Effects of Technology Adoption on Strategic Change Management in The Banking Sector: A Case of Equity Bank, Kenya.

Abstract

Technology adoption is both a triggering and facilitating agent of strategic change as it continually shapes human interaction at all levels. Managing the strategic changes and effects resulting from adopting technology becomes critical considering the two third failure rate of all initiated strategic changes. The banking sector is highly dynamic and technology adoption plays a vital role in shaping it. This study sought to establish the effects adoption of technology has on strategic change management at Equity Bank headquarters, Kenya. The objectives were to establish the technologies adopted at Equity Bank; to establish the strategies used for managing change at Equity Bank and to establish the effects oftechnology adoption on strategic change management at Equity Bank, Kenya. The theory used was a hybrid of United Theory of Acceptance and Use of Technology, Social Cognitive theory and Kotter's 8 step .Model. The research design was descriptive primary data was collected using questionnaires. The analyzed data was presented in central tendencies tables, pie chart and Pearson's Coefficient. The findings indicated technology was adopted at the bank as supported by an average of 75.9 % (63) of the respondents and over 60.2% (50) of the respondents agreed there are strategic change management processes at the bank. There was a positive correlation noted between the adopted technology and strategic change management with the strongest being automated processes on restructuring at 0.518. The conclusion was that adoption of technology has resulted in strategic changes being implemented at the bank with some technologies resulting in higher strategic change management being felt at the bank than others. Based on the findings, the study recommends that Equity bank should identify strategic areas they desire to change chose appropriate technology to achieve a planned end.