scholarly journals STRATEGIC ALLIANCES AND THE FINANCIAL PERFORMANCE OF COMMERCIAL BANKS IN NAIROBI CITY COUNTY, KENYA

2021 ◽  
Vol 6 (4) ◽  
pp. 32-45
Author(s):  
Janepher Dzine Mwamuye ◽  
Mary Ragui
Keyword(s):  
Strategic Alliances ◽  
Commercial Banks ◽  
Sample Population ◽  
Unique Contribution ◽  
Secondary Sources ◽  
Brand Marketing ◽  
Technology Alliances ◽  
Marketing Alliances ◽  
Technological Alliances ◽  
Marketing Agency

Purpose: In the Kenyan banking industry, the banks have adopted several strategies aimed at improving their competitive position in a highly competitive market. In reference to the aforementioned the general objective, this study specifically sought to examine how strategic alliances impact financial returns among Nairobi-based commercial banks. The current study specifically examined how brand marketing alliances, agency alliances, innovation alliances and technology alliances affect bank performance. Methodology: This study was based on Transactional Cost, Control Power and Resource Based View theories. The study utilized descriptive research design, that targeted all 39 fully operational commercial banks in Nairobi. The unit of observation was the operations/ relationship manager and the finance manager across each commercial bank. The sample population consisted of 78 respondents. Census sampling was adopted to enhance representation of the respondents. Primary and secondary sources of data provided data which was then be analyzed in SPSS 23 using both descriptive and inferential statistics. The study employed means, standard deviation, correlation and regression methods of analysis, with results being presented using figures, tables and other infographics. Results: An 85% response rate was received. The correlation results showed a positive and significant effect of brand marketing, agency, innovation and technological alliances on banks’ profitability. The regression findings revealed that jointly brand marketing, agency, innovation and technological alliances predict 38.3% of shifts in profits generated by the banks. The study concluded that brand marketing alliances, agency alliances and technology alliances had a significant effect on profitability, while innovation alliances had an insignificant effect. Unique contribution to theory, practice and policy: The study recommends that banks should constantly review their agency banking to ensure they are aligned to their financial goals. Lastly, commercial banks should strive to spur their research and development which can help drive their technological innovations.

Lucky or privileged? Working with memory and reflexivity

2018 ◽  
Vol 47 (2) ◽  
pp. 208-216 ◽  
Author(s):  
Christine Trimingham Jack
Keyword(s):  
Teacher Educator ◽  
Boarding School ◽  
School Experience ◽  
Unique Contribution ◽  
Content Type ◽  
Educational History ◽  
Secondary Sources ◽  
Long Term Impact ◽  
The Uk

Purpose Through a case study of the decision making that led to the writer becoming a teacher educator, the purpose of this paper is to contribute to historiography by exploring the complex process of surfacing and interpreting memory. Design/methodology/approach The methodology draws on the concepts of autobiographical memory and reflexivity, together with documentary and archival sources including newspapers and secondary sources. Findings The outcome reveals that the process of memory is complex. It illustrates that allowing the participant a wide scope to work with pivotal memories, which may include those referring to material objects, may lead to unexpected and compelling explanations that have the power to change thinking in regards to related aspects of educational history. In this particular case, the findings reveal the long-term impact of boarding school experience. Originality/value The paper expands the way in which educational historians may think about undertaking interviews by illustrating the need for investment of time and close attention to all memories, some of which may at first seem to be irrelevant. Additionally, while a significant amount of research had been published on the long-term impact of boarding school experience on students in the UK, a little critical historical work has been undertaken in regards to the Australian experience – this paper offers a unique contribution to the undertaking of that project.

