The effects of Information Communications Technology (ICT) network connectivity factors on operational performance of commercial banks in Kenya

Abstract

Operations Management is broadly divided into Manufacturing and Service Operations. Service Operations is particularly worth studying given that service firms constitute an overwhelming larger percentage of the economy of every industrialized nation and that the size of the service sector is more likely to increase than to decrease (Barnes, 2008). Within the service sector, banking industry forms a key section and as prime movers of economic life; banks occupy a significant place in every nation. Banks rely heavily on Information Communications Technology (lCT) for their operations. The main concern of Operations Management is to carry out activities in the most efficient way and do things right. To this endeavor, bank operations managers are concerned with ensuring that alI their operations are done in the right way. Connectivity being the backbone to which ICT operation rely is no exception towards this goal. Factors of connectivity, termed as ICT Connectivity factors affect the operational performance of banks. However the main problem is that little studies have been done to ascertain this relationship and to leverage on these factors so as to improve the operational performance. This study is aimed at establishing the fCT network connectivity factors and their effect on the operation performance of banks. The study uses structured questionnaires to get answers to this aim. Response is collected from the forty three registered commercial banks in Kenya and analyzed. From the analysis, it is established that there is a direct positive relationship between the ICT network connectivity factors and the operational performance of banks. Given the direct positive relationship between the ICT network connectivity factors and operational performance of banks in Kenya, the study recommends that every operational staff should be aware of the factors and ensure that the optimal mix is offered by the provider to archive the required performance goals. Further research is recommended to ascertain the effects of the fCT network connectivity factors on Collaborative Supply chains.