Effects of Operational Strategies on Performance of Commercial Banks in Makueni County, Kenya

Mutunga, Mutunga; Wamitu, Susan N.

doi:10.47604/ejbsm.1623

Cited by 4 publications

(5 citation statements)

References 3 publications

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“…Furthermore, in the industrial sector, most fraud perpetrators are found in banking and financial services (ACFE, 2020a(ACFE, , 2020b. This aligns with Iminza et al (2015), who argues that fraud is more high-handed in banking than in other industries. As data published by the Financial Services Authority (OJK) that there were 57 banks indicated to commit fraud in 2017 and 36 banks in 2018 to the third quarter (Meliana & Hartono, 2019), and cases of financial statement fraud in the banking sector were the second largest (21%) after credit case (56%).…”

Section: Introductionsupporting

confidence: 86%

“…Empirically, Salhi & Boujelbene (2012) have examined the relationship between internal governance mechanisms and risk-taking in the banking industry, and Ahmad et al (2021) found a significant relationship between business operational risk and fraud. Iminza et al (2015) have found a positive but weak relationship between governance and operational risk of fraud. Meanwhile, Jaffar (2009) has found that the level of fraud risk has a positive moderating effect on the relationship between the external auditor's ability to assess fraud risk and the external auditor's ability to detect the possibility of fraud.…”

Section: Corporate Governance Operational Risk and Financial Statemen...mentioning

confidence: 99%

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Does Bank Governance Reduce Financial Statement Fraud? The Moderating Role of Operational Risk

Saraswati,

Agustina

2022

J. Keuang. dan Perbank.

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The complexity generally triggers the opportunity of fraud in operation experienced, so that it can potentially be a serious threat which has a significant loss impact for the company. This study focuses on the indications of financial statement fraud committed by commercial banks in Indonesia. The purpose of this study is to examine whether the implementation of good corporate governance can reduce fraudulent financial statements activity in banks, using the moderating role of operational risk. The population determined is all commercial banks listed on the IDX for 2016 to 2020. All 25 banks that met the specified criteria were used as research samples. The data analysis technique used the Moderated Regression Analysis (MRA) method analyzed with SPSS Software. The research findings reveal no significant relationship between Bank governance and financial statement fraud directly. However, operational risk is shown to have a moderating role in the relationship between Bank governance and financial statement fraud. In addition, operational risk also has a function as a predictor concerning fraud. Overall findings of this study are exciting because the interaction between corporate governance and operational risk can influence the company's decisions on the possibility of fraudulent financial statement activities. The benefits of this research are expected to provide input for bank management in assessing the level of corporate governance implementation and response plans for financial statement fraud actions that have a significant impact on high operational risk costs. In addition, it can provide information for regulators in supervising and evaluating regulations related to anti-fraud strategies set in commercial banks and for investors to ensure the security of their investments to increase investor confidence in banks. Finally, it suggested that further research reconsider the concept and size of the study and add new concepts to provide more determinant factors that affect fraudulent financial statements in companies.

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Section: Introductionsupporting

confidence: 86%

Section: Corporate Governance Operational Risk and Financial Statemen...mentioning

confidence: 99%

Does Bank Governance Reduce Financial Statement Fraud? The Moderating Role of Operational Risk

Saraswati,

Agustina

2022

J. Keuang. dan Perbank.

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“…In accordance to Muhammed (2016), the banking industry provides financial advisory, consulting services and transactions services to customers. In Kenya, the commercial banks are responsible for providing transaction services such as withdrawals and deposits, investment options and loan services to the citizens (Barno & Rotich, 2018). Due to globalization and evolving technologies, Kenya's commercial banks have been witnessing declining performance, increased inflation, competition and new prudential regulations (CBK, 2017).…”

Section: Statement Of the Problemmentioning

confidence: 99%

Organizational Agility and Organizational Performance of Commercial Banks in Nairobi City County, Kenya

