performance of Commercial Banks in Kenya. International Journal of Economics and Finance, 1 (3), 1–13.
Okiro, K., & Ndungu, J. (2013). The Impact of Mobile and Internet Banking on Performance of Financial Institutions in Kenya. European Scientific Journal, 9 (13), 146–161.
Pikkarainen, K., Pikkarainen, T., Karjaluoto, H., & Pahnila, S. (2004). Consumer Acceptance of Online Banking : An Extension of the Technology Acceptance Model. Internet Research, 14 (3), 224–235. http://doi.org/10.1108/10662240410542652.
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.
Samuel, O., Matrix, D., & Solutions, B. (2011). ICT’s, Service Delivery and Operational Performance in Nigerian Banks : A Survey of Empirical Research. African Research Review, 5 (21), 44–59.
Vutsengwa, R. M., & Ngugi, K. (2013). An Assessment of The Challenges Facing Commercial Banks in Kenya: A Case of Commercial Banks. International Journal of Economics and Finance, 1 (2), 1–8.
Wario, A. Y., & Okibo, B. W. (2014). Effects of E-Banking on Growth of Customer Base in Kenyan Banks. International Journal of Research in Management & Business Studies, 1 (1), 78–84.
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.