Resource based view of internationalization: evidence from Indian commercial banks

2016 ◽  
Vol 10 (1) ◽  
pp. 41-60 ◽  
Author(s):  
Debadutta Panda ◽  
Sriharsha Reddy
Keyword(s):  
Human Resources ◽  
Commercial Bank ◽  
Commercial Banks ◽  
International Diversification ◽  
State Ownership ◽  
Growth Strategies ◽  
Resource Based View ◽  
Content Type ◽  
Secondary Sources ◽  
International Borrowing

Purpose – The purpose of this paper is to understand the influence of internal resource drivers on internationalization of commercial banks. Design/methodology/approach – Panel data on 46 Indian commercial banks from 2008 to 2012 were collected from secondary sources to measure how assets size, human resources, branding and advertising, ownership and age influence the international diversification of the commercial bank. Internationalization of the commercial bank was measured in terms of international advances intensity, international borrowing intensity and number of countries served. Regression models were designed with controlled multicolinearity, heterogeneity and exogeneity. Findings – Higher assets’ size, higher human resources, private ownership and higher organizational age led to internationalization of Indian commercial banks. However, higher branding and advertisement expenses and state ownership were found to be negatively related to international diversification. Originality/value – Internationalization is one of the growth strategies of a firm which cannot be unified and generalized due to resource heterogeneity. So this necessitates a large number of studies sector-wise, sub-sector-wise, product-wise, industry-wise and region-wise. There is a dearth of literature on resource view of internationalization of commercial banks. So, this Indian study adds a new finding on resource-based view of internationalization to the existing body of knowledge.

scholarly journals Analyzing Effect of Alternative Banking Channels on Financial Performance of Burundi Commercial Banks: Evidence from Kenya Commercial Bank in Burundi

2020 ◽  
pp. 1-11
Author(s):  
Nkeshimana Carlos ◽  
Martin Onsiro Ronald
Keyword(s):  
Financial Performance ◽  
Commercial Bank ◽  
Commercial Banks ◽  
Strong Relationship ◽  
Target Population ◽  
Internet Banking ◽  
Sample Population ◽  
Mobile Banking ◽  
Significance Level ◽  
Descriptive Survey

The study sought to assess the effect of channels of alternative banking on financial performance of Kenya Commercial Banks in Burundi. The specific objectives were: to examine the effect of mobile banking on financial performance of Kenya Commercial Bank, Burundi; to assess the effect of internet banking on financial performance of Kenya Commercial Bank, Burundi; to examine the effect of auto teller machines on financial performance of Kenya Commercial Bank, Burundi; and to assess the effect of agency banking on financial performance of Kenya Commercial Bank, Burundi. The study employed descriptive survey research design as well as correlation research designs. Based on information obtained from KCB, the target population for the study was 37 employees and 114 customers. The researcher used Slovin’s formula to define the sample population n = 60 (14 employees and 46 customers). A questionnaire was used for data collection. The data was qualitatively and quantitatively analyzed. The results of the study showed that there was a strong relationship between the different banking distribution channels and the financial performance of KCB Bank. It also found that 14.1% of the total variance in financial performance of KCB Bank could be attributed to alternative banking channels. The remaining 85.9% of the variance in financial performance could be attributed to other determinants of financial performance that were not the focus of this study. ANOVA statistics revealed that the regression model was ideal since it had a significance level of 0.0%. The study also found that mobile banking, Automated Teller Machine, agencies and Internet banking affected the performance of commercial banks in a positive and statistically significant way. The study recommends that Burundian commercial bank sought to invest heavily in alternative banking as this will lead to an improvement in banks' financial performance. The study also recommended that KCB should examine the competitive environment and determine the means to achieve the goal of interoperability, and continue to make electronic banking products available, offering various types of bank cards adapted to the needs of each client.

scholarly journals INFLUENCE OF PROJECT MANAGEMENT INFORMATION SYSTEM ON CREDIT DIGITIZATION IN COMMERCIAL BANKS IN NAIROBI, KENYA

2021 ◽  
Vol 6 (1) ◽  
pp. 12-31
Author(s):  
JEREMIAH KAMAU ◽  
Maurice Pedo
Keyword(s):  
Regression Analysis ◽  
Technology Acceptance ◽  
Commercial Banks ◽  
Survey Design ◽  
Stakeholder Management ◽  
User Involvement ◽  
Monitoring And Evaluation ◽  
Target Population ◽  
Disruptive Innovation ◽  
Unique Contribution

