STRATEGIC FACTORS AFFECTING QUALITY SERVICE DELIVERY IN KENYA: A SURVEY OF COMMERCIAL BANKS IN UASIN GISHU COUNTY

Abstract

Service delivery in banking institution is usually influenced by a number of environmental aspects that require managers to formulate sustainable remedies. The competition found in the banking sectors makes quality service delivery as a complex endeavor. Inadequate management of strategic factors as reported by the banking authority in has led to several banking institutions in the country experiencing a decline in profitability about 6% of them have closed down their operations. The aim of this project was to establish the strategic factors affecting quality service delivery : a survey of commercial bank branches in Kenya. The research objectives were as follows: to establish the effect of digital banking on quality service delivery: a survey of commercial bank branches in Kenya, to determine the effect of staff competency on quality service delivery: a survey of commercial bank branches in Kenya, to assess the effect of operational costs on quality service delivery: a survey of commercial bank branches in Kenya and to evaluate the effect of government banking policies and regulations on quality service delivery: a survey of commercial bank branches in Kenya. The research was guided by the new public management theory, Total Quality Model (TQM). The research did employ a descriptive and correlational research design where registered commercial banks found in Uasin Gishu did provide the target population. These included 104 managers of selected commercial banks. Primary data was used and was analyzed using descriptive and inferential statistics. Digital banking and quality service delivery have a positive significant close relationship, r=0.653. The t=0.649, p<0.05, show there is significant relationship between digital baking and quality service delivery. A positive close relationship was found between staff competency and quality service delivery, r=0.607. The t=5.644, p<0.05, shows that there is significant relationship between staff competency and quality service delivery. A positive close relationship exists between operational costs and quality service delivery, r=0.615. The t=1.752, p<0.05, shows that there is also a relationship between operational costs and quality service delivery. A positive relationship exists between government policies and regulations and quality service delivery, r= 0.748. The t=0.941, p<0.05, shows there is a relationship between operational costs and quality service delivery. The research concludes that strategic factors have a significant influence on quality of service delivered where as digital banking and staff competency are the most outstanding factors of the others in quality service delivery with other factors contributing to their measurability. Organizations providing service delivery need to conduct market surveys and researches to aid develop strategies managing dynamic strategic factors.