THE INFLUENCE OF ORGANIZATIONAL STRUCTURE ON M-COMMERCE PERFORMANCE IN KENYA’S COMMERCIAL BANKS
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Keywords:
Organizational Structure, Strategy Implementation, M-Commerce Performance, Kenya’s Commercial Banks.Abstract
Purpose: The purpose of the study was to explore the influence of organizational structure on Mobile-Commerce (M-Commerce) performance in Kenya’s commercial banks.
Methodology: The study adopted a positivism research philosophy and descriptive research design. The technique used was stratified random sampling. A sample of 133 managers from a target population of 200 was picked. Structured questionnaires were used to collect the required data. For data collection procedure, the researcher recruited research assistants who dropped and picked the questionnaires from the banks.
Findings The study findings indicated that, path coefficient value was 0.237, thus the relationship between organizational structure and m-commerce performance was positive and significant (t = 3.553, p =0.000). The study correlated organizational structure and m-commerce performance and found that organizational structure and m-commerce were positively and significantly related at the 0.01 level (2-tailed).
Unique Contribution to theory, practice and policy: Organizational structure is very important in enabling improved performance of m-commerce The study recommends that banks modify their structures to support strategy implementation. This result showed that m-commerce performance or growth increased with a supportive structure.
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References
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Vroom, V. H. (1964). Work and motivation. San Francisco, CA: Jossey-Bass.
Weernink, O. W. M. (2014). Strategy implementation processes of small businesses in the hospitality industry. University of Twente, The Netherlands.
Wright, P., Mukherji A., & Kroll, M. (2001). A Reexamination of Agency Theory Assumptions: Extensions and Extrapolations. The journal of Socio-Economics, 30(2001) 413-429.
Yermack, D. (1996), Higher Market Valuation of Companies with a Small Board of Directors. Journal of Financial Economics, 40(1996), 185-211.
Zaribaf, M., & Bayrami, H. (2010). An Effective Factors Pattern Affecting Implementation of Strategic Plans. Academic and Business Research Institute.
Balogun, J. (2006). Managing Change: Steering a Course between Intended Strategies and Unaticipated Outcomes. Long Range Planning, 39 (1), 29-49.
Balogun, J., Johnson, G. (2004). Organizational Restructuring and Middle Manager Sense Making, Academy of Management Journal, 47(4), 523-549.
Blahová, M. & Knápková, A. (2011). Effective Strategic Action: from Formulation to Implementation. International Conference on Economic Business and Management. (2), 61-65.
Bossidy, L., Charan, R., & Burck, C. (2002). Execution: The Discipline of Getting Things Done. New York, NY. Crown Business.
BrinkschrÖder, N. (2014). Strategy implementation: Key Factors, Challenges and Solutions. University of Twente, The Netherlands.
Cater, T., & Pucko, D. (2010). Factors of effective strategy implementation: Empirical evidence from Slovenian business practice. Journal for East European Management Studies, 15(3), 207-236.
Dalton, D.R., Daily, C.M., Ellstrand, A.E. and Johnson, J.L. (1998) Meta-Analytic Reviews of Board Composition, Leadership Structure, and Financial Performance. Strategic Management Journal, 19, 269-290.
Dawes, C. (2013). Structuring for Decisions: A Better Way to execute What Matters. Melbourne, AU: Terra Firma pty Ltd.
Dion, C., Allday, D., Lafforet, C., Derain, D., & Lahiri, G. (2007). Dangerous liaisons, Mergers and Acquisitions: The integration game, Report by Hay Group, Philadelphia, USA, Retrieved from www.haygroup.com.
Engestrom, Y. & Escalante, V (1996). Mundane Tool or Object of Affection? The Rise and Fall of the Postal Buddy, MIT Press.
Engestrom, Y. (2001). Expansive learning at work: Toward an activity theoretical reconceptualization. Journal of Learning at Work, 14(1), 133-156.
European Central Bank, (2010). Beyond ROE – How to Measure Bank Performance. Frankfurt, Germany.
Ferri, G., Kalmi, P. & Kerola, E. (2010). Organizational Structure and Performance in European Banks: A Reassessment.
Gibbons, R., 2003. Team theory, Garbage Cans, and Real Organizations: Some History and Prospects of Economic Research on Decision-Making in Organizations. Industrial and Corporate Change 12, 753–787.
Grant, R. M. 1996a. Prospering in Dynamically-Competitive Environments: Organizational Capability as Knowledge Integration. Organization Science, 7: 375-387.
Hill, C. W. L., & Jones, G. R. (2009). Theory of Strategic Management with cases, (8th Ed.), Canada: South-Western Cengage Learning.
Hitt, M. A., Ireland, D. R., & Hoskisson, R. E. (2013). Strategic Management: Competitiveness & Globalization: Concepts and Cases (10th ed..). South Western, USA: Cenveo Publisher Services.
Hrebiniak, L. G. (2006). Obstacles to effective strategy implementation. Organizational Dynamics, 35 (1), 12-31.
