The Influence of Organizational Leadership on M-commerce Performance in Kenya’s Commercial Banks

Abstract

The purpose of this study was to determine the influence of organizational leadership on performance of mobile commerce (m-commerce), in relation to strategy implementation in Kenya’s commercial banks. The study was motivated by the fact that banks are experiencing competition from Mobile Network Operators (MNOs). In the developed countries, several mobile money payment initiatives have developed and despite promising high returns, some have either stagnated or failed. Studies indicate that traditional banks could have up to 35 percent of their revenues taken by MNOs. The study used correlation to establish the relationship between organizational leadership and m-commerce performance, Chi square test to determine association of variables and ANOVA analysis and SEM to test the hypotheses. The findings demonstrated that organizational leadership in commercial banking sector in Kenya was found to have a significant and positive relationship with m-commerce performance. The study recommends that banks need experienced people with well-developed leadership capabilities and business acumen. Bank leaders should build a strong relationship with their teams, be flexible in the current environment to support new innovations and to be seen to be the visible vision bearer of innovations in the bank.

Keywords: Organizational leadership, strategy implementation, m-commerce performance, Kenya’s Commercial Banks.