INFLUENCE OF INFORMATION TECHNOLOGY APPLICATIONS CAPABILITY ON FIRM PERFORMANCE IN MICROFINANCE BANKS IN KENYA

Abstract

This study examined the influence of information technology applications capability on firm performance in microfinance banks in Kenya. The study was guided by dynamic capability theory. The study employed a descriptive research design and inferential statistics. The research targeted 111 branch managers in all the 13 microfinance banks in Kenya as registered by Central Bank of Kenya (2022). Primary data was collected by use of questionnaires while secondary data was collected from journals, books, and relevant online sources. The questionnaires were dropped and picked to give the respondents enough time to respond, and clarity provided in areas where the respondents found it difficult to comprehend the questions. The questionnaire content was checked to ensure completeness and accuracy. The researcher used the statistical package for social sciences (SPSS) version 25.0 to analyse the data. The study used frequency tables to present the data in numerical values with the mean, standard deviation, percentages, and normal flow frequencies. The findings revealed that information technology applications capability translate to improved firm performance in microfinance banks. Therefore, emphasizing that information technology applications capability has the potential of increasing firm performance in microfinance banks in Kenya. The study, therefore, recommended that the customer relations application needs to be well emphasized so as to improve the effect on firm performance.