Digital Innovation And Organizational Performance Of Kenya Commercial Bank Branches In Nairobi City County, Kenya

Abstract

- The Kenyan banking sector is characterized by rapid changes and demanding markets and customers leading to fluctuations in performance like high non-performance of loans, reduced profits and more customer accounts going dormant or customers closing their bank accounts. These changes call on the leaders to readjust and reconfigure plans. The study focused on determining the effect of digital innovation on organizational performance of Kenya Commercial Bank Branches in Nairobi City County, Kenya. The study was grounded on technology acceptance model. The study adopted descriptive design and targeted 24 KCB branches within Nairobi City County and sample size list had 96 respondents who helped fill the semi-structured questionnaires. The response rate was 77.08% from the 74 out of 96 questionnaires were filled and returned. Results revealed that digital innovation (r=.849) positively and significantly improved performance of the KCB Bank Branches. The study established that digital innovation at (β=8.101, p<0.05) had significant effect to performance at KCB bank and 79.8% of performance in the KCB bank branches was as a result of elements of digital innovation. The study concluded that performance of the KCB bank branches in Nairobi City County depended on use of digital systems where there was alternative banking platform (internet, bank agents and