IJIMT 2017 Vol.8(5): 387-392 ISSN: 2010-0248
doi: 10.18178/ijimt.2017.8.5.758

The Effect of Innovation Process on the Performance of Banking Sector in East Africa Region Perspectives

Habimana Theogene, Mbalire Musa, and Mukankusi Marie Grace
Abstract— This research investigated the effect of innovation process on the performance of banking sector in East Africa on the case of KCBR. This study has the specific objectives, such as to analyze the drivers that influence financial innovation in KCB Bank Rwanda Ltd; to assess the challenges of innovation faced by KCB Bank Rwanda Ltd performance; to assess the effects of innovation on financial performance of KCB Bank Rwanda Ltd. The literature review in this research shows the theoretical reviews and other past studies done by other scholars who have written on it and it also shows the gaps which the study bridged and suggest ways of overcoming those gaps. This study shows conceptual framework which links the independent variable (innovation) to the dependent variable (banking sector performance).The research will contribute to the knowledge of innovation and its effect on banking sector performance. The research was designed under case study and used both descriptive and correlational statistics. The targeted population of the study was 324 employees of KCBR using simple random sampling approach, and then the sample size was 76 respondents determined using slovin’s formula and selected using stratified sampling technique. The researcher collected data using questionnaires. The collected data was presented using tables while statistical methods were used to ascertain the percentages and frequencies upon which analysis and interpretation was based. This research found that innovation is a key of mobilization in the large companies like KCBR. This research concluded that, there is a positive and very high correlation (relationship) between innovation and banking sector performance. The innovation KCBR influences its performance on the rate of 87.9%. This research also recommended KCBR that in order to attain sustainable performance, should focuses on corporate social responsibility, corporate image, Pressure of the form of legal regulation, Pressure resulting from globalization, Firm size, Legal protection of shareholders and Board leadership structure as the main factors that should affect its innovation structure.

Index Terms— Innovation process, performance and banking sector.

Habimana Theogene is with Jomo Kenyatta University of Agriculture and Technology, Rwanda. Mbalire Musa and Mukankusi Marie Grace are with St Lawrence University, Uganda (e-mail: mugrace1993@gmail.com).

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Cite: Habimana Theogene, Mbalire Musa, and Mukankusi Marie Grace, " The Effect of Innovation Process on the Performance of Banking Sector in East Africa Region Perspectives," International Journal of Innovation, Management and Technology vol. 8, no. 5, pp. 387-392, 2017.

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