Purpose:  Therefore, the study sought to establish the influence of PMIS on credit digitization in commercial banks in Kenya.  Methodology: The target population for the study was the 42 commercial banks in Kenya. The study employed a descriptive survey design and was census of the 42 commercial banks head offices in Nairobi, Kenya. Data was collected by use of a structured questionnaire. The data was cleaned, coded and analyzed using a Statistical software (SPSS). The findings were presented in form of tables, charts and graphs. Descriptive statistics were deduced from the data. From this, inferential statistics were presented and associations drawn. Regression analysis was interpreted and appropriate conclusions made. Findings: The findings from regression analysis showed that expertise of the project team, end-user involvement, project risk management and project monitoring and evaluation positively and significantly influence credit digitalization in Kenyan Commercial banks.   Unique contribution to theory, practice and policy: The study was guided by the lenses of Stakeholder Management theory, Technology Acceptance Model (TAM) and the Theory of Disruptive Innovation from which the study operationalized the variables of PMIS Implementation and Credit Digitization. Banks should conduct training to all team members before commencement and during project execution. Moreover banks should involve customers in testing of projects before launching and should consider the feedback from customers

scholarly journals THE DETERMINANTS OF INTEREST RATE SPREAD AMONG COMMERCIAL BANKS IN KENYA

2017 ◽  
Vol 2 (5) ◽  
pp. 29
Author(s):  
Leah Njoroge ◽  
Mercy Warui ◽  
Catherine Mbogo ◽  
Margaret Chiera ◽  
Dr. Chogii
Keyword(s):  
Interest Rate ◽  
Interest Rates ◽  
Market Structure ◽  
Significant Relationship ◽  
Commercial Banks ◽  
Banking Sector ◽  
Unique Contribution ◽  
High Interest Rate ◽  
Interest Rate Spread ◽  
The Interest Rate

Purpose: To establish the determinants of interest rate spread among commercial banks in Kenya. Methodology: The study utilized a descriptive survey research design. Findings: The results indicated that the commercial banking sector has witnessed a gradual rise in the Interest rate spread. Results also showed that the mean of market structure has been fluctuating with year (2010) being the lowest with mean of 4 and year (2012) being the highest with mean 12. Results also showed that there was no regulation from the year (2005) to the year (2009) but it was later adopted whereas regulations shoot steadily to mean of 1.0 in the year (2009) and remained in the same level the rest of the years. The regression results indicate that there is a positive and significant relationship between market structure, credit risk and interest spread. The regression results also indicated that there is a positive but insignificant relationship between access to information and interest spread. Further, the results indicated that there is a negative and significant relationship between regulation and interest spread. Unique contribution to theory, practice and policy: The study is important to the management of Commercial banks as it will provide an insight on the factors influencing interest rate spread among commercial banks in Kenya. The results of this study will provide information to policy makers and other stakeholders in the financial sector (especially the banks) to come up with strategies that help in dealing with the high interest rate spread experience in the banking sector and thus improve on the financial performance of the organisations. It may be used as a tool for persuading commercial banks to reduce their interest rates spread and hence increase their volume of business, which of course would compensate the loss in the interest rate spread. The study will also be invaluable to the government and CBK. This is because the monetary policy framework of Central Bank of Kenya and its implementation will be guided by a need to ensure, among others: realistic interest rate spreads that encourage financial deepening and a safe, sound, efficient and competitive banking system through discreet risk management. These findings therefore might influence the effectiveness of economic policies. The research results will also be important to scholars and researchers as it will add to the existing pool of knowledge.

scholarly journals An Empirical Study on the Influence of Diversification on the Operating Cost of Commercial Banks

CONVERTER ◽  
2021 ◽  
pp. 757-770
Author(s):  
Jing He, Ke Zou, Xinyi Cai
Keyword(s):  
Strategic Alliances ◽  
Commercial Banks ◽  
Management Strategies ◽  
Operating Cost ◽  
Operating Costs ◽  
Economies Of Scope ◽  
Excessive Competition ◽  
Income Ratio ◽  
The Cost ◽  
The Impact

