Technology Infrastructure and Business Performance of Commercial Banks in Kenya

Abstract

The general objective of the study was to examine the role of technology infrastructureon business performance of Commercial Banks in Kenya. The philosophy that guided the research is positivism philosophy. The study adopted correlational research design. The target population was commercial Banks in Kenya register by the Central Bank of Kenya. The population consisted of all 42 commercial banks in Kenya. Respondents’ population comprised of five top managers from each bank translating to 210 top managers. Slovin’s formula was used to calculate the sample size. Purposive sampling technique was used to select 138 top managers of the 42 commercial Banks in Kenya. This study used a self-administered, closed and open-ended questionnaire to obtain primary data. A pilot study was conducted to test the validity and reliability of the data collection instrument. Quantitative data was collected and analyzed in this study by calculating the response rate with descriptive statistics such as mean, standard deviation, median and proportions using the Statistical Package for Social Sciences (SPSS) version 24). Regression analysis and correlation analysis was used to carry out inferential data analysis to determine the direction and strength of the relationship between the independent and the dependent variables. In order to test the influence of information technology capability on business performance of Commercial Banks in Kenya, the study employed a hierarchical regression analysis with moderation. The study results were presented through use of tables and figures. The study concludes that technology infrastructure has a positive and significant effect on business performance of Commercial Banks in Kenya. The study revealed that hardware/Software, network and database influence business performance of Commercial Banks in Kenya. This implies that improvement in information technology infrastructure (hardware/Software, network and database) would lead to improvement in business performance of Commercial Banks in Kenya. The study recommends that the management of commercial banks in Kenya should ensure they had adequate and up to date hardware/Software to enable their employees improve their productivity.