Abstract:
Performance of commercial banks has also been a subject of interest by shareholders, investors, financial analysts, bank managers and government agencies. Financial efficiency is one of the key determinants of banks’ profitability. Despite more than two decades of financial deepening by commercial banking industry in sub-Saharan Africa, commercial banks have been recoding a decline in performance. Performance of commercial banks remains a subject of concern to researchers ever since the economic downturn in the 1940s.The study empirically analyzed the effect of e- commerce information capability on performance of commercial banks in Kenya. E-commerce information capability measured using product information, search capability and product review whereas performance was measured using ROA. The study was anchored on the Resource-Based View Theory. The study used explanatory design. A census of 43 commercial banks was taken; data for performance was extracted from audited banks statements for financial year 2016/2017. Data for e-commerce information capability was collected from commercial banks websites. Data analysis was done using descriptive and inferential statistics. The study findings indicated that e- commerce information capability had a significan effect on performance of commercial banks in Kenya. The study concluded ath e-commerce information capability significantly affected performance of commercial banks in Kneya. The study recommends that commercial banks in Kenya with unsatisfactory e- Commerce information capability should invest in modern systems to make their e-platforms customer friendly.