The majority of the literature has focused on the impact of diversification on bank performance, while the research on the impact of diversification on bank costs is inadequate. Therefore, in this paper we empirically analyzed the impact of diversification on operating costs through a panel regression model, collecting the data of 47 Chinese commercial banks from 2005 to 2015. The empirical results showed that an increase in the non-interest income ratio significantly promoted a decrease in the cost–income ratio, and the robustness tests of different time intervals and different types of banks were consistent. This suggests that diversification effectively reduced the operating costs of banks by means of the sharing of information and equipment, the reduction of asset specificity, and the improvement of operation management synergy. This also indicates that excessive competition costs and the agency costs of diversification were lower. Further analysis showed that the diversification of national banks compared with local banks was more significant in reducing operating costs, and, for the national banks, the effects of economies of scope and scale were stronger. Diversified management strategies for local banks should be carefully promoted through the construction of strategic alliances, mergers and acquisitions, etc.

Jigsaw Academy: outreaching the analytics market

2018 ◽  
Vol 14 (3) ◽  
pp. 340-361
Author(s):  
Tuhin Sengupta ◽  
Arunava Ghosh
Keyword(s):  
Strategic Alliances ◽  
Relevant Information ◽  
Primary Sources ◽  
Content Type ◽  
Chief Operating Officer ◽  
Customer Base ◽  
Secondary Sources ◽  
Challenging Situation ◽  
The Right ◽  
High Level

Synopsis In May 2016, Sarita Digumarti, Chief Operating Officer of Jigsaw Academy in Bengaluru, India, faced a challenging situation. Jigsaw Academy provided online courses in data analytics and Big Data at the beginner, intermediate and advanced levels for students as well as working professionals. It was perceived that plenty of students from premier institutions in India had a high level of theoretical knowledge about the process involved in number crunching and data analysis; however, the hands-on experience on actual business problems or actual data sets was a major limitation with these students. Given the rapid growth of the analytics sector and the limited number of academic institutions offering analytics courses, there was a lack of availability of the right skills in the analytics market. Jigsaw Academy seized this opportunity and started offering relevant courses. All efforts were made to enhance the number of students enrolling for the courses, which in turn resulted in improving its customer base. Realizing the demand of industries for employees skilled in the analytics sector, Jigsaw Academy wanted to grow its brand equity and to achieve this through business to business (B2B) collaborations and/or alliances. However, expansion through B2B has its own challenges. Given the competitive landscape of analytics market, Jigsaw Academy was wondering whether they should opt for B2B channel, and if yes, the question was related to the process of choosing potential B2B partners. Research methodology The authors have collected the data from primary sources as well as secondary sources. Primary sources include field visits and audio-recorded interviews conducted with key departmental heads in the organization. Secondary sources include data retrieved from the company website and the relevant information available about the industry with the assistance of the internet. Except the founder’s name, all other names are disguised to protect the individual’s privacy as per instructions from the founders of Jigsaw Academy. Relevant courses and levels This case can be used at the graduate or MBA level in courses such as entrepreneurship, sales and distribution management, strategic alliances and mergers.

Influence of Islamic Auto Financing Instruments on Financial Performance of Commercial Banks in Isiolo County Kenya

2021 ◽  
Vol 6 (1) ◽  
pp. 70-85
Author(s):  
Abdi Huka Halake ◽  
Dr. Nancy Rintari ◽  
Fredrick Mutea
Keyword(s):  
Financial Performance ◽  
Customer Service ◽  
Commercial Banks ◽  
Secondary Data ◽  
Unique Contribution ◽  
Validity And Reliability ◽  
Policy And Practice ◽  
Loan Officer ◽  
Loan Officers ◽  
Isiolo County

