Relationship between Strategic Product Innovation and Growth of Commercial Banks in Kenya
الملخص
The growth of commercial banks is pegged on; asset quality, amount of loans disbursed, number of customers (with accounts), loan repayment rate, quantity of deposits, profitability and also branch network. However, in recent years, the banking sector has consistently been characterized by growth challenges leading to the closure of bank branches, downsizing operations and fluctuation in non-performing loans. The relationship between product innovations and the growth of commercial banks in Kenya has not yet been adequately studied. The purpose of this research was to establish how product innovation strategy affected the growth of commercial banks in Kenya. The study adopted descriptive survey design with the target population consisting of all (39) commercial banks in the country. Representatives of 39 commercial banks were selected to participate in the study as respondents since they were not sampled. Data was collected using questionnaire which was tested for validity and reliability prior to administration to the field. Data was subjected to both descriptive and inferential statistical methods with the help of SPSS software. The study found out that product innovation was a strategy that was regularly undertaken by commercial banks in Kenya. The study found that banks have started offering mobile banking products considering that majority of population and the country is connected with mobile and internet network. Karl Pearson correlation showed that there existed significant positive effect of product innovation and commercial banks growth in Kenya (p<0.05). This means that through commercial banks innovating through release of various products that meets their customer needs, they attain their growth targets. The study recommends that commercial banks should conduct customer services before launching new products and customers should receive real-time updates with respect to changes or improvements in banks product offering
التنزيلات
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الحقوق الفكرية (c) 2024 Sylvia Jelagat, Meshack Misoi, PhD, Rose Boit, PhD
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