Hsiao, J. Weng. C. M and Shih-Chin Su. (2008). The relationship between organizational structure supply chain management, and organization performance: S study on the Semiconductor Industry. Journal of Information and Optimization Science. 29(2),217-240.
Ismail, A. I., Raduan R.C., Uli J., Abdullah H. (2011). The Relationship between Organizational Resources and Systems: An Empirical Research. Asian Social Science, 7(5), 72-80.
Kaplan, R. S., and Norton D. P. (2001). Transforming the balanced scorecard from performance measurement to strategic management. American Accounting Horizons. 15(2). 147-160.
Kaptelinin, V. (1997). Activity Theory: Basic Concepts and Applications. Electronic Publications: Tutorials extracted from http://www.signchi.org/chi97/ngs
Kostopoulos, K. C., Spanos, Y. E., & Prastacos, G., P. (2003). The Resource-Based View of the Firm and Innovation: Identification of Critical Linkages. Athens, G: Athens University of Economics and Business.
Kraaijenbrink, J., & Wijnhoven, F. (2008). Managing Heterogeneous Knowledge: A Theory of External Knowledge Integration. Knowledge Management Research & Practice, 6(4), 274-286.
Kyereboah-Coleman, A. (2007). Corporate Governance And Firm Performance In Africa: A Dynamic Panel Data Analysis. Global Corporate Governance Forum, (GCGF). University of Ghana Business School, Legon, Ghana.
Lee, S. (2008). Onwership Structure and Financial Performance: Evidence from Panel Data of South Korea. University of Utah, Department of Economics.
Longman, A. & Mullins J. (2004). Project Management: Key Tool for Implementing Strategy. Journal of Business Strategy, 25(5), 54-60.
Mang’unyi, E. E. (2011). Ownership Structure and Corporate Governance and Its Effects on Performance: A Case of Selected Banks in Kenya. International Journal of Business Administration 2(3),1-17.
Mintzberg, H., Joseph, L., James, B., Q., Sumantra, G. (2003) The strategy Process, Concepts, Contexts and Cases Pearson Education Ltd.
Neilson, Martin and powers (2008). The secrets to successful strategy execution. Harvard Business Review. 86(6), 60-70.
Olson, E. M., Slater, S. F., & Hult, T. M, (2005). The Importance of Structure and Process to Strategy Implementation, Business Horizons, (48), 47-54.
Parijat, P. & Bagga, S., (2014). Victor Vroom’s Expectancy Theory of Motivation – An Evaluation. International Research Journal of Business and Management, 7(9).
Pearce, J. & Robinson, R. (2013). Strategy Formulation and Implementation, McGraw-Hill/Irwin Publishers, (13th Ed).
Quick, L., T. (1988). Expectancy Theory in Five Simple Steps. Training and Development Journal. (42) 7, 1-30.
Saunders, M., Lewis, P., & Thornhill, A. (2009). Research Methods for Business Students, (5th Ed.), Prentice Hall.
Smith, E. E. (2011). Perceptions Regarding Strategy Implementation Tasks in Selected Industries: A South African Perspective. International Journal of Business and Commerce, 1(4), 22-45.
Stieglitz, N., & Heine, K. (2007). Innovations and the Role of Complementarities in a Strategic Theory of the Firm. Strategic Management Journal, 28: 1-15.
Strickland, J. A. & Thompson, A. A. (2007). Strategic Management: Concepts and Cases. McGraw-Hill Education (ISE Ed.).
Teece, D. J. (2007). Explicating Dynamic Capabilities: The Nature and Micro foundations of (Sustainable) Enterprise Performance. Strategic Management Journal, 28(13), 1319-1350.
Teixeira R., Koufteros, X., & Peng D. X. (2012). Organizational Structure, Integration, and Manufacturing Performance: A Conceptual Model and Propositions. Journal of Operations and Supply Chain Management 5 (1), 69-81.
Vroom, V. H. (1964). Work and motivation. San Francisco, CA: Jossey-Bass.
Weernink, O. W. M. (2014). Strategy implementation processes of small businesses in the hospitality industry. University of Twente, The Netherlands.
Wright, P., Mukherji A., & Kroll, M. (2001). A Reexamination of Agency Theory Assumptions: Extensions and Extrapolations. The journal of Socio-Economics, 30(2001) 413-429.
Yermack, D. (1996), Higher Market Valuation of Companies with a Small Board of Directors. Journal of Financial Economics, 40(1996), 185-211.
Zaribaf, M., & Bayrami, H. (2010). An Effective Factors Pattern Affecting Implementation of Strategic Plans. Academic and Business Research Institute.
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Published
2019-03-09
How to Cite
Muriu, D. D. (2019). THE INFLUENCE OF ORGANIZATIONAL STRUCTURE ON M-COMMERCE PERFORMANCE IN KENYA’S COMMERCIAL BANKS. European Journal of Business and Strategic Management, 4(2), 24 – 38. Retrieved from https://www.iprjb.org/journals/index.php/EJBSM/article/view/843
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