Effects of operational strategies on service delivery among commercial banks in Kenya: a case of NCBA Bank.

Abstract

In today’s dynamic environment, financial institutions are adopted technique of being competitive that is characterized by efficiency in service delivery aimed at quality and customer satisfaction. Banks have greatly strived in ensuring that it improves customers’ service level and tie their customers closer. The main objective of the study is to determine the effect of operational strategies on service delivery among commercial banks in Kenya; a case of NCBA. The specific objectives of study were to evaluate the effect of customer care/service on service delivery; to determine the effect of business processes on service delivery and to establish the effect of automation on service delivery. The study was guided by Neo-Classical Theory and Market Power and Efficiency Structure Theory. The study adopted descriptive research that was effective in establishing the relationship between the variables. The target population captured by the researcher was 67 employees of NCBA. A sample of 67 respondents obtained upon administration of census by the researcher. Data collection was primary and therefore the researcher relied on questionnaire. The study reliability was calculated using coefficient Cronbach’s alpha 0.7. To ensure that the instruments were valid, content validity was used. The collected data was analyzed with the help of Statistical Package for Social Sciences (SPSS) version 21. Percentages, means and standard deviation was used for descriptive analysis of the indicators for each variable of the study. Multiple regression analysis was done to test the hypothesis. Summary of data analysis results were presented in tables and figures. The hypothesis testing results at 0.95 significant level showed that customer care/service has a significance influence on service delivery (-0.041), while automation (-0.005) which suggested to have a negative influence on service delivery. The study therefore accepted that alternative hypothesis of bot customer care (p=0.03<0.05) and business processes (p= -0.41<0.05), which suggested that there is a statistically significant relationship between customer care and business processes. Finally, it is recommended in this study that other financial institutions should embrace operational strategies if they want to yield both short- and long-term success. The findings of the study may be useful in adding knowledge on operational strategies on service delivery. It also presumed that the study results may be useful to the NCBA Bank to make changes that will improve service delivery. The findings of study were of beneficial to financial institution and academicians.