IDEAS home Printed from https://ideas.repec.org/a/nap/nijbmr/2019p10-24.html

Information Systems Outsourcing Drivers And Service Delivery Of Commercial Banks In Kenya

Author

Listed:
  • Mohamed Dahir Mohamed

    (Department of Management Science, University of Nairobi, Nairobi, Kenya)

  • Halima Hassan Mohamed

    (Department of Management Science, University of Nairobi, Nairobi, Kenya)

  • Abdiqathar Ahmed Jama

    (Department of Management Science, University of Nairobi, Nairobi, Kenya)

  • Christine Achot

    (Department of Management Science, University of Nairobi, Nairobi, Kenya)

  • Halima Abdi Dibit

    (Department of Management Science, University of Nairobi, Nairobi, Kenya)

  • Peterson Obara Magutu

    (Department of Management Science, University of Nairobi, Nairobi, Kenya)

  • Richard Bitange Nyaoga

    (Department of Management Science, University of Nairobi, Nairobi, Kenya)

Abstract

Information system is key in the operations of commercial banks. The study was aimed at establishing IS outsourcing drivers and service delivery of commercial banks in Kenya. It was specifically aimed to establish ways that need for quality, cost, flexibility, access to technology and risk of obsolesce drives firms to adopt IS outsourcing drivers of commercial banks in Kenya. The study used descriptive research design in its methodology. The study was guided by Resource based view Theory and transactional cost theory. The study used primary data which was collected and was affected by use of structured questionnaires. Head of departments and the equivalents were the targeted population from the 44 commercial banks Kenya. These questionnaires were issued through drop and pick method, coded, keyed and analyzed using both descriptive and regression analysis. Information system outsourcing drivers which were cost, quality, flexibility, need to reduce obsolesce and access technology was the independent variables while service delivery was the dependent variable which was measured by number of new accounts opened, customer satisfaction, timeliness in service delivery. The study findings on objective one on the IS outsourcing drivers indicated that to a great extent cost was a driver of IS outsourcing as indicated by a mean value of 4.0, Flexibility to a moderate extent as indicated by a mean value of 3.7, focus on strategic issues indicated a mean of 3.8, access to technology indicated a mean value of 3.6, reduce risk of obsolesce to a moderate extent:3.6 and quality to a moderate extent:3.7. This indicated that to a moderate to a large extent all the IS outsourcing drivers had been implemented as IS outsourcing drivers of commercial banks in Kenya. The findings on objective two on the effect of IS outsourcing drivers on service delivery indicated that IS outsourcing drivers have a positive impact on service delivery of commercial banks in Kenya. 60 percent of variations in service delivery in commercial banks was affected by IS outsourcing drivers. The major limitation of the study is that it was based on commercial banks only. Other future academicians should research on IS outsourcing drivers in other firms. There is need to study on IS outsourcing drivers and performance of other sectors other than commercial banks.

Suggested Citation

  • Mohamed Dahir Mohamed & Halima Hassan Mohamed & Abdiqathar Ahmed Jama & Christine Achot & Halima Abdi Dibit & Peterson Obara Magutu & Richard Bitange Nyaoga, 2019. "Information Systems Outsourcing Drivers And Service Delivery Of Commercial Banks In Kenya," Noble International Journal of Business and Management Research, Noble Academic Publsiher, vol. 3(1), pages 10-24, January.
    • Handle: RePEc:nap:nijbmr:2019:p:10-24
    as