JOHN,

RAGUI, PhD

2024

strategicjournals.com

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The business environment globally is dynamic, exerting strong influences on institutions. Strategic management has over time been characterized with variations as a result of the dynamics of organizational management. As such, it remains vital for organizations to have direct or indirect adjustment as regards to those changes posing as threats to their performance as well as survival in Kenya, the commercial banks are responsible for providing transaction services such as withdrawals and deposits, investment options and loan services to the citizens. Due to globalization and evolving technologies, banking institutions in Kenya have been faced with declining performances, increased inflation, competition and new prudential regulations. Various studies have been carried out at different geographical areas, using different methodology and different indicators. This research aims to investigate the influence of organizational agility on the efficiency of commercial banking in Kenya. Specifically, it seeks to explore the effects of innovation agility, information technology agility, and human resource agility on the organizational efficiency of Kenyan commercial banks. The study draws support from institutional, learning organization, and contingency theories. The research design employed was descriptive, and primary data were gathered through the distribution of questionnaires. The target population included 43 commercial banks operating in Kenya, with a proportional stratified sampling technique applied to three tiers. Purposive sampling was used for seven departments, and random sampling was applied to senior managers, IT managers, and HR managers. A pilot test ensured the validity and reliability of the questionnaire, incorporating content validity and Cronbach's Alpha internal consistency test. Statistical Package for Social Sciences (SPSS) facilitated the analysis of data, employing multiple regression analysis and descriptive statistics. The results, presented in tables, indicated that the three-agility metrics-Innovation Agility, Information Technology Agility, and Human Resource Agilitycould collectively predict approximately 86.8% of the variance in overall performance. Notably, Information Technology Agility demonstrated a statistically significant positive impact on organizational performance with a coefficient of 0.244. Human Resource Agility had the most substantial positive impact, reflected in a coefficient of 0.509. However, while Innovation Agility exhibited a positive coefficient with performance (0.210), it did not attain statistical significance.

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“…The results indicated that there was a positive statistically significant correlation between product differentiation and the performance of the firm. The study conducted by Maina & Kagiri (2016) focused on the effects of product differentiation strategies on organization competitiveness at East African Breweries Limited, Kenya. The findings indicated that there was a statistically significant correlation between product differentiation and organizational performance.…”

Section: Product Differentiation Strategies and Firm Performancementioning

confidence: 99%

Sustainable Firm Performance Through Product Differentiation Strategies; The Hidden Treasure of Customer Loyalty

Mwazuna

Museve

2023

EJMMS

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The study sort to establish the mediating effect of customer loyalty on the relationship between product differentiation strategies and the performance of selected edible oils manufacturing firms in Kenya. Using the Baron & Kenny (1986) four-step approach for conducting mediation analysis, the study hypothesized the relationship between product differentiation strategies and firm performance, product differentiation strategies and customer loyalty, customer loyalty and firm performance and finally the mediation relationship between product differentiation strategies, customer loyalty and firm performance. The study employed an explanatory research design and was guided by the discrete choice theory of competitive advantage and the customer loyalty business model. The target population was 535,840 of which 104 were top and middle-level employees from the sales and marketing departments of the three selected edible oils manufacturing firms and 535,736 were consumers of the products within the middle-class estates in Nairobi. A sample size of 504 respondents was used for the study. Structured questionnaires were used to collect primary data and a document analysis guide was used to collect secondary data which was then analysed using descriptive statistics, linear regression and correlation analysis. The results revealed that customer loyalty (R-square change = .028 had a p-value = .005) has a positive mediating effect on the relationship between product differentiation strategies and the performance of the selected edible oils manufacturing firms in Kenya. Article visualizations:<img src="/-counters-/soc/0071/a.php" alt="Hit counter" />

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Effects of Operational Strategies on Performance of Commercial Banks in Makueni County, Kenya

Cited by 4 publications

References 3 publications

Does Bank Governance Reduce Financial Statement Fraud? The Moderating Role of Operational Risk

Does Bank Governance Reduce Financial Statement Fraud? The Moderating Role of Operational Risk

Organizational Agility and Organizational Performance of Commercial Banks in Nairobi City County, Kenya

Sustainable Firm Performance Through Product Differentiation Strategies; The Hidden Treasure of Customer Loyalty

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