An investigation of factors that influence organizational transformation within the commercial banking sector in Kenya

Abstract

The study sought to establish the factors that influence organizational transformation in commercial banks in Kenya. The study was guided by the following specific objectives:- to determine the effect of changing customer preferences on organizational transformation in the commercial banks in Kenya; to determine the effect of competition on organizational transformation in the commercial banks in Kenya; and to determine the effect of technology on organizational transformation in the commercial banks in Kenya. A census was used to undertake the current research. The population of interest in this study was all the commercial banks in Kenya, whose number stood at 42 as at 30th June 2008. A census was considered for the study owing to the fact that all the commercial banks have their head offices strategically located within the Nairobi Central Business District and its environs. The study respondents from each of the banks were the heads of corporate planning or their equivalent. The survey method was used to collect data. The questionnaires were pilot tested on six randomly selected respondents before they were administered so as to ensure that the questionnaires were understood in their correct perspective, in order to meet the research objectives. The procedure that was used in collecting data was through distribution of the questionnaires by dropping and picking them from the respondents at their most convenient time that was agreeable to both parties. The data was analyzed by employing descriptive statistics. For purposes of presentation, frequency tables, percentages, standard deviations and mean scores were used. The study findings show that the factors that influence organizational transformation are customer preferences, competition and technological changes.