    Download full text from publisher

    File URL: https://www.napublisher.org/pdf-files/NIJBMR-514-10-24.pdf
    Download Restriction: no
    File URL: https://www.napublisher.org/?ic=journal&journal=8&month=01-2019&issue=1&volume=3
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Kesten C. Green & J. Scott Armstrong, 2005. "Competitor-oriented Objectives: The Myth of Market Share," Monash Econometrics and Business Statistics Working Papers 17/05, Monash University, Department of Econometrics and Business Statistics.
    2. Rudy Hirschheim, 2006. "Offshore Outsourcing: Challenge to the Information Systems Discipline," Springer Books, in: Rudy Hirschheim & Armin Heinzl & Jens Dibbern (ed.), Information Systems Outsourcing, edition 2, pages 687-699, Springer.
    3. Abraham, Katharine G & Taylor, Susan K, 1996. "Firms' Use of Outside Contractors: Theory and Evidence," Journal of Labor Economics, University of Chicago Press, vol. 14(3), pages 394-424, July.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. John S. Heywood & W.S. Siebert & Xiangdong Wei, 2011. "Estimating the Use of Agency Workers: Can Family-Friendly Practices Reduce Their Use?," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 50(3), pages 535-564, July.
    2. Dermot Leahy & Catia Montagna, 2006. "'Make-or-Buy' in International Oligopoly and the Role of Competitive Pressure," Dundee Discussion Papers in Economics 197, Economic Studies, University of Dundee.
    3. James Spletzer & Elizabeth Weber Handwerker, 2015. "The Role of Establishments and the Concentration of Occupations in Wage Inequality," Working Papers id:7427, eSocialSciences.
    4. Patrick Francois & Joanne Roberts, 2003. "Contracting Productivity Growth," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 70(1), pages 59-85.
    5. Pol Antras & Elhanan Helpman, 2004. "Global Sourcing," Journal of Political Economy, University of Chicago Press, vol. 112(3), pages 552-580, June.
    6. Chen, Fenglan & Chen, Xing, 2025. "Mitigating pollution emissions of manufacturing firms: Does input servitization matter? Empirical evidence from China," Energy, Elsevier, vol. 320(C).
    7. Niquidet, Kurt & O'Kelly, Glen, 2010. "Forest-mill integration: A transaction cost perspective," Forest Policy and Economics, Elsevier, vol. 12(3), pages 207-212, March.
    8. Garcia, Angel & Jaumandreu, Jordi & Rodriguez, Cesar, 2004. "Innovation and jobs: evidence from manufacturing firms," MPRA Paper 1204, University Library of Munich, Germany.
    9. repec:diw:diwwpp:dp309 is not listed on IDEAS
    10. Giuseppe Bognetti & Michele Santoni, 2010. "Can domestic unions gain from offshoring?," Journal of Economics, Springer, vol. 100(1), pages 51-67, May.
    11. Marcello Estevao & Saul Lach, 1999. "Measuring temporary labor outsourcing in U.S. manufacturing," Finance and Economics Discussion Series 1999-57, Board of Governors of the Federal Reserve System (U.S.).
    12. Henderson, Vernon & Lee, Todd & Lee, Yung Joon, 2001. "Scale Externalities in Korea," Journal of Urban Economics, Elsevier, vol. 49(3), pages 479-504, May.
    13. Francesco Devicienti & Paolo Naticchioni & Andrea Ricci, 2018. "Temporary Employment, Demand Volatility, and Unions: Firm-Level Evidence," ILR Review, Cornell University, ILR School, vol. 71(1), pages 174-207, January.
    14. McCarthy, Ian & Anagnostou, Angela, 2004. "The impact of outsourcing on the transaction costs and boundaries of manufacturing," International Journal of Production Economics, Elsevier, vol. 88(1), pages 61-71, March.
    15. Dr. S.K. Khatik & Dr. G.S. Khanooja, 2013. "Cost Effectiveness of Vehicles by Outsourcing A Case Study of City Circle Bhopal, M.P.M.K.V.V.Co.Ltd," Indian Journal of Commerce and Management Studies, Educational Research Multimedia & Publications,India, vol. 4(2), pages 37-43, May.
    16. Yolanda Kodrzycki, 1994. "Privatization of local public services: lessons for New England," New England Economic Review, Federal Reserve Bank of Boston, issue May, pages 31-46.
    17. René Böheim & Martina Zweimüller, 2009. "The employment of temporary agency workers in the UK – with or against the trade unions?," Economics working papers 2009-12, Department of Economics, Johannes Kepler University Linz, Austria.
    18. Mariagiovanna Baccara, 2007. "Outsourcing, information leakage, and consulting firms," RAND Journal of Economics, RAND Corporation, vol. 38(1), pages 269-289, March.
    19. Christopher L. House & Jing Zhang, 2012. "Layoffs, Lemons and Temps," NBER Working Papers 17962, National Bureau of Economic Research, Inc.
    20. Tracy Anderson & Matthew Bidwell, 2019. "Outside Insiders: Understanding the Role of Contracting in the Careers of Managerial Workers," Organization Science, INFORMS, vol. 30(5), pages 1000-1029, September.
    21. Christopher Johann Kurz, 2006. "Outstanding Outsourcers: A Firm- and Plant-Level Analysis of Production Sharing," Working Papers 06-02, Center for Economic Studies, U.S. Census Bureau.

    More about this item

    Keywords

    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:nap:nijbmr:2019:p:10-24. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Managing Editor The email address of this maintainer does not seem to be valid anymore. Please ask Managing Editor to update the entry or send us the correct address (email available below). General contact details of provider: https://www.napublisher.org/?ic=journal&journal=8&info=aims .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.