School of Business and Economics
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Welcome to School of Business and Economics collection.This collection contains Journal articles published by faculty affiliated to the school.
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Item Business Process Reengineering Effects on Financial Performance of Commercial Banks in Meru County, Kenya(International J ournal of Professional P ractice (IJPP), 2023-09) Jepleting, Kipkorir Janet; Mutea, Fredrick; Moguche, AbelFinancial sector is one of the fundamental dimensions of economic expansion and evolution. Financial institutions remain indispensable because of the role they play. In Africa, however, commercial banks have been reducing in number owing to tightening regulations, mergers, acquisitions, liquidations and collapses. On the same vein, Kenyan banking sector has recently encountered diverse experiences from new threats such as increasing inflationary pressure, worries about the sustainability of the public debt, a shaky economic recovery, and volatility in financial markets and devastating impact of COVID-19. Collectively, these make it difficult for the local banks to achieve optimum financial returns. The study aimed to determine how business process reengineering (BPR) affects performance of commercial banks in Meru County, Kenya. The objective was to determine effects of BPR on performance of commercial banks in Meru County. The study moored on Technology Adoption model. It employed descriptive research survey design with a target population of sixty (60) branch management staff comprising of three participants from each of the 20 commercial banks in Meru County. Additionally, the study adopted census approach and structured questionnaires to collect data. Descriptive statistics; mean and standard deviation coupled with linear regression were used to analyze data. Data was presented in tables. It was concluded that BPR enhanced financial performance of commercial banks. Further, the study recommended that commercial banks strengthen BPR to improve business operations. The study established that BPR, if effectively implemented, was a game changer to commercial banks, since it may reduce process time, simplify and streamline operations, and revamp service quality, thus increased efficiency that results into better services and products. This maximizes return on investment. Studies may be conducted to ascertain benefits and challenges of adopting BPR in commercial banks in Kenya.Item Determining the Effect of Process Innovation on Financial Performance of Deposit Taking Saving and Credit Cooperative Societies in Laikipia County, Kenya(International Journal of Finance, 2023-04) Jillo, Safia Abdi; Rintari, Nancy; Moguche, AbelPurpose: To determine the effect of process innovation on financial performance of deposit taking saving and credit cooperative societies in Laikipia County, Kenya Methodology: The study used descriptive research design to collect data from nine deposit taking Saccos in Laikipia County. Specifically, the target population were 118 respondents who included 22 departmental managers and 96 support staff selected using census method. Notably, the study collected both primary and secondary data whereby primary data was collected in form of questionnaires from departmental managers and support staff. Secondary data was collected from financial reports such as income statement, whereby various financial ratios such as return on assets, return on equity, gross profit, net profit, liquidity ratio were noted. Further, the study conducted a pilot study in Bingwa Sacco in Kirinyaga County whose managing director, 3 departmental managers and 13 technical staff took part. The study also measured reliability using Cronbach Alpha Coefficient method while face, content and construct types of validity were measured. Further, SPSS software version 24 was used to analyze and generate various statistical reports whereby, in the analysis of the questionnaire, the study examined and generated descriptive statistics such as frequency, percentage and mean. Additionally, the study generated various linear regression statistics such as model summary and ANOVA of each independent variable. Thereafter the study generated inferential statistics to test the general model. Results: The results indicated that 92(82%) strongly agreed and 16(14%) agreed on a mean of 4.75, that there were effective complaint management processes which clients used in case of dissatisfaction. Further, 74(67%) strongly agreed and 17(15%) agreed on a mean of 4.23 that cheque clearance took less time since the system was able to process it faster. That notwithstanding, 74(67%) strongly disagreed and 21(19%) disagreed on a mean of 2.23, the Sacco management had invested a lot in equipping the Sacco with good working computerized systems. In addition, 65(58%) strongly disagreed and 31(28%) disagreed on a mean of 2.29, that the Sacco had established updated system checks to facilitate less downtime during financial transactions. Additionally, R was 0.864 while R-square was 0.747 at a Durbin Watson of 1.601. This meant that process innovation predicted 74.7% on financial performance which was positively correlated d at 1.601. Further, the p-value was 0.022 which was below than 0.05 and therefore, the study rejected null hypothesis. Unique contribution to theory, policy and practice: The study concluded that Sacco’s bid to incorporate ICT to assist in financial transaction such as having enough servers and skilled staff was still low hence increased system downtimes. Consistent downtime exposed the client deposits to cyber theft since the hackers noted this weakness and used to their advantage to commit crime. Therefore, the Sacco management should invest in secure servers to protect client’s information from unauthorized access or use. This could also involve wither hiring new ICT personnel or sharpening the skills of the current ICT staff through training and development. Additionally, the Sacco staff should maintain a strict policy of ensuring that they do not issue passwords to anyone or leave their computers logged in in their absence even when there is a system failure to reduce cyber hacking. Further, the Sacco ICT management should expand their domains to ensure that there are minimal system failures to facilitate smooth flow of operations.