EFFECT OF INFORMATION TECHNOLOGY CAPABILITY ON COMPETITIVE ADVANTAGE OF THE KENYAN BANKING SECTOR
Keywords:
Information Technology Capability, Commercial Bank and Competitive AdvantageAbstract
Purpose: The study sought to establish the effect of Information Technology Capability on competitive advantage of the banking sector in Kenya.
Methodology: The study is anchored on the McKinsey 7S Framework Model and the dynamic capability Theory. A positivist research philosophy was adopted for the study. Focusing on 39 operational commercial banks in Kenya, a descriptive survey design was adopted. Primary data was collected and applied in the study.
Findings: The relationship between the variables was tested using ordinary east square regression model. The study findings revealed that strategic capabilities, that is information technology capability have a positive and significant effect on competitive advantage of commercial banks in Kenya.
Unique contribution to theory, practice and policy: The study findings led to the recommendation that the commercial banks should enhance the practices that improves their strategic capabilities.
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