RELATIONSHIP BETWEEN INNOVATION MANAGEMENT AND PERFORMANCE OF LISTED COMMERCIAL BANKS IN KENYA

Abstract

The main objective of the study was to establish the relationship between innovation management and performance of listed commercial banks in Kenya. The research design was descriptive survey. The study targeted employees at managerial positions in listed commercial banks in Nairobi County. The study was a census study from all the 33 respondents in the study. Questionnaire was used to source primary data. The source of secondary data was financial results of the listed commercial banks. Descriptive statistics and inferential statistics were applied in analyzing quantitative data using SPSS version 23. Analysis of the association between innovation management and performance of listed commercial banks in Kenya was determined by performing multiple regressions . The study found that product innovation significantly and positively related with performance of Kenya’s commercial banks; process innovation significantly and positively related with performance of Kenya’s commercial banks; marketing innovation significantly and positively related with performance of Kenya’s commercial banks; and Customer Relations Management innovation significantly and positively related with performance of Kenya’s commercial banks. The study recommended that banks’ management and stakeholders should embrace product innovation, process innovation, marketing innovation and customer relations management innovation in their organization’s operations through adoption and support of modern technology in their service delivery; this will increase the banks performance. The government ought to offer incentives for Research and Development to research scientists who endeavour to put in their time resource and skills to invent additional bank innovations. Further, it’s suggested that the government should implement a policy to offer incentives towards technological expertise transfer from more developed countries so as to encourage the implementation of international inventions. Keyword: Agency Banking, Automated teller machine, Customer relationship, Digital Branding, Innovation management, Internet banking, Marketing innovation, Mobile banking, Product innovation and Social Media Marketing. CITATION: Omaido, A. A., & Deya, J. (2019). Relationship between innovation management and performance of listed commercial banks in Kenya. The Strategic Journal of Business & Change Management, 6 (2), 1284 –1298.