Influence of Organizational Restructuring on E-Commerce Strategy as Adopted by Commercial Banks in Kenya

Abstract

The business community worldwide is faced with different challenges brought about by high competition due to globalization and liberization of markets. Profitability has reduced tremendously especially on the dry cell battery manufacturers in Kenya. Minimal studies have been carried out to solve this challenge and that informs the reason for this study. The main objective of this study was to analyze the influence of organizational restructuring on e-commerce strategy as adopted by commercial banks in Kenya. The general objective was operationalise by in-depth study of the following constructs; layers and span of control, organization cost efficiency, and organization structure. 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 layers and span of control and cost efficiency has significant influence in e-commerce strategy as adopted by commercial banks in Kenya. The study also established that organization structure as it is having no significant influence on e-commerce strategy as adopted by commercial banks in Kenya.  The study concluded that the banks cannot possibly adopt e-commerce strategy effectively without restructuring. The study recommended among others, restructuring especially by ensuring stronger management support for service off-shoring, out sourcing, and decentralized decision making.