16 Scope of the research The research mainly intended to focus on the effects

16 scope of the research the research mainly intended

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1.6 Scope of the research The research mainly intended to focus on the effects of mobile banking on the financial performance of Kenya Commercial Bank Kerugoya. Questionnaires aided the data collection process. Kenya Commercial Bank is among the leading commercial banks in mobile banking usage this is evident by the introduction of KCB mobi bank and KCB Mpesa. This study focused on Kenya Commercial Bank Kerugoya because of the geographical mobility. 1.7 limitation of the study A limitation was regarded in this study and made the researcher getting either inadequate information or if otherwise the response given would have been totally different from what the researcher expected. They included Time constrain, the uptake of mobile banking is as a result of many factors which may not be studied, the study was limited to the effects of mobile banking on the financial performance of commercial banks in Kirinyaga County. This was due to the limited time that was used by the researcher while conducting research. The researcher also had the challenge of inadequate finances particularly during printing, internet services and for traveling to the field to collect of data about the study. However with all this limitations the researcher faced, the researcher received a lot of support from friends, family and the supervisor which enabled the researcher to cope with them. 6
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CHAPTER TWO LITERATURE REVIEW 2 .1 Introduction This chapter presents the literature review which covers the theoretical review, conceptual framework and empirical literature that was carried out to investigate the effects of mobile banking on the financial performance of commercial banks in Kirinyaga County. 2.2 Theoretical review This section reviewed theories that were a guide to the study. It reviewed diffusion of innovation theory which examines how ideas are spread among group of people. It also reviewed market power theory that states that increased external market forces results into market power. This section also reviews the efficiency structure theory which is estimated under x-efficiency and scale efficiency. X-efficiency states that when the price is lower the firms have the ability to get more profits and such firms are likely to increase large market share because of its comparatively lower prices. Scale-efficiency emphasize on economies of scale rather than looking at the perspective of production technology or management. 2.2.1 Diffusion of innovation theory (DIT) Innovation is a new idea, device or method while diffusion is the method by which a new idea or new product is spread through certain population. The diffusion of innovation theory put forward by Rogers in 1962 is a well-known theory that explains how an innovation is spread among users overtime (Liu &Li, 2009). It also helps to recognize customer’s behaviour in the adoption or non-adoption of an innovation (Vaugh and Schavione, 2010).Rogers states that diffusion is a method by which innovation is communicated in social system to certain population over time.
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  • Fall '15
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