SERVICE OPERATIONS DESIGN PRACTICES AND CUSTOMER SATISFACTION AMONG COMMERCIAL BANKS IN KENYA

Nderimo Christine Wambui, Harrison Njagi Benson, Okong’o Pauline Abuto, Shikuku Chrispin Wanyonyi, Lena Mutende, PhD Peterson Obara Magutu, Richard Nyaanga Ongeri, PhD Richard Bitange Nyaoga and Michael Nyamwamu Onyancha
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Nderimo Christine Wambui: Department of Management Science, School of Business, University of Nairobi, Nairobi, Kenya
Harrison Njagi Benson: Department of Management Science, School of Business, University of Nairobi, Nairobi, Kenya
Okong’o Pauline Abuto: Department of Management Science, School of Business, University of Nairobi, Nairobi, Kenya
Shikuku Chrispin Wanyonyi: Department of Management Science, School of Business, University of Nairobi, Nairobi, Kenya
Lena Mutende: Department of Management Science, School of Business, University of Nairobi, Nairobi, Kenya
PhD Peterson Obara Magutu: Senior Lecturer, Department of Management Science, School of Business - University of Nairobi, Nairobi, Kenya
Richard Nyaanga Ongeri: Department of Management Science, School of Business, University of Nairobi, Nairobi, Kenya
PhD Richard Bitange Nyaoga: Senior Lecturer, Department of Management Science, Faculty of Commerce – Egerton University, Nairobi, Kenya
Michael Nyamwamu Onyancha: Department of Management Science, School of Business, University of Nairobi, Nairobi, Kenya

Noble International Journal of Business and Management Research, 2020, vol. 4, issue 10, 95-110

Abstract: Services operation design practices among commercial banks have grown to contribute immensely to the performance of commercial banks of not only developed countries but also the developing countries. Over the last decade, the contribution of the performance of commercial banks is attributable to services operation design practices which has continued to grow in many countries and accounts for more than 60 percent of the world’s output today. The main objective of this study was to determine the service operations design practices commonly used by Commercial Banks in Kenya and to establish the relationship between service operations design and customer satisfaction. The study population was 15 commercial banks in Kenya and the sample size was 60 employees from the selected banks. To achieve the research objective, primary data was used which was collected through a closed ended questionnaire. The data was then analyzed using SPSS version 20. The study established that all service operations design practices which are: Service Selection and Design, Selection and Design of the service delivery system, Capacity design, service facility location, service facility design and layout and service operations design in supply chain affects customer satisfaction at a score of more than 50% revealing a positive relationship between service operation design practices and customer satisfaction , from the regression analysis the study revealed a positive but insignificant relationship between service operation design practices and customer satisfaction among commercial banks in Kenya. The study further revealed that commercial banks in Kenya have adopted Service operation design practices. The study recommends that banks should pay more attention on the service operation design in supply chain since it had low score in customer satisfaction. Further the study recommends that in order to enhance service delivery in the Kenya Commercial Banks, all service operation design practices should be taken seriously by operations department and banks Managers so that the performance of the service to their clients is accomplished through seamless ,flexible and efficient processes aiming at increased profitability , customer retention , acquiring new customers through referrals and overall excellent customer experience.

Keywords: Service Operations; Design Practices; Customer Satisfaction; Commercial Banks and Kenya (search for similar items in EconPapers)
Date: 2020
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