EFFECTS OF QUALITY OF BANK PRODUCTS AND SERVICES ON THE PERFORMANCE OF COMMERCIAL BANKS IN MAKUENI COUNTY
DOI:
https://doi.org/10.47604/ijfa.1092Keywords:
Quality, Bank Products and Services, Performance of Commercial Banks, Makueni CountyAbstract
Purpose: The main purpose of this study was to determine the effect of enhanced quality of bank products and services on the performance of commercial banks in Makueni County.
Methodology: This study adopted a descriptive research design. The target population was all the 219 employees from the commercial bank branches in Makueni County from which 130 study participants were sampled; 65 bank managers and 65 assistant managers. A questionnaire was designed, piloted and used to collect data from the study participants. All necessary ethical issues were considered during and after data collection process. Statistical Package for Social Scientists Version 21 was used in data analysis to generate both descriptive and inferential statistics.
Findings: There was a positive relationship between the quality of services and products and performance of commercial banks in Makueni County. The regression results also revealed that quality of products and services had a significant influence on the performance of commercial banks at p = 0.015.
Unique contributions to theory, practice and policy: The quality of bank services and products is a major determinant of the performance of commercial banks in the area of study. The findings were similar to those of another study carried out by Odeny (2016). Since contingency theory argues that there is no single best approach in the management of institutions, the study recommends that continuous research is necessary in commercial banks to establish areas of service and product improvement for their continued high performance.
Downloads
References
CBK. (2018). Annual Supervision Report, 2018. Nairobi: Central Bank of Kenya.
Coyle-Shapiro, Jacqueline, A. & Parzefall, M. (Ed.). (2008). Psychological contracts. London, UK. : SAGE Publications.
Dimitriu, D. (2012). Customers Categories and Types of Banking Services. Annals of the University of Petrosani, Economics, 12(2), 7.
Elsinger, H., Lehar, A., & Summer, M. (2010). Risk Assessment for Banking Systems. Journal of Management Science, 52(9), 13.
Eshghi, A., Roy S., & Ganguli, S. . (2008). Service Quality and Customer Satisfaction; An Empirical Investigation In India Mobile Telecommunication Services. Marketing Management Journal., 18(2), 25.
Lawrence, J. (2012). Technological Change Financial Innovation and Financial Regulation in the US: The Challenges for Public Policy. http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.155.1655
M.Bhole, L. (2009). Financial Institutions and Markets; Structure, Growth and Innovations. Vol. 5.
Mosongo, E., Gichana, I., Ithai, J., & Nguta, M. (2013). Financial Innovation and Financial Performance: A Case of SACCOs in Nairobi County. International Journal of Research in Management, 3(2), 7.
Nguru, F., Ombui, K., & Iravo, M. (2016). Effects of Marketing Strategies on the Performance of Equity Bank. International Journal of Scientific and Research Publications, 6(10), 8.
Njoroge, P. (2017a). Bank Supervision Annual Report 2017. Nairobi, Kenya: Central Bank of Kenya.
Njoroge, P. (2017b, January, 2017). Interest Rate. , The East African. Retrieved from http://www.eastafrican.co.ke
Odeny, B. (2016). The Influence of Service Quality on Performance of Barclays Bank of Kenya Limited. (MBA), University of Nairobi, Nairobi.
Onditi, A., Oginda, M., Ochieng, I., & Oso, W. (2012). Implications Of Service Quality On Customer Loyalty In The Banking Sector. International Journal of Business and Social Science, 3(21), 11.
Sheelah, Kolhatkar &. (2018). McKinsey's Work for Saudi Arabia Highlights its History of Unsavory Entanglements. The New Yorker.
Shipho, T. (2011). Effects of Banking Sectorial Factors on the Profitability of Commercial Banks in Kenya. Economics and Finance Review, 5(1), 30.
Solans, E. (2013). Financial Innovation and Monetary Policy. . Paper presented at the 38th SEACAN Governors Conference and 22nd Meeting of the SEACAN Board of Governors on Structural Change and Growth Prospects in Aisa-Challenges to Central Banking, Manila.
Downloads
Published
How to Cite
Issue
Section
License
Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution (CC-BY) 4.0 License that allows others to share the work with an acknowledgment of the work’s authorship and initial publication in this journal.
