EFFECTS OF POWER DISTANCE ON ICT STRATEGIC ALIGNMENT IN KENYA’S COMMERCIAL BANKS

Abstract

Purpose: The purpose of this study was to investigate the effects of power distance on ICT strategic alignment in Kenya’s commercial banks.Methodology: The study adopted the positivism research philosophy and descriptive correlational research design. The study’s population was the 43 commercial banks registered and licensed to operate in Kenya. To select the sample, the study used Yamane (2001) to calculate a sample of 215 senior managers of commercial banks. Further, the study used purposive sampling technique to select the managers to be included in the sample. The study used primary data for analysis which was collected using self-administered questionnaires. The study used three types of data analysis methods namely, descriptive analysis, factor analysis and multiple linear regression. The results from descriptive analysis were presented in form of frequencies, percentages and graphs, while the results from regression analysis were presented in tables.Results: The findings revealed that power distance explained 55% of the changes in ICT strategy alignment in commercial banks in Kenya. Further, the results revealed that the F-Critical, F 0.05, 1, 169 was 6.635. Since F calculated, 206.773, was greater than F-Critical, F 0.05, 1, 169, 6.635, the study concluded that the model was satisfactory. In addition, the results showed that the relationship between power distance and ICT strategic alignment was negative and significant. This was supported by a beta coefficient of -0.304 and P-value of 0.000.Unique contribution to theory, practice and policy: Following the study results, it was recommended that commercial banks top management should create a working environment where employees can feel free to express their concerns. This will ensure that there is good interaction between the employees and the management. This will result to improved ICT strategy alignment.Further, the study recommended that commercial banks should review their management policy. They should consider establishing a middle power distance management system as opposed to low or high power distance extremes.