Modeling the Effects of E-Commerce Adoption On Business Process Management: Case Study of Commercial Banks in Kenya

Peterson Obara Magutu, Richard Nyaanga Ongeri and Haron Mwangi

University of Nairobi, School of Business, Departmant of Management Science, Nairobi – Kenya

 UKULIMA savings and Co-operative Society, Nairobi — Kenya

Agricultural Finance Cooperation, Nairobi — Kenya

Abstract

The general objective of this study was to model the effects of e-commerce adoption on business process management. This was a census study on modeling the effects of e-commerce adoption on business process management in commercial banks in Kenya. Out of the sixty (60) respondents to whom the questionnaires were administered, only forty-one (41) responded. This gave a response rate of 68.33% percent. It was found that the commercial banks in Kenya have Formalized Policy on E-Commerce and Internal Business Process Management. Also to a great extent the banks have focused their e-business activities on collaborating with business partners using ICT; provision of other on-line and e-services, including e-marketing and advertising; supply chain management using intranet; and on-line buying (internet). Lastly, e-commerce is the complete set of processes that support commercial business activities on a network. The major effects of e-commerce on banks business process management are it has improved the image of the bank; besides profit making the bank have actively engaging themselves for the good of the effective business process management.

Keywords: e-Business, Business Process Management and Commercial Banks
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