| dc.description.abstract | Innovations drive long-term economic growth, productivity and improvement of performance yet scanty tangible information is available on the influence of technological innovations in financial services and the performance of commercial banks, with specific reference to how they influence financial inclusion. The study sought to assess the influence of technological innovations in financial services and the performance of commercial banks in Kenya. Specifically, the study sought to assess the influence of Mobile banking; Agency banking and Intelligent ATMS on the performance of commercial banks in Kenya and further sought to assess the influence of the strategic partnership with Safaricom/Mpesa on the relationship between technological innovations in financial services and performance of commercial banks. The core theory guiding the study was The Dynamic Capabilities Theory, and this was further supported by Disruptive Innovation and Financial Intermediation Theories. The study used mixed research design to facilitate drawing on the strengths of quantitative and qualitative approaches and had a target population of 10,717 strategic managers in the entire banking sector, the number being derived from the CBK supervision report of 2019. By use of Yamane formula, the study derived a sample size of 386 from the population and had a response rate of 68.9%. Primary data was collected mainly using questionnaires administered using drop and pick technique. The instrument was tested for reliability using Cronbach alpha test and gave an output of 0.885 which showed that the instrument was reliable. Content validity was established through consultation with supervisors and industry experts. Primary data was also collected using interview guide from KII. Secondary data was collected using document analysis guide as way of giving relevance to the primary data analyzed. Analysis of data was facilitated using computer supported software SPSS 21 and presented using descriptive and inferential statistics as well as thematic prose for KII. The descriptive statistics included frequency, percentages, weighted averages, mean and standard deviation. Correlation analysis results indicated that all three independent variables were positively and significantly related to the dependent variable. With Mobile banking (r= 0.794, p<0.000); Agency banking (r= 0.343, p<0.000) and Intelligent ATMs (r=0.392, p<0.000). The study carried out diagnostic tests for multicollinearity, normality and autocorrelation and found that none of these had been violated. The study then conducted a multiple linear regression and the results gave an R square of 66.4. The ANOVA results showed that Mobile banking, Agency banking and Intelligent ATMs as technological innovations in financial services together have a significant and positive combined effect on performance of commercial banks in Kenya. The regression coefficients results affirmed the same; Mobile banking (β=.702; p<.05), Agency banking (β=.144; p<.05) and Intelligent ATMs (β=.172; p<.05). The study then sought to assess the moderating influence of strategic partnership on the interaction between technological innovation and performance. Introduction of the moderator resulted in a change in the adjusted R square from 0.659 to 0.3575, a decrease of 0.3015. This implied that strategic partnership eats into the performance of commercial banks. After cross interacting strategic partnership with technological innovation construct however, the resultant adjusted R square was 0.5235. Further, the R square of 0.5590 showed that introducing strategic partnership in the model explained 55.90% of the variation in the performance of commercial banks. The study concluded that Mobile banking has the most significant influence on the performance of commercial banks; and that strategic partnership can positively influence the performance of commercial banks but in a structured manner alongside technological innovation for its beneficial influence to be derived. | en_US |