Quality management and performance of commercial banks in Kenya.

Abstract

This study did examine the relationship between TQM practices implementation and performance of commercial banks in Kenya. The banking sector internationally is in a condition of relentless rivalry among themselves for customers' and this effect on their performance that is profitability and financial industry market share. This competition can be credited to changes in innovation in addition to customers' turning out to be more mindful of their rights as buyers, i.e. right to get quality items and service. With a specific end goal to growth in profitability levels, TQM practices need to become a basic part of any commercial bank procedure. In this study, an investigation of all the 43 commercial banks in Kenya was done. The study depended on information gathered through an organized poll to meet the goals of the study utilizing five point Likert scale. The survey questions concentrated on the relationship between TQM practices implementation and performance of commercial banks in Kenya with the inquiries being shut finished. Subjective and quantitative procedures were used as a component of the examination of the data assembled; illustrating and relationship experiences with the guide of Statistical Package for Social Sciences (SPSS 21.0). Different relapse measurements were utilized to set up a factually huge connection between the TQM practices and performance of commercial banks' in Kenya, based on a regression model. Tables were utilized to introduce the information diagrammatically while engaging information was given as logical notes. After effects of the study demonstrates a factually irrelevant relationship between TQM practices and performance of commercial banks' in Kenya, i.e. TQM practices anticipate 12.3 % of profitability of commercial banks' and 9.7 % of market share of commercial banks' in Kenya. Performance of commercial banks in Kenya, which is being profitable and increasing their market share, could be as an after effect of different components other than TQM practices implementation. However, there are other TQM management practices that do influence organizational performance of commercial banks’ in Kenya hence the need to study those other TQM practices if they have been implemented and determine to what extent if they are statistically significant do influence the performance of commercial banks’.Further research needs also to be conducted on those additional variables apart from TQM practices that do affect performance of commercial banks’ in Kenya. The study on TQM practices influence on performance of commercial banks’ need to be expanded to cover not only commercial banks’ in Kenya but also commercial banks’ in other countries. There is also need for further studies on how TQM practices do affect the performance of other service industry sectors that is, if those service sectors have implemented TQM practices and later on a comparison drawn.