Effect of Business Intelligence Infrastructure Capabilities on Performance of Commercial Banks in Kenya

Abstract

Besides promoting economic progress and national development, performance of commercial banks is vital in order to reward shareholders for their investment. The Kenyan banking sector has continuously invested in business intelligence capability with most banks' management justifying the investment to achieve the expected growth and improved efficiency in operations from use of data. This study focused on investigating business intelligence infrastructure capabilities on performance of commercial banks in Kenya. The study was anchored on  Resource-Based View  Theory. An explanatory non-experimental design was employed to conduct a census involving the 43 commercial banks in Kenya. The heads of IT, Operations Managers and Credit Managers of the commercial banks were the respondents. Both primary and secondary data were applied. A semi-structured questionnaire was used to gather primary data whereas secondary data was gathered from banks audited financial statements using data collection sheet. Descriptive and inferential statistics were applied for analysis. Means, standard deviation and frequencies were used. Ordinary least squares model was also used in analysis. The study results were relayed in charts, graphs and tables. The study concludes that business intelligence infrastructure capabilities have a positive effect on bank performance. It was recommended that the leadership of commercial banks should embrace business intelligence infrastructure capabilities to augment performance.