Moderating Effect of Operating Environment on the Relationship Between Big Data Technology Capability and Performance of Commercial Banks in Kenya

The banking sector is rapidly transitioning from traditional manual practices to advanced digital methods, generating significant volumes of customer data. Despite this shift, many commercial banks are struggling financially, with some even being placed under receivership due to declining performance. This study aimed to investigate how the operating environment moderates the relationship between big data technology capability and the performance of commercial banks in Kenya. In examining the moderating effect of operating environment (OE) on the connection between big data technology capacity and performance; the two-step approach postulated by Whisman and McClelland (2005) was used. Using an explanatory research approach, the study focused on all 39 commercial banks registered as of December 31, 2020. It highlights that the operating environment plays a crucial role in shaping how big data technological capabilities impact bank performance. The study recommended that policy makers and regulators of the banking sector to establish a friendly environment for commercial banks to operate in. CBK should also enact favourable regulations regarding banking that inspire commercial banks to be innovative and supply the market with state-of-the-art technology. Additionally, it is necessary to put in place updated ICT infrastructure and a solid legal framework within which commercial banks can operat

EFFECT OF INFORMATION SYSTEM USER SKILL AMONG STAFF MEMBERS AND IS INFRASTRUCTURE ON THE PERFORMANCE OF UNIVERSITIES IN NAIROBI COUNTY, KENYA

Purpose: To investigate the effects of information system user skills and IS infrastructure on performance of universities in Nairobi County, Kenya. Methodology: The study assumed a descriptive research design because it facilitated the gathering of quantifiable information that was used for statistical inference on the target group. Results: Information system user skill among staff members had significant influence on the performance of universities with frequent use of IS strongly relating; this was followed by proficiency in Microsoft office applications and ease of IS use among staff members. The results also showed that there was significance relationship between Information system infrastructure and the performance of universities. Unique contribution to theory, practice and policy: User skills remain a critical component towards adoption of IS, it is therefore recommended that IS continuous user training is entrenched within the user framework so as to increase IS up-take and enhance efficiency in its execution. This can be realized through collaborative engagements between the human resource and ICT teams in the respective universities in rolling out capacity building programs which are tailor made to meet and address specific ICT user needs. The state of IS infrastructure is pivotal in ensuring that IS services and products are relayed and availed to the user with requisite reliability and availability. It is therefore incumbent upon universities to ensure that there is a continuous improvement program on the IS infrastructure. Specific is the need to facilitate and realize computer access to all staff members; this coupled with a reliable connectivity increases user confidence levels in their interactions and use of IS solutions

Influence of ICT Capacity on Effective Utilization of ICT to Improve Organizational Performance of Learning Institutions: A Literature Review

Governments and ICT integration advocates tend to seek infrastructural investments as a panacea for the ICT needs for learning institutions, without proper plans on how they will be utilized and without clear understanding existing capacity deficits that will affect its successful implementation. The mere focus of most studies on availability of technology and what students learn through the technology has left a gap in understanding on the capacity requirements that will ensure effective utilization of the technology in order to improve the quality of educational processes in learning institutions. ICT capacity has been of particular focus by scholars in understanding the influence of teacher characteristics and capabilities on effective utilization of ICT to realize its full potential in improving efficiency and effectiveness of management, teaching and learning processes in learning institutions. This review summarizes the relevant research on the influence of ICT capacity on effective utilization of ICT to improve organizational performance of learning institutions. Specifically, the review summarizes the relevant research on teachers’ characteristics and ICT capacity and its effect on organizational performance in learning institutions. The review also discusses gaps in the literature, directions for future studies to breach the gaps and the research implications on scholars and policy makers in educational technology

Technological Factors and Performance of Roads Construction Projects in Nairobi County, Kenya

The successful construction of roads plays a pivotal role in driving Kenya’s economic development, aligning with the objectives outlined in Kenya’s Vision 2030. However, the suboptimal performance of road construction projects in Nairobi County can be attributed to the continually evolving environmental factors. Consequently, this study aimed to explore the relationship between technological factors and performance of roads construction projects in Nairobi County. The theoretical foundations guiding this study encompassed open system theory. Utilizing a positive research philosophy, the study adopted a descriptive and explanatory research design. This research focused on a target population comprising 176 concluded roads construction projects within the Nairobi Metropolitan Area, executed by the Kenya Rural Roads Authority (KERRA). The unit of analysis focused on the completed roads construction projects in Nairobi County. The unit of observation included road engineers, project planners, and directors associated with KERRA, along with road supervisors, inspectors, surveyors, contractors, and members of project implementation teams. Proportional stratified sampling was employed to determine a sample size of 253 respondents. Data collection involved the use of a structured questionnaire. The study embraced descriptive and inferential statistics. The results were presented through tables, and inferential statistics were carried out using linear regression. The study unveiled a positive and significant relationship between technological factors (t=2.270, p<0.05) with project performance. In conclusion, the study establishes a discernible relationship between technological and project performance. The research recommends that managers are urged to embrace digitization and automation, leveraging on technology to address complex technicalities before and during constructio

