The effect of information and communication technologies on the competitive advantage of multinational banks in Kenya

Abstract

Banks adopt information and communication technology to improve the efficiency and effectiveness of services offered to customers, improve business processes, as well as to enhance managerial decision making and work group collaborations. This helps strengthen their competitive positions in rapidly changing economies. The objective of this study was to determine the effect of Information and Communication technologies (ICTs) on competitive advantage of multinational banks in Kenya by establishing; the effects of information and communication technologies as marketing tools, operation tools and customer service tools on the competitive advantage of Multinational banks in Kenya. This study adopted a descriptive design because the study needed to establish the effect of ICT as a competitive advantage of multinational in Kenya. The target population of this study was 18 multinational banks as indicated in the list under the Central Bank of Kenya website because it is the population that the study considers to have adequate knowledge and accurate information about the effect of ICT as a competitive advantage of multinational banks in Kenya making the study a census survey. This study utilised primary sources of information which were gathered by use of questionnaires. This study used qualitative content analysis methodology to analyze the data collected from the questionnaires. The study concluded that the underlying argument behind the bundling of ICT and organizational performance is that it enables firms to introduce organizational changes in the areas of re-engineering, decentralization, flexible work arrangements, outsourcing, lean production, team-work and customer relations. It also allows firms to produce with greater flexibility and shortened product cycles to satisfy shifting consumer preferences. In turn, these organizational changes are essential for realizing the full benefits of ICT in every entity. The study recommended that more attention has to be directed towards the use of Information and communication Technology in banking operations since the industry serve as a lubricant to the cog of the wheel of the nations’ economy while appropriate policies must be put in place to ensure proper monitoring and the determination of the optimum size required to attain organizational efficiency.