Influence of Capacity for Change on Electronic Commerce Strategy as Adopted by Commercial Banks in Kenya

Abstract

The ease of doing business in Kenya remains weak, and the rapid development of information and technology is shaking the foundation of banking industry. The competition is cut throat, and the commercial banks have generally adopted the use of e-commerce products and services in their delivery of services to customers. The main objective of this study was to analyze the influence of organizational capacity for change on e-commerce strategy as adopted by commercial banks in Kenya. The general objective was operationalised by in-depth study of the following constructs; adaptability and flexibility, change management capability, and change culture. The study employed a descriptive survey research design. Self-administered questionnaire was distributed to management, supervisors, clerical and secretariat, and support staff randomly selected from the commercial banks that are sample respondent. The target population was 36,923, and the sample size of 384. The scope of the study targets was 43 commercial banks in Kenya. The quantitative data was analyzed by the use of statistical package for social scientists (SPSS). Result from the research findings indicates that organizational capacity for change influences electronic commerce strategy as adopted by commercial banks in Kenya in different directions and magnitude: adaptability and flexibility by 0.241, change management capability by 0.164 and culture by 0.021. Banks that embrace capacity for change have a higher level of Electronic Commerce strategy adoption. However, Adaptability and Flexibility has impact on electronic commerce adoption strategy, and we can say that banks that embraces adaptability and flexibility have a higher level of Electronic Commerce strategy adoption. The study recommends for improvement in levels of adaptability and flexibility in order to achieve a higher electronic commerce strategy adoption for competitive advantage. The study recommends remodeling of change management capability in a manner that strategically fit to organizational overall strategy. The study recommends remodeling of change culture to positively respond to the organizational strategy. Further studies should consider exploring the same study on non -commercial banks so as to support the generalization of the findings. Future studies can also focus on why change management capability, and change culture have very minimal influence electronic commerce strategy as adopted by commercial banks in Kenya.