Revisiting earnings quality and bank efficiency among East African developing economies: do systemic banking and financial crises matter?

PurposeIn this paper, the authors investigate whether the systemic local banking crises (LBCs) and global financial crisis (GFC) impact the association between bank profit efficiency and earnings quality in developing economies.Design/methodology/approachUsing panel data spanning 29 years over the period 1991–2019 for 169 banks drawn from five East African countries, the authors perform difference-in-difference multivariate analyses using the generalised method of moments (GMM) system estimator on a sample consisting of 2,261 bank-year observations.FindingsThe results, which are robust for endogeneity and other checks, show that banks with higher profit efficiency consistently report higher quality earnings. The authors further establish that whereas systemic LBCs contribute negatively to bank earnings quality, the GFC tends to have a positive impact. These results are upheld when the joint impacts of both systemic LBCs, GFC and profit efficiency on earnings quality are considered. The positive influence of profit efficiency and GFC on earnings quality is pronounced under income-decreasing earnings management. The impacts of profit efficiency, LBCs and GFC on earnings quality appear to be non-monotonic and vary across the sampled countries.Research limitations/implicationsThe study's findings are based on banks in five developing countries within a regional economic bloc. Additional studies could focus on other economic blocs for enhanced generalisability of the findings. In addition, some of the variables examined are studied at bank-level, while other variables are at country-level. Finally, the study establishes an association between the variables of interest, and this does not necessarily imply causation.Practical implicationsThe results provide useful insights to bank regulatory and supervisory agencies on the need to exercise increased risk-based scrutiny over bank loan loss provisioning and minimum loan loss reserve requirements. From an audit perspective, auditors need to be cautious and apply an enhanced risk-based audit especially when auditing banks during and after a financial, banking or systemic crisis. Credit rating agencies need to pay closer attention to the LLPs of distressed banks. Finally, bank investors and customers should be cautious when using bank financial statements, since bank managers of poorly performing banks might engage in aggressive earnings management.Originality/valueThe study is perhaps the first to examine the joint effects of systemic LBCs on the association between bank profit efficiency and the quality of earnings in a larger dataset of banks in a developing regional economic bloc. The authors also employ the GMM system estimator in the modelling, which helps address some weaknesses in prior studies.</jats:sec

Effects of IT capability on Performance of Manufacturing Firms in Nairobi City County Kenya

Although manufacturing firms support economic development, wealth creation and poverty alleviation, a dismal performance has been reported. In Kenya, the share of gross domestic product (GDP) from manufacturing sector has remained below 10 per cent while its growth rate remained at about 5 percent in the last 10 years. This has been attributed to low innovation and technology diffusion. This study examined the effects of IT capability on firm performance. The study was anchored on Resource Based View, and Dynamic Capability Theory. Positivism philosophical approach, descriptive and explanatory research design were adopted. Using stratified and random sampling techniques, a sample of 222 manufacturing firms from Nairobi City County, was obtained. A semi-structured questionnaire was prepared and used for data collection. To ascertain reliability, Cronbach’s alpha coefficient measure of 0.875 was obtained. Research experts confirmed validity of the study instrument. The data was analysed through descriptive statistics to condense the survey data. To test hypotheses, inferential statistics was used. The results showed a positive significant effect of IT infrastructure capability (B=0.247, p=0.005 &lt; 0.05), IT personnel capability (B=0.226, p=0.044 &lt; 0.05), IT management capability (B=0.187, p=0.018 &lt; 0.05) and IT reconfiguration capability (B=0.291, p=0.001 &lt; 0.05) on performance. The study findings also exhibited a 49.2 per cent explanatory power of IT capability on firm performance. Study findings provide a framework for improving firm performance. Subsequently, firm managers should create interventions on IT capability to enhance and sustain superior firm performance.</jats:p