Purpose: The purpose of the study was to explore the influence of Islamic auto financing instruments on financial performance of commercial banks in Isiolo County Kenya. Methodology: This study used descriptive research design. The respondents were customer service officers and loan officers in the ten commercial banks in Isiolo County. They were be selected using census method. Data collection was done using closed-ended questionnaires and secondary data collected through analysis of report from 2017 to 2020. To ensure validity and reliability, pre-testing of questionnaires was done at Kenya Commercial Bank in Meru town. Coded data in SPSS 24.0 computer program analyzed quantitative and qualitative data using the descriptive statistics such as mean, percentage and standard deviation. Multiple regression was used to test hypothesis of the study. Tables, graphs and detailed explanations were used to present the final results of the study. Results: Options had a statistically significant relationship with financial performance. The respondents agreed that the lending terms of Islamic automobile financing have attracted diverse clients (mean of 4.78). However, in comparison with other statements, the respondents did not tally that having sharia committee in disbursing car loans had enabled clients have confidence with the automobile loans (mean of 3.83). The R value was 0.862 and R-square of 0.743. This indicated that Islamic auto financing instruments’ level of contribution towards financial performance was 74.3%. The Durbin- Watson value was 1.969. This value lied between 0 and 2 hence indicating that there was a positive correlation between auto financing instruments and financial performance. The significance value was 0.000 which was below 0.05 hence Islamic Auto financing instruments had a significant influence of financial performance. In addition, the respondents did not tally that having sharia committee in disbursing car loans had enabled clients have confidence with the automobile loans. This proved that the confidence that clients had on auto financing, was not purely on the nature and process of administration of the financing but also due to reliability. Unique contribution to theory, policy and practice: The study recommends that auto financing should be provided reliably by ensuring all client concerned are amicably handled by the banking staff. The various car loan officer should be trained on good customer service to as to ensure they sell well their products without necessarily losing new clients. The bank management should also diversify auto financing to cater for all categories of vehicles for expansion of their client base.

Co-marketing alliances in the Brazilian biofuel sector: An analysis based on strategic alliances

2013 ◽  
Vol 41 (5) ◽  
pp. 553-560
Author(s):  
P. de Mattos Fagundes ◽  
A. C. Machado Padilha ◽  
A. D. Padula
Keyword(s):  
Strategic Alliances ◽  
Marketing Alliances

INFLUENCE OF COMMERCIAL BANKS’ CAPACITY BUILDING LENDING STRATEGY ON GROWTH OF MSES IN KENYA

2017 ◽  
Vol 2 (1) ◽  
pp. 20
Author(s):  
Dr. Jane Karambu Kathuku ◽  
Dr. Patrick Karanja Ngugi ◽  
Dr. Willy Mwangi Muturi
Keyword(s):  
Capacity Building ◽  
Commercial Banks ◽  
Qualitative Data ◽  
Computer Software ◽  
Unique Contribution ◽  
Frequency Distributions ◽  
Entrepreneurial Skills ◽  
Account Managers ◽  
Training Programmes ◽  
Selection Of

Purpose: The purpose of the study was to establish the influence of commercial banks’ capacity building lending strategy on the growth of SMEs in Kenya.Methodology: The researcher used purposive sampling to select respondents. The sample size was comprised of 352 respondents. The study used questionnaires to collect data from the field. Both quantitative and qualitative data gathered was coded and analyzed using Statistical Package for Social Sciences (SPSS) computer software. Descriptive statistics was used to analyze the data in frequency distributions and percentages which were presented in tables and figures. Inferential statistics were used to analyze qualitative data.Results: The study found out that commercial banks’ capacity building have a positive and significant effect on MSEs growth. (r=0.656, p=0.001).Unique Contribution to Theory, Practice and Policy: The study recommends for commercial banks to train their employees on how to handle clientele needs. Commercial banks need to embark on major training programmes and address their efforts to professionalize SME account managers. In fact, bank staffs dealing with SMEs need a sound knowledge of entrepreneurs and their businesses in order to develop an affinity with their clients and offer them solutions adapted to their needs. The actions which banks need to take include a better selection of new account managers for SMEs. They need to look for candidates with an adequate background and experience in small business or with entrepreneurial skills, who can be flexible and sensitive to SMEs issues.

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